Default Management
As a Freddie Mac Servicer, you have access to this full suite of robust default management applications that will help you work as effectively and efficiently as possible with defaulted borrowers.
- Default Reporting ManagerSM – Access electronic default reporting and foreclosure sale reports to help identify and correct reporting errors. Effectively monitor, validate, and update your delinquency and foreclosure sale reporting processes.
- Expense ManagerSM – Leverage daily electronic status reports to research your default management expense reimbursement requests.
- Incentive ManagerSM – Track your workout and foreclosure timeline incentive payments as they are earned or accrue over a calendar year.
- Timeline ManagerSM – Identify mortgages that require immediate action. Generate aging reports that contain loan-level detail on mortgages that are approaching or past our timeline standards for each stage of the delinquency management process.
- EarlyIndicator® – Focus on mortgages that pose the greatest risk of default by using the industry's premier default scoring tool to prioritize your monthly call campaigns and loss mitigation activity.
- Workout Manager® – Identify potential problems sooner and take quick corrective action to increase the probability of a successful and prompt workout.
- Workout Prospector® – Select the most viable foreclosure alternative for your borrowers' unique circumstances by analyzing and structuring alternatives such as loan modifications, short sales or deeds-in-lieu of foreclosure.
- REO Manager® – Review the status of properties in your REO portfolio, and easily connect to important daily data on mortgage insurance claims and expense reimbursement claims.
Help Borrowers in Default
As the market and servicing landscape continue to change, you play an increasingly critical role helping borrowers succeed as long-term homeowners.
- Home Affordable Modification Program. This alternative to foreclosure is part of the federal Making Home Affordable Plan that is being implemented by Freddie Mac and Fannie Mae. This program offers a simplified process and uniform documents to allow you to help more at-risk borrowers.
- Home Affordable Foreclosure Alternatives initiative. This foreclosure alternative strives to help borrowers with mortgages owned by Freddie Mac who do not qualify for or complete HAMP or other home retention options under Single-Family Seller/Servicer Guide Chapter B65 transition to more affordable housing and avoid foreclosure.
- Freddie Mac Standard Modification. This non-HAMP modification provides at-risk borrowers with an option to achieve affordable mortgage payments. A core component of the Servicing Alignment Initiative, this modification creates a sustainable modified payment by reducing the borrower's principal and interest payments by at least 10 percent.
- Freddie Mac Standard Short Sale.The Standard Short Sale offers an efficient process to assist distressed homeowners transition into more affordable housing when home retention is not a viable solution as a way to avoid foreclosure.
- Freddie Mac Standard Deed-in-Lieu. When a home retention option or Freddie Mac Standard Short Sale are not workable solutions for at-risk homeowners, the Freddie Mac Standard Deed-in-Lieu offers them another opportunity to avoid foreclosure.
- Unemployment Forbearance. Short-term unemployment forbearance and extended unemployment forbearance are two relief options that help borrowers experiencing a financial hardship due to unemployment. You may suspend or reduce an eligible borrower's mortgage payments for a period of six months, with the possibility of an extended unemployment forbearance period, if needed.
- HFA Mortgage Assistance Programs. With funding from the Innovation Fund for the Hardest Hit Housing Markets, participating HFAs will provide temporary financial assistance to eligible borrowers with options that help them make their monthly mortgage payments, reinstate their mortgage, or qualify for a modification.
- Resources for avoiding foreclosure. We rely on you to deploy the servicing solutions that help at-risk borrowers sustain homeownership whenever possible.
- Disaster relief. When a major disaster strikes, Freddie Mac is prepared to respond quickly with effective relief measures and guidance to help borrowers and lenders through the aftermath.
- Relief for servicemembers on active federal or state duty. You have several ways to offer relief for servicemembers on active federal or state duty through the Servicemembers Civil Relief Act (SCRA) and Freddie Mac's own policies.