Servicer Performance and Incentives
Updated March 13, 2012
Positive and successful homeownership experiences are the direct result of your expertise and dedication. We'll help you sustain and strengthen your business so that you can continue helping homeowners stay in their homes.
- Promote responsible servicing practices. Build a stronger community by encouraging homebuyer education and counseling, and by considering foreclosure only when all other alternatives have been exhausted.
- Fight fraud. Learn how to spot red flags and mitigate fraud losses.
- Focus on quality control. Learn how to develop and maintain a comprehensive Quality Control program.
- Help borrowers avoid foreclosure. We rely on you to deploy the servicing solutions that help delinquent borrowers avoid foreclosure and its impact on their credit ratings.
By working together to promote excellence in servicing and community stewardship, we can reach our mutual goal of ensuring that borrowers become successful long-term homeowners.
The Freddie Mac Servicing Success Program defines how we measure and recognize servicing excellence.
- The Freddie Mac Servicer Success Scorecard provides you with comprehensive servicing requirements and measurements in multiple categories, and assesses your performance results in the defined categories each month.
- The Freddie Mac Servicer Success Rewards and Remedies component of the Program provides incentives and assesses compensatory fees to encourage exceptional performance, discourage poor performance, and maintain high standards of quality servicing.
- The new and revised compensatory fees that make up the Remedies portion of the program compensate Freddie Mac for anticipated and/or actual losses incurred because of flawed servicing. They also put focus on improving data quality and data reporting to help our organizations achieve greater consistency and efficiency in servicing Freddie Mac mortgages.
- A key focus of quality servicing is reducing the number of foreclosed mortgages, and workouts play a critical role in responsible default management. You will continue to receive incentives for qualifying workouts, including short payoffs, deeds-in-lieu, pre-foreclosure sales, repayment plans and modifications.