Servicing Alignment Initiative
November 18, 2011
Register Today for Our Suite of Instructor-led Webinars on the Servicing Alignment Initiative
From borrower contact to foreclosure timelines, these tailored interactive sessions will help you prepare for the recently announced comprehensive changes to our default management requirements. Start with our overview session to build a foundation and increase your knowledge with four additional subject specific training opportunities.
Through the joint-GSE Servicing Alignment Initiative, Freddie Mac implemented a new set of consistent mortgage loan servicing and delinquency management requirements. Overall, we believe that these consistent servicing standards will further enhance Freddie Mac and our Servicers’ mutual goal of quality and responsible servicing, while strengthening assistance for delinquent borrowers.
When fully implemented, Servicers will manage delinquent loan servicing under a new set of GSE-aligned requirements for the following:
Borrower Contact
- Consistent standards and benchmarks for maintaining a call center and other contact method service levels
- Standardized Borrower Solicitation Package
- Aligned requirements for establishing Quality Right Party Contact
Delinquency Management
- Consistent content and timing requirements for borrower disclosures and written communications
- Standard delinquency management from collection calls to foreclosure referral
- Consistent process for reviewing and escalating borrower complaints and disputes
- Aligned property inspection requirements and timeframes
Loan Modifications
- Consistent borrower evaluation hierarchy and process
- New Freddie Mac Standard Modification
Foreclosure Process Time Lines
- Uniform time lines from referrals to foreclosure sales
- Standardized exceptions to time lines
Incentives and Compensatory Fees
- Incentives paid for meeting quality benchmarks for receiving completed Borrower Response Packages
- New incentive amounts for settled Standard Modifications
- Compensatory fees assessed for not obtaining completed Borrower Response Packages
- Compensatory fees applied for exceeding foreclosure time lines due to unapproved delays
Freddie Mac Servicer Requirements
Freddie Mac Servicers must implement the new requirements that support the servicing standards defined under the Servicing Alignment Initiative, except the Standard Modification, beginning October 1, 2011.
The Standard Modification is effective for borrower evaluations beginning January 1, 2012. Servicers are strongly encouraged to begin evaluating borrowers for the Standard Modification as soon as they are operationally ready, as long as trial period plans begin on or after October 1, 2011. Once Servicers begin evaluating borrowers for the Standard Modification, they must stop evaluating borrowers for the classic modification under Guide Chapter B65, Workout Options, and Workout Prospector®.
Resources
- Borrower Solicitation Documents
- Standard Modification
- Frequently Asked Questions – Updated
- Servicing Alignment Initiative Overview Fact Sheet – Updated
- Borrower Contact Fact Sheet – Updated
- Servicing Alignment Initiative Training
- FHFA Press Release
Guide Bulletins
- Guide Bulletin 2011-23
- Guide Bulletin 2011-19
- Guide Bulletin 2011-17
- Guide Bulletin 2011-16
- Guide Bulletin 2011-11
Single-Family Updates and News Articles
- November 18, 2011 – Guide Bulletin 2011-23 Offers Servicers Greater Servicing Efficiencies
- October 26, 2011 – Guide Bulletin 2011-19 Updates Servicing Alignment Initiative Requirements and HAMP Servicer Incentives
- September 30, 2011 – Guide Bulletin 2011-17 Updates Post-Referral to Foreclosure Solicitation Letter Requirements
- September 12, 2011 – Guide Bulletin 2011-16 Announces Complete Requirements for the Standard Modification
- June 30, 2011 – Guide Bulletin 2011-11 Announces Implementation Requirements for the Servicing Alignment Initiative