Freddie Mac Launches Effort to Help Servicers Handle Record Demand for Home Affordable Modifications
July 24 2009 - 9:52AM
PR Newswire (US)
Stewart's Home Retention Services to Ease Backlogs For Key Regional
Servicers MCLEAN, Va., July 24 /PRNewswire-FirstCall/ -- As part of
its support for President Obama's Making Home Affordable program,
Freddie Mac (NYSE:FRE) today announced an agreement with Home
Retention Services, Inc., a wholly owned subsidiary of Stewart
Lender Services, Inc., to help several regional servicers process
thousands of additional applications for Home Affordable
Modifications. Specifically, Home Retention Services will assess
the eligibility of delinquent borrowers with Freddie Mac-owned
mortgages for Home Affordable Modifications or other possible
workouts and process borrower financial information for the
servicers' review and approval. "By using Home Retention Services'
staff and resources we can ease some of the pressures on our
servicers' staff while helping more borrowers pursue a mortgage
workout," said Ingrid Beckles, senior vice president of default
asset management at Freddie Mac. Today's announcement builds on
Freddie Mac's strategy to improve the borrower experience when
seeking a mortgage workout and our commitment to the Making Home
Affordable program's success." While the new initiative will
supplement the capacity of participating servicers to process loan
modifications, Beckles emphasized that "borrowers should continue
to call their servicers first to determine the best solution for
their situation." "We are pleased to be working with Freddie Mac
and their servicers to bring additional capacity to the Making Home
Affordable program process," said Jason Nadeau, president and CEO
of Stewart Lender Services. "Home Retention Services specializes in
supplementing servicers' efforts to preserve home ownership for
their borrowers," Nadeau added. Potentially eligible borrowers
identified by a participating Freddie Mac servicer will receive a
letter from Freddie Mac asking them to call Home Retention Services
using a proprietary toll-free number. The letters will be specially
formatted and include unique borrower PIN numbers to protect
borrowers from counterfeits produced by fraud artists. Home
Retention Services will work with the borrower, assess their
eligibility for a Home Affordable Modification, complete the
documentation and income gathering processes, and advise the
borrower of their proposed modified payment. Home Retention
Services will forward the completed package to the servicer for
final approval. The borrower's Home Affordable Modification trial
period begins once the servicer approves the modification and
receives the borrower's check for the new monthly mortgage amount.
Home Retention Services will also advise borrowers of other Freddie
Mac workout options if they don't qualify for Making Home
Affordable. Using Home Retention Services to relieve servicers of
several preliminary workout processing steps builds on earlier
Freddie Mac borrower outreach initiatives. Freddie Mac has used the
Consumer Credit Counseling Services of Atlanta and San Francisco to
contact low-and moderate-income borrowers at high risk of default
since 2005 and selected Ocwen Financial Corporation (NYSE: OCN) to
target borrowers with delinquent high-risk mortgages in 2009.
Freddie Mac was established by Congress in 1970 to provide
liquidity, stability and affordability to the nation's residential
mortgage markets. Freddie Mac supports communities across the
nation by providing mortgage capital to lenders. Over the years,
Freddie Mac has made home possible for one in six homebuyers and
more than five million renters. Home Retention Services, Inc., is a
wholly owned subsidiary of Stewart Lender Services. Stewart Lender
Services has been providing lenders and loan servicers solutions
for the past 14 years. Stewart Lender Services provides a wide
array of solutions including loss mitigation services, loan
modification qualification and fulfillment, short sale solicitation
and management, default and foreclosure services, REO
title/settlement and asset management services, post-closing
solutions, nationwide title and settlement services and electronic
mortgage solutions. Stewart Lender Services is a wholly owned
subsidiary of Stewart Title Company, a wholly owned subsidiary of
Stewart Information Services Corp. (NYSE:STC), a customer-driven,
technology-enabled, strategically competitive, real estate
information, title insurance and transaction management company.
More information can be found at http://www.stewart.com/.
DATASOURCE: Freddie Mac CONTACT: Brad German, Freddie Mac,
+1-703-903-2437 Web Site: http://www.freddiemac.com/
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