Freddie To Update Loan Servicing Performance Profiles
Freddie Mac here plans to introduce several changes to its servicer performance profiles next year, incorporating new aspects of servicing, such as property management and disposition, into reviews.
Bill Merrill, a managing director for default servicing at Freddie Mac, said that Freddie Mac updates its servicer performance profiles every year in cooperation with its loan servicers. Next year, he said Freddie Mac will be paying close attention to the management of new affordable housing loan products that have proliferated in the mortgage market.
He said the changes being implemented for 2006, which had not yet been formally announced when MSN went to press, will highlight incentives for early intervention in the case of loan delinquency and data quality issues. Those enhancements will reflect work that has been done this year.
"We work very closely with our servicer and advisory groups to get input from them. We have just seen a lot of success with our theme this year of earlier intervention," Mr. Merrill said.
Next year's changes will also incorporate REO management and claims group activity into the servicer performance profiles.
Ingrid Beckles, vice president of default asset management, said the performance profile changes are designed to reward servicers for any role they play in enhancing claims and credit recovery.
The changes will be rolled out in January.
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