Fannie Mae has confirmed that it’s looking to outsource at least some of its technology chores to third-party vendors and sent out a “request for proposal” but isn't saying much beyond that.
A spokeswoman for the government-controlled GSE would not discuss which firms are interested in the contract but did mention that IBM is not positioned as a leading bidder at this point.
Asked if IBM is still in the running for the contract, she would not comment. Last week National Mortgage News reported that IBM was talking to Fannie about an outsourcing deal related to technology. (A spokesman for IBM declined to comment on what he called "rumors and speculation.")
IBM's servicing platform, IBM Lender Business Process Services, is a subservicer for the GSE, handling high-touch product.
The RFP was first issued some time late last year, said one technology advisor, who has a client interested in working for Fannie. A Canadian and German firm also have expressed interest in the RFP, he said.
At this point it's unclear what type of technology chores Fannie would outsource and how many GSE jobs might be lost. It's anticipated that some of Fannie's workers might join whichever firm gets the contract.
Both Fannie and Freddie Mac have been quietly trimming their staff the past year without issuing any press statements about what they're up to. (Their RFPs are not public even though they are owned by the Treasury Department.)
The White House and Republican members of Congress want to wind down their operations over the next five to seven years. The Federal Housing Finance Agency, which regulates the two, has urged management to reduce their head counts, sources said.
Last week Fannie issued NMN a statement that said, "We are looking at which company activities may be performed more effectively and at lower costs by third-party providers within the United States. We are doing so in connection with our effort to simplify the company's business operations and processes in order to strengthen our support for the market and increase efficiency."
