Freddie Enhances Servicer Incentive Program

Freddie Mac is increasing the financial incentives it offers to servicers for using technology, completing workouts with borrowers to avoid foreclosure, and sustaining superior performance under its system of rating servicers by tiers.The incentive program continues to reward servicers in three areas: investor reporting, default management, and superior overall performance. Freddie Mac announced that it is increasing the amounts awarded to servicers for loss mitigation activities that help keep borrowers in their homes. The most significant increases are for certain loan modification and repayment plans, Freddie Mac said. Freddie Mac also said it has developed a new category to reward servicers that use technology to send documentation and information to foreclosure attorneys when foreclosure cannot be avoided. Since 1996, when Freddie Mac introduced its Servicer Performance Profiles, the company has paid out over $15.6 million in incentives to servicers for their loss mitigation efforts. Freddie Mac can be found online at http://www.freddiemac.com.