Freddie Retains Vendor to Evaluate Mod Applicants

Freddie Mae has retained Stewart Lender Services to help several hard-pressed servicers keep up with the demand for loan modifications on Freddie-owned mortgages. A Stewart subsidiary, Home Retention Services, will assess the eligibility of delinquent borrowers for Home Affordable Modifications or other possible workouts and process borrowers' information for the servicers' review and approval. "By using Home Retention Services' staff and resources, we can ease some of the pressure on our servicers' staff while helping more borrowers pursue a mortgage workout," Freddie senior vice president Ingrid Beckles said. Servicers are under pressure from the Obama administration to increase their capacity and pick up the pace of loan modifications. Home Retention Services will work with the borrower, assess their eligibility for a modification, complete the documentation and income gathering processes, and advise the borrower of their proposed modified payment, according to Freddie.