MCLEAN, Va., July 25, 2011 /PRNewswire/ -- Freddie Mac (OTC Bulletin Board: FMCC) today announced its Servicing Success Program, a new robust and balanced approach to setting performance expectations, providing feedback on servicer strengths, and weaknesses, and promoting a dialogue with servicers to improve portfolio performance and preserve homeownership. The Servicing Success Program was posted today on Freddie Mac's website and is scheduled to take effect for all Freddie Mac servicers on August 1, 2011.
- Freddie Mac's Servicing Success Program evaluates servicer performance in investor reporting and remitting and default management. The Servicing Success Program's performance criteria are designed to better align with Freddie Mac business objectives in the current environment and help servicers more effectively assess their progress.
- Freddie Mac's Servicing Success Program combines a servicer scorecard and loan file reviews plus, for larger servicers, individualized requirements and Servicing Account Plans that set objectives and goals to reduce costs and preserve homeownership.
- A new ranking system tied to the Servicing Success Program's criteria and weightings is replacing Freddie Mac's traditional performance tiers. Freddie Mac will now provide each servicer with a monthly ranking based on the performance points it earned the prior month so it can see its overall performance relative to its competitors.
- Servicers will be able to see their individual August ranking on their individual servicer performance profile webpage beginning October 7, 2011.
- Later this year, Freddie Mac plans to announce a companion Servicer Success Rewards and Remedies component that will integrate the Servicing Success Program with the Servicing Alignment Initiative Freddie Mac is undertaking with Fannie Mae at the direction of the Federal Housing Finance Agency.
Attribute to Tracy Mooney, Senior Vice President, Single-Family Servicing and REO, Freddie Mac:
"Today's announcement marks the beginning of a significant advance in the scope and sophistication of servicer performance management. The robust, balanced approach we are launching in 2011 underscores Freddie Mac's commitment to invest in the future of U.S. homeownership by strengthening servicing practices and enabling servicers to more effectively preserve homeownership."
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. www.FreddieMac.com
SOURCE Freddie Mac