Freddie Mac outsource some of its loan modification business
Posted in General Finance Information and Articles on September 2nd, 2009 by – Be the first to commentIn order to improve borrower experience, Freddie Mac, the government-sponsored enterprise has outsourced a part of its loan modification business to a Houston based company known by the name Home Retention Services Inc. This is expected to increase the capacity of Freddie Mac in processing loans for mortgage modification.
Loan modification forms part of the Obama Administration’s Make Home Affordable Plan, wherein qualifying borrowers avail assistance in getting their current mortgage refinanced or modified. The program is being implemented by Freddie Mac.
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Role of Home Retention Services in loan modification
Home Retention Services Inc has been given the responsibility of evaluating the eligibility of borrowers who have taken out mortgages owned by Freddie Mac.
To quote Ingrid Beckles, working as the senior vice president with Freddie Mac’s default asset management group “By using Home Retention Services’ staff and resources we can ease some of the pressures on our servicers’ staff while helping more borrowers pursue a mortgage workout. Today’s announcement builds on Freddie Mac’s strategy to improve the borrower experience when seeking a mortgage workout and our commitment to the Making Home Affordable program’s success”.
How will the process work under Home Retention Services Inc?
Borrowers who are potentially eligible for loan modification will receive a letter from Freddie Mac asking them to contact Home Retention Services at a toll-free number. Reports suggest that adequate measures have been taken to protect the identity of borrowers. For instance, the letters have been formatted specially and have borrower specific PIN numbers to shield borrowers from counterfeits.
Thereafter, Home Retention Services Inc will work in co-ordination with borrowers; evaluate their eligibility for mortgage modification. Once the income gathering process and the documentation process is completed, the borrower is given details of the “proposed modified payment”. In case the borrower fails to qualify for the Making Home Affordable program, Home Retention Services will also suggest other options that can be worked out to prevent the homeowners from losing their homes.