Freddie Taps Stewart Subsidiary For Servicer Aid

Posted by Orb Staff on July 24, 2009 No Comments
Categories : Mortgage Servicing

t of its support for President Obama's Making Home Affordable program, Freddie Mac has announced an agreement with Home Retention Services Inc., a wholly owned subsidiary of Stewart Lender Services Inc., to help several regional servicers process applications for the Home Affordable Modifications Program (HAMP). Specifically, Home Retention Services will assess the eligibility of delinquent borrowers with Freddie Mac-owned mortgages for HAMP modifications or other possible workouts and process borrower financial information for the servicers' review and approval. ‘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,’ says Ingrid Beckles, senior vice president of default asset management at Freddie Mac. Potentially eligible borrowers identified by a participating Freddie Mac servicer will receive a letter from Freddie Mac asking them to call Home Retention Services using a proprietary toll-free number. The letters will be specially formatted and include unique borrower PIN numbers to protect borrowers from counterfeits produced by fraud artists. Home Retention Services will work with borrowers, assess their eligibility, complete the documentation and income-gathering processes, and advise them of their proposed modified payments. Home Retention Services will forward the completed package to the servicer for final approval. The borrower's HAMP trial period begins once the servicer approves the modification and receives the borrower's check for the new monthly mortgage amount. Home Retention Services will also advise borrowers of other Freddie Mac workout options if they don't qualify for Making Home Affordable. Using Home Retention Services to relieve servicers of several preliminary workout processing steps builds on earlier Freddie Mac borrower outreach initiatives, the company says. Since 2005, Freddie Mac has used the Consumer Credit Counseling Services of Atlanta and San Francisco to contact low- and moderate-income borrowers at high risk of default, and in 2009, Freddie selected Ocwen Financial Corp. to target borrowers with delinquent high-risk mortgages in 2009. SOURCE: Fred

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