Freddie Mac launches plan for high-risk loans
The Business Journal of Milwaukee - by Tierney Plumb Washington Business Journal
Freddie Mac has launched a new pilot initiative to handle high-risk loans quicker and keep more at-risk borrowers in their homes.
The McLean, Va.-based housing giant (NYSE: FRE) will employ third-party companies that specialize in servicing types of higher-risk mortgages.
“Our strategy for high risk loans is designed to help servicers cope with today’s unprecedented call volume by directing calls to a specialist with the specific staff and technical resources for handling a high volume of borrowers with these types of mortgages,” said Ingrid Beckles, Freddie Mac’s senior vice president of default asset management, in a statement.
A selected portfolio of higher risk mortgages that are at least 60 days delinquent will handed off to a specialty servicer for intensive attention using Freddie Mac’s workout opportunities.
Freddie Mac picked West Palm Beach, Fla.-based Ocwen Financial Corp. (NYSE: OCN) as one of the servicers for the pilot. The financial services company and its counselors will help cut telephone wait times, speed up the time it takes to put borrowers in touch with live counselors and implement Freddie Mac foreclosure reduction policies faster.
Initially, 5,000 reduced documentation loans from California, Nevada and other states with high delinquent rates will be targeted.
Freddie Mac said it will figure out whether to broaden or tweak the strategy after reviewing the pilot’s June results.
The Washington (D.C.) Business Journal is a sister publication of The Business Journal Serving Greater Milwaukee.
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