United Home Mortgage Center & David Chambless Freddie Mac Update
Freddie Mac is accelerating its efforts to lower foreclosures. The Virginia based mortgage great announced Thursday it is doubling the incentive it pays to mortgage servicers for keeping troubled borrowers out of foreclosure. Freddie Mac will also; (1)reimburse servicers for the cost of door-to-door outreach programs (2)give them more time to negotiate mortgage workouts in states with fast foreclosure processes (3)Make administrative changes intended to streamline the workout process. Mortgage servicers are companies that handle the day-to-day management of mortgages, including collecting payments and working with delinquent borrowers. Freddie Mac (NYSE: FRE) is the financier or guarantor of the loans. "We are taking these steps because we want to reinforce the tremendous importance of workouts and reward their use," said Ingrid Beckles, vice president of servicing and asset management, in a statement. "Giving our servicers more time and greater compensation to help troubled borrowers is fundamental to preserving homeownership and maximizing our efforts to minimize foreclosures." Freddie Mac's current delinquency rate for single-family mortgages is 0.86 percent, far less than the national rate of 6.35 percent as calculated by the Mortgage Bankers Association of America.
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