Two government-sponsored enterprises representatives delivered a quick update on the GSEs and their work with mortgage servicers at Source Media’s mortgage servicing conference in Dallas on Thursday.
On resolving the seriously delinquent portfolio, there’s no silver bullet, but Fannie Mae’s focus this year is simplifying the process and loss mitigation solutions.
“The primary focus of our team is keeping people in their homes, and when that doesn’t work out, stabilizing neighborhoods through graceful exits,” said Dan Palumbo, vice president of credit portfolio management at Fannie.
Another focus, Palumbo said, is simplifying loss mitigation solutions.
He encouraged servicers to use Fannie’s Service Management Default Underwriter, as it simplifies the interpretation of and implementation of loss mitigation solutions, eliminates rep and warranty exposure on workouts, and contains wrap-around features that increase servicer efficiency and assists with regulatory compliance.
Freddie Mac’s focus for 2015 mirrors that of Fannie, said Ty Miller, vice president of servicer relationship management at Freddie.
“We are focused on optimizing borrower outcomes, preserving homeownership stabilizing communities, reducing credit losses," and preserving the taxpayer investment vis-à-vis the bailout and conservatorship, Miller said in his presentation.