Fannie Mae to Reimburse Servicers for HOPE Hotline Referrals
Fannie Mae said Tuesday that it will reimburse servicers when they refer homeowners who are behind in their mortgage payments to the HOPE Hotline for counseling. The 1-888-995-HOPE helpline is part of the HOPE NOW Alliance efforts to mitigate losses among a growing number of troubled borrowers. "We have to do everything we can, and early intervention and delinquency counseling are key to helping many at-risk homeowners avoid foreclosure," said Jason Allnutt, vice president for credit loss management and quality assurance at Fannie Mae. "We believe that in these difficult times, independent counseling agencies can play a unique role by helping servicers help borrowers find more opportunities to avoid foreclosure and keep their homes. Fannie Mae said that an unprecedented sharp increase in mortgage delinquencies has resulted in many challenges for mortgage servicers in their attempts to offer loss mitigation alternatives to cure delinquencies and reduce foreclosures. THE GSE said it will reimburse Fannie Mae-partner servicers for delinquency counseling provided through HOPE Hotline referrals, and recommended servicers contact their Fannie Mae account representative for details on the reimbursement program. For more information, visit http://www.fanniemae.com.