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72 Freddie Mac is targeting time-draining manual documentation efforts as an opportunity to speed default-related processes and reduce the need for multiple requests for loan prior approvals that often delay loan servicing processes. Servicers have told us that these advanced technology changes offer process improvements leading to faster solutions that benefit them. 2. DATA-DRIVEN INSIGHT AND REPORTING SYSTEMS THAT DRIVE AN ADVANCED SERVICER AND HOMEOWNER EXPERIENCE. Analysis of Insights from our servicing partners continue to help us improve default management and servicing technology. Using new technology that identifies and evaluates patterns and themes, we are working to create data opportunities to transform the servicer experience while also supporting improvements to the homeowners' experience throughout the loan life cycle. 3. DATA-DRIVEN MANAGEMENT EFFICIENCIES THAT DRIVE BETTER EXECUTION AND RESULTS. Advanced technology efforts will eventually eliminate the servicer's burden for loan status updates and remove redundant data reporting. We're working with our industry partners to acquire homeowners' data from outside data providers in order to piece together information on each property in a servicer's portfolio. e housing industry as a whole has seen a decline in the number of seriously delinquent loans over the past eight years. At the end of 2018, Freddie Mac's seriously delinquent mortgage rate was just 0.69%. At the end of 2010, the total mortgage market's seriously delinquent loan rate for single-family homes reached a high of 8.6%, while Freddie Mac's seriously delinquent rate was 3.84%. Fast-forward to eight years later and, in December 2018, the total mortgage market seriously delinquent loan rate for single-family homes had lowered to 2.13%, while Freddie Mac's December 2018 seriously delinquent single-family loans fell to 0.69%, according to the latest data points available on this specific loan information. Freddie Mac will continue to leverage data and advanced technology tools to make it easier for servicers to help their customers. ese tools are provided to our servicers at low to no cost to ensure that each servicer has access to the same tools, thereby avoiding duplication and increasing efficiencies while reducing cost. As mortgage servicers know, there may be times when homeowners encounter stressful situations that can make it difficult for them to pay their mortgages. Whether due to a natural disaster, a personal or family hardship such as a death in the family, or the loss of a job, when these situations occur, homeowners need counseling, guidance, answers, and solutions—fast. CREATING AN EASIER PATH TO DO BUSINESS WITH US INTERGRATING WITH SERVICE BUREAUS TRANSFORMING THE CLIENT EXPERIENCE IMPROVING EFFICIENCY REDUCING COSTS MINIMIZING CREDIT LOSS ELIMINATING MANUAL PROCESSES IMPROVING DATA QUALITY MAKING ACCESS TO SERVICE DATA EASIER PROVIDING A NO-COST SERVICING AND DEFAULT TOOL PROVIDING REPRESENTATION AND WARRANTY RELIEF SERIOUSLY DELINQUENT SINGLE-FAMILY LOAN RATES 8.6 9 6.75 4.5 2.25 0 2010 3.84 6.78 2012 3.25 4.52 2014 1.88 2.6 2016 1 2.13 2018 0.69 TOTAL MORTGAGE MARKET FREDDIE MAC • DECEMBER 2018, SERIOUSLY DELINQUENT SINGLE-FAMILY LOANS IN OUR PORTFOLIO FELL TO 0.69 PERCENT. • THIS IS DOWN FROM A CRISIS PEAK OF 4.20 PERCENT IN FEBRUARY 2010.