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59 updated in 2021 to expand the definition of an "Eligible Disaster," reducing friction in the insurance loss settlement process and introducing the Disaster Payment Deferral. All of these made meaningful impacts to streamline processes while continuing to effectively manage risk. More recently, the COVID-19 response provided an opportunity to apply existing disaster relief initiatives in an unprecedented servicing landscape. Requesting additional documentation from borrowers who were already missing pay- ments would have been superfluous. By waiving this step, the industry was able to better accom- modate distressed homeowners and act quickly to offer solutions like payment deferrals and forbearance—with limited steps and paperwork. "Having streamlined steps and policies in place not only increased efficiencies in loan ser- vicing, but also had a positive downstream effect on homeowners," continues Lucchino, "allowing them to remain in their homes and benefit from refinancing opportunities at a time when interest rates were at record lows." OVERCOMMUNICATE AND COLLABORATE Well-developed collaborations and consis- tent communication with servicers and other stakeholders help significantly reduce market headwinds. Meaningful changes to policies and programs are not done in a vacuum, but with FHFA and Fannie Mae producing aligned programs to help with speed to market and consistency. Just as importantly, proactively and reactively collaborating with servicers and other industry participants ensures that policies and programs are easily understood, implementable, and will provide the quickest and greatest benefit to impacted homeowners. STRATEGIZE TO DIGITIZE Solutions like these require technology and data—two crucial aspects of preparedness. According to a Forbes Insights report published in association with Freddie Mac, 94% of leaders say digital processes and advanced analytical tools will lead to improved decision-making and security and better outcomes for borrowers. Continuous investment in the latest technol- ogy eliminates scrambling at the eleventh hour to implement the right digital tools. During the pandemic, distressed borrowers have been able to easily access mortgage relief resources through self-service portals, preventing servicer call centers from becoming overwhelmed while also impacting delinquency rates. "Resolve®, Freddie Mac's default manage- ment platform, is a key example of investing in the future of servicing. It provides Guide-com- pliant workout decisions, so servicers can have real-time interactions with borrowers on eligibility," Lucchino points out. "Resolve sets the foundation to be proactive up front and then react faster to variables." No matter what economic challenges lie ahead, having the right tools, policies, and people in place prepares your organization to weather unforeseen events and continue to serve custom- ers. Unexpected events always lead to a phase of reaction; it's how—and how quickly—we pivot to proactivity that makes all the difference. Stay invested with us on building the future of mortgage servicing. Visit SF.FreddieMac.com/ReimagineServicing "Having streamlined steps and policies in place not only increased efficiencies in loan servicing, but also had a positive downstream effect on homeowners," continues Lucchino, "allowing them to remain in their homes and benefit from refinancing opportunities at a time when interest rates were at record lows." —Dave Lucchino SVP, Single-Family Operations, Freddie Mac