Freddie Mac: Mortgage Servicing ‘Will Never Be the Same Again’

By
Tuesday, June 01, 2010 at 3:44 pm

In April 2005, 64,057 homes received some form of foreclosure notice. This April — with the foreclosure crisis ebbing — 333,837 did. The recession has upended the logic of the entire housing market, with a quarter of homeowners underwater, the administration trying to keep real estate prices stable and the government a very lonely source of liquidity. And today, Ingrid Beckles, a senior vice president at Freddie Mac, writes that the company recognizes the sea change and is responding:

Mortgage servicing will never be the same again. The unprecedented volume of delinquent loans over the past three years has triggered within the industry a sweeping re-examination and re-engineering of its delinquency and loss mitigation management practices. While the ultimate impact of this incredible period of financial stress, distended unemployment and evaporating equity has yet to be fully revealed, I believe the way the servicing industry has responded will significantly enhance its ability to react expediently and comprehensively to future downturns.

Of course, the mortgage business should never be the same again, since the notion that home prices on aggregate would never decline was exposed as myth. Companies that originate and purchase mortgages, like Freddie, should have plans for what to do when the housing market goes south. But again, a Freddie executive walks through the new modification efforts without mentioning right-to-rent or principal reduction — two programs that offer a clear path to keeping people in their homes and preventing a further slide in housing prices.

Follow Annie Lowrey on Twitter


Comments

15 Comments

Freddie Mac: Mortgage Servicing 'Will Never Be the Same Again … | Webstuffz.org
Pingback posted June 1, 2010 @ 8:33 pm

[...] more: Freddie Mac: Mortgage Servicing 'Will Never Be the Same Again … var a2a_config = a2a_config || {}; a2a_config.linkname="Freddie Mac: Mortgage Servicing 'Will [...]


Freddie Mac: Mortgage Servicing 'Will Never Be the Same Again … : : mac
Pingback posted June 1, 2010 @ 9:38 pm

[...] Zobacz reszt? artyku?u: Freddie Mac: Mortgage Servicing 'Will Never Be the Same Again … [...]


Freddie Mac: Mortgage Servicing 'Will Never Be the Same Again … – Mortgage And Refinancing
Pingback posted June 1, 2010 @ 10:50 pm

[...] Read more here: Freddie Mac: Mortgage Servicing 'Will Never Be the Same Again … [...]


Is a new deed prepared when a property is refinanced and the mortgage is filed with the registry? | equity loans
Pingback posted June 1, 2010 @ 11:17 pm

[...] Freddie Mac: Mortgage Servicing 'Will Never Be the Same Again … [...]


Freddie Mac: Mortgage Servicing 'Will Never Be the Same Again … | e-tips solution.
Pingback posted June 1, 2010 @ 11:38 pm

[...] View post: Freddie Mac: Mortgage Servicing 'Will Never Be the Same Again … [...]


Freddie Mac: Mortgage Servicing ‘Will Never Be the Same Again’ : Mortgage News – LoanSafe.org
Pingback posted June 2, 2010 @ 1:06 pm

[...] Read more from The Washington Independent [...]


North Highlands-based HomEq being sold again | equity loans
Pingback posted June 2, 2010 @ 7:06 pm

[...] Freddie Mac: Mortgage Servicing 'Will Never Be the Same Again … [...]


Refinancing with Fannie Mae or Freddie Mac? | equity loans
Pingback posted June 2, 2010 @ 11:12 pm

[...] Freddie Mac: Mortgage Servicing 'Will Never Be the Same Again … [...]


Homes and Mortgages: Strategic Defaults 2, Reverse Originations, HAMP Mess, ELI = Extremely Low Income Renters, FHA Reform Point List, FHFA on GSEs, Florida Home Sales, Freddie on Servicing, S. Florida, 20% Down is Tough
Pingback posted June 3, 2010 @ 6:06 pm

[...] that the company recognizes the sea change and is responding: (read Ingrid’s response) – Washington Independent [...]


Real Estate Notebook | Credit and Loan
Pingback posted June 8, 2010 @ 11:23 pm

[...] Freddie Mac: Mortgage Servicing 'Will Never Be the Same Again … [...]


Bank of America Becomes Largest Mortgage Servicer to Join HOPE LoanPort(TM) | Credit and Loan
Pingback posted June 11, 2010 @ 9:40 am

[...] Freddie Mac: Mortgage Servicing 'Will Never Be the Same Again … [...]


Mortgage Servicers’ Secret | Best Debt USA
Pingback posted July 16, 2010 @ 8:40 am

[...] Freddie Mac: Mortgage Servicing 'Will Never Be the Same Again … [...]


Mortgage Servicers’ Secret | GrantGift.com
Pingback posted August 20, 2010 @ 1:10 pm

[...] Freddie Mac: Mortgage Servicing 'Will Never Be the Same Again … [...]


RSS feed for comments on this post.

Sorry, the comment form is closed at this time.