Freddie to Implement Web Based Reimbursement System for Servicers

Servicers will soon be required to submit requests forrnreimbursements from Freddie Mac through a new web based program announced onrnThursday.  The new system will replacernthe existing Online Reimbursement System and, according to Freddie Mac, wasrndesigned to “create operational efficiencies for both Servicers andrnFreddie Mac.  Servicers will berntransitioned onto the new system over the next two quarters.

Freddie Mac said that the system was developed in responsernto feedback from servicers and will allow them to “more quickly andrneffectively obtain reimbursement for expenses related to defaultrnmanagement.”

The company said it hopes that the new system will offer itsrnusers a number of benefits including:

• Real time decisions on submitted claims
• The elimination of paper claims
• Improved access to the status of a submittedrnclaim
• The ability to attach any required expenserndocumentation electronically to the claim

All claim status information will reside in the new systemrnand will eliminate the current need for Servicers to access the Expense Managerrntool in order to determine the status of previously submitted claims.

The overall goal: raise servicer incentives to modify loans?

Freddie Mac will be contacting current users of the on-linernsystem to schedule their transition to the new system and once servicers havernswitched over, which is expected to happen by the fourth quarter of 2010, thernold system will be discontinued and the web based system will becomernmandatory.  Servicers who have not beenrnusing the on-line system must submit the Reimbursement System Sign-up Formrnwhich is expected to be available soon at http://www.freddiemac.com/singlefamily/service/tools.html.

Once a Servicer in enrolled in the new system it must:

• Handle its own system administration.
• Use the new system for all expense reimbursementrnrequests.
• Use the system to electronically submit thernfollowing claims that have previously been submitted on paper:

      –  requests for reimbursement of expenses forrnFHA, VA, and RHS guaranteed mortgages;

      –  resubmissions of expenses adjusted or deniedrnin a previous claim;

      –  claims for mortgages secured by propertiesrnsold to a third party for less than the total debt.

• Use the Reimbursement System to requestrnpre-approval to exceed Freddie Mac expense limits;
• Attach any required expense documentationrndirectly to the claim rather than faxing or e-mailing the documentation tornFreddie Mac;

The system has several key features including what isrndescribed as “Easy-to-navigate applications”, file uploadrncapabilities, customized user maintenance, tools that can assist in trackingrndefault management expenses, and customized work queues that are designed tornincluded specific criteria that can be filtered and viewed.

The new servicing system can be accessed through the FreddiernMac Service Tools page at the link given above.

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.