ActingrnFHFA Director Edward J. DeMarco said “FHFA’s directive to align Enterprisernpolicies for servicing delinquent mortgages should result in earlier servicers’rnengagement to identify the best solution available for homeowners, given theirrnindividual circumstances.” </p

DeMarcornsaid that the guidelines also address the “dual track” that has beenrna subject of many complaints.  Servicersrnwill no longer be allowed to pursue foreclosure if borrower and servicer arernengaged in good-faith negations toward an alternative solution.</p

Simultaneousrnwith the announcement from FHFA the Enterprises each released additionalrninformation on the scope of the Servicing Alignment Initiative.  Freddie Mac’s announcement stressed thatrnwhile the Enterprises are aligned in the requirement categories, companies servicingrnmortgages for both Freddie and Fannie should understand that there will be somernoperational differences in the implementation.</p

Thernchanges will cover:</p<ul class="unIndentedList"<liBorrower Contact and Delinquency Management. The policies will require servicers torncontact borrowers earlier, ideally after any missed payment and to continue therncontact on a frequent basis. Allrnborrowers must be evaluated for any available foreclosure alternatives such asrnthe Home Affordable Modification Program (HAMP). Servicers must establish a uniform definitionrnfor a Quality Right Party Contact (QRPC) and encourage adoption of a single contactrnthe borrower can communicate with on an ongoing basis. The servicers must set up consistent writtenrncommunications and solicitation and response packages and standards andrntimelines for call center activity.rnThere will also be metrics for evaluating call center performancernincluding speed to answer, call abandonment rate, and timelines for collectionrnand follow-up calls. </li