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A New Way to Resolve Mortgage Relief

The impacts of the COVID-19 pandemic have amplified the demand for speed-to-market mortgage resolution and seamless servicing. New industry solutions have emerged and offer greater efficiency for servicers and overall better service for the homeowner. Learn about the new and innovative default management technology that is removing barriers and creating a new age of instantaneous workout decisions.

Housing Demands Shift Default Management
Efficient workflows–servicers need it. Fast mortgage assistance–homeowners demand it. Now, more than ever, servicers are focused on how to efficiently deliver the best options for borrowers, particularly those with hardships. The impacts of the COVID-19 pandemic have amplified the demand for speed-to-market mortgage resolution. The industry had to react quickly to the emergence of new policies, adjustments to staffing, new ways of working and technology to create more efficiency throughout their businesses. Additionally, consumer expectations for digital solutions and real-time results are at an all-time high. These demands are shifting default management into a new age of instantaneous mortgage assistance.

Default management is a major focus right now as we look to manage delinquency volumes, minimize risk, and advance sustainable homeownership. There’s a heightened need for reliable quality control in the workout decisioning process. Technology is driving the shifts from processing delays to real-time results, from manual data entry to greater task automation, and from tedious documentation to accessible and transparent loan data. Resolve® is one solution where servicers and technology providers have seen real results as they adopt an entirely new way of managing defaults to eliminate longstanding barriers.

“What’s really wonderful about a platform like Resolve is that borrowers will receive the full support and benefit of Freddie Mac policy and programs … impartial and timely,” said Pat Kopins, COO, BackInTheBlack. “This level of uniformity is unprecedented in the servicing industry.”

Real Results Move the Industry Forward
Resolve is a new end-to-end default management solution that allows servicers to receive instant decisions on mortgage relief options. This is possible through integration between the servicer (or technology provider) and Freddie Mac via API technology–something new to many aspects in servicing.

Resolve’s capabilities are vast with rules-based decisioning power derived from the policies and requirements to which servicers adhere. Resolve assesses loan data and returns eligible workouts in a single engagement so servicers can assist borrowers timely.

“When you think about the digital experience and the self-serve options we’re putting in front of the customer so they can communicate with us, it’s an end-to-end solution from Fifth Third, to BackInTheBlack and Freddie Mac, allowing decisions to be made quickly–that’s what I call a best-in-class experience,” said Glenn Meadows, Head of Mortgage Loan Servicing at Fifth Third Bank.

Resolve continues to evolve with new capabilities, working towards decisioning that returns an all-in-one eligibility assessment within the loss mitigation hierarchy. Servicers that are integrated with Resolve are experiencing efficiency and instantaneous data without leaving their default management tool.

“We've seen a reduction of about 10-15 minutes on a per loan basis, as well as a reduction in rework due to defects. It allows us to refocus on quality control,” said Freddie Mac servicing partner, Cenlar, in a podcast.

Technology partners that are integrating with Freddie Mac to access Resolve APIs are also witnessing the power of this innovative new solution. One of them is software company, Clarifire: “Before Resolve, determining the correct workouts and documenting the decisioning process took more time and effort. As millions of forbearance plans come to an end, Freddie Mac servicers can now streamline loan workouts, saving them an incredible amount of time and labor. More importantly, it ensures borrowers get a faster response when seeking help,” said Jane Mason, Clarifire Founder and CEO.

Connecting the Ecosystem
My takeaway to you is to act now and be a part of the new age of servicing. Your advantage in default management starts by connecting with Resolve APIs. Visit the Resolve API web page for more on integrating with us.

About Author: Bill Maguire

Bill Maguire is VP of Servicing Portfolio Management in the Freddie Mac Single-Family Division, which includes overseeing the performance of Freddie Mac’s $1.8 trillion servicing portfolio. He is responsible for Freddie Mac’s relationships with servicers, including managing their performance, as well as creating and implementing programs, initiatives, policies and capital market-based transactions to reduce credit losses and loan severities. He joined Freddie Mac in September 2010, with responsibility for managing servicers’ performance, interim servicer oversight, expanding Freddie Mac’s capacity and approving the transfer of Freddie Mac servicing portfolios.
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