MORTGAGE SERVICING​

Since 2008, FHFA has worked with Fannie Mae and Freddie Mac (the Enterprises) to develop and implement a variety of programs and initiatives to address challenges in the servicing market.  FHFA and the Enterprises have worked to promote market liquidity and efficiency and to create a more positive borrower experience.

While the surge in mortgage delinquencies has abated since 2008, the post-crisis mortgage environment is still evolving.  This evolution is particularly evident in the area of mortgage loan servicing, as costs to service delinquent loans, heightened regulatory oversight, and an increased reliance on technology continue to impact this fundamental component of the housing finance industry.  New entrants have further transformed the landscape, with nonbank servicers poised to provide needed capacity in place of traditional servicers. 

Servicing Initiatives

FHFA has worked with the Enterprises to develop and implement a number of initiatives.  Each initiative reflects FHFA's commitment to supporting a mortgage servicing market that is profitable, sustainable, and liquid.  These efforts include a servicing market survey, servicer financial standards development, policy alignment by Fannie Mae and Freddie Mac, and servicer compensation research.

• Most recently, as part of the 2019 Scorecard, FHFA, Fannie Mae and Freddie Mac evaluated the current liquidity requirements for non-depository Seller/Servicer counterparties to determine whether changes are appropriate. The evaluation lead to Proposed Minimum Financial Eligibility Requirements for Fannie Mae and Freddie Mac Seller/Servicers. The Proposed Minimum Financial Eligibility Requirements were posted to the FHFA website in January 2020. 
• In 2015, FHFA issued new eligibility requirements for Enterprise seller/servicers.  The requirements set minimum financial standards for Enterprise counterparties to further FHFA's goal of fostering an efficient, competitive, and resilient national housing finance market.
• The Servicing Alignment Initiative (SAI), announced in 2011, required Fannie Mae and Freddie Mac to align loss mitigation programs allowing servicers to uniformly implement loss mitigation policies.  SAI enabled Fannie Mae and Freddie Mac to develop and implement consistent servicing policies that have increased servicer efficiencies in resolving delinquencies. 
• FHFA published a white paper in 2011 exploring alternatives for a new mortgage servicing compensation structure.  The issues raised at that time serve as a guide for continuing research into compensation in 2018.

Related Documents: 

FHFA Proposes Minimum Financial Eligibility Requirements for Fannie Mae and Freddie Mac Seller/Servicers (1/31/2020)

FAQs: Updated Eligibility Requirements for Enterprise Single-Family Seller/Servicers (1/31/2020)

Fannie Mae and Freddie Mac Joint Servicing Market Survey Executive Summary (April 2018) 

Fannie Mae and Freddie Mac Joint Servicing Market Survey Results (April 2018)

Requirements for Enterprise Seller/Servicers [page]

Alternative Mortgage Servicing Compensation Initiative [page]

Loss Mitigation Programs [page]