February 5, 2002
Major Lenders To Implement Freddie Mac?s EarlyResolution For Delinquent Borrowers
Inman News Features
Freddie Mac announced Wells Fargo Home Mortgage has implemented EarlyResolution, Freddie Mac's Web-based system for counseling delinquent borrowers.
"EarlyResolution is a proven tool for reducing losses by turning more delinquencies into successful workouts," said Phillip E. Comeau, Freddie Mac's VP of single-family servicing and cash management operations. "Today's announcement with Wells Fargo means EarlyResolution is more accessible than ever, so more servicers can help more borrowers resolve financial issues and successfully stay in their homes."
Bank of America and National City Mortgage also are expected to implement EarlyResolution in the next few months, Freddie Mac reported. The company estimated that 20 percent of the nation's residential mortgage originators plan to use EarlyResolution this year.
EarlyResolution is designed to help loan counselors obtain better information from delinquent borrowers over the telephone and use that information to determine workout strategies that will help those borrowers avoid foreclosure.
According to Freddie Mac, EarlyResolution provides counselors with consistent direction for reinstatement and workout options, including promises to pay, repayment plans, forbearance plans, loan modifications, short payoffs and deeds in lieu of foreclosure.
Copyright: Inman News Service