Over the past year, Fannie Mae has been developing a new program aimed at keeping homeowners in their homes and preventing foreclosures. Fannie Mae is already using the program, known as Know Your Options Customer Care, with some of its biggest servicers and expects to use it with more servicers in the near future.
Some of the key components of the Know Your Options program include training loan servicers to:
- Develop consultative relationships with homeowners who are struggling to pay their bills, and offer different options for them to be able to get help with bills if required.
- Implement ongoing quality control measures.
- Advise homeowners of their options and how to achieve those options.
- Establish one person in the call center as a point of contact for an individual customer. This provides consistency and less frustration for the homeowner.
The loan servicers who have already begun participating in this program are reporting a 20-30 percent increase in loan workouts prior to foreclosure. The program will be available to Fannie Mae servicers at no charge.
In addition to the Know Your Options program, Fannie Mae is also reportedly fighting foreclosures by:
- Developing a Know Your Options website for homeowners.
- Opening more Mortgage Help Centers in areas hard hit by foreclosures.
- Working with Freddy Mac and the Federal Housing Finance Agency to require early outreach to struggling homeowners.
- Requiring servicers to make the short sale timeline shorter.
- Taking other actions designed to help provide homeowners with options.
Our Minneapolis foreclosure lawyers hope that these initiatives provide many homeowners in Minnesota and throughout the country with the relief they need during these difficult economic times.