Mortgage Servicing | FEDERAL HOUSING FINANCE AGENCY

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 align servicers' loss mitigation tools, promote servicing market liquidity and efficiency, and create stronger counterparty financial requirements.

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 non-depository 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.

FHFA Updated Minimum Financial Eligibility Requirements for Fannie Mae and Freddie Mac Servicers. The updated requirements incorporate lessons learned from market events in reaction to the global COVID-19 pandemic, as well as industry feedback on the re-proposed requirements that were publicly released in February 2022.
FHFA, Fannie Mae, and Freddie Mac created new loss mitigation solutions and servicing flexibilities to assist borrowers impacted by the COVID-19 Pandemic. Fannie Mae and Freddie Mac retired these programs with the end of the National Emergency Declaration, but many similar flexibilities are still available for borrowers. In March 2023, FHFA announced Enhanced Payment Deferral policies to create additional home retention opportunities. For information for borrowers struggling to make their mortgage payments, please see the Mortgage Assistance Page.
In 2019, FHFA, Fannie Mae, and Freddie Mac evaluated the current liquidity requirements for non-depository Seller/Servicer counterparties which led to the Proposed Minimum Financial Eligibility Requirements that were posted to the FHFA website in January 2020. Previously, in 2015 FHFA issued updated eligibility requirements for Enterprise seller/servicers. 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.