Freddie Is Seeing 'Dramatic' Growth in Repossessions

American Banker (06/12/08) P. 7; Berry, Kate
Ingrid Beckles, Freddie Mac's vice president of servicing and asset management, reports that the government-sponsored enterprise's volume of repossessed properties "is rising quite dramatically" and could double this year as it did in 2007. She adds that the GSE is starting several aggressive loss-mitigation programs to modify loans for borrowers that its servicers have been unsuccessful in contacting. She notes, "We aren't getting the kind of response we want, and we suspect that [some] borrowers aren't saving themselves [from foreclosure]." Beckles further notes that Freddie Mac has created a model for its delinquent loan portfolio that pulls out the loans that present the greatest risk based on loan-to-value ratios and FICO scores.