FHLMC Workout Prospector Tool Retires End of Year
Written by: Heather Papows, Senior Loan Servicing & Secondary Market Consultant
FHLMC’s Bulletin 2024-G issued on September 11, 2024 provided a number of servicing updates relating to the Resolve user platform and impending retirement of Workout Prospector and Foreclosure Sale Reporting tools.
Resolve is Freddie Mac’s integrated default management solution which first rolled out in early 2021. It provides immediate response to workout submissions, evaluating against relevant decision criteria direct from the guide, in ways that overall improve a Servicer’s ability to process loss mitigation needs with operational efficiency. FHLMC took a phased approach to the rollout, strategically transitioning various aspects of workout requests over the now 3-year period.
Wirth the final phase underway, FHLMC has announced that as of December 20, 2024, users will no longer be able to access the Workout Prospector (WP) or Foreclosure Sale Reporting tools on Servicing Gateway, and all unsettled workouts still in WP as of that date will automatically be transitioned into Resolve.
With that knowledge, servicers may want to consider the following:
3 Considerations for Servicers to Evaluate with the Full Transition to Resolve:
Procedure Guide Updates: The retirement of Workout Prospector and Foreclosure Sale Reporting tools necessitates a comprehensive update of servicers' procedure guides. These guides need to be aligned with the new Resolve platform, ensuring that staff can navigate the system effectively and follow the correct procedures for loss mitigation workouts. Failure to update these guides could lead to errors, delays, and potential compliance issues.
Platform Familiarity: Even if servicers have infrequent loss mitigation workout requests, it is crucial to familiarize themselves with the Resolve platform. The retirement of the older tools means that when the next workout request comes in, servicers may be forced to use a platform they have never experienced before. This lack of familiarity could lead to delays in processing the workout, causing frustration for borrowers and potentially impacting the servicer's reputation.
Staff Training: Proper training is essential for staff responsible for handling loss mitigation workouts. Servicers should ensure that their staff are adequately trained on the Resolve platform, including its features, functionalities, and best practices. This will enable staff to use the platform efficiently, reduce errors, and improve overall operational efficiency. Neglecting staff training could result in mistakes, delays, and increased costs.
SCA offers a comprehensive suite of services to assist with this process. Whether its procedure guide reviews and updates, platform training and support, or process optimization and efficiency analysis, we’ll help you leverage best practices and optimize workflows, reduce turnaround times, and ensure a positive customer experience. Contact our Director, Bill Dolan, at wdolan@scapartnering.com or by phone at (617) 694-2617 and set up a conversation today!
