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NEWS RELEASE 2007
Freddie Mac Contact: Brad German
(703) 903-2437
Email: brad_german@freddiemac.com
ABA Media Contact: John Hall
(202) 663-5473
E-mail: jhall@aba.com
FREDDIE MAC, AMERICAN BANKERS ASSOCIATION RENEW
ALLIANCE TO HELP MEMBERS CUT COSTS, BUILD MARKET SHARE
WASHINGTON, May 9 – The American Bankers Association and Freddie Mac are extending and enhancing their increasingly popular alliance agreement providing community banks with a wide range of mortgage products, technology tools, and critical services designed to help them compete in today’s dynamic mortgage market. Freddie Mac is one of the nation’s largest investors in residential mortgages.
Last year the number of ABA members joining the alliance with Freddie Mac increased by 17 percent.
“By every measure, our alliance with the ABA is successfully enabling more member banks to build and sustain their customer base with a highly competitive package of residential financing options,” said Iliana Ghanem, Freddie Mac vice president for regional and community lending. “Today’s announcement also underscores Freddie Mac’s commitment to the ABA and to giving all of its members the essential ingredients of success in today’s increasingly challenging market.”
“ABA is pleased to extend and enhance the alliance with Freddie Mac,” said ABA President and CEO Edward L. Yingling. “The renewed alliance builds on the success we’ve had in expanding access to the secondary markets for our community bank members. We’re also pleased that the alliance offers our members special arrangements for an array of valuable ancillary services, such as online mortgage lending and subservicing options.”
By joining the Freddie Mac/ABA alliance, banks gain competitive cash executions, services to help them manage their mortgage portfolios more efficiently -- plus exclusive training sessions on many Freddie Mac products and solutions, especially in the areas of technology and affordable housing.
Access to Critical Origination, Servicing and Compliance Services
In addition, the ABA/Freddie Mac alliance gives banks special access to critical services from some of the industry’s leading providers. These include:
- Set-up advantages for a Mortgagebot® with Loan Prospector bank-branded website to originate mortgages, utilizing Freddie Mac's Loan Prospector® automated underwriting system.
- Private-label subservicing through Dovenmuehle Mortgage.
- Outsourced Investor accounting and loan level quality control services through Mortgage Dynamics Inc. for lenders who want to originate mortgages without the expense of a servicing operation.
- Advisory services from Brook Systems to help members comply with the myriad of state anti-predatory and other lending statutes.
- REO Management Services from New Vista Asset Management, Inc., the nation’s first minority-owned firm specializing in foreclosure real estate sales with coverage in all markets.
Scott Happ, President and CEO of Mortgagebot stated, “We place a high value on our relationship with both Freddie Mac and the ABA. Through this alliance, we have enabled ABA members to gain greater efficiency, grow revenue, enhance their service and compete more effectively by fully utilizing the power of the Internet.”
According to Bill Mynatt, Chief Executive Officer of Dovenmuehle, "in today's environment with reduced origination volumes, more banks than ever are trying to streamline their mortgage servicing operations and costs. Private label subservicing is an excellent fit for banks of all sizes and we are extremely pleased to renew and expand our relationship with Freddie Mac and the ABA.”
“Our goal for the 2007 Alliance package was to contribute services that are critical to maintaining favorable ratings with investors and regulators,” said Mary Bruce Batte, Co- President of Mortgage Dynamics Inc. “These services include special audits (such as ARMs and fraud), investor accounting, quality control, performing FAS 140 tasks and post closing. We look forward to continuing our relationships with members of this great Alliance!”
“For more than 20 years, Brooks Systems automated solutions have helped mortgage lenders of all sizes reduce the time and cost of meeting complex federal, state, and local regulations. As part of the Freddie Mac-ABA Alliance we are excited to help more lenders take advantage of our comprehensive, customized solutions for regulatory compliance,” added Pete Jahelka, senior consultant at Brooks Systems.
Jim Park, President and CEO of New Vista Asset Management stated: “New Vista is excited to work with Freddie Mac and ABA to provide full service REO disposition and marketing services to ABA member banks throughout the country. By utilizing New Vista’s services, ABA member banks of all sizes can turn the unfortunate foreclosure problems into solutions for community development and homeownership opportunities for minorities and first-time homebuyers.”
Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage pass through securities and debt instruments in the capital markets. Over the years, Freddie Mac has opened the doors for one in six homebuyers and more than two million renters across America.
The American Bankers Association brings together all categories of banking institutions to best represent the interests of this rapidly changing industry. Its membership — which includes community, regional and money center banks and holding companies, as well as savings associations, trust companies and savings banks — makes ABA the largest banking trade association in the country. For more press releases, backgrounders and fact sheets, visit our online press room at www.aba.com.
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