Adaptable, Scalable Automation of Loan Servicing for Mortgage Industry Giant
Overview
As part of a multi-pronged strategic initiative to innovate and reimagine the way that single family mortgage loans were managed, Freddie Mac sought to replace its legacy servicer platform. The goal was to help servicers submit and manage expenses related to Freddie Mac loans faster, easier, and with less hassle.
Our Approach
Providing project management and agile delivery support, RiverNorth oversaw the IT modernization, change management, and systems development for the new automated system (a $10M, multi-year program involving 50+ team members). We analyzed Freddie Mac’s system and business processes; provided program strategy; oversaw system integration analysis; managed requirements; and reengineered processes.
Results
The client realized millions of dollars in cost savings by eliminating vendor dependency and reducing manual processes. Servicers are now reimbursed in only 48 hours, a 21-time decrease from the initial turnaround time. The system has been critically acclaimed by HousingWire:
Freddie Mac
The new fully digitalized expense reimbursement and payment delivery solution provides adaptability and scale.
Freddie Mac’s new fully digitized expense reimbursement and payment delivery solution — Payments Automated Intelligent and Dynamic (PAID) — is a game changer. Greater efficiency, reduced costs and improved cashflow enable mortgage professionals and vendors to seamlessly perform the activities they need while managing their loans. Launched broadly in September 2021, PAID replaces a prior reimbursement system, and it is an example of how Freddie Mac is reimaging servicing, embracing the rise of digitization and using client insights to deliver value.
Process eliminates ten data elements previously required for expense submission and a check processing option that took 7–10 days.
Servicers are reimbursed within 48 hours of issuing a claim, which is up to six times faster than the old system.
The technology improves data quality and oversight by checking data entries against business rules and returning messages that guide clients on how to resolve errors.