Servicers that demonstrate superior servicing performance for the prior year can receive rewards and recognition based on their Servicer Success Scorecard. The Scorecard is a confidential monthly performance review for all Freddie Mac-approved Servicers, and is made available on the last business day of each month for the prior month’s performance.

In addition, a Servicer’s annual Scorecard ranking plays a crucial role in determining winners in two categories within Freddie Mac’s newly enhanced Servicer Honors and Rewards Program (SHARP)SM. SHARP recognizes and rewards top performing Servicers and Servicing Agents over the course of the calendar year that achieved great customer service and positive efforts to prevent and cure delinquencies and help homeowners.

New Scorecard Enhancements

The 2026 Scorecard introduces new updates to enhance early delinquency management, reduce operational and credit risks and boost performance outcomes. It measures a Servicer’s performance based on key metrics in the Default Management, Investor Reporting and Quality Assurance File Review categories. Review our best practices below to enhance your Scorecard by minimizing loan delinquencies through early detection and targeted outreach.

Default Management Performance

Default Management performance metrics provide insight into your servicing performance for delinquency management and workout solutions. 

Transition from 30 to 60+ (Weighting 30%)

To manage delinquent loans, monitor accounts that repeatedly roll from 30 to 60 days delinquent, especially those making partial payments. Analyze risk factors such as loan characteristics, payment patterns and recent modifications. Use tailored communication methods and regularly assess their effectiveness, including web portal engagement. Identify high-risk homeowner groups early and develop intervention strategies. Ensure timely and accurate quality right party contract (QRPC) reporting for Freddie Mac compliance, and facilitate smooth loan transfers with accurate data, especially for Automated Clearing House (ACH) payments.

Cure Efficiency (Weighting 20%)

Implement creative collection strategies to identify loans nearing 60 days delinquent and understand the reasons for homeowner default. Use homeowners’ preferred communication and payment methods, regularly assessing their effectiveness. Initiate QRPC early, make interactions and departmental transfers seamless, and always prioritize the homeowner’s ability to pay by requesting a full payment and then evaluating their financial situation before proposing workout solutions.

Retention Efficiency (Weighting 15%)

Apply creative collection strategies for loans nearing 60 days past due by understanding default reasons and homeowners’ preferred communication and payment methods, regularly assessing their effectiveness. Initiate QRPC early, ensure smooth departmental transfers, and guide homeowners to complete forms online using electronic documents. Follow up after reinstatement to support homeowners in staying current and provide counseling resources as needed.

Modification/Payment Deferral (PD) Recidivism Rate (Weighting 10%)

Before offering a modification or payment deferral, make sure the workout option ensures the homeowner’s hardship is fully resolved and the workout fulfills their needs. Provide the homeowner with counseling materials to help them stay on track and regularly follow up with the homeowner for 90-180 days after a workout to ensure they continue to pay on time.

Transition to Beyond Time Frame (Weighting 5%)

Monitor loans with significant foreclosure delays, seeking opportunities to streamline processes or re-evaluate partners. Identify if delays are state-specific and ensure proper reporting to Freddie Mac. Review loans stalled in retention efforts, and consider alternative foreclosure options if necessary.

Transition from Current to 30+ (Weighting 20%)

Monitor loans fluctuating between current and 30 days delinquent due to partial payments and identify features or risk factors that increase delinquency. Assess homeowners’ preferred communication and payment methods, evaluate the need for additional payment process on weekends and offer expanded options like web, self-service tools, and interactive voice response (IVR). Ensure smooth ACH/payment transfers and maintain data quality, especially for loans in retention options.

Transition from 60 to 90+

Understand how your homeowners prefer to communicate and pay such as through email, phone, text, tutorials and chat bots. Track which methods work best.

Transition from 120+ Days to Worse

Review unsuccessful retention efforts and consider foreclosure if necessary. Monitor bankruptcy payment delays and determine if actions such as a motion for relief are needed. Track foreclosure delays and ensure accurate reporting to Freddie Mac.

Modification Pull Through Rate

Ensure the modification effectively resolves the homeowner’s hardship and continue to follow up afterwards to address any ongoing concerns.

Liquidation Efficiency

Keep Freddie Mac updated with accurate reports and collaborate with our operations team to address the most delinquent loans. If loans remain unresolved in the workout process, consider foreclosure or other alternatives. Maintain regular contact with homeowners, monitor foreclosure counsel to ensure they’re managing timelines and identify if specific states are causing process delays.

INVESTOR REPORTING 

Investor Reporting metrics provide insight into your servicing performance for reporting loan level activity for every loan in your portfolio.

Cash Deficiency 

To prevent any non-sufficient funds (NSFs), it’s crucial to execute the appropriate forms, such as 1057 and 1132a, in a timely manner. Additionally, it’s important to routinely review these forms for any updates, such as changes in financial institutions or custodial accounts.

Average Number of Days to Report Payoffs

Ensure the proper procedures and controls are documented and executed to prevent any delays in reporting payoffs.

Aged Edits

Conducting an early root cause analysis is essential for identifying issues promptly. This allows for the early determination of remediation actions, such as data correction. To ensure effective resolution, timely submissions of data corrections, such as post fund data correction (PFDC) or servicing data correction (SDC), are necessary.

Loan Level Reporting Compliance

To prevent any delays in reporting all loans by the principal & interest determination date (PIDD), it’s important to ensure that proper procedures and controls are both documented and executed. Daily reporting is highly encouraged to avoid last-minute emergencies, as Servicers are not required to wait until the PIDD to report.

Questions? Contact your Freddie Mac representative or Customer Service (800-FREDDIE).