Fannie Mae Case Study

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Fannie Mae Soloabomi Arrington/Michael Mattar/Layne Miley COM/350 November 14, 2011 Tiffany D. Seward University of Phoenix Fannie Mae is a government sponsored organization that was chartered by the Congress of the United States of America to keep the American dream of homeownership alive. In 1938 the Congress enacted the Federal National Mortgage Association Charter Act whose role was to “support liquidity, stability and affordability in the secondary mortgage market” (Fannie Mae, 2011). Their role was never intended to be loan originators or to lend money in the primary mortgage market. The organization was charged with keeping the market funded by ensuring that lenders had the needed resources, to build up and strengthen the housing…show more content…
This type of structure in an organization with its scope and the level of detail involved require a very low ratio of supervisors to employee at every level. This also facilitates improved communication, training, support, and feedback which should be lateral and vertical as…show more content…
Fannie Mae has realized the importance of communication in order to focus on preventing foreclosures, and supporting the recovery of the housing market. Fannie Mae has currently drafted a plan in which there is a clearer line of open communication between Fannie Mae and home owners. For instance, according to Fannie Mae,’ During the first 120 days of delinquency, homeowners will be contacted both verbally and in writing to complete a mortgage modification or other solution to remain in the home, or enter into an arrangement to exit the home without a foreclosure.’ Foreclosures can be prevented once a line of open communication has been established early enough between the homeowner and the mortgage lender. Fannie Mae has incorporated communication methods within the organization to help it serve the public better. Communication methods such as face-to-face, web portals, emails, telephone conversations, have been incorporated in order to create a model that is dedicated to serving the housing market and ensuring another crisis is not repeated. According to DSnews, Fannie Mae’s 29-page document on delinquency management details various key benchmarks that servicers must meet, including a 60-second window for answering inbound inquiries to call centers and 48 hours to respond to
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