Freddie Mac ups Ante in Fight against Foreclosure

Freddie Mac today outlined plans to tackle foreclosures by doubling financial incentives to mortgage serving companies.

The government sponsored enterprise said it would reimburse servicers for the cost of door-to-door outreach programs as well as streamline the workout process by giving servicers more time to negotiate workouts in states with fast foreclosure processes.

"We are taking these steps because we want to reinforce the tremendous importance of workouts and reward their use," said Ingrid Beckles, vice president of servicing and asset management, in a statement. "Giving our servicers more time and greater compensation to help troubled borrowers is fundamental to preserving homeownership and maximizing our efforts to minimize foreclosures."

Beginning August 1st, compensation for repayment plans will double to $500 from $50 while loan modification compensation will increase to $800 from $400.

Thursday morning trading saw Freddie Mac shares fall 10 cents to $8.63. The stock is down 85% over the past 52 weeks.