Issue link: http://dsnews.uberflip.com/i/1513140
December 2023 » thefivestar.com 37 December 2023 C O V E R S T O R Y to broaden and deepen inclusion policies and initiatives for current and aspiring homeowners and renters. This year, Fannie Mae was named a Top Workplace by The Washington Post and The Dallas Morning News, entirely based on employee feedback, and underscores the dedication of our workforce to our mission. We also received the Best in Val- ues award from The Dallas Morning News, having the highest employee response of companies surveyed to the statement: This company operates by strong values. We know our central role in the hous- ing economy demands that we recognize and reward the hard work and achieve- ment that our people deliver. We strive to be an employer of choice and offer com- petitive, life-encompassing benefits that align with our mission. Our Live Well pro- gram focuses on health, finances, career, work-life fit, and community because each component plays an important role in how we show up for work and deliver on Fannie Mae's mission. We offer benefits, programs, and resources that help during moments that matter—such as buying a first home, continuing education, caring for loved ones, and much more. In 2023, we updated leave programs to include enhanced vacation leave, 12 weeks of paid caregiver leave, home catastrophe leave, and grandparents leave, and we expanded our paid parental leave to 12 weeks. Our focus on finance includes opportunities for employees to achieve future financial goals through programs and a competitive compensation struc- ture. Examples include our student loan repayment program and an up to $10,000 grant after closing on a home purchase for eligible employees. As a Top Workplace, Fannie Mae is committed to serving our communities. When natural disasters affect a community, the impact can be significant. With the goal of reducing the time it takes for a family to return to a safe and stable home after a disaster, our Disaster Rebuild Deployment program provides opportunities for our employees to participate in clean-up activ- ities as well as home repairs and rebuild efforts. We provide eligible employees with 37.5 hours of paid disaster relief volunteer leave annually to enable them to serve in disaster-stricken communities. We also support employees' self-led giving and volunteering. Fannie Mae matches up to $5,000 per year in charita- ble gifts to eligible U.S.-based nonprofit organizations and offers employees up to 10 hours of paid volunteer leave per month to give their time and talents to causes they support individually. Through the com- pany's Matching Gifts program, employ- ees, board members, and the company collectively donated $4.1 million to eligible nonprofits in 2022. Q: With household savings rates below normal levels, student loan payments resuming, the price of oil on the rise, and lending standards tightening, how will these factors play into the foreclosure landscape? Wells: Many factors will strain household budgets and place more homeowners at risk of default and foreclosure. In general, mortgages originated before 2023 under higher lending standards will be at lower risk, as rising property values add to their equity. In contrast, 2023 was marked by peak interest rates and relatively less stringent underwriting standards. Borrowers with less excess cash to cover the rising costs of homeownership will be more likely to strug- gle with mortgage payments. Further, those with a high loan-to-value ratio will have less equity to leverage if times get tough. The upside: mortgage servicers can make a positive difference for home- owners with proactive engagement and personalized support. The key is building relationships with homeowners long before a first missed payment. Homeowners will be more likely to entrust their servicer for help in the face of hardship, and tech-savvy servicers will have more data to detect hard- ships early and provide relevant resources to help them stay on track. Q: What are some strategies used to cater to and attract business from emerging markets? Austin: The non-QM opportunity continues to be one of legitimate long- term growth. A quality non-QM loan provider must meet the demands of the market, and by this, I mean in terms of strategic programs and products. The programs need to be as unique as the borrowers who require them. Alternative income documentation such as bank statements, profit and loss, and 1099 loans are just a few examples. Loans that not only run up the FICO bands but also run down into lower FICO bands. In a time where contract workers, consultants, self-employed, 1099 wage earners, and the gig workforce are all growing, sound non-QM lending will be needed. "Many factors will strain household budgets and place more homeowners at risk of default and foreclosure. In general, mortgages originated before 2023 under higher lending standards will be at lower risk, as rising property values add to their equity." —Toby Wells, President, Cornerstone Servicing