Freddie Mac and Mortgage Guaranty Insurance Corp. said last week that, effective Oct. 1, Freddie will have exclusive rights to market MGIC's loan default management program.
The program is a statistical modeling system that determines the probability that late-paying borrowers will fall further behind and eventually require foreclosure.
More than two-thirds of Freddie Mac's portfolio of nearly eight million mortgages is managed by servicers using this system.
MGIC said it is transferring sole rights to the system to Freddie Mac as part of its decision to refocus company systems and employees on other technology initiatives. It said this announcement would not affect existing licensing arrangements or the software's availability through Fiserv, Alltel, or Excelis.