Fannie Mae and Freddie Mac will work on a joint initiative, in coordination with Federal Housing Financing Agency (FHFA) and the Department of Housing and Urban Development (HUD), to consider alternatives for future mortgage servicing structures and servicing compensation for its single-family mortgage loans.

The joint initiative will consider alternatives to the traditional servicing compensation structure, according to a statement. The goals are to improve service for borrowers, reduce financial risk to servicers and provide flexibility for guarantors to better manage non-performing loans.

Alternatives for consideration could include a fee for service compensation structure for non-performing loans and the possibility of reducing or eliminating the minimum mortgage servicing fee for performing loans or other structures.

"As the recent problems in managing mortgage delinquencies suggest, the current servicing compensation model was not designed for current market conditions," said FHFA Acting Director Edward J. DeMarco. "The goal of this joint initiative is to explore alternative models for single-family mortgage servicing compensation that better address the needs of borrowers, servicers, originators, investors and guarantors."