FHLMC Guide Bulletin 2013-19 Guidance Regarding Government Shutdown
On October 7, Freddie Mac released an update titled Guidance Regarding Changes Relating to Federal Government Shutdown Announced in Guide Bulletin 2013-19.
Guidance Regarding Changes Relating to Federal Government Shutdown Announced in Guide Bulletin 2013-19
To assist borrowers impacted by the federal government shutdown (shutdown) that began October 1, 2013, we are announcing temporary guidance regarding temporary changes to certain Single-Family Seller/Servicer Guide (Guide) requirements. The changes announced in today’s Guide Bulletin 2013-19 are effective October 8, 2013, and supersede any other temporary guidance previously announced related to Freddie Mac and the shutdown. This guidance will terminate automatically when the federal government re-opens and is fully operational, unless otherwise announced.
Originate & Underwrite
- Verification of employment. During the government shutdown you are required to meet Freddie Mac requirements for income and employment documentation. You may obtain verification of employment for government employees, including those on furlough, from a third-party service provider.
- Internal Revenue Form (IRS) Form 4506-T. While IRS Form 4506-T, Request for Transcript of Tax Return, information is required as part of your in-house quality control program, we only require borrower’s signature prior to closing. The IRS does not need to process the form before closing.
Sell & Deliver
- Eligibility for sale to Freddie Mac. Mortgages to federal government employees, and other individuals directly impacted by the shutdown, including borrowers not receiving pay at the time of delivery, are eligible for sale to Freddie Mac, as long as certain requirements are met.
Servicing
- Forbearance eligibility. Government employees, and other workers directly impacted by the shutdown and loss of income due to the shutdown may be eligible for short-term forbearance, and short-term and extended unemployment forbearance, as long as all other eligibility requirements are met.
- Impacts to credit and late charges. Borrowers on a forbearance plan as a result of the shutdown must:
- Not be reported to credit repositories.
- Not accrue or be charged late charges as long as they are following their plan’s requirements.
- Government-issued mortgages. If you service Federal Housing Administration, Department of Veterans Affairs, and Rural Housing Service mortgages, refer to those government agencies for any requirements issued during the shutdown.
- IRS Form 4506-T and 4506-EZ. In certain cases, Form 4506-T or 4506T-EZ must be processed by the IRS prior to evaluating a borrower for certain workouts. If it is not possible to obtain tax transcripts from the IRS, you must obtain a copy of the borrower’s most recent federal income tax return.
Get More Information
- Read Guide Bulletin 2013-19 [PDF].
- Review Guide Chapter 65, Reinstatements and Relief Options for Servicer information.
- Contact your Freddie Mac representative.
To view the online bulletin, please click here.
About Safeguard
Safeguard Properties is the largest mortgage field services company in the U.S. Founded in 1990 by Robert Klein and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage servicers, lenders, and other financial institutions. Safeguard employs approximately 1,700 people, in addition to a network of thousands of contractors nationally. Website: www.safeguardproperties.com.
