FHLMC Guide Bulletin 2013-24 Helping Borrowers Avoid Foreclosures
On November 25, Freddie Mac released Guide Bulletin 2013-24, which announces servicing updates that help more borrowers avoid foreclosure.
Guide Bulletin 2013-24 Announces Servicing Updates That Help More Borrowers Avoid Foreclosure
In Single-Family Seller/Servicer Guide Bulletin (Guide) Bulletin 2013-24 we are announcing requirement changes that allow Servicers to help more borrowers avoid foreclosure through short sales and deeds in lieu of foreclosure (DILs). Some changes included in Guide Bulletin 2013-24 are:
- Updating eligibility requirements for exceptions to borrower documentation for short sales and DILs. We’ve expanded eligibility to include borrowers whose mortgage debts have been discharged in a Chapter 7 bankruptcy regardless of the borrower’s FICO score. Additionally, mortgages that were originated as investment properties are no longer eligible for the exception to borrower documentation. Servicers must now review a complete Borrower Response Package (BRP) to evaluate these borrowers for a short sale or DIL.
- Updating Servicer delegations for short sales and DILs. Servicers must submit a short sale or DIL recommendation to Freddie Mac for approval when the borrower’s cash reserves exceed $50,000.
- Revising our short sale and DIL processing and foreclosure suspension requirements. Servicers must delay, or ensure that foreclosure counsel delays, the next legal action in the foreclosure process when they:
- Receive a First Complete BRP more than 37 days prior to a scheduled
foreclosure sale date, and - The evaluation results in an offer to proceed with a short sale or DIL.
- Receive a First Complete BRP more than 37 days prior to a scheduled
- Revising our BRP review requirements for short sales. Servicers are no longer required to conduct an expedited review when a completed BRP with a short sale purchase offer is received greater than 37 days prior to a scheduled foreclosure sale date. However, Servicers must continue to expedite a review of a complete BRP received between 37 days and 15 days prior to a scheduled foreclosure sale date.
- Updating our Trial Period Plan requirements. If a borrower accepts an original Trial Period Plan offer after receiving an appeal decision, and the borrower remains eligible for the original offer, Servicers must reissue the original offer with a new Trial Period Plan due date. Any delinquent amounts accrued during the appeal review process will be included in the modified principal balance.
Read Guide Bulletin 2013-24 for more detailed information on these updates.
Investor Accounting Manager Retirement
Effective November 15, 2013, Investor Accounting ManagerSM (IAM) was retired. With the retirement of IAM, Servicers are only able to access investor accounting reports through the Freddie Mac Service Loans application. If you need access to the application, visit the Service Loans Application Resource Center for instructions on how to register.
Training and Resources
Please visit Freddie Mac’s Learning Center for additional information on our training programs and references tools.
For More Information
- Read Guide Bulletin 2013-24 [PDF].
- Visit the Freddie Mac Standard Short Sale and Freddie Mac Standard Deed-in-Lieu Web pages.
- Contact your Freddie Mac representative.
Please click here to view the online bulletin.
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.
