FHLMC Guide Bulletin 2014-14 Servicing Requirement Changes
On July 15, Freddie Mac released Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-14, announcing servicing requirement changes that will help make doing business with Freddie Mac easier.
In today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-14 [pdf], we’re announcing servicing requirement changes that will help make doing business with us easier, including:
- Streamlining the workout settlement process. Beginning August 25, 2014, you’ll be able to submit settlement data for nearly all modifications via the new Loan Modification Settlement screen in Workout Prospector®. This automated settlement capability will:
- Eliminate the need to submit Guide Form 1128, Loss Mitigation Transmittal Worksheet, for modifications on conventional mortgages,
- Reduce the number of required settlement fields from 50 to 17,
- Provide real-time notifications on potential missing or incorrect data, and
- Decrease settlement times considerably.
We’re also updating the look and feel of Workout Prospector to make the tool more intuitive and easier to use. Training registration on the new and improved Workout Prospector will begin in early August. We’ll notify you when training registration is available in the Learning Center. Watch this brief video. for a sneak peek of these exciting upcoming enhancements.
- Introducing new Guide Exhibit 101, Income Calculation Guidelines for Alternative to Foreclosure Options. This new exhibit provides detailed instructions on how to calculate borrower income based on documentation required in accordance with the Servicing Alignment Initiative.
- Updating attorney fees and costs reimbursement codes and requirements. We’ve added new expense codes and updated certain requirements that will further enhance our management of default-related legal services reimbursements and allow us to more accurately track default-related expenses. These changes will also streamline the review process for pre-approval requests (RPAs) and result in quicker reimbursements to you.
Please review Guide Section 71.19, Exhibits 57A and 74, and the updated Expense Reimbursement Desk Reference [pdf] for more information.
We’ve also made the following Guide changes in response to your feedback and questions:
- Clarified our requirements on how to file claims for insurance or guaranty benefits for mortgages insured by the Federal Housing Administration or guaranteed by the Department of Veteran Affairs or Rural Housing Service, and for reimbursement of expenses incurred on government mortgages.
- Amended our mortgage modification agreement signature requirements.
- Updated foreclosure sale bidding requirements in the event that Freddie Mac decides to update or change the credit bid.
- Updated Guide Chapter 60 to provide greater detail related to transfer of ownership and assumption requirements.
- Clarified that Freddie Mac’s Automated Valuation Model report will be updated by the last Friday of each month.
Please refer to Guide Bulletin 2014-14 for details on these changes as well as additional updates.
- Online Self-Service Password Reset – Create your online user profile before July 21 for Single-Family business applications. Click here for more information.
- Take a look at the new and improved Workout Prospector in this brief video.
- Sign up for the latest emails on Single-Family news, updates, alerts, and education opportunities on our Subscription Center.
- Visit Freddie Mac’s Learning Center for additional information on our training programs and references tools.
- View our Quick Tips for Single-Family Seller/Servicer Guide Features video.
- Contact your Freddie Mac representative.
Please click here to view the online bulletin.
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.