FHLMC Guide Bulletin 2014-16 Servicing Updates
On September 15, Freddie Mac released an update titled Guide Bulletin 2014-16: Servicing Updates.
FHLMC Guide Bulletin 2014-16: Servicing Updates
Based on your feedback along with our ongoing effort to create more efficient and effective policies, we announced important servicing requirement updates in today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-16. You’ll find the key topics here, but please read Guide Bulletin 2014-16 for a complete overview of the requirement changes.
Bulletin Spotlight – Servicemembers Civil Relief Act
On August 26, we announced updates to our Servicemembers Civil Relief Act (SCRA) requirements that we made in response to the White House’s SCRA initiative. You’re now able to accept alternative documentation to verify an eligible service member’s military status.
Here’s how you can identify eligible borrowers and help them get a lower interest rate on their mortgages:
- Search the online Defense Manpower Database Center (DMDC) on a quarterly basis to find service members in their portfolio who have Note Rates greater than six percent.
- Offer interest rate relief to active service members with eligible mortgages.
- Use the DMDC to confirm a borrower’s military status instead of requiring the service member to provide a copy of their orders.
Two Changes to Loan Modifications
To make loan modifications easier for you to process, we:
- Updated the Freddie Mac Reimbursement System so you can be reimbursed for recordation fees, title costs, notary fees, and Home Value Explorer® expenses on all loan modifications.
- Extended Trial Period Plan timelines up to 12 months total for borrowers in bankruptcy.
This change gives you more time to get court approvals on modifications for borrowers in bankruptcy when needed. And, you’ll continue to receive incentives if you choose to use the additional Trial Period Plan months.
Coming Soon – Submit Default Fee Appeals Online
Your feedback helped us develop the Freddie Mac Default Fee Appeal System, which will eliminate the manual appeals process
- Available October 27, 2014, this new online tool will allow you to submit appeals for foreclosure timeline compensatory fees online.
Changes to Internal Revenue Service (IRS) Form 1099-C, Guide Chapters 66 & A66, and Guide Exhibit 57A
- IRS Form 1099-C
We updated our requirements to clarify your responsibilities for filing Form 1099-C when deficiency rights were preserved during the foreclosure process.
We’re creating a new Servicer 1099-C filing report to help you identify which loans you need to file in Form 1099-C. This report will be available in Default Reporting ManagerSM beginning January 2015.
- Consolidated Guide Chapters 66, Foreclosure, and A66, Expediting Default Related Legal Matters
We combined sections, created new titles, and deleted duplicative sections so you can easily find the information you need. Additionally, the order of Guide Chapter 66 more closely aligns with the timing of requirements during the foreclosure process.
- Guide Exhibit 57A [pdf], Approved Attorney Fees and Title Expenses
We updated our reimbursable amounts for attorney fees and other default-related legal services to better align with industry standards and best practices. These updates are effective for all new claim submissions on and after October 20, 2014.
For a complete list of the changes announced today, refer to the Guide Update Spreadsheet [xls].
For More Information
- Read more about the SCRA initiative on the White House SCRA blog and our Military Relief Options for Service Members Web page.
- 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.
- Contact your Freddie Mac representative.
Please click here to view the online update.
Please click here to review Guide Bulletin 2014-16 [pdf].
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.