FHLMC Guide Bulletin 2014-20 Servicing Update
On November 17, Freddie Mac released an update titled Single-Family Seller/Servicer Guide Bulletin 2014-20.
Guide Bulletin 2014-20 Announces Several Servicing Requirement Updates
In today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-20 [pdf], we’re announcing several servicing requirement changes to provide greater efficiencies and make doing business with us easier, including:
- Delegation agreements with several mortgage insurance (MI) companies for foreclosure sale bidding.
- With this new delegation of authority, you can simply follow Freddie Mac’s guidelines when preparing foreclosure sale bids on mortgages covered by participating MIs.
- You must refer to the “Delegated MI Companies” list in the Freddie Mac Service Loans application when preparing for foreclosure sales scheduled on or after January 16, 2015, for mortgages with MI policies. However, you must implement this change in accordance with the applicable MI’s requirements or guidelines, which may require earlier adoption.
- Uniform requirements for insurance loss settlements. We’ve established uniform requirements for handling loss settlements for disaster-related and non-disaster-related property damage. You now have delegated authority to release insurance proceeds to the borrower based on the mortgage status at the time of the loss.
- Retirement of Expense Manager™. Effective March 1, 2015, Expense Manager will be retired and all existing reports will be available through the Freddie Mac Reimbursement System only. Visit the Reimbursement System Web page for information on how to register.
Additional Guide updates and reminders
- Clarified our servicing requirements for loans of service members and their dependents.
- Reminded Servicers to pay any condominium, HOA, and PUD assessments that are superior to our lien and may pose a risk to our interests if left unpaid.
- Introduced the email@example.com email box for audit confirmation requests.
- Updated Directory 1 related to document custody eligibility.
- Reminded Servicers about our new private mortgage insurance master policies announced in Guide Bulletin 2014-13 [pdf].
Please refer to Guide Bulletin 2014-20 for further details on these changes and additional Guide updates.
For More Information
- Read our Summary of Recent Announcements and Upcoming Requirement Changes [pdf]. This valuable resource provides you with a comprehensive list of upcoming requirement changes by effective date.
- 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 update online.
Please click here to view Guide Bulletin 2014-20 [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.