FHLMC Guide Bulletin 2014-25 Expansion of the Freddie Mac MyCity Modification
On December 18, Freddie Mac released an update titled Guide Bulletin 2014-25: Expansion of the Freddie Mac MyCity Modification.
Guide Bulletin 2014-25 Announces MyCity Modification Expansion
In Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-25 [pdf], we’re announcing the expansion of the Freddie Mac MyCity Modification to include Cook County, Illinois. We’re also revising MyCity Modification requirements for the City of Detroit, Michigan, previously announced in Guide Bulletin 2014-11 [pdf].
This expansion is another opportunity for you to provide eligible borrowers with a loan modification option that may offer significant payment relief.
Only Servicers with loans in Cook County, Illinois, and the City of Detroit, Michigan, or those who may acquire servicing of applicable loans in those locations in the near future, will be impacted by the requirements described in Guide Bulletin 2014-25 [pdf], related to the MyCity Modification.
MyCity Modification Changes
- For the City of Detroit, Michigan, and Cook County, Illinois
- Servicers must proactively offer the MyCity Modification to borrowers who are 90 or more days delinquent.
- Servicers are now fully delegated to approve all eligible borrowers.
- The expiration date for the MyCity Modification for the City of Detroit has been extended to December 1, 2016.
- The property valuation requirement for the MyCity Modification for the city of Detroit has been changed, requiring that the Servicer order a property valuation.
- For Cook County, Illinois
- Eligibility is limited to one- to four-unit single-family properties with property values equal to or less than $250,000.
- However, two- to four-unit properties valued over $250,000, that otherwise meet the eligibility requirements, must be sent to Freddie Mac for review.
What You Need to Do
To implement the updated MyCity Modification, follow the eligibility and documentation requirements, along with any other instructions provided by Freddie Mac, for all evaluations on or after April 1, 2015. For a complete list of those requirements, please refer to Guide Bulletin 2014-25 [pdf].
The MyCity Modification Trial Period Plan effective date must be no later than December 1, 2016.
- For More Information
- Review Guide Bulletin 2014-25 [pdf].
- Visit our MyCity Modification Web page.
- Sign up for the latest emails on Single-Family news, updates, alerts, and education opportunities on our Subscription Center.
- Read our Summary of Upcoming Requirement Changes [pdf] to stay on top of upcoming requirement changes by effective date.
- 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 view Guide Bulletin 2014-25 [pdf].
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