FHLMC Guide Bulletin 2014-6 Updates Servicing and Selling Requirements
On April 24, Freddie Mac released an update titled Guide Bulletin 2014-6 Updates Selling and Servicing Requirements and Provides Important Reminders.
Guide Bulletin 2014-6 Updates Selling and Servicing Requirements and Provides Important Reminders
In Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-6, we’re announcing updates to existing selling and servicing requirements. Effective immediately, unless otherwise indicated, we are:
- Requiring that you report guilty pleas or governmental authority investigations to Freddie Mac. You must report to us immediately when you’re notified of:
- A guilty plea, indicating a lack of integrity, relating to a participant in a mortgage or related real estate transaction, or relating to a Seller/Servicer board member, officer, employee, or contractor.
- A governmental agency fraud investigation or prosecution relating to a Seller/Servicer board member, officer, employee, or contractor.
- Incorporating FEMA’s revised Standard Flood Hazard Determination Form and updating our flood insurance requirements.
- The Guide now incorporates FEMA’s revised Standard Flood Hazard Determination Form 086-0-032, which replaces the previous Form 81-93.
- For additional updates to our flood insurance requirements, please read Guide Bulletin 2014-6. Also, visit our Disaster Relief Web page to learn more about how Freddie Mac is prepared to assist borrowers and Seller/Servicers in the aftermath of a disaster.
- Revising the process for requesting and obtaining physical or constructive possession of a note as well as related document custodial functions and duties. We’ve revised Form 1036, Request for Physical or Constructive Possession of Documents, to allow Servicers to request constructive possession from the Document Custodian. In addition:
- We’ve specified that Document Custodians temporarily maintain physical custody of a note, in trust, for your benefit during the period of time that you require constructive possession to service a mortgage.
- You’re now able use Guide Form 1036 when applicable law requires that you have either physical or constructive possession of a note or when notifying the Document Custodian that the need for constructive possession has ended.
Other changes announced in this Guide Bulletin include:
- Removing our requirement that a borrower must maintain six months’ rent loss insurance for a 2- to 4-unit primary residence when rental income is used in qualifying.
- Updating Guide Exhibit 4 and Exhibit 5 to reflect the creation and use of the joint GSE MERS® Rider Form in three states (required use effective October 15, 2014).
- Posting a document listing the full table of contents for the Guide on AllRegs®.
- Publishing the most recent Historical Guide Snapshot [PDF].
- For Sellers only, we’re clarifying:
- That unemployment compensation is an eligible source of income for Relief Refinance Mortgages.
- Applicability of resale restrictions by updating Guide Section 22.23, Purchase Requirements for Mortgages Secured by Properties with Resale Restrictions.
Please refer to Guide Bulletin 2014-6 for additional details on these requirements.
- Online Self-Service Password Reset – We implemented an online password reset capability for Single-Family business applications that require a user ID and password. To use this self-service solution, you must create your online user profile by June 16, 2014. Click here to get started.
For More Information
- Review Guide Bulletin 2014-6 [PDF].
- Visit Freddie Mac’s Learning Center for additional information on our training programs and references tools.
- Visit our Subscription Center to sign-up for the latest emails on Single-Family news, updates, alerts, and education opportunities.
- Contact your Freddie Mac representative.
Please click here to view the online update.
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.