FHLMC Guide Bulletin 2015-14 New Automated Settlement Process and Requirement Updates
August 12, 2015
In today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2015-14, we’re announcing a new automated settlement process and updating Seller/Servicer requirements.
Key highlights include:
- Coming Soon! Workout Prospector® Automated Settlement for Liquidation Transactions
Following up on our commitment to continuously improve our technology, we’re announcing a new automated settlement process for liquidation transaction types – including short sales, deeds-in-lieu of foreclosure, charge-offs and third-party foreclosure sales – effective March 1, 2016. Doing business with us will be easier since you’ll have:
- Less required paperwork. You’ll no longer need to submit a Settlement/Closing Disclosure Statement, or a third-party foreclosure sale claim package or Guide Form 1160.
- Pre-populated data based on the liquidation approval.
- Real-time feedback and transparent communication on settlement issues within the system.
- Quicker payment of the charge-off adjustment/credit on the Detailed Adjustment Report (DAR).
- Extending the Submission Deadline for the Home Affordable Modification Program (HAMP®) Year Six Pay for Performance Incentive
To provide additional time for Servicers to solicit eligible borrowers, and for eligible borrowers to submit the executed Dodd-Frank Certification (DFC) or Guide Form 720, we’re extending the September 1, 2015, date to January 1, 2016. To be eligible for the incentive, borrowers must submit an executed DFC or Guide Form 720 on or before the later of:
- The sixth anniversary of the HAMP Trial Period Plan Effective Date, or
- January 1, 2016.
- DAR Enhancements for Third-Party Foreclosure Sales
Effective November 23, 2015, the amount posted to the DAR will be determined, in part, by the gross sale proceeds, and not the net sale proceeds of the property.
- Property Inspection Updates
For mortgages secured by properties 45 or more days delinquent, you must complete one inspection every calendar month and ensure that no two inspections are completed within a 20-day period, effective January 1, 2016. Please note that we’ve updated Guide Form 1013, 1-4 Unit Property Inspection Report, to include interior property inspections and more accurately reflect a property’s condition.
We’ll announce more information, training and resources about this enhancement later this fall.
- We’re introducing new Guide Exhibit 1191B, Streamlined Modification Solicitation Letter for Day 60 Rate Reset.
- We streamlined Guide Form 1034T, Subsequent Transfer Document Custodial Certification Schedule.
Please read Guide Bulletin 2015-14 for more details.
Beginning September 1 – as announced in Guide Bulletin 2015-9 – all appeals for late foreclosure sale reporting compensatory fees must be submitted through the Freddie Mac Default Fee Appeal System.
For More Information
- Read Guide Bulletin 2015-14.
- Check out our Summary of Upcoming Requirement Changes document.
- Visit Freddie Mac’s Learning Center for more 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 2015-14 [pdf].