FHLMC Guide Bulletin 2016-14: Selling and Servicing Updates
August 17, 2016
In Single-Family Seller/Servicer Guide (Guide) Bulletin 2016-14, we’re updating the remedies frameworks and Servicer modification requirements. All changes are effective immediately unless otherwise noted in the Guide Bulletin.
As summer winds down, we’re keeping the heat on to improve our processes and customer focus.
What This Means for You
For Seller/Servicers, we’re including details of the Independent Dispute Resolution (IDR) process, announced in Guide Bulletin 2016-1 [pdf]. This includes changing the selling representation and warranty framework and the servicing remedies framework by:
- Adding Guide clarification to support the IDR process.
- Providing you with an opportunity for final resolution to a dispute regarding whether there’s a servicing or selling defect through the IDR process, which should be quicker and more cost-efficient than litigation.
- Introducing impasse and management escalation processes as part of the overall appeals process, to resolve as many disputes as possible before any IDR process begins.
- Updating the Guide to support the servicing remedies framework as it relates to title-related defects.
For Servicers, we are:
- Clarifying our Principal Reduction Modification eligibility requirements to be consistent with our original intent for the Principal Reduction Modification.
- Revising our evaluation model clauses in Guide Exhibit 93 and Freddie Mac Streamlined Modification borrower solicitation letters in Guide Exhibits 1191, 1191A and 1191B, to align with revisions to certain Home Affordable Mortgage Program (HAMP®) requirements that we announced in Guide Bulletin 2016-10 [pdf].
- Check out our Summary of Upcoming Requirement Changes [pdf] document.
For More Information
- Read Guide Bulletin 2016-14 [pdf].
- Visit the Principal Reduction Modification web page.
- Review the IDR process outlined in the Independent Dispute Resolution Document found here for Selling and here for Servicing.
- Go to Freddie Mac’s Learning Center for more on our training programs and reference tools.
- Contact your Freddie Mac representative.
Source: Freddie Mac