FHLMC Guide Bulletin 2017-1: Servicer Reimbursement for Use of a Lockbox on an Abandoned Property
February 15, 2017
In Single-Family Seller/Servicer Guide (Guide) Bulletin 2017-1, we’re announcing early implementation for the new Freddie Mac Flex Modification and other operational enhancements.
- Effective immediately and in response to your feedback, we’re removing the requirement that IRS Forms 4506T-EZ, Short Form Request for Individual Tax Return Transcript, and 4506-T, Request for Transcript of Tax Return, be obtained or processed, unless certain circumstances apply.
- You may start evaluating borrowers now for a Flex Modification Trial Period Plan. Starting May 1, 2017, Workout Prospector® will be updated so that you can submit data relating to Flex Modification Trial Period Plans. There’s no change to the October 1, 2017 mandatory implementation date we announced in Guide Bulletin 2016-22.
- Enhancing the modification loss calculation (MLC) for mortgages subject to an indemnification to more closely align with MLC for structured agency credit risk transactions.
- Specifying your responsibilities related to property preservation and advancement of property taxes and insurance premiums after a third-party foreclosure sale. Effective for foreclosure sales on and after April 17, 2017.
- Revising Guide Form 981, Agreement for Subsequent Transfer of Servicing of Single-Family Mortgages, to require electronic signatures. Effective June 1, 2017.
Please consider securing abandoned properties with knob locks or lockboxes, and remember that Freddie Mac reimburses the use of lockboxes on abandoned property.
For More Information
- Read today’s Guide Bulletin 2017-1 [pdf] for details.
- Visit Freddie Mac’s new Freddie Mac Flex Modification web page for modification information and reminders, and the Freddie Mac Learning Center for updates. Training resources will be available in the first quarter of 2017.
- Access our Form 981 Electronic Signature Process job aid [pdf] outlining required steps to electronically sign Guide Form 981.
- Review our Summary of Upcoming Requirement Changes [pdf] document.
- Contact your Freddie Mac representative.
Source: Freddie Mac
Freddie Mac (Guide Bulletin 2017-1: Servicer reimbursement for use of a lockbox on an abandoned property):
Servicers are encouraged to secure abandoned properties with knob locks or lockboxes under the terms of the Mortgage documents and applicable law. Exhibits 57 and 74 provide a maximum of $60 reimbursement for knob locks if they are used for access to, and/or securing of an abandoned property. We are now also providing reimbursement for lockboxes. To receive reimbursement for a knob lock or lockbox up to the allowable limit of $60, the Servicer must report expense code “090028” in the Reimbursement System. If a Servicer would like reimbursement for costs in excess of the $60 allowable limit, the Servicer must submit an RPA using the RPA functionality in the Reimbursement System and obtain approval of the request from Freddie Mac.
Guide impacts: Exhibits 57 and 74