FHLMC Guide Bulletin 2018-2: Charge Off Recommendations, Document Custody Requirements and More
February 14, 2018
Charge Off Recommendations
- Specifying when Servicers must recommend a charge off to Freddie Mac instead of proceeding with foreclosure.
- Updating lien release requirements when Freddie Mac approves a charge off request.
- Enhancing the Guide glossary definition of the term Risk of Property Ownership.
Document Custody Requirements and Other Updates
- Announcing that in November 2017, we began permitting Seller/Servicers to use Wells Fargo Bank, N.A. as a designated custodian. We’re updating the Guide to reflect this change.
- Permitting Seller/Servicers to enter into tri-party agreements with up to two document custodians, provided that one of them is a designated custodian.
- Notifying Servicers that Freddie Mac may contract with certain document custodians to perform certification and/or verification services outside of the United States using images of original documents.
- Informing Servicers that The Bank of New York Mellon Trust Company, N.A. will no longer automatically send Seller/Servicers notes and/or related documents for mortgages paid in full.
Forms 16SF and 1107SF
- Updating Forms 16SF and 1107SF to give Servicers more flexibility.
For more details on these changes and other important updates, read Guide Bulletin 2018-2 [pdf] or contact your Freddie Mac representative.
System Update Reminder: Workout Prospector® will be updated on February 26, 2018, to accommodate data submissions and reporting to Freddie Mac related to the new imminent default evaluation requirements. Read Guide Bulletin 2017-27 [pdf] for more information.
Source: Freddie Mac