Freddie Mac: Updates to Compensatory Fee Processes
On April 27, Freddie Mac issued a release titled Updates to Compensatory Fee Processes.
Updates to Compensatory Fee Processes
Today we’re announcing the following enhancements to compensatory fee billing and appeals processes:
Updated FC Timeline Compensatory Fee Analysis Report
As announced in Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-19, your monthly FC Timeline Compensatory Fee Analysis Report no longer includes compensatory fees for jurisdictions that were temporarily suspended beginning on January 1, 2015 (New York State/City, New Jersey, Massachusetts, and the District of Columbia).
Increased De Minimis Threshold for Compensatory Fee Billing
Also as announced in Guide Bulletin 2014-19, we’ve increased the de minimis threshold for Foreclosure Timeline Compensatory Fees from $1,000 to $25,000. Beginning with your January 2015 fees, you’ll no longer be billed when your aggregate monthly Foreclosure Timeline Compensatory Fees are $25,000 or less. You won’t need to submit any appeals in months where your aggregate monthly Foreclosure Timeline Compensatory Fees are $25,000 or less.
Aligned Compensatory Fee Processes
We’ve changed our existing compensatory fee billing and appeals processes to align Late Foreclosure Sale Reporting Compensatory Fees with Foreclosure Timeline Compensatory Fees. To provide you with greater transparency, you’ll now notice:
- A two-month delay for Late Foreclosure Sale Reporting Compensatory Fee billing, giving you more time to review your assessments and appeal them prior to being billed. For example, you’ll review and appeal your April assessments in May, Freddie Mac approves or rejects those appeals in June, and you’re billed for the remaining balance of the fees in July.
- A new FC Sale Compensatory Fee Analysis Report available in Default Reporting ManagerSM. This report provides a summary-level overview of your monthly and year-to-date Late Foreclosure Sale Reporting Compensatory Fees, including loan count, amounts, adjustments, and waivers. It also includes links to loan-level detail reports broken out by month, year-to-date, and prior year.
NOTE: We’ll announce requirements for Late Foreclosure Sale Reporting Compensatory Fee appeals, including timing, system usage, and reporting, in a future Guide Bulletin.
For More Information
- Read Guide Bulletin 2014-19 [pdf].
- Sign up for our new Single-Family Week in Review email.
- Visit Freddie Mac’s Learning Center for additional information on our training programs and references tools.
- Contact your Freddie Mac representative.
Please click here to view the release online.
Safeguard Properties is the mortgage field services industry leader, preserving vacant and foreclosed properties across the U.S., Puerto Rico, Virgin Islands and Guam. Founded in 1990 by Robert Klein and headquartered in Cleveland, Ohio, Safeguard provides the highest quality service to our clients by leveraging innovative technologies and proactively developing industry best practices and quality control procedures. Consistent with Safeguard’s values and mission, we are an active supporter of hundreds of charitable efforts across the country. Annually, Safeguard gives back to communities in partnership with our employees, vendors and clients. We also are dedicated to working with community leaders and officials to eliminate blight and stabilize neighborhoods. Safeguard is dedicated to preserving today and protecting tomorrow. Website: www.safeguardproperties.com.