Reminders for Working with Borrower Consent Requests
April 2, 2013
Last week, your company received feedback on your organization’s overall performance using the Consent Request Tracker (CRT) tool. We ask you begin the process to correct any incomplete information, fill in missing dates and add updates for inaccurate Consent Request Statuses in CRT. Please review the last Asset Management News Center article, Completing Borrower Consent Request Information, for more information on this correction process.
In addition to data completeness and accuracy, we have identified several specific items that are either being overlooked or misused on a regular basis. These items are described in more detail below.
Hazard Loss Reminder
Hazard losses that require submission of Form 1140, Hazard Loss Summary, or Form 1140-DR, Hazard Insurance Disbursement Request, are borrower consent requests that must be entered in CRT. For more information on hazard loss reporting, please review Section 43.8 of the Freddie Mac Multifamily Seller/Servicer Guide.
Amending a Previously Approved Consent Request
The designation of Amendment should only be used to identify requests in CRT that amend a previously approved borrower consent request. It appears that some Servicers are using the Amendment to identify borrower requests to amend mortgage documents.
Here’s a refresher on how to use the Amendment designation in CRT:
- An Amendment should be created when approval terms change or are being negotiated after an initial approval has been issued.
- To create an Amendment to a Consent Request, the Primary Servicer must create a new Consent Request.
- When an Amendment is created, the Primary Servicer should select the Consent Request Suffix of Amendment.
Selecting the Product Type
When creating a consent request in the CRT tool, please remember to select the appropriate product type. The menu includes the following product types:
- Cash Loans
- One-off Bonds
- Servicer Delegated Approvals
- Structured Transactions, Credit Facilities
Servicer Delegated Approvals is not actually a product type. However, the selection indicates servicer delegation, which facilitates data analysis.
Servicing Standards and Customer Service
We have a shared goal of providing the best possible post-funding servicing experience to all Freddie Mac borrowers. We expect that the borrower’s servicing experience meets the same quality standard, regardless of whether the loan is securitized or is held in our portfolio. The Consent Request Tracker (CRT) provides a method for ensuring this level of service and experience for borrowers.
The service goals of CRT can only be achieved when we capture all information in real time. All parties involved in the consent request process need this information to execute timely customer service, regardless of the outcome of the review.