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Standard Modification Coming Soon to Workout Prospector

November 14, 2011

As you implement the new Freddie Mac Standard Modification, we are making preparations to enhance Workout Prospector® to support your operational readiness. Beginning December 12, 2011, you will be able to assess at-risk borrowers for a Standard Modification using Workout Prospector. This enhancement will further support automation of your servicing processes for this new modification.

Servicing

When you log in to Workout Prospector on December 12, you will be prompted to evaluate borrowers who are ineligible for the Home Affordable Modification program (HAMP), failed a HAMP trial period plan, or failed a HAMP modification for a Standard Modification. With this enhancement, you:

  • Will see new screens that support the Standard Modification requirements.
  • May bypass the Standard Modification screens to reach the appropriate screens to evaluate borrowers for the Freddie Mac "classic" modification and other workouts that are currently available in Single-Family Seller/Servicer Guide (Guide) Chapter B65, Workout Options, and Workout Prospector. To bypass the Standard Modification screens, select the "Standard Mod – Declined" status and "Borrower Not Eligible" reason. You must complete this step until you begin offering the new modification.
  • Must manually enter into Workout Prospector no later than December 31, 2011, all borrowers who are approved for a Standard Modification trial period plan as of December 12. The bulk upload functionality will only be available for new borrower evaluations conducted on or after the enhancement date. Learn more about our recently expanded enhancement to the bulk upload functionality.
  • Will continue to submit your Standard Modification exception requests using Guide Exhibit 95, Freddie Mac Standard Modification Exception Transmittal. When you submit an exception request, you must also transmit the Workout Prospector model for each loan. We will inform you when Workout Prospector can process your exception requests using the comments section in the business plan screen.

"Classic" Modification Pipeline Reminders

To transition from the "classic" modification to the Standard Modification, which becomes effective January 1, 2012, remember:

  • When you begin evaluating borrowers for the Standard Modification, you must stop evaluating borrowers for the "classic" modification.
  • You must receive approval on all "classic" modifications no later than December 31, 2011, and settle them no later than February 28, 2012.
  • You must submit the associated Form 1128, Loss Mitigation Transmittal Worksheet (LMTW), no later than one business day after you receive the executed "classic" modification. All LMTWs for "classic" modifications must be submitted by March 6, 2012.

Training Resources

Closer to the scheduled enhancement date, we will offer Web conference training sessions about navigating the new Standard Modification screens in Workout Prospector. We will also publish an updated Workout Prospector Users' Guide and online help center.

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