Additional Data for Analyzing Foreclosure Time Line Compensatory Fees
January 5, 2012
To aid in reconciling your estimated foreclosure time line compensatory fees, beginning January 9, you will see additional loan-level detail in compensatory fee analysis reports that are available in Default Reporting ManagerSM.
Enhancements to Current Reports
The Monthly Compensatory Fee Analysis Report, which reflects data for the prior month’s foreclosure sales, and the Year-to-Date Compensatory Fee Analysis Report, which reflects data for all foreclosure sales to date for the current year, will be enhanced to include the following:
- The First Start and Last End dates associated with these approved delays:
- Chapter 7 bankruptcy
- Chapter 12 bankruptcy
- Chapter 13 bankruptcy
- Probate
- Military indulgence
- Contested foreclosure
- Review for Home Affordable Modification Program (HAMP) modification
- HAMP trial period
- The amount of a waiver of compensatory fees if de minimis
- Whether the compensatory fees and/or waivers have been included on your Servicer Non-Performing Loans Invoice
New Report
Beginning February 7, 2012, you will have access to a new report in Default Reporting Manager, the Prior Year Compensatory Fee Analysis Report. This report will reflect loan data associated with all foreclosure sales in the prior year (in this case, 2011). The report will have the same format as the Monthly Compensatory Fee Analysis Report and the Year-to-Date Compensatory Fee Analysis Report.
The Prior Year Compensatory Fee Analysis Report was created to enable you to view activity for the prior year, including compensatory fees billed for December foreclosure sales. Because billed foreclosure time line compensatory fees are included on the Year-to-Date Compensatory Fee Analysis Report two cycles following a foreclosure sale, compensatory fees for December foreclosures would not appear on the Year-to-Date Compensatory Fee Analysis Report, but will be included in the new Prior Year Compensatory Fee Analysis Report.
Example
The following example demonstrates foreclosure data appearing on compensatory fee analysis reports.
- Loan 123456789 went to foreclosure sale on December 14, 2011, and was referred to foreclosure on October 2, 2011. Servicer ABC has less than $1,000 in aggregate foreclosure time line compensatory fees.
- On January 9, 2012, the loan will be reported on both the Monthly Compensatory Fee Analysis Report and the Year-to-Date Compensatory Fee Analysis Report.
- Data will reflect a waiver for a compensatory fee if de minimis, in an amount equal to the applicable compensatory fee and reflected as a credit on the reports.
- The Amount Billed flag will be blank for the loan since billing will not take place until the end of February, 2012.
- On February 7, 2012, the loan will drop off of the Monthly Compensatory Fee Analysis Report and the Year-to-Date Compensatory Fee Analysis Report. (These reports will only include data for January 2012 foreclosure sales.)
- Loan 123456789 data will be reported on the Prior Year Compensatory Fee Analysis Report.
- Data will reflect a waiver for a compensatory fee if de minimis, in an amount equal to the applicable compensatory fee and reflected as a credit on the reports.
- The Amount Billed flag will be blank for the loan since billing will not take place until the end of February, 2012.
- Servicer ABC’s Servicer Non-Performing Loans Invoice dated March 5, 2012, will reflect a foreclosure time line compensatory fee amount (as a debit) and a waiver for the compensatory fee amount (as a credit).
- On March 7, 2012, Loan 123456789 data will be reported again on the Prior Year Compensatory Fee Analysis Report. The Amount Billed flag will indicate Y because the foreclosure time line compensatory fee and corresponding waiver were included in the recent Servicer Non-Performing Loans Invoice.
- Loan 123456789 will remain on the on the Prior Year Compensatory Fee Analysis Report until February, 2013.
More Information
For more information on Freddie Mac’s servicing requirements for foreclosure time lines:
- Read our previous article, Validate Your Foreclosure Data Monthly.
- Review Guide Bulletin 2011-11.
- Reference state time lines in Guide Exhibit 83.
- Review allowable delays to state time lines in Guide Exhibit 83A.
- Learn about monthly billing and appeals in Guide Chapter 66.33.
- Review the foreclosure time line compensatory fee calculation in Guide Exhibit 83A.
- Contact your Freddie Mac representative or 800-FREDDIE and request “servicing.”
Read about two new reports in Default Reporting ManagerSM that can help you track and monitor your performance for achieving quality right party contact with borrowers, improving delinquency status, and receiving complete Borrower Response Packages.