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Guide Bulletin 2013-3 announces revisions and updates to default-related servicing requirements

February 15, 2013

Single-Family Seller/Servicing Guide (Guide) Bulletin 2013-3, released today, announces a series of revisions related to default management and reminds Servicers that prompt loss mitigation activities are critical to helping family members and heirs of a deceased borrower avoid foreclosure if there no longer is a borrower remaining on the note.

The Guide Bulletin also reminds Servicers that they will be required to use the Servicer Attorney Tracking System (SATS) website, announced on January 30, 2013, to complete and submit required information regarding law firms selected to handle Freddie Mac's default-related legal matters. SATS will be available on March 1. On and after that date, Servicers will be able to register on the website, complete and submit Servicer Selection Forms, and complete optional training. The online system will help Servicers and Freddie Mac efficiently manage the form submission process. Please note we will not review any forms submitted to any Freddie Mac email address.

In today's Guide Bulletin, we also are:

  • Revising our state foreclosure time lines and related compensatory fee calculations.
  • Updating our requirements regarding preserving our right to pursue a deficiency.
  • Revising our requirements for participation in Hardest Hit Fund assistance modification programs by:
    • Eliminating the requirement that Servicers must include partial principal forbearance in the modification if the Servicer participates in state Housing Finance Agency (HFA) modification assistance programs, and
    • Requiring Servicers to report to Freddie Mac the amount of HFA assistance received.
  • Revising our documentation requirements regarding medical hardship and eliminating our requirement for verification of a three-year continuance for alimony, child support, and separate maintenance income.
  • Providing additional information on reporting payments received during a Trial Period, and actions to take if a borrower does not successfully complete the Trial Period Plan.
  • Requiring Servicers to use the Service Loans application instead of BPOdirect® to obtain a property value and minimum net proceeds when evaluating a borrower for a Standard Short Sale who is current or less than 31 days delinquent.
  • Revising our requirements for reduced, suspended, or denied mortgage insurance claims, as announced in Guide Bulletin 2012-20.
  • Updating contact information for investor reporting, non-performing loans, and distressed properties.

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