Guide Bulletin 2013-7 Implements Streamlined Modification Immediately and Changes Property Valuation Requirements
With the updated requirements announced today in Single-Family Seller/Servicer Guide (Guide) Bulletin 2013-7, you may immediately offer eligible borrowers the new Freddie Mac Streamlined Modification. Additionally, changes to our property valuation requirements enable you to more quickly evaluate certain borrowers for modifications and long-term forbearance.
- You may implement the Streamlined Modification to assist all eligible borrowers, such as survivors of Hurricane Sandy who have or are completing their disaster forbearance plans.
- You must use your proprietary systems or a third-party system to generate the terms of the trial period plan until Workout Prospector® incorporates the Streamlined Modification on July 15.
- You must report a Streamlined Modification trial period plan to us via electronic default reporting (EDR).
- Interior property inspections are no longer required for the modification of mortgages secured by a manufactured home or 2- to 4-unit property. Instead, you must request a broker's price opinion (BPO) with an exterior inspection through BPOdirect® by selecting "Loan Modification (single family and condo)." BPOdirect will be updated in the near future to reflect this change.
- You can more quickly evaluate a borrower for a long-term forbearance plan because you no longer need a property valuation.
As a reminder, by implementing the no-documentation Streamlined Modification, you will have a new option to more quickly assist eligible borrowers in danger of losing their homes—an option that alleviates some of the most labor-intensive and time-consuming components of processing a traditional loan modification.
Get More Information
- Read Guide Bulletin 2013-7.
- Enroll in the new Guide Bulletin 2013-5: Freddie Mac Streamlined Modification Program webinar available through the Learning Center.
- Review information about the Streamlined Modification in Guide Bulletin 2013-5.
- Visit the Streamlined Modification Web page.
- Direct questions to your Freddie Mac representative.