Guide Bulletin 2013-10 Updates Many Requirements to Help Improve Processes for Servicers
June 14, 2013
In Single-Family Seller/Servicer Guide (Guide) Bulletin 2013-10, we have taken a number of actions to improve and simplify servicing processes to make them more efficient and concise. Many of the changes you’ll see in today’s Guide Bulletin are in response to your feedback, which is essential when we look for ways to improve our servicing processes and overall working relationship.
The following are some highlights from Guide Bulletin 2013-10:
Freddie Mac attempted to develop an automated process for Hurricane Sandy expense reimbursement. Because this process would be outside of normal accounting and system processes, we determined an automated process could not be accomplished in a timely manner.
To avoid further delays, Freddie Mac developed a manual process to reimburse
Servicers for expenses related to Hurricane Sandy. If you completed exterior property inspections on mortgages reported as current prior to Hurricane Sandy per the requirements in Guide Bulletin 2012-29, to receive reimbursement you must:
- Submit a single completed Hurricane Sandy Exterior Property Inspection Reimbursement Template to Freddie Mac at Overallowables@freddiemac.com by September 16, 2013. The template is available on our "Disaster Relief Policies" Web page, under "Resources".
Bulk Trial Foreclosures in Florida
To help accelerate the foreclosure process in Florida, we encourage you to use the bulk trial foreclosure method to work through any back log of foreclosures you may have in your aging foreclosure inventory. This change may potentially reduce foreclosure time lines and, in the process, help Servicers reduce or avoid foreclosure time line compensatory fees. You will be reimbursed for attorney fees up to a maximum of $1,750 by submitting Form 104SF, Statement of Loan, Workout and REO Expenses and Income, in the Freddie Mac Reimbursement System.
Home Affordable Modification Program
To streamline the Home Affordable Modification Program® evaluation process, in most cases, you no longer need to submit Forms 4506T-EZ or 4506-T to the IRS for borrowers who have not provided a signed federal income tax return.
Office of Foreign Assets Control Compliance
Effective July 15, 2013, you will have to notify our Compliance Division via email within 24 hours of blocking or rejecting a mortgage or mortgage transaction based on a valid match against the Office of Foreign Assets Control’s (OFAC’s) list of Specially Designated Nationals. This is a change from notifying us after filing a blocked property report with OFAC.
Investor Accounting Reports
To provide one central source for you to access all of your reporting needs, we are retiring Investor Accounting ManagerSM (IAM) on September 16, 2013 and transitioning all reports that have only been available in IAM to the Freddie Mac Service Loans application. Read our Single-Family News Center article for detailed information about this change, access to investor reports for current users, and the new Service Loans application “Read Only Analyst” role.
Additional Servicing Requirements Changes
There are other various servicing requirements changes you should be aware of in Guide Bulletin 2013-10, including:
- Simplifying requirements for requests related to preservation of deficiency rights.
- Revising FICO® score seasoning requirements for certain short sales and deeds-in-lieu (DIL) of foreclosure.
- Revising property inspection and closing requirements for DIL.
- Adding a Multiple Listing Service (MLS) requirement for short sales.
Please read today’s Guide Bulletin for information about all these changes and more.
Training and Resources
Servicers are encouraged to visit Freddie Mac’s Learning Center Web page for current information on Freddie Mac training programs and references tools.
- For a detailed list of the Guide updates associated with this Bulletin and the topics with which they correspond, refer to the Bulletin 2013-10 (Servicing) Guide Updates Spreadsheet available at http://www.freddiemac.com/sell/guide/spreadsheets.html.
- Read the Guide Bulletin 2013-10.
- Read the IAM News Center article.
- Contact your Freddie Mac representative or 800-FREDDIE.