Court Mandated Modifications in Workout Prospector
August 12, 2013
Today we implemented enhancements to Workout Prospector® that will speed up approvals and settlements for court mandated modifications. Servicers may also use these enhancements to seek approval and settlement for modifications that are part of a litigation settlement agreement. This change builds on the enhancements we implemented on July 15, 2013.
Court Mandated Modifications
Servicers should now enter the terms of a court mandated modification directly in Workout Prospector to process non-delegated workouts instead of sending an email to Freddie Mac. Submitting court mandated modification data through Workout Prospector helps reduce file transfers and potential errors caused by communicating outside of the Workout Prospector environment.
Here's how it works:
- Use the "Court Modification" screen, available under the "To Do"; section on the main screen in Workout Prospector.
- If "Court Modification" is selected in Workout Prospector, then other workouts in process for that loan will be cancelled.
Remember, Servicers should still submit – via email – a bankruptcy reorganization plan and additional documentation to Freddie Mac according to Single-Family Seller/Servicer Guide (Guide) Section 67.13, Bankruptcy Cramdowns.
Visit Freddie Mac’s Learning Center for current information on Freddie Mac training programs and reference tools, including the Workout Prospector User Guide. For more information about Workout Prospector, please access our Loss Mitigation training resources.
For More Information
- Read our News Center article about the July 15 Workout Prospector enhancements.
- Contact your Freddie Mac representative.