New Disaster Relief Requirements and Updates to Improve Servicer Processes - Guide Bulletin
August 15, 2013
In Single-Family Seller/Servicer Guide (Guide) Bulletin 2013-15, we have taken a number of actions to provide additional assistance to borrowers impacted by disaster and 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 based on Servicer feedback and are designed to make doing business with Freddie Mac easier.
The following are key highlights from Guide Bulletin 2013-15:
- Announcing the new Capitalization and Extension Modification for Disaster Relief (Disaster Relief Modification) andrequirementsfor borrowers impacted by an Eligible Disaster. The Disaster Relief Modification will help eligible borrowers whose hardship is resolved get back on track by capitalizing arrearages, then extending the term month-by-month to get to the pre-disaster mortgage payment.
This new modification is effective November 1, 2013, but Servicers are encouraged to begin evaluating borrowers for the Disaster Relief Modification immediately. Read our Single-Family News Center article for additional information about the new modification.
- Provide Servicers with the delegation to expedite Freddie Mac Default Legal Matters with new Guide Chapter A66, Provisions for Expediting Freddie Mac Default Legal Matters.
- Simplifying military relief and servicing requirements in Guide Chapter 82, retitled Servicing Requirements for Borrowers who are Servicemembers and Their Dependents, to better describe military relief legal protections as well as our servicing requirements when the borrower is a service member or a dependent of a service member.
Additional Servicing Requirements Changes
Other servicing requirement changes you should be aware of in Guide Bulletin 2013-15 include:
- Updates to property inspection requirements to better align with industry standards and state laws
- Revised requirements for the reimbursement of:
- Attorney fees and costs related to contested foreclosures and mediation
- Expenses incurred for title work
- Condominium, homeowners association and Planned Unit Development assessments in super lien states
- Permanently extending the submission time frame for 104SF, Statement of Loan, Workout and REO Expenses and Income, claims from 30 days to 45 days
- Updates to unemployment forbearance requirements
- Freddie Mac Standard Modification exception requests
Please read today’s Guide Bulletin for comprehensive information about these changes and more.
Training and Resources
To help Servicers further understand the components in this Bulletin, we encourage you to register for the Freddie Mac Bulletin 2013-15 Overview webinar.
Servicers should visit the Freddie Mac Learning Center for additional information on our training programs and references tools.
- For a detailed list of the Guide updates associated with this Guide Bulletin, and the topics with which they correspond, refer to the Guide Bulletin 2013-15 (Servicing) Guide Updates Spreadsheet.
- Guide Bulletin 2013-15.
- Read the Disaster Relief Modification News Center article.
- Contact your Freddie Mac representative or 800-FREDDIE.