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Guide Bulletin 2013-24 Announces Servicing Updates That Help More Borrowers Avoid Foreclosure

November 25, 2013

In Single-Family Seller/Servicer Guide Bulletin (Guide) Bulletin 2013-24 we are announcing requirement changes that allow Servicers to help more borrowers avoid foreclosure through short sales and deeds in lieu of foreclosure (DILs). Some changes included in Guide Bulletin 2013-24 are:

  • Updating eligibility requirements for exceptions to borrower documentation for short sales and DILs. We've expanded eligibility to include borrowers whose mortgage debts have been discharged in a Chapter 7 bankruptcy regardless of the borrower's FICO score. Additionally, mortgages that were originated as investment properties are no longer eligible for the exception to borrower documentation. Servicers must now review a complete Borrower Response Package (BRP) to evaluate these borrowers for a short sale or DIL.

  • Updating Servicer delegations for short sales and DILs. Servicers must submit a short sale or DIL recommendation to Freddie Mac for approval when the borrower's cash reserves exceed $50,000.

  • Revising our short sale and DIL processing and foreclosure suspension requirements. Servicers must delay, or ensure that foreclosure counsel delays, the next legal action in the foreclosure process when they:
    • Receive a First Complete BRP more than 37 days prior to a scheduled
      foreclosure sale date, and
    • The evaluation results in an offer to proceed with a short sale or DIL.

  • Revising our BRP review requirements for short sales. Servicers are no longer required to conduct an expedited review when a completed BRP with a short sale purchase offer is received greater than 37 days prior to a scheduled foreclosure sale date. However, Servicers must continue to expedite a review of a complete BRP received between 37 days and 15 days prior to a scheduled foreclosure sale date.

  • Updating our Trial Period Plan requirements. If a borrower accepts an original Trial Period Plan offer after receiving an appeal decision, and the borrower remains eligible for the original offer, Servicers must reissue the original offer with a new Trial Period Plan due date. Any delinquent amounts accrued during the appeal review process will be included in the modified principal balance.

Read Guide Bulletin 2013-24 for more detailed information on these updates.

Investor Accounting Manager Retirement

Effective November 15, 2013, Investor Accounting ManagerSM (IAM) was retired. With the retirement of IAM, Servicers are only able to access investor accounting reports through the Freddie Mac Service Loans application. If you need access to the application, visit the Service Loans Application Resource Center for instructions on how to register.

Training and Resources

Please visit Freddie Mac's Learning Center for additional information on our training programs and references tools.

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