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Modification Updates Announced in Guide Bulletin 2015-3

March 17, 2015

Today, in Single-Family Seller/Servicer Guide (Guide) Bulletin 2015-3, we announced changes that enhance our modification options and expand borrower eligibility using our loss mitigation toolkit. All changes are effective for new evaluations conducted on or after July 1, 2015, but you're encouraged to implement them immediately.

To continue to provide effective options for you to help borrowers keep their homes, we're updating the following requirements:

Step-Rate Mortgages

  • Offering borrowers with Step-Rate Mortgages the opportunity for an earlier modification with our Freddie Mac Streamlined Modification (Streamlined Modification).
  • Adding a new eligible hardship to our Freddie Mac Standard Modification (Standard Modification) Imminent Default Hardship test.

Eligibility Exclusions for:

  • Streamlined Modification: Our three-step exclusion test (based on payment history, hardship reason and FICO® score) will no longer apply to Step-Rate Mortgages.
  • Standard and Streamlined Modification:  
    • Increasing the permitted total number of previous loan modifications from one to two.
    • Adjusting our requirements so a mortgage that was both:
      • Previously modified under Guide Section B65.18(a), and
      • Became 60 or more days delinquent within 12 months of the modification effective date, is only ineligible for a Streamlined or Standard Modification if the borrower was unable to bring the mortgage current following the original delinquency.

Borrower Response Packages for Streamlined Modifications

Updating Streamlined Modification requirements for situations when you receive a complete Borrower Response Package after the Streamlined Modification solicitation is sent to the borrower, but prior to you sending the modification agreement.  

Please read Guide Bulletin 2015-3 for more details on these changes and for additional updates.


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