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Guide Bulletin 2018-2: Charge Off Recommendations, Document Custody Requirements and More

February 14, 2018

Single-Family Seller/Servicer Guide (Guide) Bulletin 2018-2 includes the following: 

Charge Off Recommendations

  • Specifying when Servicers must recommend a charge off to Freddie Mac instead of proceeding with foreclosure.
  • Updating lien release requirements when Freddie Mac approves a charge off request.
  • Enhancing the Guide glossary definition of the term Risk of Property Ownership.

Document Custody Requirements and Other Updates

  • Announcing that in November 2017, we began permitting Seller/Servicers to use Wells Fargo Bank, N.A. as a designated custodian. We’re updating the Guide to reflect this change.
  • Permitting Seller/Servicers to enter into tri-party agreements with up to two document custodians, provided that one of them is a designated custodian.
  • Notifying Servicers that Freddie Mac may contract with certain document custodians to perform certification and/or verification services outside of the United States using images of original documents.
  • Informing Servicers that The Bank of New York Mellon Trust Company, N.A. will no longer automatically send Seller/Servicers notes and/or related documents for mortgages paid in full.

Forms 16SF and 1107SF

  • Updating Forms 16SF and 1107SF to give Servicers more flexibility.

For more details on these changes and other important updates, read Guide Bulletin 2018-2 or contact your Freddie Mac representative.

System Update Reminder: Workout Prospector® will be updated on February 26, 2018, to accommodate data submissions and reporting to Freddie Mac related to the new imminent default evaluation requirements. Read Guide Bulletin 2017-27 for more information.