Borrower Solicitation Documents
Freddie Mac places a strong emphasis on earlier and more frequent borrower contact to expedite borrower resolution for a foreclosure alternative. Our borrower contact requirements streamline servicing processes, helping Servicers to more effectively contact delinquent borrowers, collect eligibility documentation, and offer the most appropriate alternative to foreclosure.
Use of the new solicitation requirements becomes effective on or after June 1, 2016.
Refer to Guide Chapter 63 and 64 for requirements related to borrower solicitation and required communication for establishing quality right party contact.
Borrower Solicitation Package
Servicers must send a Borrower Solicitation Package to borrowers who are 31 days or more delinquent no later than the 45th day after the due date of an unpaid monthly installment, if quality right party contact and a resolution to the Delinquency have not been achieved. Servicers may use their own methodology or a loss mitigation tool to determine which borrowers to contact earlier than the 36th day.
Servicers must provide in its solicitation the specific date by which the borrower must respond with the required information and documentation, which must be 30 days from the date when the solicitation was sent.
The Borrower Solicitation Package consists of the following documents:
Borrower Solicitation Template
- Guide Exhibit 1145, Borrower Solicitation Letter
The Borrower Solicitation Letter provides the borrower with Servicer contact information to discuss mortgage assistance options and next steps. It also includes Information on Alternatives to Foreclosure. The letter directs borrowers to My Home by Freddie MacSM for additional resources such as:
- Who to contact for help
- Frequently asked questions
- Information on mortgage fraud, how to recognize it and report scams
The solicitation template included in Guide Exhibit 1145 is optional; however, it illustrates the level of specificity that is deemed to be in compliance with the requirements of Guide Section 64.6.
Borrower Financial Documents
- Form 710, Uniform Borrower Assistance Form
Also available in Spanish (Form 710s)
- Provides the Servicer with a borrower's financial information, including the reason(s) for the financial hardship
- If a borrower's current hardship is not one of the options in the hardship affidavit section, Servicers must advise the borrower to provide details of the hardship in his or her written explanation and submit relevant documentation that supports the current hardship.
- Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript, or Form 4506T, Request for Transcript of Tax Return
- Servicers may obtain IRS Form 4506T-EZ or Form 4506T directly from the IRS Web site at www.irs.gov
The Servicer may use a customized equivalent of Form 710, provided that it requests the same financial information, hardship affidavit and attestations from the borrower. However, if the Servicer receives Form 710 rather than its customized equivalent, the Servicer must accept Form 710. References to Form 710 in the Guide include any customized equivalent to Form 710.
HAMP-Eligible Borrower Documents
For borrowers the Servicer determines are Home Affordable Modification program (HAMP)-eligible, the following must be included in the Borrower Solicitation Package:
- Form 710A, Government Monitoring Data Form
- The borrower is not required to provide the data requested in this form.
Refer to the HAMP Borrower Solicitation web page for HAMP government monitoring data requirements for Freddie Mac-owned mortgages and for additional HAMP-specific forms.
Borrower Evaluation Notice
Within five business days following receipt of the complete Borrower Response Package, the Servicer must communicate receipt of the Borrower Response Package to the borrower in writing.
With respect to those evaluation notices which are offers for alternatives to foreclosure, Servicers must include the date by which the borrower must accept such offers, which must be 14 days from the date of the applicable evaluation notice.
- Guide Exhibit 93, Evaluation Model Clauses
- Use of the model letters is optional; however, they illustrate the level of specificity that is deemed to be in compliance with the requirements of Guide Sections 63.3 and 64.6.