Borrower Solicitation Documents
To more effectively help at-risk borrowers sustain homeownership whenever possible and enhance quality servicing practices, Freddie Mac is placing 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 January 10, 2014.
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 between the 31st and 35th day of delinquency and again between the 61st and 65th day of delinquency if quality right party contact was not achieved or the borrower did not respond to the initial solicitation.
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:
Pre-Referral to Foreclosure Solicitation Templates
- Guide Exhibit 1131, Borrower Solicitation Letter – 31 Days Delinquent
Also available in Spanish (Guide Exhibit 1131s)
- Servicer sends to borrower between the 31st and 35th day of delinquency,
- Guide Exhibit 1161, Borrower Solicitation Letter – 61 Days Delinquent
Also available in Spanish (Guide Exhibit 1161s)
- Servicer sends to borrower between the 61st and 65th day of delinquency if quality right party contact has not been achieved or the borrower has not responded to the first Borrower Solicitation Package
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
Refer to Exhibit 101, Income Calculation Guidelines for Alternative to Foreclosure Options, for additional instructions on calculating income.
The content of Guide Exhibits 1131 and 1161 include:
- A cover letter that describes the contents of the Borrower Solicitation Package
- A homeowner's checklist that explains the steps to follow to obtain an alternative to foreclosure and guidance on completing the documents that must be returned to the Servicer
- Information on available alternatives to foreclosure to help borrowers understand the options they may have to stay in their home or leave their home, and avoid foreclosure
- Frequently asked questions (FAQs) to help answer borrowers' questions regarding the Borrower Response Package and evaluation process
- Important notices, such as tips for avoiding foreclosure scams
The solicitation templates included in Guide Exhibits 1131 and 1161 are optional; however, they illustrate the level of specificity that is deemed to be in compliance with the requirements of Guide Section 64.6.
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 – Updated July 2015
- 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.