Freddie Mac issued Bulletin 2019-23 (Bulletin), announcing revisions to the Single-Family Seller/Servicer Guide (Guide).
Per the Bulletin, Freddie Mac has created two new sections in the Guide (Sections 8104.9 and 8104.10) to provide guidance related to post-foreclosure resale restrictions and any right of first refusal, and additionally updated requirements with respect to the reimbursement of pre-foreclosure legal fees and costs.
Freddie Mac also updated the Guide to highlight that servicers must have policies, procedures and controls in place to meet the requirements for continuous monitoring of the flood insurance policy and the flood zone of a property securing a mortgage owned by Freddie Mac.
In addition, Freddie Mac announced several miscellaneous Guide updates and reminders.
The new sections related to post-foreclosure resale restrictions and right of first refusal are effective March 1, 2020. The updates related to reimbursement of pre-foreclosure legal fees and costs are effective January 1, 2020. All other changes are effective immediately.
