Freddie Mac issued Bulletin 2021-22 (Bulletin) announcing revisions to the Single-Family Seller/Servicer Guide. Per the Bulletin, Freddie Mac announced the replacement index for the Cost of Funds Index. The Federal Home Loan Bank of San Francisco will cease publication of the 11th District Monthly Weighted Average Cost of Funds Index (COFI) after the December 2021 publication. Per the Bulletin, the replacement index will be the Enterprise 11th District COFI Replacement Index. Freddie Mac will publish the replacement index on the last business day of every month, beginning with the January 2022 index (which will be published on February 28, 2022).
Freddie Mac also:
- clarified requirements related to the handling of third-party mortgage assistance funds;
- prohibited the Subsequent Transfers of Servicing of a mortgage that is 90 days or more delinquent or that has been modified (must now be transferred via the Voluntary Partial Cancellation process);
- updated Form 479A to include submission instructions and a place to include Document Custodian information;
- provided clarification on extinguishment of rights in collateral related to conveyance or financing;
- clarified provisions related to the extinguishment of rights in collateral, and depository account monitoring;
- updated exclusionary list screening requirements for loss mitigation activities; and
- clarified that borrower contributions must not be included when determining the minimum net proceeds for a short sale.
Transition to Enterprise 11th District COFI Replacement Index is effective February 1, 2022. Revisions related to Subsequent Transfers of Servicing (STOS) are effective for STOS requests with effective dates of transfer on or after October 1, 2021. All other revisions are effective immediately.
Click to view the Freddie Mac Guide Bulletin 2021-22: https://www.tenaco.com/wp-content/uploads/2021/06/Freddie-Mac-Guide-Bulletin-2021-22-06-09-21.pdf
