Freddie Mac issued Guide Bulletin 2016-18 establishing a new form to facilitate the processing of a Principal Reduction Modification. The new form is Form 1205-PR: Post Settlement Correction Request for the Principal Reduction Modification. Servicers must use Form 1205-PR for borrowers who opt out of the principal reduction post-settlement option. Servicers must also use Form 1205-PR when a borrower completes an active trial period plan under a mortgage modification program, other than a Principal Reduction Modification, if the servicer requests that forborne principal be forgiven postsettlement. The new Form is effective October 1, 2016; however, servicer may implement the new form sooner if able to do so.
FHA
FHA Waives Early Payment Default Review Requirements for Properties Impacted by California Wildfires
FHA issued a waiver regarding early payment default review requirements for properties impacted by the California wildfires. FHA currently requires lenders to select all early
April 2, 2025
