Freddie Mac issued Bulletin 2016-07 (Bulletin). This Bulletin announces the Freddie Mac Principal Reduction Modification, a temporary initiative designed at the direction of the Federal Housing Finance Agency. Under this initiative, the servicer will send each eligible borrower a Streamlined Modification Trial Period Plan and a solicitation letter that commits the servicer, and therefore Freddie Mac, to forgive principal following the borrower’s successful completion of a Streamlined Modification Trial Period Plan and settlement of the modification. After the Trial Period Plan is completed and the Mortgage has converted to a permanent modification, the servicer will forgive all forbearance amounts created as a result of the Streamlined Modification, unless the borrower chooses to opt out of principal reduction (e.g., due to tax considerations).
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
