Freddie Mac issued Bulletin 2016-09 (Bulletin). This Bulletin: grants servicers the option to use, without charge, the services of a HUD-approved nonprofit national counseling agency when offering early delinquency counseling to borrowers with Home Possible Mortgages; updates reporting and notification requirements with respect to the transfer of Freddie Mac default legal matters to an eligible law firm; updates the definition of “real estate owned” (REO); sets forth requirements for reporting quality control, fraud, suspected fraud and other suspicious activity findings; removes the requirement that servicers report default action code 43 (referred to foreclosure) if the borrower fails to make payments under a repayment plan; and extends the mandatory date for implementing the repayment plan reporting requirements (previously announced in Bulletin 2016-02) from June 1, 2016 to July 1, 2016.
