Freddie Mac issued Bulletin 2019-18 (Bulletin), announcing revisions to the Single-Family Seller/Servicer Guide (Guide). Per the Bulletin, Freddie Mac now allows servicers to use “eModification Agreements” to modify paper notes and eMortgages. A servicer may now electronically prepare, sign and send to the borrower loss mitigation documents (including modification agreements), provided these transactions comply with all other requirements of the Guide. Freddie Mac will not reimburse any costs resulting from a servicer’s decision to use an eModification agreement, and the borrower may not be charged for any associated costs.
Freddie Mac also introduced the Servicing Data Corrections Portal. The Servicing Data Corrections Portal is a centralized portal through which servicers may electronically submit data correction requests related to: short sales; charge-offs; mortgage modification settlements; 3rd-party foreclosure sales; ARM rates; principal and interest payments; and rollbacks. The Servicing Data Corrections Portal eliminates a servicers need to use Guide Form 106 (Rollback Request Form), Form 1102 (Modified Principal and Interest Payment) and Form 1205 (Post-Settlement Correction Request).
In addition, Freddie Mac:
- updated the Loan Modification for Delinquent Mortgages exhibit (Exhibit 76);
- revised requirements relating to reorganization plans that include a bankruptcy cramdown;
- reorganized Section 9208.7 (pertaining to short sale transactions) to segregate the closing costs/transaction costs with more stringent thresholds; and
- updated servicing requirements relating to escrow accounts.
Servicers must use the new Servicing Data Corrections Portal to submit data corrections to Freddie Mac on or after November 18, 2019 (servicers may, however, use the Servicing Data Corrections Portal immediately). The reorganization of Section 9208.7 (pertaining to short sale transactions) is effective September 1, 2019. All other updates are effective immediately.
