Freddie Mac issued Bulletin 2023-25 (Bulletin) announcing revisions to the Single-Family Seller/Servicer Guide. Per the Bulletin, Freddie Mac:
- Clarified that use of default reason code 032 for the reporting of COVID-19 Payment Deferrals and Flex Modifications is not required for COVID-19 Flex Modification evaluations required to be completed when a borrower who accepted a COVID-19 Payment Deferral subsequently becomes 60 days delinquent within 6 months of the effective date and the servicer is unable to establish quality right party contact;
- Updated requirements with respect to properties subject to income-based resale restrictions to permit the subsidy provider to receive excess proceeds in certain situations;
- Updated the Guide to reflect changes previously announced in Bulletin 2020-21 in relation to late notices/payment reminder letters (Bulletin 2020-21 authorized servicers to not send a late notice/reminder letter to a borrower during an active forbearance plan term, regardless of whether the borrower’s monthly payment is reduced or suspended during the forbearance plan term; and
- Updated the servicing advance reimbursement process and requirements for servicers to participate in the Voluntary Partial Cancellation Program.
All revisions are effective December 13, 2023.
Click to view the Freddie Mac Guide Bulletin 2023-25: https://www.tenaco.com/wp-content/uploads/2023/12/Freddie-Mac-Guide-Bulletin-2023-25-12-13-23.pdf
