Freddie Mac Issues Guide Bulletin 2017-15: Selling and Servicing Updates

Freddie Mac issued Guide Bulletin 2017-15 (Bulletin), setting forth selling and servicing updates to the Single-Family Seller/Servicer Guide. Per the Bulletin, sellers and servicers must use the new Fannie Mae/Freddie Mac MERS Mortgage Assignment (Form 3749) with respect to mortgage loans that are registered with MERS and secured by property located in Maine. Mortgage loans that are secured by property located in Maine are ineligible for delivery to Freddie Mac if the Maine security instrument names MERS as the original mortgagee of record solely as nominee for the lender, or if the mortgage loan has been assigned to MERS using an assignment form other than Form 3749. The Bulletin also sets forth updates to Freddie Mac’s Investor Reporting Change Initiative. The updates provide additional information with respect to transition strategy and testing (to ensure that investor reporting policies and procedures are ready to interact with Freddie Mac systems when the Investor Reporting Change Initiative is implemented in May 2019). In addition, the Bulletin announces: that sellers and servicers are now permitted to electronically deliver Form 1132 (Authorization for Automatic Transfers of Funds through the Automated Clearing House); removal of the requirement to retain a wet ink signed assignment of a mortgage or a modification agreement when the paper documents are electronically recorded; clarified and updated requirements with respect to processing concurrent transfer of servicing requests; and that the Federal Emergency Management Agency (FEMA) has revised the Standard Flood hazard Determination Form and extended the expiration date of the form to October 31, 2018. The updates went into effect August 30, 2017. However, the use of the new MERS Mortgage Assignment Form 3749 is required for mortgage loans with a note date on or after January 1, 2018 (however, sellers and servicers may begin using the form immediately).  The updates regarding Freddie Mac’s Investor Reporting Change Initiative are effective May 1, 2019.

Click here to view the Freddie Mac Guide Bulletin