Freddie Mac Issues Guide Bulletin 2017-18: Servicing Updates

Freddie Mac issued Guide Bulletin 2017-18 (Bulletin), setting forth servicing updates to the Single-Family Seller/Servicer Guide. As outlined in the Bulletin, Freddie Mac amended requirements with respect to hardship, income and other documentation that must be submitted in connection with a Borrower Response Package. The amended requirements include the rebrand of Guide Form 710 from the “Uniform Borrower Assistance Form” to the “Mortgage Assistance Application”, updates to Guide Form 710, and a reduction in the supporting documentation required to substantiate the borrower’s hardship and income. The Bulletin also announces revised requirements with respect to the maintenance and storage of security instruments that have not been electronically recorded. In addition, the Bulletin announces: an increase to the reimbursable expense limits for certain expense codes associated with the preservation and maintenance of abandoned mortgage premises; a new expense code 090033 (Clear Boarding – Broken Windows); and updates to reporting and notification requirements in the event a legal matter involves (or evolves into) non-routine litigation. Furthermore, the Bulletin announces the removal of the requirement to obtain written pre-approval in order to extend the number of days to submit a claim for expense reimbursement. The new expense code and the removed requirement regarding written pre-approval to extend the number of days to submit a claim for expense reimbursement are effective September 25, 2017. The increased expense reimbursement limits are effective October 9, 2017. The amended hardship, income and other documentation requirements are effective June 1, 2018 (however servicers may implement the amended requirements earlier). All other updates are effective immediately.

Click here to view the Freddie Mac Guide Bulletin