Freddie Mac Updates Foreclosure Timeline Requirements for all States

Freddie Mac issued Bulletin 2018-26 (Bulletin), announcing updates to foreclosure timeline requirements for all states. Per the Bulletin, Freddie Mac updated foreclosure timeline requirements to provide only one foreclosure timeline for each state (rather than multiple foreclosure timelines based on the due date of the last paid installment). In addition, Freddie Mac: revised the manner in which state foreclosure timeline compensatory fees are calculated, assessed and billed; updated the Servicer Success Scorecard; provided greater detail with respect to obtaining Freddie Mac’s consent to use Servicing Contract Rights as collateral for a financing; updated the definitions and modifications tabs of the Post-Settlement Correct Request form (Form 1205); and revised property preservation requirements to allow servicers to maintain and execute winterization and yard maintenance without the restriction of the seasonal time frames. The updates to state foreclosure timeline requirements are effective for all foreclosure sales completed on or after January 1, 2019. This applies to mortgages already in foreclosure (where the foreclosure sale is scheduled to be held on or after January 1, 2019) as well as new foreclosure referrals. The updates to Servicer Success Scorecard and the use of Freddie Mac Servicing Contract Rights as collateral are effective January 1, 2019. All other updates are effective immediately.

Click Here to View the Freddie Mac Guide Bulletin 2018-26