Freddie Mac Servicer Requirements for Supporting Section 404 Borrower Notification
March 26th, 2010
Freddie Mac issued the following advisory titled "Servicer Requirements for Supporting Section 404 Borrower Notification".
Section 404 of the Helping Families Save Their Homes Act of 2009 (Act) requires mortgage purchasers to notify borrowers in writing of the sale, transfer, or assignment of their mortgage loan. As required under the Act, Freddie Mac began sending these borrower notices in mid-June 2009.
Since implementing this new requirement, we have successfully reached the vast majority of borrowers; however, a small percentage of borrower notification letters have been returned to us as undeliverable. To support our required second attempt to notify these borrowers, we will in turn require you to provide valid borrower mailing addresses for returned letters we have received for the mortgages you service.
Servicing
Each month, beginning in April, we will send the point of contact in your organization identified for this process an e-mail from the Freddie Mac Section 404 mailbox. The e-mail will include:
- A password-protected Excel file listing the Seller loan number, Freddie Mac loan number, and property address for all returned borrower notification letters corresponding to mortgages that your organization services.
- Detailed instructions for collecting and returning valid borrower mailing addresses to Freddie Mac.
We anticipate sending the e-mail and attached Excel file no later than the 5th business day of each month. Within 48 hours of receipt of the e-mail, you must:
- Update our file with corresponding mailing addresses for all listed property addresses.
E-mail the updated file to Freddie Mac at FreddieMac_Section404@FreddieMac.com.
If there are no returned borrower letters for a particular month, you will not receive a file for that month.
In the next few days, we will reach out to the point of contact we have identified in your organization to provide additional information on this process, including the password needed to open the Excel file.
If you have any questions about this announcement or our process, please contact your Freddie Mac servicing representative or call 800-FREDDIE.
To view the online Announcement, please click here
About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 700 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.