Freddie Mac Bulletin 2010-27
November 16th, 2010
Freddie Mac's Guide Bulletin 2010-27 Announces Changes in Servicing Requirements.
SUBJECTS
With this Single-Family Seller/Servicer Guide (“Guide”) Bulletin, we are making the following changes our Servicing requirements:
- Updating the Guide to permit Document Custodians to release Notes directly to designated counsel
when the original Note is needed to foreclose
- Updating our requirements with respect to the accrual and collection of late charges for forbearance
agreements and repayment plans
- Revising the Guide to reflect that a modified Mortgage, processed under Guide Chapter B65,
Workout Options, must be a fully amortizing fixed-rate Mortgage
- Updating the contact information for Servicers to notify Freddie Mac that a conversion option has
been exercised for a convertible adjustable-rate Mortgage (ARM)
In addition, we are providing additional guidance and reminders related to the Home Affordable
Modification Program (HAMP):
- Providing additional guidance on Servicer and Borrower incentives for FHA, VA and Rural Housing
Service (RHS) Mortgages modified under HAMP
- Reminding Servicers that, as previously communicated to them, certain HAMP documents have been
revised
Finally, we have updated Guide Section C65.6, Underwriting the Borrower, to include the provision that if a Servicer has a Freddie Mac Broker’s Price Opinion (BPO) or appraisal that is less than 90 days old on the date the Servicer evaluates the Borrower for a HAMP Trial Period Plan using the Treasury NPV Model, the Servicer may use that BPO or appraisal. This provision was inadvertently omitted when Chapter C65, Home Affordable Modification Program, was revised with the July 28, 2010 Bulletin.
Effective date
All of the changes announced in this Bulletin are effective immediately, unless otherwise noted.
Designated counsel’s request for release of documents in foreclosure actions
In some States, original Notes are required to process foreclosures and in those cases, Servicers typically request the Note from the Document Custodian and forward it to the foreclosure counsel. For foreclosures referred to designated counsel, in order to add greater efficiency to the process, we are updating the Guide to permit the designated counsel to request the Note directly from the Document Custodian. To request the Note from the Document Custodian, the designated counsel must complete and submit Form 1036DC,Designated Counsel’s Request for Release of Documents, which Freddie Mac will provide to designated counsel.
To view the Bulletin in its entirety, 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 800 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.