Freddie Mac has released its June 4th Bulletin titled, "Revised Selling and Servicing Requirements for Mortgages Affected by Hurricane Katrina and Hurricane Rita."

 This Bulletin includes the following amendments

• The move of five counties/parishes from Zone Two to Zone One
• Extension of the expiration date for previously announced temporary selling requirements through December 31, 2007
• Extension of the expiration date for previously announced temporary Servicing requirements through September 30, 2007 
• Provides temporary payment history relief for Borrowers requesting cancellation of Borrower-paid mortgage insurance

The following five (5) counties/parishes are now in Zone 1.

• Mobile, AL
• Cameron, LA
• Tangipahoa, LA 
• Washington, LA 
• Jefferson, TX

Please see the following Excel Spreadsheets (links) for the affected zip codes. (Numerous tabs per spreadsheet)

Zone 1

Zone 2

Zone 3

1. The temporary credit reporting requirements announced in the February 10, 2006 Bulletin

2. The streamlined underwriting requirements for loan modifications

3. The delegation to approve a short payoff

4. Suspension of the Guide requirement to collect Borrower documentation to determine eligibility for a long-term forbearance 
   
5. (Zone Three) The ability to continue to extend forbearance based on an individual assessment, without Freddie Mac approval
     
6. (Zone Two and Zone Three) The requirement for Freddie Mac’s prior approval on Form 105, Multipurpose Loan Servicing Transmittal, before initiating or resuming foreclosure
   
7. (Zone Two and Zone Three)  The requirement for Freddie Mac’s prior written approval to complete any lender-initiated property preservation work other than re-keying one entrance to a property when certain conditions are met

• Providing temporary payment history relief for Borrowers requesting cancellation of Borrower-paid mortgage insurance following all conditions included in this Bulletin are met
• Reminding Servicers of factors to consider when extending forbearance and what needs to be taken into consideration in the event the borrower cannot or does not want to retain ownership of the property, or there is no contact with the borrower.

For additional details on the amended Servicing requirements along with all the amendments to the Selling requirements, please click here.

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