The following Servicing changes are included in this Bulletin

Changes to the Servicer Performance Profile

Workout-to-REO Ratio:  Effective on January 1, 2008 Freddie Mac is changing the criteria used to determine the weighting of settled loan modifications and short payoffs in the calculation of a Servicer.s Workout-to-REO Ratio performance.

Foreclosure Timeline Metric: Once a Servicer has determined foreclosure is the only course of action, Freddie Mac expects a Servicer to move the Mortgage to foreclosure in a timely fashion. Currently, Servicers that have Mortgages in foreclosure, but are not moving those Mortgages timely toward foreclosure sale and do not complete any foreclosure sales in a calendar year, are awarded full points for the Foreclosure Timeline Metric. Effective January 1, 2008, if a Servicer has no foreclosure sales within a rolling 12-month period, but has Mortgages in the foreclosure process, they must achieve a minimum Tier 2 or better in the Inventory Past Standard Severity measure to receive the minimum Tier 2 points for the Foreclosure Timelines Including Delay.s metric.

Payment of mortgage insurance premiums and remittance of mortgage insurance premium refunds

Update emphasizing that mortgage insurance premiums must be paid through the later of the foreclosure sale date or the confirmation/ratification date ensuring there is no lapse in mortgage insurance coverage should a delinquent Mortgage reinstate.
Effective January 1, 2008, should a Servicer receive a refund from an MI for premiums paid after DDLPI, the Servicer must submit a refund credit to Freddie Mac via Form 104SF utilizing the mortgage insurance premium refund income code discussed in the June 22, 2007 Bulletin.

Payment of and reimbursement for regular condominium/homeowners association (HOA)/ Planned Unit Development (PUD) assessments

Update emphasizing that regular condominium, HOA and PUD assessments must also be paid prior to the foreclosure sale for properties located in those States that give these assessments lien priority over the Mortgage.

Update specifying that Freddie Mac will reimburse the Servicer for regular assessments from the foreclosure sale date through the REO settlement date. This time frame encompasses the redemption period through the property disposition.

Revision to claim filing instructions for FHA and VA Mortgages

As of March 1, 2007, Freddie Mac  required Servicers to file FHA and VA claims so that proceeds are paid directly to the Servicer. As a result, with this Bulletin, Freddie Mac is eliminating all claim filing instructions for FHA and VA Mortgages that indicated FHA or VA proceeds would be sent to Freddie Mac, and any existing requirements for expense reimbursement that are contingent upon Freddie Mac's receipt of claim payments from the FHA or VA.

Form 104SF types and time frames and Form 104SF adjustment codes

Guidance regarding the due dates for various Form 104SF submission types for both non-REO expenses and REO expenses. 
Reinforcing the purpose of the final Form 104SF for REO properties, which is the submission of allowable REO expenses incurred after the acquisition date.

Reminder to Servicers that if they resubmit an expense to either correct or contest an adjustment, such a resubmission must be sent to Freddie Mac on a hard copy Form 104SF.
Servicers must now send any hard copies of Form 104SF or Form 104SF to a new address.

Updating Form 1127

Form 1127 has been updated to reflect revised pricing and BPO request selections by inspection type.

Designated counsel/trustee

Two new Georgia firms have been added to Freddie Mac.s Designated Counsel Program: Pendergast & Jones, P.C. and McCurdy & Candler, L.L.C. These new firms began accepting new program referrals on September 1, 2007.

Additionally, Julie Moran, Esq. and her staff (formerly of Barron and Stadfeld, P.C.) have opened a new law firm, Orlans and Moran, in Massachusetts. Effective August 1, 2007, the new firm replaced Barron and Stadfeld as Designated Counsel.

General updates to Directories 5 and 7

Directory 5 has been revised to reflect updated Freddie Mac department names, phone numbers, fax numbers and e-mail addresses. As indicated above in the discussion of Form 104SF types and time frames, changes include a new address to which Servicers must send any hard copies of Form 104SF or Form 104DC.

In addition, as a result of the JP Morgan Chase acquisition of Bank One, NA, the name and address of the banking institution to which Servicers send cash remittances of non-REO related funds has changed.

Removing obsolete forms

Form 1073, Uniform Mortgage Insurance Claim for Loss, and Form 1109, Mortgage Insurer.s Claim Payment Instructions, have been removed from the Guide.

To view the Bulletin in its' entirety including the Selling amendments, please click here.

About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, OH  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 425 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.