The following are changes to Freddie Mac's Servicing requirements:

• Revising the requirements for counsel eligibility to
  a) Require Servicers to retain more than one law firm or trustee when making foreclosure and bankruptcy referrals in any State in which the Servicer has 250 or more Freddie Mac foreclosure and bankruptcy referrals in a calendar year.
  b) Require Servicers to develop a contingency plan for redirecting foreclosure and bankruptcy referrals in the event a law firm or trustee with whom they currently conduct business is unable to accept new referrals.
  c) Require Servicers to consider additional factors, such as firm reputation, when selecting a law firm to handle foreclosures and bankruptcies.
  d) Provide additional guidance regarding selection of bankruptcy counsel.
  
• Reinforcing the requirement that Servicers notify the property insurer of certain actions affecting insured property and take any other necessary actions in accordance with the conditions of the standard mortgage clause
  
• Converting Form 59, Custodial Account P&I Reconciliation Worksheet, and Form 59E, Escrow Custodial Account Reconciliation Worksheet, into interactive Microsoft Excel® spreadsheets.
  
• Adding two new expense codes to Exhibit 74, Expense and Income Codes to 104SF: one for the expenses related to the Torrens system of titling in Minnesota and another for pest control expenses
  
• Regarding the designated counsel/trustee program:
  a) Announcing two new designated counsel firms in New Jersey
  b) Reminding Servicers that we recently announced via e-mail changes to the designated counsel/trustee list, reflecting a new trustee in California. 
• Adding new notification methods Freddie Mac may utilize for issuing Balloon/Reset Mortgage notices to Servicers that are not licensed holders of MIDANET® for the PC.
  
•  Updating contact information in Form 104SF, Statement of Loan, Workout and REO Expenses and Income; Directories 3 and 5; and Exhibit 85, Special Reset Mortgage Title Insurance Information

To view the bulletin in its entirety, including additional information on the servicing changes highlighted  above, 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 500 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.