With Single-Family Seller/Servicer Guide (Guide) Bulletin 2009-25, we are updating the Guide to reflect previously announced changes in our requirements and processes, including changes to our document custody requirements. The Bulletin also provides additional guidance for a number of selling and servicing requirements to enhance the way you do business with Freddie Mac.

You’ll find complete details on these changes in today’s Guide Bulletin available on FreddieMac.com. It is important that you familiarize yourself with all changes announced in the Bulletin, including the changes outlined below:

Updating the Guide to reflect Bank of New York Mellon, N.A. as Freddie Mac’s Designated Custodian

As previously announced in Guide Bulletin 2009-16, effective October 1, Freddie Mac no longer directly provides note certification and custody services, and has named the Bank of New York Mellon, N.A. as our Designated Custodian. We are updating the Guide to reflect this change. Servicers have the option under the Guide to either engage the custodial services of the Designated Custodial or another document custodian approved by Freddie Mac.

Please visit our Document Custody Web page for transition-related updates and helpful FAQs.

Strengthening our requirements for custodial vault fire protection

Effective immediately for eligible document custodians and entities applying to be a document custodian, Freddie Mac will require a custodial vault to provide at least two hours of fire protection. Document custodians approved prior to October 28, 2009 with a vault that does not provide a minimum of two hours fire protection must bring the vault into compliance by November 1, 2010. If a document custodian’s regulator requires a higher standard of fire protection, that higher standard continues to apply.

Providing additional guidance regarding the use of LIBOR indices

For adjustable-rate mortgages based on a London Interbank Offered Rate (LIBOR) index, we are providing additional guidance regarding the LIBOR indices published in The Wall Street Journal print edition and those published online. Seller/Servicers must inform borrowers in writing that the LIBOR value to be used in calculating the interest rate adjustment is the average of rates for six-month or one-year U.S. dollar denominated deposits, as applicable, as published in the print edition of The Wall Street Journal.

Revising fees for certain Broker’s Price Opinion requests

We’re updating the Guide to reflect the revised cost associated with requesting a Broker’s Price Opinion (BPO). The BPO fee will still vary based on the reason for the BPO request. Freddie Mac Servicers are reminded that they must submit their BPO requests through www.bpodirect.net, as we no longer accept BPO requests by e-mail or fax. Form 1127, BPO Request Form, has been retired.

Other Guide changes announced in Guide Bulletin 2009-25

With today’s Bulletin, we are also:

• Updating the Guide to reflect that Sellers may access data generated by Home Value Explorer® for Freddie Mac Relief Refinance MortgagesSM through the Loan Prospector® browser.
  
• Updating the Guide to include the applicable citations for state anti-predatory lending laws and regulations.
  
• Announcing changes to several Uniform Instruments and updating authorized changes for the Home Affordable Modification Program Modification Agreement and Trial Period Plan that were previously announced.
  
• Revising approved attorney fees for evictions and title expenses.
  
• Updating Directory 3 with new contact information for Freddie Mac’s Performing Loans department.
  
• Revising Directory 4 to direct users to the Designated Custodian.
  
• Introducing new Directory 9 for matters still being managed by our Document Custodial Pperations.

For more information

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.