Freddie Mac has issued a bulletin announcing a number of changes to their Selling and Servicing Guides.  The bulletin is available for your review on the Freddie Mac web site at Bulletin Number 2005-3.  More detailed information, with links to the revised language and forms, is available to subscribers of AllRegs at Freddie Mac Bull. 2005-3: Multiple Subjects.

Revisions that may be of particular interest to our clients include:

(Please note that you must be logged in to AllRegs to access the guide documents linked below.)

• Changes to foreclosure requirements, including extending forbearance from foreclosure to service members who have been released from active duty, increasing the number of days a servicer has to initiate foreclosure, and reducing the number of days a servicer has to provide foreclosure counsel or trustee with additional documentation when requested

• Increasing the dollar amount for delinquent loan charge-offs to $5,000 for conventional mortgages and $2,000 for FHA, VA and RHS mortgages, regardless of the borrower's equity position in the property

• Changes to collection efforts and collection techniques, and lengthening the time frame for mailing the breach letter on delinquent modified mortgages

• Moving a portion of Exhibit 57, 1- to 4-Unit Property Approved Expense Amounts, into a new Exhibit 57A, Approved Attorney Fees and Title Expenses, and updating some of the amounts appearing within the exhibits (version of Exh. 57 taking effect on 7/1/05)

• Moving a portion of Exhibit 83, Freddie Mac State Foreclosure Time Lines-In Calendar Days, into a new Exhibit 83A, Determining Your Foreclosure Time Line Performance Penalties, and updating the information in both exhibits

This is by no means a comprehensive list of the changes contained in this bulletin.  Please visit the Freddie Mac web site and/or AllRegs to assure that you have the most up-to-date information for your guide.

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