Freddie Mac released Bulletin 2006-4, amending both Single-Family Seller and Servicer guide changes.

Included in this release are the following updates:

Servicing Changes

Updating Exhibit 52, Federal Disaster Assistance

Exhibit 52, Federal Disaster Assistance is updated to match more closely the terminology and provisions of currently established government relief programs and assistance options. These changes were made in coordination with the appropriate federal agencies.

Updating Exhibit 57A, Approved Attorney Fees and Title Expenses

Exhibit 57A, Approved Attorney Fees and Title Expenses, is updated with new attorney fees and title expense limits in certain States—Connecticut, Louisiana, Nebraska, Vermont and Wisconsin—and ensures that Exhibit 57A is consistent with new State laws and current market trends.

Changes to Exhibit 75, Adjustment Codes for Form 104SF

Freddie Mac has made several changes to Exhibit 75, Adjustment Codes for Form 104SF, providing enhanced clarity regarding claim adjustments. As part of these changes, Freddie Mac is deleting several expense reimbursement adjustment codes, modifying several expense reimbursement adjustment codes and creating new adjustment codes.

Reporting ARM conversions

The process Servicers must use to report ARM conversions depends on the type of Convertible ARM being converted and the terms under which the ARM was originally sold to Freddie Mac. Freddie Mac is updating the contact information for notification that a conversion option has been exercised for conversions processed through the automated conversion process. Chapter 80, Directory 7 and Form 4, Convertible Mortgage Conversion Confirmation, have been modified to reflect this change.

Alternatives to foreclosure - retention of homeownership

Language has been added to the Guide highlighting loan modifications as one of the foreclosure alternatives enabling Borrowers who have completed a long-term or short-term forbearance to retain homeownership. Language has also been added identifying those workout options available where the Borrower retains homeownership and workout options for situations where a Borrower is unable to retain homeownership. Chapters 65 and A65 have been updated to reflect these changes.

Selling and Servicing Changes

• Refining Seller/Servicer eligibility criteria - refines certain aspects of our Seller/Servicer eligibility criteria.
• Enhancing Form 16SF, Annual Eligibility Certification Report -adds the Employer Identification Number (EIN)—or Federal Tax ID—as a required field on Form 16SF, Annual Eligibility Certification Report.
  Please note, Form 16SF must be submitted electronically and is available here.
  A printable version of Form 16SF can be viewed here
• Insurance requirements - updates insurance product and coverage terminology
  
  View full 2006-4 Bulletin