Freddie Mac Single-Family Seller/Servicer Guide Overview

The Single-Family Seller/Servicer Guide contains Freddie Mac’s selling and servicing requirements. They periodically publish updates via Guide Bulletins and Industry Letters.

Guide Updates and Bulletins

Freddie Mac issues Bulletins announcing revisions to the Single-Family Seller/Servicer Guide. Recent bulletins include 2024-17, focusing on information security, and 2024-08, related to Resolve updates.

Recent Bulletins (e.g., 2024-17, 2024-08)

Bulletin 2024-17⁚ This bulletin announced revisions to the Single-Family Seller/Servicer Guide, with a focus on refactoring Chapter 1302 (Information Security and Business Continuity Planning) to enhance readability. Revisions related to information security requirements took effect on January 1, 2025. This bulletin aimed to strengthen data protection and ensure business resilience for servicers managing Freddie Mac mortgages. It underscores the importance of robust cybersecurity measures and well-defined continuity plans in the face of evolving threats. Servicers are expected to familiarize themselves with the updated guidelines and implement necessary changes to their systems and processes to comply with the new requirements. The refactoring of Chapter 1302 is designed to make the information more accessible and easier to understand, facilitating smoother implementation and adherence.

Bulletin 2024-08⁚ This bulletin also announced revisions to the Single-Family Seller/Servicer Guide, specifically addressing updates related to Resolve, Freddie Mac’s default management solution, and underwriting requirements for mortgage assumptions. Revisions pertaining to Resolve and its user interface (UI) became effective on July 29, 2024. These changes are intended to streamline default management processes and improve the efficiency of workout options. The bulletin also included revisions to underwriting requirements for mortgage assumptions, ensuring consistency and clarity in the evaluation of potential borrowers assuming existing Freddie Mac mortgages. Servicers should review the bulletin carefully to understand the changes and their implications for their operations.

These recent bulletins reflect Freddie Mac’s commitment to providing servicers with up-to-date guidance and tools to effectively manage their portfolios and assist borrowers in navigating financial challenges. By staying informed about these updates and implementing the necessary changes, servicers can ensure compliance and contribute to the stability of the housing market.

Servicing Requirements (Series 7000-9000)

This segment includes requirements applicable to Servicing Freddie Mac Mortgages (Series 7000 through 9000). These requirements detail the proper procedures for managing and maintaining mortgages.

General Servicing Requirements (Series 8000)

Series 8000 of the Freddie Mac Single-Family Seller/Servicer Guide outlines the general requirements for servicing Freddie Mac mortgages. This section encompasses a broad range of essential servicing functions that ensure the proper administration and management of mortgage loans throughout their lifecycle. These requirements cover various aspects, including but not limited to, the collection and application of mortgage payments, the management of escrow accounts for property taxes and insurance, and the handling of borrower inquiries and requests. Proper adherence to these guidelines is crucial for maintaining compliance with Freddie Mac’s servicing standards and ensuring a consistent and efficient servicing experience for borrowers. Furthermore, Series 8000 addresses the maintenance of accurate loan records, the timely remittance of funds to Freddie Mac, and the implementation of sound internal controls to mitigate risks associated with servicing activities. By providing a comprehensive framework for general servicing practices, this section of the Guide serves as a vital resource for servicers in fulfilling their responsibilities and upholding the integrity of the Freddie Mac mortgage portfolio.

Servicing Mortgages in Default (Series 9000)

Series 9000 of the Freddie Mac Single-Family Seller/Servicer Guide provides comprehensive guidelines for servicing mortgages that have fallen into default. This section focuses on the specific procedures and requirements that servicers must follow when borrowers fail to make timely mortgage payments, leading to delinquency and potential foreclosure. It covers a wide range of topics related to default management, including loss mitigation strategies, foreclosure proceedings, and property disposition. The guidelines emphasize the importance of early intervention and proactive communication with borrowers to explore all available options for resolving the default and avoiding foreclosure whenever possible. Servicers are required to evaluate borrowers for various loss mitigation programs, such as repayment plans, forbearances, and loan modifications, to determine the most appropriate solution based on their individual circumstances. Series 9000 also outlines the specific steps involved in the foreclosure process, including the legal requirements, timelines, and documentation necessary to initiate and complete a foreclosure action. Furthermore, it addresses the management and disposition of properties acquired through foreclosure, ensuring that they are properly maintained and sold in a timely manner to minimize losses. By providing detailed guidance on all aspects of default servicing, Series 9000 helps servicers navigate the complexities of managing distressed mortgages and mitigate the risks associated with defaults.

Key Servicing Topics

This section highlights crucial aspects of servicing Freddie Mac mortgages, including property inspections, repayment plans, loan modifications, and workout mortgage assumptions, providing clarity and guidance.

Property Inspections and Abandoned Properties

Servicing Freddie Mac mortgages requires diligent property inspections to identify and address potential issues that could impact the value of the property and the security of the investment. Property inspections are crucial for monitoring the condition of the property, ensuring compliance with Freddie Mac’s guidelines, and detecting signs of abandonment or neglect. These inspections help servicers proactively manage risks and protect the interests of both Freddie Mac and the borrower. The Single-Family Seller/Servicer Guide provides detailed requirements and procedures for conducting property inspections, including frequency, scope, and reporting requirements. Servicers must adhere to these guidelines to ensure consistent and accurate property assessments. Identifying abandoned properties is a critical aspect of servicing defaulted mortgages. Abandoned properties pose a significant risk of vandalism, deterioration, and neighborhood blight, which can negatively impact property values and community stability. Freddie Mac’s servicing guidelines outline the criteria for determining whether a property is abandoned and the steps servicers must take to secure and maintain abandoned properties. These steps may include securing the property, performing necessary repairs, and implementing measures to prevent further damage or deterioration. Servicers are expected to act promptly and effectively to mitigate the risks associated with abandoned properties and preserve the value of the underlying asset. The Guide provides resources and guidance to assist servicers in managing property inspections and abandoned properties effectively, promoting responsible servicing practices and protecting Freddie Mac’s investments. Proper management ensures properties are well-maintained and risks are minimized.

Repayment Plans and Forbearance

When borrowers face temporary financial hardships, repayment plans and forbearance are crucial tools for servicers to help them avoid foreclosure and maintain homeownership. Repayment plans allow borrowers to catch up on past-due mortgage payments by spreading the delinquent amount over a specified period, typically added to their regular monthly payments. Freddie Mac’s Single-Family Seller/Servicer Guide outlines the eligibility criteria, terms, and conditions for repayment plans, ensuring they are structured in a way that is both manageable for the borrower and compliant with Freddie Mac’s requirements. Servicers must carefully evaluate the borrower’s financial situation and ability to meet the terms of the repayment plan before offering this option. Forbearance provides a temporary suspension or reduction of mortgage payments for borrowers experiencing short-term financial difficulties, such as job loss or medical expenses. During the forbearance period, the borrower is not required to make full mortgage payments, providing them with much-needed relief to stabilize their finances. The Guide specifies the circumstances under which forbearance may be granted, the maximum duration of the forbearance period, and the options available to borrowers at the end of the forbearance period, such as repayment plans, loan modifications, or other workout solutions. Servicers must communicate clearly with borrowers about the terms and conditions of forbearance and work with them to develop a sustainable plan for resuming regular mortgage payments. Repayment plans and forbearance are valuable options for assisting borrowers through temporary financial challenges and preventing foreclosures, promoting housing stability and protecting Freddie Mac’s investments. Effective use requires careful evaluation, clear communication, and a commitment to finding solutions that benefit both the borrower and the lender. The Guide provides detailed guidance and resources to support servicers in administering these programs effectively and compliantly.

Loan Modifications and Workout Mortgage Assumptions

Loan modifications and workout mortgage assumptions are critical loss mitigation tools available to servicers for borrowers facing long-term financial hardships that make it difficult or impossible to maintain their current mortgage payments. A loan modification involves permanently changing one or more of the original terms of the mortgage loan to make the payments more affordable for the borrower. This can include reducing the interest rate, extending the loan term, or deferring a portion of the principal balance. Freddie Mac’s Single-Family Seller/Servicer Guide provides detailed guidelines and requirements for loan modifications, including eligibility criteria, documentation requirements, and modification options. Servicers must carefully evaluate the borrower’s financial situation and ability to sustain modified payments before offering a loan modification. The goal is to create a sustainable payment plan that allows the borrower to remain in their home and avoid foreclosure. Workout mortgage assumptions allow a qualified buyer to take over the existing mortgage loan of a seller who is facing financial difficulties or needs to relocate. This can be a viable option when the existing mortgage terms are more favorable than current market rates, or when the seller is unable to sell the property through traditional means. The Guide outlines the requirements for workout mortgage assumptions, including the buyer’s creditworthiness, income verification, and ability to repay the mortgage. Servicers must ensure that the buyer meets Freddie Mac’s eligibility criteria and that the assumption is in compliance with all applicable laws and regulations. Loan modifications and workout mortgage assumptions are complex processes that require careful attention to detail and adherence to Freddie Mac’s guidelines. Servicers must have the expertise and resources to effectively evaluate borrowers, process applications, and implement these loss mitigation options. By offering loan modifications and workout mortgage assumptions, servicers can help borrowers avoid foreclosure, stabilize communities, and minimize losses for Freddie Mac. These options are an integral part of Freddie Mac’s commitment to responsible lending and sustainable homeownership.

Resolve⁚ Freddie Mac’s Default Management Solution

Resolve is Freddie Mac’s end-to-end default management solution designed to streamline and automate the servicing process for mortgages in default. This innovative platform uses automation and seamless integration to deliver rapid results to servicers, helping them manage their default portfolios more efficiently and effectively. Resolve provides a centralized dashboard that allows servicers to manage workflow, monitor requests, and track key performance indicators. It offers a user-friendly interface and intuitive tools that simplify complex tasks and reduce the risk of errors. Through the Reimagine Servicing initiative, Freddie Mac continues to deliver additional capabilities to Resolve, enhancing its functionality and expanding its reach. Resolve supports a wide range of default management activities, including loss mitigation, foreclosure, and property disposition. It provides servicers with access to the latest guidelines, policies, and resources, ensuring compliance with Freddie Mac’s requirements. The platform also facilitates communication and collaboration between servicers, borrowers, and other stakeholders, promoting transparency and accountability. Resolve enables servicers to submit, track, and manage short sale workout requests, providing a centralized location for all related documentation and communications. It also offers advanced reporting and analytics capabilities, allowing servicers to identify trends, assess performance, and make data-driven decisions. By leveraging Resolve, servicers can improve their efficiency, reduce costs, and enhance the borrower experience. The platform’s automation features minimize manual tasks, freeing up staff to focus on more complex issues and providing personalized support to borrowers in need. Resolve is an integral part of Freddie Mac’s commitment to responsible lending and sustainable homeownership. By providing servicers with the tools and resources they need to effectively manage defaults, Freddie Mac helps to stabilize communities, prevent foreclosures, and minimize losses for all stakeholders. The platform is continuously updated and improved to meet the evolving needs of the mortgage servicing industry, ensuring that servicers have access to the latest technology and best practices.

Accessing the Guide and Related Resources

Accessing the Freddie Mac Single-Family Seller/Servicer Guide and related resources is crucial for lenders and servicers to stay informed about the latest requirements and guidelines. The Guide itself can be found on the Freddie Mac website, providing a comprehensive overview of all selling and servicing policies. In addition to the full Guide, Freddie Mac also publishes Guide Bulletins and Industry Letters to announce periodic updates and changes. These bulletins highlight specific revisions, effective dates, and other important information that lenders and servicers need to be aware of. To stay up-to-date, it is recommended to regularly check the Freddie Mac website for new publications. Freddie Mac also offers a variety of other resources to support lenders and servicers. These resources include training materials, FAQs, and system status updates. The training materials provide in-depth explanations of key concepts and procedures, while the FAQs address common questions and concerns. System status updates keep users informed about any planned or unplanned outages that may affect their ability to access Freddie Mac’s systems. For quick answers to Guide and policy questions, Freddie Mac provides AI-powered search tools. These tools allow users to quickly find relevant information within the Guide and other resources. Freddie Mac also offers a secure loan lookup tool that allows borrowers to determine if Freddie Mac owns their loan. This tool can be helpful for borrowers who are seeking assistance with their mortgage or who are considering refinancing. For multifamily properties, Freddie Mac provides a lookup tool to see if Freddie Mac financed the apartment building. Lenders and servicers can also access the Guide through AllRegs, a third-party provider of mortgage industry information. AllRegs offers a convenient way to search, view, and download the Guide and other related documents. By utilizing these resources, lenders and servicers can ensure that they have the knowledge and tools they need to comply with Freddie Mac’s requirements and effectively serve their borrowers.