Freddie Mac Announces Disaster Payment Deferral and other Servicing Updates
We issued two Single Family Seller/Servicer Guide (Guide) Bulletins to provide Servicers with important requirement updates.
Guide Bulletin 2020-28
Under the guidance of the Federal Housing and Finance Agency and in alignment with Fannie Mae, we are introducing the disaster Payment Deferral option with Guide Bulletin 2020-28.
Servicers are encouraged to implement this new loss mitigation option immediately but are required to use it in evaluating eligible borrowers by October 1, 2020.
With this Bulletin, we are also updating certain disaster-related policies:
- Expanded definition of an “eligible disaster”
- Credit reporting for borrowers
In response to Servicer inquiries, the Bulletin also includes COVID-19 servicing updates and important reminders on:
- Servicer incentives
- Disbursement of loss proceeds to borrowers
- EDR reporting
- Escrow shortage repayment
The appropriate Guide sections will be updated to reflect these new and revised requirements with a future Guide Bulletin.
Guide Bulletin 2020-29
Your feedback remains the foundation for our Reimaging Servicing® program, to ensure we are making it easier to do business with us and providing you with more flexibilities to better serve borrowers.
To help streamline your servicing processes and to clarify certain document custody requirements, Guide Bulletin 2020-29 announces updates to the following:
- Insurance loss settlement requirements
- Document custody requirements as they pertain to:
- Original security instruments
- Lost note affidavits
- Insurance coverage
This Bulletin also includes other Guide updates and reminders that may be important to your servicing operations.
Please review these two servicing Bulletins for details on our new and updated requirements and their corresponding effective dates.