December 9, 2024

Resolve Release Summary

A new technology experience is here, providing an efficient path to reach resolution for mortgage relief and managing default activities. Resolve^® is an integrated default management solution that follows an agile approach to delivering capabilities iteratively for faster market solutions.

This article is updated periodically with upcoming and new release capabilities.

RECENT RELEASES

User Interface (UI)

Access Resolve from Servicing Gateway and experience intuitive navigation and simple workflows. For new users, request access from your Access Manager administrator.

December 9, 2024

Reminder: New Flex Modification^® Types

As of December 1, 2024, Workout Program Type FLX and FLXD will be retired for new evaluations. For borrowers being newly evaluated for Flex Modifications and disaster Flex Modifications on and after this date Servicers must select FLXM or FLXDM, respectively.
For any Flex Modification or disaster Flex Modification Trial Period Plans in approved status prior to this date, Servicers should continue to utilize FLX and FLXD, respectively, for Workout Approval (WAReq) and Settlement (SETReq) submissions.
These updates ensure the workout adheres to the updated Flex Modification terms announced in Single-Family Seller/Servicer Guide (Guide) Bulletin 2024-E.

Restore and Retain Workout terms for Payment Deferrals and Flex Modifications

Servicers can restore and retain the prior workout terms for a previously cancelled Flex Modification in Trial Period Approved (TPAD) status or a payment deferral in Workout Approved (WAD) status. Requests will be submitted for exception review.
This change gives flexibility to Servicers to restore a workout, easy identification of previously reviewed terms and the ability to upload bulk submissions.
For transferred loans, the Transferee Servicer can reinstate the terms offered prior to the transfer.
The borrower can retain previously approved terms, potentially providing faster mortgage assistance.

Flex Modification Appeals

As per Consumer Financial Protection Bureau (CFPB) rule: Regulation X, Servicers can submit an appeal for a prior ineligible Flex Modification Trial Period request and retain the original proposed workout terms. Requests will be submitted for exception review.
This change provides a streamlined, more efficient path for Servicers to submit appeals, with fewer data fields and easy identification of previously reviewed terms.

Unsettled Flex Modifications and Payment Deferrals

Servicers can complete a Flex Modification in Trial Period Approved (TPAD) or Workout Approved (WAD) status that hasn’t been settled as of the first payment due date. Requests will be submitted for exception review.
This change allows Servicers to complete an unsettled workout. It also provides flexibility to complete a workout even if a first payment due date or modification effective date is in the past.
In the case of a loan transfer, it ensures that the borrower will receive the terms offered.

Processing of Retention Workouts on Loans with Odd Due Dates and Daily Simple Interest Loans

Servicers can process Retention workouts for loans that have an odd due date or have a daily simple interest calculation method.
This change allows Servicers to process and settle a payment deferral using the Resolve-calculated original terms and eliminates the need to calculate the delinquent interest.
The Servicer no longer needs to submit a request in Servicing Data Corrections to realign the payment due date following settlement for this type of payment deferral.

Updates to Custom Modifications

New Custom Modification Workout Program
- A new custom modification workout program in Resolve allows Servicers to submit retention workouts for settlements that are neither Flex Modifications nor payment deferrals.
- Servicers can request a loan modification that falls outside Guide parameters via the custom modification path on the UI. Requests will be submitted for exception review.
- This change replaces the “Other Mod” functionality previously available through Workout Prospector.
- This new process is more efficient, with fewer data fields and an automatic submission for exception review and allows for compliance with court orders for modifications via Resolve.
- It also helps more borrowers retain homeownership.
- This change gives Servicers flexibility to consider borrowers for loan modifications that don’t meet standard Guide parameters, potentially helping retain homeownership.
Custom Modification Dashboard Updates
- Custom modifications now appear on the Dashboard and are also visible via notifications in Servicing Gateway.
- This allows Servicers to view and track custom modification status updates in real time.

Bankruptcy Cramdown Updates

Resolve can now accept bankruptcy cramdown submissions via the new Bankruptcy Cramdown Workout Program, which will be submitted for exception review. If all eligibility criteria are met, modifications will be approved for settlement without additional exception processing.
This replaces the court mandated modifications functionality previously available through Workout Prospector.
This change gives Servicers an efficient path for bankruptcy cramdown modifications to be processed and the ability to export the bankruptcy cramdown modification data for their records.
It allows compliance with court orders for bankruptcy cramdown modifications.
It also potentially helps more borrowers retain homeownership.

Updates to Foreclosure Sale Reporting

Servicers receive a fatal error when the redemption date is greater than the sale date by more than 12 months, providing data integrity when they enter a date more than a year in the future.
Servicers receive a new validation message when the actual credit bid amount submitted isn’t equal to the lesser value of the Freddie Mac credit bid or total debt, ensuring data integrity and accuracy.
Servicers receive a new validation message when the total debt submission is less than the gross unpaid principal balance (UPB), ensuring data integrity and accuracy.
“Gross Sales Proceeds” is now referred to as “Gross Sales Prices”, i.e. the sales price of the property. All references have been updated in Resolve and on the Foreclosure Sale Reporting submission template, and the definition has been updated on the metadata tab. This change clarifies the field name to ensure accuracy of submissions.
“Actual Bid Amount” is now referred to as “Actual Credit Bid Amount.” All references have been updated in Resolve and on the Foreclosure Sale Reporting submission template. This change clarifies the field name to ensure accuracy of submissions.
“Credit Bid Amount” on the Sales Details page and Request Details page is now referred to as “Freddie Mac Credit Bid Amount.” All references have been updated to reflect this change, which clarifies the field name.
For third-party sales submissions, Servicers can edit the actual credit bid amount and total debt before settlement, allowing them to make updates after submission, if necessary.
A Foreclosure Sale Reporting Historical Report has been added to Resolve, allowing Servicers to continue to access information for submissions that were made in Foreclosure Sale Reporting after the tool has been retired.

API Integration

Resolve APIs provide greater flexibility, transparency and much more because you can connect directly to Freddie Mac without leaving your existing default management platform. The APIs are a new and faster way of reaching resolution for mortgage relief.