Resolve^® Release Archives

Charge-Off Capability Added to Resolve UI

• Servicers now have an updated and simpler method to submit charge-off recommendations to Freddie Mac. 
• The charge-off template uploaded in the UI reduces the amount of data required from the Servicer and allows them to upload supporting documentation for workouts using the UI—eliminating the need to send it via email. 
• Users can use the dashboard to manage pipelines and stay informed of the status of a charge-off. 
• Auto-generated settlement requests (following payoff) for approved charge-offs give Servicers end-to-end processing of charge-off workouts using a single request submission.
• Note: API users will need to submit charge-off recommendations through the UI.

Flex Modification Enhancements

• For Draft Requests (DraftReq) and Trial Period Plan Approval Requests (TPAReq), Servicers now have flexibility to notify Freddie Mac ahead of time of the intended Trial Period date. 
• For Draft Requests (DraftReq) and Trial Period Approval Requests (TPAReq), a fatal edit will trigger if the borrower is less than three months delinquent and their income is 0—not only if their income information is missing. This gives Servicers a clearer understanding about the eligibility requirements for a workout based on a borrower’s delinquency. 
• If a Servicer cancels a Trial Period that’s in progress and starts a new one on the same day, they no longer need to send the cancellation code to EDR, as Resolve automatically sends it. 

Flex Modification / Payment Deferral Enhancements 

• Servicers must now wait to process a new submission when the prior submission is still in progress for the same loan. This prevents errors occurring from back-to-back submissions. 
• If the Servicer cannot make Quality Right Party Contact (QRPC) with the borrower, the information about the property type usage, occupancy and hardship reason are conditional based on the delinquency of the loan. 
• Servicers cannot attempt to process a workout if the scheduled foreclosure date is within 30 days of submission of the workout. 
• For Workout Approval Requests (WAReq), Trial Period Approval Requests (TPAReq) and Settlement Requests (SETReq), Servicers can now track recurring fatal edits if they need to make any adjustments, giving a more complete picture of what edits were triggered. 
• For Workout Approval Requests (WAReq) and Trial Period Approval Requests (TPAReq), Servicers now have flexibility to submit for an exception in cases where, due to the borrower’s unique circumstances, Freddie Mac needs to make an exception decision. This allows Servicers to submit loans with scenarios that fall outside of our general workout programs for exception review.

Short Sale Enhancement 

• The Short Sale Arms’-Length Transaction Indicator field name and metadata tab have been updated so Servicers can confirm if the sale is an arm’s length transaction. 
• This helps reduce unintended eligibility failure and back and forth clarifications during exception reviews.

Mandatory Effective Date of Expansion of Payment Deferral Program

• As of October 1, 2023, all Servicers must fully transition to the expanded Payment Deferral Program.
• Loans that are between 60- and 180-days delinquent are eligible for a payment deferral.
• For more information, see the Payment Deferral Solutions webpage, Single-Family Seller/Servicer Guide (Guide) Bulletin 2023-8 or the July 3, 2023, Resolve release information.
• This expansion is designed to make payment deferrals available to a larger number of homeowners.

Ability for Servicers to Edit Delinquent Interest

• Servicers can edit the delinquent interest on payment deferral workout approval requests to overcome penny differences.
• This allows Servicers to provide the delinquent interest in their requests to prevent any delinquent interest variances calculated between Freddie Mac and the Servicer.
• Note: There are no new data points or changes to the template. Changes have only been made to the conditionality as noted on the metadata tab. Access the template in Resolve.

Simultaneous Freddie Mac Flex Modifications^® Assumptions Capability

• Servicers can submit simultaneous Flex Modification assumptions for exception review when it’s a viable option for a non-borrower when the loan is delinquent, they are willing to be added to the note and have been credit qualified by the Servicer by submitting a complete Borrower Response Package (BRP).
• Previously, this capability was only available in Workout Prospector^®.
  For more information on simultaneous assumptions and modifications, consult Single-Family Seller/Servicer Guide (Guide) Section 9207.2.

First Payment Due Date Adjustment for Payment Deferrals

• Servicers can edit the First Payment Due Date during the draft submission stage for a payment deferral.
• This provides greater flexibility in qualifying borrowers for payment deferrals, since Servicers can receive preliminary results including the impact of inserting a processing month at the time of a Draft Request (DraftReq) in addition to a Workout Approval Request (WAReq).

Weekend Processing of Workout Requests

• Servicers can process workout settlement requests during the weekend for Flex Modifications and payment deferrals.
• This provides greater accessibility and flexibility by expanding the timeframe for submission.
• Note: When submitting a Settlement Request (SETReq), Servicers will receive a response indicating the updated status; however, the loan will settle the following business day. Loans settle on each business day, with the exception of the first business day of the month; if a loan is submitted on the first business day of the month, it will settle on the second business day.

Expansion of Payment Deferral Program

• Servicers who are operationally available to do so may begin offering the expanded payment deferrals on July 1, 2023, at 12:00 a.m. By October 1, 2023, all Servicers must fully transition to the expanded Payment Deferral Program.
• Borrowers who are between 60- and 180-days delinquent may be eligible for payment deferrals.
• A rolling delinquency is no longer applicable for a payment deferral, so borrowers will no longer be required to have made at least two consecutive monthly mortgage payments immediately prior to completion of a payment deferral.
• Per the mandate announced in Bulletin 2023-8, borrowers on a payment deferral with an effective date on or after July 1, 2020, who fall 60 days or more delinquent, qualify for a streamlined Flex Modification.
• During the transition period from July 1, 2023 – October 1, 2023, Resolve will support the existing payment deferral as well as the expanded payment deferral. However, Servicers may only offer one version of the payment deferral (i.e. if a Servicer adopts the expanded payment deferral prior to October, 1, 2023, they can no longer offer a payment deferral to borrowers who are less than 60 days delinquent).
• For more information about the expansion of the Payment Deferral Program, see the Payment Deferral Solutions web page or Single-Family Seller/Servicer Guide (Guide) Bulletin 2023-8.

Deferral of Escrow and Expenses

• An update to the standard payment deferral terms now allows escrow and expenses to be deferred, in addition to the non-interest-bearing unpaid principal balance (UPB), as outlined in Guide Section 9206.15(b).
• This enhancement makes payment deferrals a more attractive loss mitigation option for borrowers, as it allows deferment of expenses as well as standard monthly payments.

Workout Eligibility for Loans Nearing Maturity

• A new rule helps determine the best workout options for borrowers with loans that are nearing maturity.
• This applies when loans are less than 36 months from the maturity date or less than 36 months from the projected payoff date of the interest-bearing UPB.

Payment Deferral Enhancements

• Servicers can submit a payment deferral workout approval request via the UI, and then submit an approved workout for settlement, providing end-to-end processing of payment deferrals.
• Servicers can upload bulk submissions for payment deferrals via the new Retention File Template in the Resolve UI, offering speed and efficiency to the workout process.
• Detailed data points about a payment deferral for an individual loan can be exported in Excel format from the Workout Details page, providing the capability to refer to loan details for auditing, record keeping and comparison.
• Overall, the payment deferral enhancements to Resolve keep the tool on track to comply with any future changes, enhancements or requirements related to default management.

User Provisioning Enhancement

• New Resolve users are no longer required to also have access to Workout Prospector if it’s not needed. 
• This enhancement expands access to Resolve for new users who only need to process workouts already available in Resolve, without requiring Workout Prospector provisioning and training. It also reduces usage and submissions in Workout Prospector.
• Note: New and existing Resolve users who need to process workout solutions not yet available in Revolve must continue to use Workout Prospector.

Updates to Liquidation Loan File Template metadata

• There have been updates to four existing metadata fields in the Liquidation Loan File Template, which is used when submitting a Freddie Mac Standard Short Sale workout request:
  • “Final Net Sale Proceeds” field is now required (previously optional) when submitting a settlement request to help understand the reason for the loss and reconcile the account.
  • “Exception Review Request Indicator” field (Y/N) is now required (previously optional) when submitting a workout approval request, so the Servicer can confirm whether they are submitting the workout for an exception review.
  • “Buyer First Name” and “Buyer Last Name” fields are now only required when submitting a workout approval request, requiring less input for Servicers.
• Note: There are no new data points or changes to the template. Changes have only been made to the metadata tab.

Update to Flex Modification Submissions

• Servicers don’t need to cancel a failed Trial Period Plan approval request (‘TPAREQ’ failure) in the Resolve API, allowing the user to re-evaluate the submission data and reprocess the evaluation without receiving an error. 
   

Flex Modification Enhancements

• Servicers can submit a modification workout approval request via the UI following a successful Trial Period, and then submit an approved workout for settlement.
• Detailed data points can be exported from the Workout Details page. Previously, the export feature was only available via the dashboard.

Notification and Dashboard Enhancements

• The dropdown options on the dashboard to filter loans are presented in alphabetical order, allowing for more efficient searching.
• Servicing Gateway notification messages about the status of a loan match those on the dashboard. For example, a status will be listed as “Approved for Trial Period,” rather than just “Approved”.
• Some error messages have been updated and consolidated. Log in to the Developer Portal or access the Resolve Retention Request Validation Error Messages document on the Resolve training page for more details.

Payment Deferral Due Date Updates

• When the due date of last paid installment (DDLPI) for a standard payment deferral workout approval request is the same as the prior month’s DDLPI, the tool will trigger an LM000072 fatal edit. (UI/API)
• A new fatal error LM000144, appears when there are misaligned payment due dates. (UI/API)
• For workout requests on a payment deferral, when the reported first payment due date is the same month as, or three months or more after, the requested submission date, the tool will trigger an LM000074 fatal edit. (UI/API) 
   

Ability to Update Borrower Financials (UI / API)

• When a loan is in Info Requested status, Servicers can now update the borrower’s financials—not just add comments—on the Resolve UI for Flex Modifications and payment deferrals, and Resolve recalculates the terms.
• This allows for a more accurate workout request.

Updates to Disaster Flex Modification or Disaster Payment Deferral Eligibility (UI / API)

• Eligibility for a disaster Flex Modification or disaster payment deferral is determined in part based on delinquency as of a disaster declaration date provided by the Servicer. A loan can be given only one standard payment deferral and/or multiple payment deferrals with national emergency and disaster hardships.
• A disaster Flex Modification or disaster payment deferral request will return a fatal error if it’s submitted without a disaster declaration date.
• This update ensures that the relevant information is submitted for disaster Flex Modification and disaster payment deferral requests to streamline the process and prevent errors.

Alternative Trial Period Start Dates (UI / API)

• Resolve has streamlined the process when asking for an alternative Trial Period start date to give Servicers more time to generate a Trial Period notice. Depending on the submission date, an exception review request may not be required.
• The alternate date is dependent on the calendar day of the month on which the request is submitted; consult the online help for more information and examples.
• This provides more flexibility in asking for an alternative Trial Period start date in cases that don’t require an exception request.

Notification and Dashboard Enhancements (UI)

• Servicers now receive notifications via the bell notification icon in Servicing Gateway for loans with non-exception status, saving time by removing the need to go into Retention API to see status updates for these requests.
• Submissions in the Resolve UI dashboard are displayed up to 50% faster, resulting in increased speed and efficiency.

**REMINDER: Required use of UI for both UI and API users in some scenarios

• A workout exception request in Info Requested status must be updated via the Workout Details screen in the Resolve UI to provide additional data or information requested by the Freddie Mac analyst, even if the request was submitted via the Resolve Retention API.
• The Resolve UI must also be used to submit a forbearance extension request or to settle an FHA, VA or RHS loan in your Freddie Mac portfolio. 
   

Ability to Submit Flex Modifications

• Starting December 5, 2022, the Resolve UI includes the ability to allow Flex Modification draft, Trial Period approval, and cancellation request submissions, returning near real-time eligibility decisions. Specific features and benefits include:

Streamlined Data Entry and Submission

• Single or multiple loan requests (up to 100) including exceptions are submitted by a file template that’s downloaded, completed and uploaded using the retention workflow.
• The submission template is flexible for all variations of Flex Modifications, including COVID-19 and disaster, and allows submissions for eligibility decisions, Trial Period approval, cancellation and exception reviews.
• About 50% less data entry is required to submit a request compared to Workout Prospector. 
• Property values, delinquent interest and other calculations are automated.
• Exceptions on ineligible workouts are accepted via two methods: by resubmitting as an exception request via the file upload, or through the Click Request Exception Review action button when looking at a single loan in the Workout Details view.
• Built-in data validation rules allow you to move forward with error-free requests and download a report to take corrective action on requests with identified errors.

Robust Tracking

• Comprehensive and customizable dashboard displays a full portfolio view of Flex Modifications submitted via Resolve, including exception requests.
• Filter and export features allow for tracking and managing loans efficiently.
• The ability to view loan details or prior workout submission history for a specific loan saves up to an hour of research per loan.
• Actionable feedback message provide transparency.
• Servicing Gateway messages provide updates on loan status.

Seamless and Efficient Resolution and Settlement

• Guide-compliant decisions are returned in 3-5 seconds for all modification types.
• Responses also include pre-and post-workout terms and prior workout submission history for a loan that has been approved for initial eligibility or Trial Period.
• Trial Periods do not need to be reported in EDR.
• Workout requests can be cancelled through a file upload via a template, or by using the Action button within the Workout Details page of a specific loan.
• Flex Modifications submitted in the UI can continue to be processed in the UI or the API, and vice versa. (Please note that if you submit a loan in Workout Prospector, you must complete the process in that tool or cancel and resubmit.)

View training resources including webinars, online help, tutorials and more. If you need access to the tool, ask your organization’s Access Manager administrator to set up your user access and assign roles as appropriate. Note that Servicers must transition to Resolve for Flex Modifications no later than July 31, 2023.
 

Retirement of Workout Prospector for Short Sales

• Starting July 31, 2022, Servicers must use Resolve for all new Short Sale submissions. Workout Prospector will only be available for in-progress Short Sales. Additionally, Bypass will no longer be available for Short Sales for Servicers using this method.
• The key difference from Workout Prospector is that Resolve does the decisioning, with Servicer input. Resolve enables you to manage Short Sales from submission through settlement.
• Your organization has the option to adopt the UI (accessed through Servicing Gateway), and/or the Liquidation API (B2B integration).

Reference the April 25, 2022, release notes below to learn about Resolve capabilities regarding short sales. Register for training about how to submit and manage short sales.

New Capabilities Enhance the Short Sale Process

• Export workout data from the workout details page – this information can be used in lieu of approval letters. 
• The submission template has been updated with new data attributes to support Short Sale extension requests. New data columns include:
  • Extension Request Indicator
  • Extension Reason
• To request a closing date extension for approved Short Sales, either use the submission template or click the ‘Request Extension’ icon in the upper right corner of the workout details page.

Short Sale Notifications

• You’ll receive notifications when the status updates for any Short Sales submitted by users within your organization. (For example, when a workout goes from ‘Submitted’ to ‘Approved’ or from ‘MNP Pending’ to ‘Approved’.)

• The Short Sale submission template has updated data rules. Updates in the template and Error Report include:

  • Special interior access to accept only 255 characters.
  • Exception review request indicator is a required field for an approval and settlement request.

  
  Dashboard Tracks Retention Exceptions

  • The dashboard lets you easily track all payment deferral and Flex Modification exception requests that were submitted from the Retention API, if applicable to your organization. 
     

View an Enhanced Dashboard

• The dashboard view (previously called ‘Decision Insights Pipeline’) has evolved to a more comprehensive view of all your organization’s workout requests and statuses for workouts done in Resolve (Short Sales, forbearance extensions, FHA/VA/RHS loans). This includes API submissions when applicable.
• Customize your dashboard view by choosing one or more filter options, such as Freddie Mac Loan Number, Submitted By, Submission Type, and more.

Submit and Manage Short Sales to Resolution

• A new submission process and rules-based decisions provide efficiencies for you and overall faster mortgage assistance for borrowers.
• The simplified menu consolidates current submission options. The menu will continue to expand with new workout options.
• Starting April 25, 2022, there’s a new option to submit Short Sale requests. After July 31, 2022, you can no longer use Workout Prospector for Short Sales.
• Submit all Short Sale requests for decisions in three easy steps:
  • Submit a single or multiple loan (bulk) request using a downloadable template. This template supports requests for eligibility, exceptions and settlement decisions. The data input required is significantly less than in Workout Prospector.
  • Review data validation errors, correct, re-upload, and continue your submission.
  • Confirm your submission.
• Eligibility decisions are returned in near real-time. Review decision outcomes of your requests and take additional action(s) as needed.
• Additional capabilities include:
  • Ability to indicate if you want any ineligible loans to be submitted for exception processing.
  • Ability to order the minimum net proceeds value if it’s missing or expired.
  • Option to cancel a Short Sale request as needed.

Register for training on how to submit and manage Short Sales.