Freddie Mac Issues Bulletin 2017-10: Selling Updates

Freddie Mac issued Bulletin 2017-10 (Bulletin), announcing revisions to the Single-Family Seller/Servicer Guide. Under the Bulletin, Freddie Mac added a new Chapter to the Single-Family Seller/Servicer Guide (Chapter 5801), providing information and requirements related to the Uniform Closing Dataset and delivery through Loan Closing Advisor. The Bulletin also announces updates to the Selling System, including: revised requirements for sellers that want a Secondary Market Advisor to perform duties on their behalf in the Selling System; updated requirements for low loan balance mortgages; and pricing and contracting terminology updates related to previously announced Selling System capabilities. In addition, the Bulletin announces: removal of the requirement to retain a wet ink signed assignment of a mortgage or a modification agreement when the paper documents are electronically recorded; removal of the requirement to submit a mortgage through Loan Product Advisor to be eligible for collateral representation and warranty relief; clarified requirements with respect to processing concurrent transfer of servicing requests (including responsibilities between the seller, the servicer and the servicer’s document custodian, and when certification of the notes must be performed); and that the Federal Emergency Management Agency (FEMA) has revised the Standard Flood hazard Determination Form and extended the expiration date of the form to October 31, 2018. The Bulletin generally went into effect July 12, 2017. However, the updated requirements pertaining to Secondary Market Advisor access to the Selling System are effective July 31, 2017. In addition, removal of the requirement that a mortgage be submitted to Loan Product Advisor to be eligible for collateral representation and warranty relief is effective August 4, 2017. The updated requirements for the delivery of the Uniform Closing Dataset through Loan Closing Advisor are effective September 25, 2017 (however, sellers have until April 2018 to deliver the XML file with the embedded PDF). The changes with respect to concurrent transfers of servicing are effective October 9, 2017 (although sellers and servicers are encouraged to implement the changes immediately).

Click here to view the Freddie Mac Bulletin