Freddie Mac Issues Bulletin 2016-21: Servicing Updates

Freddie Mac issued Bulletin 2016-21 (Bulletin) updating servicing requirements. The Bulletin: provides lenders and servicers 15 business days to submit required data when settling a third-party foreclosure sale transaction through Workout Prospector (rather than 10 business days); updates remittance requirements for short sales, deeds-in-lieu of foreclosure and charge-offs; allows new options as proof of insurance for condominiums, cooperatives and planned-unit developments; updates Guide Forms 16SF and 1107SF; provides lenders and servicers 7 business days to complete closing requirements with respect to a charge-off (rather than 3 business days); and updates instructions for filing IRS Forms 1099-A and 1099-C.

Click here to view the Freddie Mac Bulletin