Freddie Mac issued Bulletin 2025-5 (Bulletin) announcing revisions to the Single-Family Seller/Servicer Guide. Per the Bulletin, Freddie Mac:
- Updated state foreclosure timeline standards set forth in Exhibit 83 (Freddie Mac State Foreclosure Timelines);
- Updated the allowable delays to a foreclosure set forth in Exhibit 83A (Determining State Foreclosure Timeline Performance Compensatory Fees) to add “Forbearance” and “COVID-19 Foreclosure Moratorium”, and remove “Home Affordable Modification Program (HAMP) in Review”, “HAMP Trial Plan”, “Unemployment Forbearance”, and “Alternative (Streamlined) Modification Trial Period Plan”;
- Specified that, for purposes of determining the terms of a Freddie Mac Flex Modification, the mortgage term is the number of payments remaining until the unpaid balance is satisfied, and not the number of months until the maturity date;
- Clarified how to calculate the remaining mortgage loan term when determining the terms of a Freddie Mac Flex Modification if the borrower has made additional principal payments (must use the pre-modification interest-bearing unpaid principal balance and the pre-modification principal and interest payment amount);
- Updated charge-off reporting requirements to address timing-related challenges associated with the processing of short-payoffs;
- Removed the requirement that servicers report Status Code H6 (Payment Deferral Offer) in connection with a payment deferral (Resolve will now automatically report Status Code H6 to EDR);
- Updated language in Section 2404.2 (System-Specific License for Servicing Tools) to clarify that servicers represent and warrant that the servicer will only access and use a Freddie Mac System in connection with mortgages owned or guaranteed by Freddie Mac; and
- Refactored Guide Section 9206.10 (Determining the Terms of a Freddie Mac Flex Modification); 9206.16 (Preparing to Close the Loan Modification) and 9210.5 (Closing, Reporting and Remittance Requirements for Charge-Offs).
Revisions related to state foreclosure timeline standards and allowable delays to a foreclosure are effective for foreclosure sales completed on or after July 1, 2025. All other revisions went into effect April 9, 2025.
Click to view the Freddie Mac Bulletin 2025-5: https://www.tenaco.com/wp-content/uploads/2025/05/Freddie-Mac-Guide-Bulletin-2025-5-04-09-25.pdf
