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FREDDIE FRESHENS UP ITS
SERVICING FORM
Freddie Mac released a joint bulletin with
Fannie Mae that updates its guidelines for
standard servicing policies, which are unrelated
to its special initiatives to aid those affected
by the hurricanes that ravaged the continental
United States.
In order to provide a better borrower
experience for consumers, and under the
direction of the Federal Housing Finance
Agency, the GSEs made amendments to
requirements to complete Borrower Response
Packages, including hardship, income, and
other documentation involved with Guide Form
710: Uniform Borrower Assistance Form to
Mortgage Assistance Application. According
to the bulletin, these changes will reduce
supporting documentation required for the
form and "provide a more flexible, streamlined
application process for borrowers and evaluation
process for servicers."
Freddie will be making changes to the
following categories of the form: borrower
information, hardship information, property
information, and borrower income and required
income documentation. e form will no
longer require information regarding monthly
household expenses.
e GSE will also be making changes to
the information required for self-employed
individuals and income calculations for
calculating gross income. Servicers will also be
required to include non-borrower household
income. ese changes will be effective starting
June 1, 2018.
In order to help maintain the preservation
and maintenance of REO and abandoned
properties, the GSEs have also increased the
reimbursement limits for servicers, effective
October 9. Maintenance covered includes yard
maintenance, property cleaning and waste
removal, and other miscellaneous expenses, such
as mold treatment, fence repair, extermination,
and HVAC repair.
Freddie Mac will also allow up to $2,000 in
reimbursement for expenses related to clear-
boarding windows. is stipulation took effect
September 25.
