Freddie Mac Updates SCRA and Other Servicing Requirements

Freddie Mac Updates SCRA and Other Servicing Requirements
by Dean Kanellis

On August 15, Freddie Mac issued Bulletin 2013-05, which, among other things, revises requirements relating to the SCRA and clarifies servicer responsibilities to effectively implement legal relief protections for borrowers in military service. In particular, Freddie will no longer require servicers to collect and report official documentation of a servicemember’s disability or death and available government benefits in the event a servicemember dies or becomes disabled while on active duty. Additionally, Freddie Mac created Section 82.2(c) to include the additional foreclosure relief it provides to Servicemembers and their Dependents.

Other revisions relate to:

  • Providing special requirements for Borrowers impacted by an Eligible Disaster, including the new
    Capitalization and Extension Modification for Disaster Relief;
  • Adding new Guide Chapter A66, Provisions for Expediting Freddie Mac Default Legal Matters,
    which includes the requirements for common methods of expediting Freddie Mac Default Legal
    Matters;
  • Revising property inspection requirements;
  • Revising requirements for the reimbursement of (1) attorney fees and costsrelated to contested foreclosures and mediation, (2) expenses incurred for title work, and (3) condominium, homeowners association (HOA) and Planned Unit Development (PUD)
    assessments in super lien States; and
  • Updating our unemployment forbearance requirements.