Five Brothers

Freddie Mac Bulletin 2014-3: Servicing


March 17, 2014




TO:  Freddie Mac Servicers




This Single-Family Seller/Servicer Guide ("Guide") Bulletin updates and revises our Servicing requirements as follows:


Lender-Placed Insurance (LPI)


  • Requiring servicers to provide a certification that they are currently or will be in compliance with the LPI requirements announced in Bulletin 2013-27


Alternatives to foreclosure


  • Announcing that the requirements related to the processing of Freddie Mac Standard Modifications and Freddie Mac Streamlined Modifications for Mortgages with pre-modification mark-to-market loan-to-value (MTMLTV) ratios less than 80% announced in Bulletin 2013-27 are now optional and that we will be publishing revisions to some of those requirements in an upcoming Bulletin
  • Requiring Servicers to provide notices on behalf of Freddie Mac in certain circumstances when Freddie Mac participated in evaluating a Borrower for a workout or relief option and declined to approve the workout or relief request 
  • Reorganizing our property valuation requirements for modifications by providing a user-friendly chart with additional guidance; and reinstating publication of the Automated Valuation Model (AVM) report
  • Providing additional guidance related to our paystub requirements for income documentation submitted with a Borrower Response Package


Transfer taxes


  • Updating our requirements for the reimbursement of transfer taxes
  • Permitting Servicers to instruct foreclosure counsel to conduct the foreclosure in Freddie Mac's name, without obtaining prior written approval, if doing so would avoid any obligation to pay a transfer tax


Additional Guide Updates


In addition to the changes listed above, we are making further updates and revisions, as described in the "Additional Guide Updates" section of this Bulletin.




All of the changes announced in this Bulletin are effective immediately unless otherwise noted.


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