Freddie Mac updates servicing data corrections, modification policies
Freddie Mac is replacing a manual form submission process used to correct post-settlement and real estate owned data with new technology.
Servicers can start using the automation now, and its use will become mandatory on Nov. 18.
Once servicers start using the technology for data corrections, they can no longer use the form submission process. Freddie Mac will retire forms 106, 1102 and 1205 on Nov. 18 as a result of the change.
The new online portal accepts data corrections for adjustments to third-party foreclosure sales, short sales, charge-offs, mortgage modification settlements, rates, rollbacks, and principal and interest payments. The technology also tracks the status of correction requests.
Servicers can submit a request to add the new technology to their online profiles through their administrator. A pre-existing portal called Post-Fund Data Corrections must still be used to report loan-level adjustment requests.
The new data correction technology is part of Freddie's Reimagine Servicing initiative, which is a series of automated improvements it launched earlier this year.
Eventually, the government-sponsored enterprise plans to add the new automated corrections to a single platform where all its servicing automation will be located. That platform will be called Servicing Gateway.
Other recent updates to servicing automation at Freddie Mac include ones that accommodate servicers' optional use of electronic modification agreements.
The updates aim to allow servicers to automate the delivery of the agreements and other loss mitigation documents so borrowers can electronically sign and return the forms regardless of whether the original note was paper or not.
Servicers must meet several conditions to use e-modifications, including compliance with the recording jurisdiction's requirements.
Freddie Mac will not reimburse servicers for any additional costs they may incur if they opt to use e-modifications, and they cannot charge borrowers for those costs.