Q1 & Q2 Servicing Operations Call - Freddie Mac Home · Short Sales You must order a Brokers Price Opinion (BPO) through the Service Loans application: » Must have a minimum net

Q1 & Q2 Servicing Operations Call

May 2017

2017 © Freddie Mac – For overview purposes only 2

Today we’ll cover the following topics:

Agenda

Loss Mitigation

Workout Settlements

Investor Reporting

Updates

Reminders

Best Practices


» Valuations for Liquidation Workouts

Loss Mitigation


Green check for YES Red X for NO

Q: Are you familiar with

obtaining property valuations

for liquidations?


Green check for TRUE Red X for FALSE

Q: True or False – There are

different processes for

obtaining a valuation based on

workout type?


Short Sales

You must order a Brokers Price Opinion (BPO) through the

Service Loans application:

» Must have a minimum net proceeds dollar amount.

» Must order a minimum net proceed value through Service Loans.

» A BPO order will automatically launch in BPO Direct® via Service

Loans.

» Once the valuation is complete, the minimum net proceeds will be

available and populated into Workout Prospector® and Service

Loans.

Loss Mitigation - Valuations for Liquidations


Deeds-In-Lieu (DIL)

Order the BPO via the BPO Direct:

» Minimum net proceeds not required.

» No action in Service Loans for DIL transactions.



Foreclosure Sale Credit Bid Requests

» Must order credit bids via Service Loans.

» Order a credit bid a minimum of 30 days prior to foreclosure sale date:

– Or, immediately after sale notification, if less than 30 days.

– Do not postpone a foreclosure sale.

» Please reach out to [email protected] for escalation

assistance regarding rush requests.


mailto:[email protected]


Request valuations by accessing:

Service Loans application (Short Sales & FCL Credit Bids)

BPO Direct (Deeds-In-Lieu)


https://www4.freddiemac.com/service_loans_FB1/service_loans/faces/portal/login/loginPage.jsp

https://www.bpodirect.com/




















Loss Mitigation – Valuations for Liquidation Workouts

Questions?


» Assess and Avoid Late/Inaccurate Sale Reporting

Compensatory Fees

Loss Mitigation


All foreclosure sales (including DIL) must be reported through

the Service Loans application within one business day.

The calculation is from the due date until the actual reporting

times $100/day.

The Late/Inaccurate Sale Compensatory Fee Analysis report is

available on the 2nd business day of every month:

» Provides estimates for all late reporting fees for the prior month.

» 2-month cycle allows for appeals prior to billing.

Loss Mitigation – How Fees are Assessed


Timely reporting – have a contingency plan.

If a sale falls through or changes, update it quickly!

» Rollbacks or third-party sale defaults are common.

Use the reports available in Default Reporting ManagerSM:

» FC Sale Errors displays errors from the prior days reporting

» FC Sales Reported Current Year displays all exception reporting

year-to-date.

» FC Sale Compensatory Fee Analysis Report displays all estimated

and billed fees for prior month, year-to-date and prior year.

Loss Mitigation – How to Prevent Fees


FC Sale Compensatory Fee Analysis Report

Loss Mitigation – Available Reports


How to appeal fees:

All appeals should be submitted through the Default Fee Appeal

system (DFAS).

30 day appeal window after assessment.

For assistance or questions, contact

[email protected].

Loss Mitigation – How to Appeal Fees

http://www.freddiemac.com/singlefamily/service/default_fee_appeal_system.html



Provide your contact information in DFAS

Loss Mitigation – DFAS Submission


Provide specific dates that actions were taken:

» 106 Form (Rollback Request) submitted.

» Sale confirmation.

» Rollback completed.

» Sales reported.

» Communication with Freddie Mac.

Documentation:

» 106 Form.

» Email communication(s) with Freddie Mac.

» Attorney communication(s).

» System notes.

Loss Mitigation – DFAS Submission


This appeal format clearly states dates and specific actions

taken to request a rollback and re-report updated sales results.

» This process is very similar to states that allow additional post sale

bids, such as North Carolina and South Carolina

Loss Mitigation – Appeal Example


Loss Mitigation Support

Who to contact

System Tools &

Servicer Support

Customer Contact Center 1(800 - FREDDIE)

Non-Performing Loans

Servicers A-M Angelique Smyth

703-714-3564

[email protected]

Servicers N-Z Mia Jones

703-918-8726

[email protected]

Liquidation Workout

General Mailbox

[email protected]

Workout Settlement

Support

[email protected]






Loss Mitigation – Late Foreclosure Sale Reporting Compensatory Fees

Questions?


» Best Practices for Flex Modifications

» Other Reminders and Tips

Workout Settlement


Settling Flex Modifications

Approve the modification in “Modification Program – Approved Status”

in Workout Prospector and the Loan Modification Settlement list will

appear:

Settlement process is the same as the Standard and Streamlined

Modifications.

Avoid Common Mistakes

» Do not use an effective date that has a different pre-mod UPB reported than what was

used in the Workout Prospector solutions or Loan Modification settlement screen.

» Overcapitalization of delinquent interest - take into account note rate changes from

DDLPI to effective date.

Workout Settlement – Flex Modification




If the you receive the below message, then your workout has been

submitted for settlement:

Use Workout Manager for most recent status update:

Modifications Pending Update Report - catch any errors before

settlement to avoid a post-settlement correction.

Performance Overview Report - see the most up-to-date comments.


http://www.freddiemac.com/singlefamily/factsheets/service/womgrfm.html


Submitting proceeds for Liquidation workouts

» Send any hazard insurance claims proceeds, or litigation

settlement proceeds, via wire transfer or check to Freddie Mac

regardless of whether the lien is released or not.

» Include the Freddie Mac loan number and state that the funds

are for charge-off recovery.

Workout Settlement - Other Reminders and Tips

Regular or First Class

Mail

Overnight Mail Wire Transfer

Freddie Mac

P.O. Box 730453

Dallas, TX 75373-0453

Attn: Charge-off Recovery

JP Morgan Chase

Dallas National Wholesale

LB TX 1-0029

14800 Frye Road

Fort Worth, TX 76155

Attn: HomeSteps #730453

JPMorgan Chase Bank, NA

Location: McLean, VA

Routing #: 021000021

Account #: 9102418887


Detail Adjustment Report (DAR)

Where’s my DAR Credit?

If a loan is missing a “Date Settled” date or DAR credit:

» Confirm the workout was submitted for settlement through Workout

Prospector.

» Review reports in Workout Manager (“Total Deals Settled,”

“Approved,” and “Rejected”) to verify if a loan settled and has a GA

date.

For Third-Party Foreclosure Sales:

» Submit for settlement after your Investor Reporting team confirms

that Freddie Mac accepted the payoff (71) transaction.



To avoid compatibility issues, use Internet Explorer with Workout

Prospector®.

Visit the Workout Settlements Web Page.

Visit the Flex Modification reference page Web Page.

Review the 2017 Due Date Calendar for monthly reporting and

remitting to confirm the day on which we process your modifications.

Email [email protected] for help with:» Settling an approved workout after using Workout Manager.

» Resolving a settlement defect after using Workout Manager.

» Requesting release of settlement screen to resubmit defected modifications.


http://www.freddiemac.com/singlefamily/service/settlement.html

http://www.freddiemac.com/singlefamily/service/flex_modification.html

http://www.freddiemac.com/learn/pdfs/service/2017due_dates.pdf



Workout Settlement

Questions?


» Document Execution Best Practices

» Service Loans Application Update

» Form 981 Signature Process Reminder

» Investor Reporting Change Initiative Reminder

Investor Reporting


Document Execution Best Practices:

– Send a copy of the mortgage (not the entire report) with your document

request.

– Send a copy of the assignment or title page indicating an open mortgage

with Freddie Mac.

– Ensure the document is legible.

– Provide contact information on the request.

– Send via email (preferred).

– Provide access codes for secured emails.

– MERS documents – should be properly referenced whenever its name

may appear (e.g. recorded document).

Mortgage Electronic Registration Systems, Inc.

Mortgage Electronic Registration Systems, Inc., as nominee for (insert

original lender), its successors and assigns.

Investor Reporting - Document Execution


You can find all the requirements for the Document Execution Request Form

here.

Typically, there is a ten business day turnaround on all requests (rush cases

can be accommodated)

Please include all supporting documents and the document to be executed in

one email to [email protected]. NOTE: Incomplete requests are not

kept on file.

Freddie Mac will execute the document and will deliver the document via U.S.

mail. If you want express delivery, include the delivery label in the email.

If you choose to mail the documents, the address is:

Freddie Mac

Attn: Document Execution

8200 Jones Branch Drive

Mclean, VA 22101

Investor Reporting - Document Execution

http://www.freddiemac.com/cim/docex.html



Service Loans Application Update

Future enhancement – end of June 2017:

– Easier navigation in Service Loans.

– Access will be granted by your Seller/Servicer number vs. your

Organization Unit.

– The change will discontinue the “Org Unit’ dropdown.

– You’ll be able to access all your Seller/Servicer numbers from the

“Servicer No” dropdown with the corresponding “Org Unit” name to the

right of the number.

Investor Reporting – SLA Update


Investor Reporting – SLA Update

Current View Future View


Form 981: Agreement for Subsequent Transfer of Servicing of Single-

Family Mortgages:

Begin using June 1, 2017.

Complete, e-sign, save and email the electronic form to

[email protected] (submissions only, no

correspondence).

» Tip: Download Adobe Acrobat Reader to electronically sign Form 981.

» Tip: Use the latest version of java script.

You’ll receive an email acknowledging receipt of the Form 981.

Need help?

» Review the Form 981 job aid.

» Contact a Transfer of Servicing representative at [email protected].

Investor Reporting - Form 981


https://get.adobe.com/reader

http://www.java.com/

http://www.freddiemac.com/singlefamily/forms/sell/pdf/form981_process.pdf



Reminders:

» Check the Investor Reporting

Change Initiative web page.

» Review resources and recent

announcements.

» Coming Soon – Customer

Test Strategy.

Investor Reporting Change Initiative

http://www.freddiemac.com/singlefamily/service/investor_reporting_changes.html


Questions?

Documents

Q1 & Q2 Servicing Operations Call - Freddie Mac Home · Short Sales You must order a Brokers Price Opinion (BPO) through the Service Loans application: » Must have a minimum net