Freddie Mac Publishes Guide Bulletin 2020-39

Freddie Mac recently issued Guide Bulletin 2020-39 to announce servicing updates related to, among other things, eSignatures on electronic payment deferral agreements, transfers of ownership, escrow requirements, and eligible disasters.

Bulletin 2020-39 updates Freddie Mac’s mortgage relief requirements for allowing servicers to use Electronic Payment Deferral Agreements.  Among other things, servicers are required to: (i) process, modify, and store Electronic Payment Deferral Agreements in accordance with all applicable industry standards; (ii) consult legal counsel for compliance with federal, state, and local laws; and (iii) ensure that the signing platform has a robust trail of all key events.  Bulletin 2020-39 also lists custodial requirements for paper notes and eMortgages, storage and safekeeping requirements for Electronic Payment Deferral Agreements, and transfers of servicing requirements. 

In addition, Bulletin 2020-39 authorizes servicers to process certain transfers of ownership to limited liability companies or limited partnerships.  The bulletin also updates escrow requirements to improve clarity and efficiency, ensure consistent treatment to similarly situated borrowers, and makes available exception requests to servicers under certain circumstances.  Bulletin 2020-39 announces new guide sections that incorporate: (i) Disaster Payment Deferral provided in Guide Bulletin 2020-28 (see our prior WBK article) and (ii) disaster forbearance guidance provided in Guide Bulletin 2020-34.

The updates related to eSignatures, transfers of ownership, and eligible disasters are already effective.  The updates to escrow requirements will become effective February 1, 2021.