Freddie Mac issues bulletin on servicing requirements and relief related to Covid-19

Federal Issues Covid-19 GSE Freddie Mac Mortgages

On March 25, Freddie Mac released Bulletin 2020-7, which sets forth servicing requirements and relief related to Covid-19 for Freddie Mac servicers. The bulletin does the following: (i) requires servicers to report to Freddie Mac any borrower who has a Covid-19 related hardship using a specific default reason code; (ii) provides temporary relief from certain property inspection and property preservation requirements; (iii) clarifies requirements for streamlined Flex Modification evaluations for borrowers with a Covid-19-related hardship, including outreach techniques; (iv) extends the current reporting deadline for annual certifications and delivery of financials from March 31, 2020, to April 30, 2020; (v) provides guidance on the use of electronic records and signatures in connection with the origination and closing process; and (vi) sets forth expectations regarding seller and servicer business continuity plans.