Compliance Calendar

At Freddie Mac, we recognize that some Borrowers may experience financial hardships that result in a permanent or long-term decrease in income or an increase in expenses that may impact their ability to make their Mortgage payments. We are pleased to announce updates to the Freddie Mac Flex Modification. We are implementing updates to this solution jointly with Fannie Mae and at the direction of FHFA with a goal of expanding the eligible population while achieving more equitable payment relief outcomes. The steps to determining the terms of the Freddie Mac Flex Modification have been reordered and will be incrementally applied until a 20% Principal and Interest Payment reduction target has been achieved or the steps have been exhausted.

This Bulletin describes the updated requirements for the Freddie Mac Flex Modification, primarily as they relate to determining the terms of a Freddie Mac Flex Modification. All other Freddie Mac Flex Modification requirements not addressed by this Bulletin remain unchanged. In our next scheduled Servicing Bulletin, we will publish the corresponding Guide updates to reflect the changes announced today.

We remain committed to ensuring our retention workout options provide appropriate borrower assistance regardless of the economic environment. Accordingly, we are updating the steps for determining the Fannie Mae Flex Modification terms in alignment with Freddie Mac and at the direction of FHFA. The updates expand eligibility by revising the mark-to-market loan-to-value (MTMLTV) based requirements and provide more equitable payment reduction to eligible borrowers by applying the terms incrementally and targeting a 20% P&I payment reduction. In accordance with these policy updates, we are also publishing revised Evaluation Notices that must be implemented as of the effective date below.

This Lender Letter contains

▪ Updates to the Fannie Mae Flex Modification terms

▪ Appendix With the exception of the updates in this Lender Letter that replace the referenced Guide policy, the servicer must otherwise refer to the existing requirements in Servicing Guide D2-3.2-06, Fannie Mae Flex Modification and F-1-27, Processing a Fannie Mae Flex Modification for evaluating, processing, and completing a Fannie Mae Flex Modification. Additionally, when we update the Servicing Guide with the revised steps, we will replace the term “interim month” with “processing month” in relation to a Fannie Mae Flex Modification to align the terminology with that used for payment deferral.

Effective: As early as Nov. 1, 2024, but no later than Dec. 1, 2024, servicers must determine the borrower’s new modified mortgage loan terms for a Fannie Mae Flex Modification in accordance with this Lender Letter. Once implemented, the servicer must offer the Fannie Mae Flex Modification to all eligible borrowers according to the requirements in this Lender Letter. These policy changes will be reflected in the November 2024 Servicing Guide update.

To: All Fannie Mae Single-Family Sellers
HomeReady Product Enhancement

To continue to support homeownership opportunities for creditworthy very low-income borrowers, we are announcing a temporary enhancement to our HomeReady® product. This enhancement includes a $2,500 loan-level price adjustment credit for very low-income purchase borrowers (VLIP) that can be used for down payment and closing costs.

Dec. 5

We are extending the $2,500 loan-level price adjustment credit for one additional year and updating eligibility to require at least one borrower to be a first-time homebuyer.

Effective: This credit will be effective for whole loans purchased (“Purchase Ready” status in Loan Delivery) through Feb. 28, 2026 and for loans delivered into MBS with issue dates through Feb. 1, 2026.

Note: Fannie Mae will continue to accept deliveries of loans with this credit that do not include a first-time homebuyer for whole loans purchased (“Purchase Ready” status in Loan Delivery) through Feb. 28, 2025 and for loans delivered into MBS with issue dates through Feb. 1, 2025. After these dates, the LLPA credit will only be available on loans that include a firsttime homebuyer.

Purpose - This Mortgagee Letter (ML) extends the foreclosure moratoriums in the areas impacted by Hurricanes Helene and Milton.

Effective Date - The provisions of this ML are effective immediately. The moratoriums will remain in effect through April 11, 2025.

Affected Programs - The provisions of this ML apply to all FHA Title II Single Family forward and Home Equity Conversion Mortgage (HECM) programs.

Summary of Changes This ML:
• extends the automatic foreclosure moratorium in III.A.2.n.ii Moratorium on Foreclosures for Properties located in FEMA Designated Areas within the States of Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia; and

• provides relief for FHA-insured HECMs.

This Guide Bulletin announces:

• 2025 conforming loan limit values

➢ New conforming loan limit values for 2025 – January 1, 2025

• Information security

➢ The refactoring of Guide Chapter 1302 – December 11, 2024

➢ A new process for reporting security breaches – January 1, 2025

➢ Additional information security updates – March 11, 2025

• Credit underwriting – April 1, 2025

➢ Requirement updates for restricted stock and restricted stock unit income

➢ Requirement updates for treatment of authorized user accounts when calculating the monthly debt payment-to-income ratio

• Automated collateral evaluation (ACE) and ACE+ PDR

➢ The expansion of Mortgage eligibility for ACE and ACE+ PDR – March 24, 2025

• Freddie Mac Gateway

➢ The introduction of Freddie Mac Gateway – January 25, 2025

• Fee-only Repurchase Alternative program

➢ The refactoring of Guide Section 3401.1

➢ The introduction of our new fee-only Repurchase Alternative program – January 1, 2025

• Additional Guide updates

➢ Further updates as described in the Additional Guide updates section of this Bulletin

The Selling Guide has been updated to include changes to the following:

▪ HomeStyle® Energy – energy report age extension: allowing an energy report, when required for any HomeStyle

Energy mortgage, to be dated no more than 24 months before the note date

▪ Limited cash-out refinances: adding additional exceptions to the borrower ownership requirement

▪ Time adjustments in appraisals: encouraging the use of home price indices and other market data to support overall

value accuracy

▪ HomeStyle® Renovation Loan Agreement: clarifying both parties may execute the agreement at any time during

the closing process with the agreement matching the note date

▪ Miscellaneous update:

o Remote online notarization

SUBJECT: SERVICING UPDATES

This Guide Bulletin announces:

• My Home by Freddie Mac®

➢ New links to the My Home resources

• Servicing transfer checklists

➢ Updated Transfer of Servicing checklists

• Information security

➢ The refactoring of Guide Chapter 1302

➢ A new process for reporting security breaches – January 1, 2025

➢ Additional information security updates – March 11, 2025

• Freddie Mac Gateway

➢ The introduction of Freddie Mac Gateway – January 25, 2025

• Bank of New York Mellon contact information

➢ New contact information for Bank of New York Mellon

This Lender Letter contains the policies previously published in LL-2021-12 on Jun. 16, 2021 as updated from time to time, with the most recent changes noted below. For a consolidated description of all previous updates to this Lender Letter and LL-2021-12, refer to the Change Control Log.

This Lender Letter provides advance notice of upcoming changes to our Master Servicing processes and systems. These changes further simplify and streamline servicer reporting and will be introduced in a phased approach. These changes are not applicable to reverse mortgage loans.

Dec. 11, 2024

▪ Removing Reporting due date for summary reporting mortgage loans, which has been incorporated into the Servicing Guide or Investor Reporting Manual as of November 2024.

▪ Removing the LAR 96 format expansion. Future changes to loan activity reporting will be communicated in a separate communication in 2025.

▪ Communicating updated status for P&I remittance for summary reporting A/A mortgage loans for which further details will be provided in a separate communication.

The Servicing Guide has been updated to include changes to the following:

▪ Allowable foreclosure attorney fees, bankruptcy attorney fees, and Mortgage Release document preparation cost updates: updates allowable foreclosure and bankruptcy attorney fees, Mortgage Release document preparation cost, and clarifies the servicer’s responsibility for certain legal fees

▪ Miscellaneous update:

o HECM mortgage insurance claim submission requirements