Washington Report

Advocacy Updates from Washington D.C.

Freddie Mac Reinforces Deficiency Release Policy

March 12, 2012

On February 15, 2012, Freddie Mac released an update to its servicing guide, reinforcing the requirement that servicers must waive all rights to seek deficiencies for short sale and deed-in-lieu of foreclosure transactions on Freddie Mac Mortgages. All parties must have acted in good faith and in compliance with Freddie Mac’s servicing guide and all applicable local, state and federal law. This policy means that Freddie Mac will not pursue borrowers for the entire amount owed under the current mortgage and servicers must instruct closing agents to release the lien on the property and report the mortgage as satisfied.

Freddie Mac Guide