Key Updates: FHA, FHLMC, MPF News

We’ve gathered up some of the more recent industry updates from FHA, FHLMC, and MPF and are summarizing them here for all servicers to maintain awareness and take action as required.

1. FHA Extends Foreclosure Moratorium for Los Angeles County Disaster Areas

The Federal Housing Administration (FHA) released Mortgagee Letter (ML) 2025-07, extending the foreclosure moratorium for areas in Los Angeles County, California, affected by the Presidentially-declared major disaster. This extension aims to provide further relief to homeowners during recovery.

• Extension Details:

• The original moratorium, set to expire on April 8, 2025, has been extended by 90 days.

• The new expiration date is July 7, 2025.

• This extension applies to all FHA Title II Single Family forward and Home Equity Conversion Mortgage (HECM) programs.

• Impact:

• Servicers must ensure compliance with the extended moratorium timeframe for affected borrowers.

• This provides borrowers in affected areas with additional time to recover and explore loss mitigation options.

• Servicers should carefully review Mortgagee Letter (ML) 2025-07 for full details.

2. Freddie Mac Enhances Single-Family Seller/Servicer Guide Website

Freddie Mac is rolling out significant enhancements to its Single-Family Seller/Servicer Guide website on March 28, 2025. These changes are designed to improve user experience and streamline access to crucial information.

• Key Improvements:

• Enhanced search functionality with advanced filtering and display options.

• Improved search result presentation for easier reading, skimming, and searching.

• Ongoing refactoring advancements to optimize website performance.

3. Freddie Mac Updates Servicer Performance Profile (SPP)

Effective April 30, 2025, Freddie Mac is implementing changes to the Servicer Performance Profile (SPP), including revisions to Default Management Metrics and Supplemental Metrics. These updates aim to help servicers effectively manage delinquent loans.

• SPP Changes:

• Introduction of new metrics to provide a more comprehensive assessment of servicer performance.

• Revisions to existing categorizations and definitions for Default Management Metrics.

• Modifications to Supplemental Metrics.

• Implications:

• Servicers should familiarize themselves with the updated SPP metrics and definitions.

• Adjustments to servicing processes may be necessary to align with the new performance standards.

• Servicers should review the Freddie Mac Single-Family publications for detailed information regarding the changes.

4. Freddie Mac Upcoming Reconciliation Requirement Changes

Effective June 1, 2025, Freddie Mac will be updating the guide to establish a requirement for servicers to reconcile internal portfolio trial balance records against the FHLMC Trial Balance Report.

• Key Points:

  • Servicers will be required to use a new FHLMC Form 75 for reconciliations beginning June 1, 2025.

  • FHLMC is waiting contract non-compliance fees from March 1, 2025 to June 30, 2026 to assist servicers with the transition.

  • All records should be retained for one year and be available to provide to FHLMC upon request.

5. MPF Rolls Out Changes to the Turnaround Report (TAR) Delivery Method

Starting March 27, 2025, Turnaround Reports (TARs) will be exclusively uploaded to a new "TAR Reports" tab within ServicerConnect. This update aims to provide a single, easily accessible location for all your TARs, allowing for direct downloads and improved organization. You’ll continue to receive email notifications when new TARs are available, with a direct link to the ServicerConnect portal. The email will just no longer include the actual TAR in PDF form. It will need to be downloaded from the website.

• Key Takeaways:

  • All TARs on the go-forward basis will be available within the "TAR Reports" tab on ServicerConnect. Historical TARs will not be available on the platform.

  • Access to TARs requires a registered ServicerConnect account.

  • You'll continue to receive email alerts when new TARs are available, with a direct link to the ServicerConnect portal.

We encourage all servicers to review these updates thoroughly and take the necessary steps to ensure compliance and optimize performance. Stay tuned for future updates as SCA continues to monitor these and other industry changes!