FHA & FHLMC Updates

Written By SCA

We’ve gathered up some of the more recent industry updates from FHA and FHLMC 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.

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!

SCA https://www.scapartnering.com/
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