Freddie Mac Instructs Mortgage Servicers Not to Foreclose in MERS Name

Palm Coast, FL – March 25, 2011 – In a bulletin issued Wednesday, Freddie Mac instructed its mortgage servicer to stop foreclosing in MERS’ (Mortgage Electronic Registration System) name.

Key excerpts from Freddie Mac Bulletin 2011-5:

Effective for Mortgages registered with MERS that are referred to foreclosure on or after April 1, 2011, Servicers must prepare an assignment of the Security Instrument from MERS to the Servicer and instruct the foreclosure counsel or trustee to foreclose in the Servicer’s name and take title in Freddie Mac’s name.

 

Servicers must record the prepared assignment where required by State law. State mandated recording fees are not reimbursable by Freddie Mac, are not considered part of the Freddie Mac allowable attorney fees and must not be billed to the Borrower.

 

Require that on or after June 1, 2011, the Servicer perform an interior property inspection on an abandoned property Upon confirmation that the property has been abandoned; and Within 30 days prior to a scheduled foreclosure sale.

 

Although the new interior property inspection requirements are not effective until June 1, 2011, Servicers are strongly encouraged to begin implementing these changes as soon as possible.