So now we can think about why it might be that Freddie decided to increase the timelines in the fast-foreclosure states. Obviously, the main rationale is to allow servicers to continue to make workout efforts during the FC process, which will in the nature of things increase the time a loan spends in the FC process, without penalizing them for failing to meet Freddie's standards.

Perhaps, though, the better question is why Freddie upped the limit on these 21 states to only 300 days. Why not give everyone 400 days? Or 505 days, like Maine gets? What's so special about 300 days?

I think the interesting question is how these guidelines will be implemented in practice, especially combined with Federal Reserve backing for servicers. Why not wait until almost the full 300 days if the forwarded payments are on the Fed's dime?

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