Freddie Mac Single-Family Seller/Servicer Guide Section 2405.1 — Expense reimbursement process

Freddie Mac Single-Family Seller/Servicer Guide Section 2405.1 — Expense reimbursement process

2405.1: Expense reimbursement process (12/17/25) This section contains requirements related to: ■ Process for requesting expense reimbursement and for receiving reimbursement of expenses ■ Use of PAID (Payments Automated Intelligent and Dynamic) by Related Third Parties and process for Related Third Parties to receive reimbursement of expenses ■ Servicer bound by use of PAID (a) Process for requesting expense reimbursement and for receiving reimbursement of expenses The Servicer must submit a request for reimbursement via PAID (Payments Automated Intelligent and Dynamic) (available at https://sf.freddiemac.com/working-with- us/servicing/overview) in accordance with the requirements of this chapter: ■ Any Servicer submitting an expense reimbursement request for the first time must obtain access to PAID through Access Manager ■ Servicers may access the PAID Online Help Section for additional information and assistance with PAID To be reimbursed for expenses, Servicers must authorize Freddie Mac to make such payments and receive debits via Automated Clearing House (ACH) credit entries into their commercial checking accounts. Servicers must complete and execute Form 1132, in order to: ■ Authorize receipt of ACH credit entries; and/or ■ Update previously submitted ACH credit account instructions Form 1132 must be submitted to Freddie Mac as an Electronic Record (as defined in Section 1401.1(b)), using a Portable Document Format (PDF) (or other Electronic Record format commonly used in the mortgage industry), that has been completed and contains the copy or representation of the pen and ink signature of the Authorized Employee (such copy or representation of the Authorized Employee’s signature shall be such Authorized Employee’s adopted Electronic Signature as defined in Section 1401.1(b).) Servicers may submit the completed form by either: Freddie Mac Single-Family Seller/Servicer Guide Chapter 2405 As of 04/08/26 Page 2405-2 ■ Email: Attach to an e-mail and deliver to Freddie Mac at CashCollections@FreddieMac.com; or ■ Upload: Submit through the Freddie Mac eBill system Servicers may submit ACH credit-related questions or concerns to Expense@FreddieMac.com. The employee authorized to execute Form 1132 on the Servicer’s behalf must be designated as an “Authorized Employee” on the Servicer’s applicable certificate of incumbency form: ■ Form 988SF; or ■ Form 989SF Before a Servicer may receive expense reimbursements and incentive payments via ACH credit entries, the Servicer must have completed the certificate of incumbency (“COI”) process requirements in Section 2201.1, and Freddie Mac must have accepted the Servicer’s COI and all other required forms and documents. (b) Use of PAID by Related Third Parties and process for Related Third Parties to receive reimbursement of expenses (i) Access to PAID for Related Third Parties The Servicer may grant PAID access to one or more of its vendors which provide services in connection with Mortgages serviced for Freddie Mac. Each vendor is a “Related Third Party” within the meaning of the Guide. Related Third Parties are allowed access to PAID for the purposes of: ■ Submitting requests for pre-approval (RPAs) via the RPA functionality in PAID pursuant to Section 9701.1(c) ■ Submitting expenses for Servicer reimbursement based on the expense and income codes, subject to any associated expense limits, listed in Exhibits 57, 57A, 57B and 74, Expense and Income Codes for Expense Reimbursement Requests Note: Freddie Mac, at any time and in its sole discretion, may terminate a Related Third Party’s access to PAID and/or direct the Servicer to terminate a Related Third Party’s access. (ii) Servicer requirements for Related Third Party use of PAID The Servicer must comply with the following requirements related to use of PAID by a Related Third Party: Freddie Mac Single-Family Seller/Servicer Guide Chapter 2405 As of 04/08/26 Page 2405-3 ■ The Servicer must ensure that Related Third Parties sign and comply with their separate, independent contracts under Sections 2401.1(e)(iii). The Servicer must maintain auditable records of such contracts ■ The Servicer must monitor its Related Third Party to ensure compliance with all applicable requirements of the Guide and any other Purchase Documents and applicable law and have written policies and procedures in place for doing so ■ The Servicer must have written policies and procedures in place that document its criteria for selecting Related Third Party and how the Servicer will monitor the Related Third Party’s use of PAID ■ The Servicer must periodically review and analyze the types and dollar amounts of expenses requested by Related Third Parties to ensure compliance with all applicable requirements ■ For property preservation services, if Freddie Mac requires that competitive bids be obtained from multiple vendors, the Servicer is responsible for obtaining the multiple bids and keeping records of the bids. (iii)Vendor COI process Before a vendor may receive expense reimbursements and incentive payments, the vendor must: ■ Complete the COI process requirements in Section 2201.1; and ■ Ensure Freddie Mac must have accepted the vendor’s COI and all other required documents. (iv) Reimbursement and incentive payments To be reimbursed for expenses and paid incentives (see Section 9204.3(a) regarding Servicer compensation for alternatives to foreclosure), Related Third Parties must: ■ Authorize Freddie Mac to make such payments and receive debits via ACH credit entries into their commercial checking accounts ■ Agree to authorize Freddie Mac to initiate ACH drafts from accounts designated on Form 98 for overpayments of expenses The employee authorized to execute Form 98 on the vendor’s behalf must be designated as an “Authorized Employee” on the vendor’s Form 99V. (v) Authorization process for ACH transactions Freddie Mac Single-Family Seller/Servicer Guide Chapter 2405 As of 04/08/26 Page 2405-4 To authorize receipt of ACH credit entries or to make changes to ACH credit account instructions previously provided, vendors must: ■ Complete and execute Form 98; and ■ Submit the form to Freddie Mac as an Electronic Record (as defined in Section 1401.1(b)) To submit your authorization documents for review, please adhere to the following steps: 1. Complete Form 98 as a PDF (or other Electronic Record format commonly used in the mortgage industry) that contains the copy or representation of the pen and ink signature of the Authorized Employee (such copy or representation of the Authorized Employee’s signature shall be such Authorized Employee’s adopted Electronic Signature as defined in Section 1401.1(b)) 2. Attach the completed form to an e-mail and deliver to Freddie Mac at the following e- mail address: Counterparty_Authorization@FreddieMac.com (c) Servicer bound by use of PAID By virtue of Servicer’s use of PAID, the Servicer agrees and is deemed to be bound by the provisions of: (i) Chapter 1401; (ii) Section 2401.1, (iii) this Chapter 2405; (iv) Chapter 9701; and (v) all other applicable terms and conditions of the Guide and other Purchase Documents. 2405.1: Expense reimbursement process (Future effective date 07/01/26) This section contains requirements related to: ■ Process for requesting expense reimbursement and for receiving reimbursement of expenses ■ Use of PAID (Payments Automated Intelligent and Dynamic) by Related Third Parties and process for Related Third Parties to receive reimbursement of expenses ■ Servicer bound by use of PAID (a) Process for requesting expense reimbursement and for receiving reimbursement of expenses Freddie Mac Single-Family Seller/Servicer Guide Chapter 2405 As of 04/08/26 Page 2405-5 The Servicer must submit a request for reimbursement via PAID (Payments Automated Intelligent and Dynamic) (available at https://sf.freddiemac.com/working-with- us/servicing/overview) in accordance with the requirements of this chapter: ■ Any Servicer submitting an expense reimbursement request for the first time must obtain access to PAID through Access Manager ■ Servicers may access the PAID Online Help Section for additional information and assistance with PAID To be reimbursed for expenses, Servicers must authorize Freddie Mac to make such payments and receive debits via Automated Clearing House (ACH) credit entries into their commercial checking accounts. Servicers must complete and execute Form 1132, in order to: ■ Authorize receipt of ACH credit entries; and/or ■ Update previously submitted ACH credit account instructions Form 1132 must be submitted to Freddie Mac as an Electronic Record (as defined in Section 1401.1(b)), using a Portable Document Format (PDF) (or other Electronic Record format commonly used in the mortgage industry), that has been completed and contains the copy or representation of the pen and ink signature of the Authorized Employee (such copy or representation of the Authorized Employee’s signature shall be such Authorized Employee’s adopted Electronic Signature as defined in Section 1401.1(b).) Servicers may submit the completed form by either: ■ Email: Attach to an e-mail and deliver to Freddie Mac at CashCollections@FreddieMac.com; or ■ Upload: Submit through the Freddie Mac eBilling system Servicers may submit ACH credit-related questions or concerns to Expense@FreddieMac.com. The employee authorized to execute Form 1132 on the Servicer’s behalf must be designated as an “Authorized Employee” on the Servicer’s applicable certificate of incumbency form: ■ Form 988SF; or ■ Form 989SF Before a Servicer may receive expense reimbursements and incentive payments via ACH credit entries, the Servicer must have completed the certificate of incumbency (“COI”) Freddie Mac Single-Family Seller/Servicer Guide Chapter 2405 As of 04/08/26 Page 2405-6 process requirements in Section 2201.1, and Freddie Mac must have accepted the Servicer’s COI and all other required forms and documents. (b) Use of PAID by Related Third Parties and process for Related Third Parties to receive reimbursement of expenses (i) Access to PAID for Related Third Parties The Servicer may grant PAID access to one or more of its vendors which provide services in connection with Mortgages serviced for Freddie Mac. Each vendor is a “Related Third Party” within the meaning of the Guide. Related Third Parties are allowed access to PAID for the purposes of: ■ Submitting requests for pre-approval (RPAs) via the RPA functionality in PAID pursuant to Section 9701.1(c) ■ Submitting expenses for Servicer reimbursement based on the expense and income codes, subject to any associated expense limits, listed in Exhibits 57, 57A, 57B and 74, Expense and Income Codes for Expense Reimbursement Requests Note: Freddie Mac, at any time and in its sole discretion, may terminate a Related Third Party’s access to PAID and/or direct the Servicer to terminate a Related Third Party’s access. (ii) Servicer requirements for Related Third Party use of PAID The Servicer must comply with the following requirements related to use of PAID by a Related Third Party: ■ The Servicer must ensure that Related Third Parties sign and comply with their separate, independent contracts under Sections 2401.1(e)(iii). The Servicer must maintain auditable records of such contracts ■ The Servicer must monitor its Related Third Party to ensure compliance with all applicable requirements of the Guide and any other Purchase Documents and applicable law and have written policies and procedures in place for doing so ■ The Servicer must have written policies and procedures in place that document its criteria for selecting Related Third Party and how the Servicer will monitor the Related Third Party’s use of PAID ■ The Servicer must periodically review and analyze the types and dollar amounts of expenses requested by Related Third Parties to ensure compliance with all applicable requirements Freddie Mac Single-Family Seller/Servicer Guide Chapter 2405 As of 04/08/26 Page 2405-7 ■ For property preservation services, if Freddie Mac requires that competitive bids be obtained from multiple vendors, the Servicer is responsible for obtaining the multiple bids and keeping records of the bids. (iii)Vendor COI process Before a vendor may receive expense reimbursements and incentive payments, the vendor must: ■ Complete the COI process requirements in Section 2201.1; and ■ Ensure Freddie Mac must have accepted the vendor’s COI and all other required documents. (iv) Reimbursement and incentive payments To be reimbursed for expenses and paid incentives (see Section 9204.3(a) regarding Servicer compensation for alternatives to foreclosure), Related Third Parties must: ■ Authorize Freddie Mac to make such payments and receive debits via ACH credit entries into their commercial checking accounts ■ Agree to authorize Freddie Mac to initiate ACH drafts from accounts designated on Form 98 for overpayments of expenses The employee authorized to execute Form 98 on the vendor’s behalf must be designated as an “Authorized Employee” on the vendor’s Form 99V. (v) Authorization process for ACH transactions To authorize receipt of ACH credit entries or to make changes to ACH credit account instructions previously provided, vendors must: ■ Complete and execute Form 98; and ■ Submit the form to Freddie Mac as an Electronic Record (as defined in Section 1401.1(b)) To submit your authorization documents for review, please adhere to the following steps: 1. Complete Form 98 as a PDF (or other Electronic Record format commonly used in the mortgage industry) that contains the copy or representation of the pen and ink signature of the Authorized Employee (such copy or representation of the Authorized Employee’s signature shall be such Authorized Employee’s adopted Electronic Signature as defined in Section 1401.1(b)) Freddie Mac Single-Family Seller/Servicer Guide Chapter 2405 As of 04/08/26 Page 2405-8 2. Attach the completed form to an e-mail and deliver to Freddie Mac at the following e- mail address: Counterparty_Authorization@FreddieMac.com (c) Servicer bound by use of PAID By virtue of Servicer’s use of PAID, the Servicer agrees and is deemed to be bound by the provisions of: (i) Chapter 1401; (ii) Section 2401.1, (iii) this Chapter 2405; (iv) Chapter 9701; and (v) all other applicable terms and conditions of the Guide and other Purchase Documents.

Source: Freddie Mac Single-Family Seller/Servicer Guide Section 2405.1 — Expense reimbursement process · source URL · snapshot 5869ee9e606cd4ae