Freddie Mac Single-Family Seller/Servicer Guide §8105.1 — Compensation for Servicing Mortgages (12/03/25)
Freddie Mac Guide §8105.1 (Compensation for Servicing Mortgages). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide §8105.1 — Compensation for Servicing Mortgages (12/03/25) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Freddie Mac Guide 8105.1
(12/03/25) This section contains requirements related to: ■ Compensation for Servicing Mortgages ■ Servicing compensation for a new Servicer pursuant to a Transfer of Servicing initiated by Freddie Mac ■ Servicing obligations related to foreclosure and bankruptcy to be performed for the Servicing compensation (a) Compensation for Servicing Mortgages The compensation Freddie Mac pays to the Servicer for the performance of its duties and obligations under the Servicing Contract for each Mortgage purchased by Freddie Mac is the amount by which the Note Rate exceeds the Accounting Net Yield (ANY), with a Minimum Servicing Spread to provide adequate compensation. Each Servicer agrees that it does not retain any rights or legal ownership interest in such compensation or any portion of the interest or other amounts due or received from the Borrower under the terms of the Mortgage. Further, under no circumstance does a Servicer retain any legal ownership of the Servicing Contract or any related Servicing Contract Rights. Freddie Mac acknowledges that a Servicer may recognize Servicing Contract Rights as assets on its balance sheet in the form of “mortgage servicing rights” in accordance with generally accepted accounting principles (GAAP); however, such recognition under GAAP does not confer any legal ownership interest in any Servicing Contract Rights. The Minimum Servicing Spread is 0.250% (25 basis points) for all Home Mortgages unless the Purchase Documents provide otherwise. Note: For fixed-rate Home Mortgages with Settlement Dates on or after June 3, 2019, the maximum Servicing Spread is 0.500%. For Mortgages with single-premium lender-paid mortgage insurance, the Minimum Contract Servicing Spread must be no less than the Minimum Servicing Spread. For Mortgages with annual- or monthly-premium lender-paid mortgage insurance, the Minimum Contract Servicing Spread must meet the requirements of Section 4701.2(b)(i).
Freddie Mac Guide 8105.1
105-2 Refer to the following Guide provisions for additional information related to the Servicing Spread topic: Guide provisions related to Servicing Spread requirements Topic Guide location Minimum contract Servicing Spread Section 6101.4(c) Servicing Spreads Section 6102.4(b)(ii) Purchase requirements for Mortgages sold under Guarantor and MultiLender Swap programs Sections 6201.3(b) (b) Servicing compensation for a new Servicer pursuant to a Transfer of Servicing initiated by Freddie Mac (i) Voluntary Partial Cancellation (VPC) of Servicing or termination of the Servicing Contract If Freddie Mac terminates a Servicer’s Servicing Contract and related Servicing Contract Rights, with or without cause, in whole or in part, pursuant to the terms and conditions of the Purchase Documents, Freddie Mac reserves the right, at Freddie Mac’s discretion, to negotiate a new Servicing fee with the subsequent Servicer of the Mortgages related to the VPC Transfer of Servicing. (ii) Transfers of Servicing Below are key requirements regarding the Servicing compensation for Freddie Mac Mortgages following a Transfer of Servicing: ■ For any Mortgages purchased by Freddie Mac, the Servicing compensation will be calculated on the entire interest-bearing UPB of the Mortgage ■ If the Note Rate minus the ANY is not sufficient to pay a Transferee Servicer the required Servicing compensation plus any applicable mortgage insurance premium, the Transferor Servicer agrees to pay the balance of the required Servicing compensation to the Transferee Servicer ■ The Transferor Servicer acknowledges that its payment of Servicing compensation to the Transferee Servicer is necessary for adequate Servicing of the Mortgage in accordance with the Guide and applicable Purchase Documents ■ The Transferor Servicer also agrees that the Transferee Servicer and Freddie Mac have a right of offset against principal repayments payable to the Transferor Servicer in order to pay the required Servicing compensation if not otherwise done
Freddie Mac Guide 8105.1
105-3 (c) Servicing obligations related to be performed for the Servicing compensation In consideration for the Servicing Spread, a Servicer is responsible for the performance of all of its Servicing obligations described in the Guide and other Purchase Documents for each of the Mortgages purchased by Freddie Mac. The Servicer’s Servicing obligations compensated by the Servicing Spread include, among other things, undertaking all activities required to protect Freddie Mac’s interest in the Mortgage in the event of a foreclosure of the property or a bankruptcy of the Borrower, such as: ■ Preparing and delivering foreclosure and bankruptcy referrals to attorneys ■ Providing all documents and information necessary for the attorneys to prosecute foreclosure or bankruptcy cases (including, but not limited to, missing documents such as Notes, title insurance policies and Intervening Assignments) ■ When necessary, paying for the preparation and recordation of missing documents, such as Intervening Assignments, necessary for the prosecution of foreclosure or bankruptcy cases ■ Resolving any title issues that are the result of the Seller’s or Servicer’s action or inaction ■ Managing attorneys, including but not limited to: ❑ Collecting, receiving, processing, reviewing and paying attorneys’ invoices ❑ Supervising and providing necessary assistance to attorneys in the foreclosure and bankruptcy proceedings ❑ Making available any monitoring, management, reporting, information and document delivery processes or systems and paying the fees and costs for such processes or systems. (Refer to Section 9501.5(a) for information on connectivity and invoice processing systems.) ■ Continuing to work with the Borrower to resolve the Delinquency through loss mitigation activities ■ Handling the bankruptcy management activities specified in Chapter 9401 Nothing in the Guide is intended to prohibit a foreclosure or bankruptcy attorney from assisting a Servicer by working with a Borrower to facilitate a reinstatement of the Mortgage or loss mitigation activity.
Freddie Mac Guide 8105.1
106-1 Chapter 8106: Servicing Reports to Freddie Mac, Other Third Parties and the Borrower
Freddie Mac Guide 8105.1
General requirements for Servicing-related reports to Freddie Mac, third parties and the Borrower (07/09/25) This section contains requirements related to: ■ Computer facsimiles ■ Submission of additional reports to Freddie Mac ■ Noncompliance fees ■ Reports to credit repositories A Servicer must report regularly to Freddie Mac on Servicing activities for Freddie Mac-owned Mortgages. Servicers are also required to report certain information to third parties as well as the Borrower. Each report and all correspondence to Freddie Mac for a particular Mortgage must reference the Freddie Mac Seller/Servicer number and the Freddie Mac loan number. (a) Computer facsimiles Freddie Mac will accept computer-generated facsimiles for: ■ Form 1013, 1-4 Unit Property Inspection Report ■ Form 105, Multipurpose Loan Servicing Transmittal Any computer-generated facsimiles of these forms must: ■ Reflect the most current version of the comparable Freddie Mac form ■ Be in the same format as the comparable Freddie Mac form with no alterations to the placement of the data fields and no deletions of data fields ■ Provide at least two lines of space between detail lines (b) Submission of additional reports to Freddie Mac
Freddie Mac Guide 8105.1
106-2 The Servicer must submit such other reports as Freddie Mac may require from time to time. (c) Noncompliance fees Failure to provide timely, complete and accurate reports (regardless of the mode of submission or transmission) subjects the Servicer to the Servicing reporting noncompliance compensatory fees. Investor Accounting reporting and Servicing reporting noncompliance compensatory fees are monitored and assessed separately. Freddie Mac reserves the right to change all fees and other remedies at any time and at its sole discretion. (d) Reports to credit repositories (i) Reporting payment status of the Mortgage to the credit repositories For each Mortgage serviced for Freddie Mac under the Home Mortgage program, a Servicer must report on a monthly basis the payment status of the Mortgage to the credit repositories listed in Exhibit 51, Credit Repositories and Information to Report. Freddie Mac does not specify a particular day of the month by which the Servicer must perform the full-file reporting. Freddie Mac requires only that the reporting be performed on a monthly basis for all Mortgages regardless of the Mortgage status. The Servicer may report after each month end to allow time for payment corrections, returned checks and other adjustments to be processed. Freddie Mac will audit Servicers for compliance with the full-file credit reporting requirements. (ii) Full-file reporting requirements Full-file reporting includes Mortgages recently originated, current and delinquent Mortgages, Mortgages liquidated through workout options or foreclosure and charge- offs. Each credit repository will provide the Servicer with the applicable codes to use to report each Mortgage status type. Freddie Mac will not require reporting to a repository that does not serve the jurisdiction for which a report must be filed. Written advice from a repository that it cannot accept a Servicer’s report for a given jurisdiction because it does not serve that jurisdiction will be sufficient evidence to Freddie Mac that the Servicer is in compliance with Freddie Mac’s requirements for that jurisdiction. Borrowers or their representatives are permitted under the Federal Fair Credit Reporting Act (FCRA) to inquire about or dispute the accuracy of information in their credit repository files. This right to inquire about or dispute the accuracy of information applies to any Mortgage that the Servicer services for Freddie Mac, just as it does to any other
Freddie Mac Guide 8105.1
106-3 indebtedness of a Borrower. A Borrower may send an inquiry or a notice of dispute concerning the accuracy of reported information about the Borrower’s Mortgage directly to the Servicer or to any of the credit repositories listed in Exhibit 51. Whenever the Servicer receives such an inquiry or notice of dispute from a Borrower or receives a letter from a credit repository requesting verification or correction of Mortgage-related information, the Servicer must respond in accordance with the requirements of the FCRA.
Freddie Mac Guide 8105.1
Internal Revenue Service (IRS) Forms 1098, 1099-A, 1099-C and 1099-MISC (09/10/25) This section contains requirements related to: ■ IRS Form 1098, Mortgage Interest Statement ■ IRS Form 1099-A, Acquisition or Abandonment of Secured Property ■ IRS Form 1099-C, Cancellation of Debt ■ IRS Form 1099-MISC, Miscellaneous Income (a) IRS Form 1098, Mortgage Interest Statement The Servicer must provide Internal Revenue Service (IRS) Form 1098 to the IRS and the Borrower as required under Section 6050H of the Internal Revenue Code. This reporting must be done for each Mortgage owned in whole or in part by Freddie Mac. The following must be provided: ■ The Servicer’s name, address and federal identification number must be reported for “Recipient” ■ The Borrower’s name, address and Social Security number must be reported for “Payer” The Servicer must maintain copies of all statements and reports that Freddie Mac requires the Servicer to provide directly to the Borrowers and the IRS in compliance with the above section of the Internal Revenue Code and make such copies available for examination by Freddie Mac upon request. The Servicer is responsible for any penalty levied by the IRS for nonreporting or reporting of inaccurate information, as applicable, with respect to those statements and reports which Freddie Mac requires the Servicer to provide directly to the Borrowers and the IRS. (b) IRS Form 1099-A, Acquisition or Abandonment of Secured Property
Freddie Mac Guide 8105.1
106-4 The Servicer must provide IRS Form 1099-A to the IRS and the Borrower as required under Section 6050J of the Internal Revenue Code. This reporting must be done whenever Freddie Mac or a third party acquires an interest in a property in full or partial satisfaction of Freddie Mac’s secured debt or when Freddie Mac or the Servicer knows or has reason to know that a property has been abandoned. For the purposes of filing these reports, the following definitions apply: ■ Freddie Mac acquires an interest in Mortgaged Premises either: ❑ On the date of the foreclosure sale or the date the Borrower’s right of redemption, if any, expires, whichever occurs later, or ❑ At the time a deed-in-lieu of foreclosure is recorded ■ A third party acquires an interest at the time of the foreclosure sale ■ Abandonment has occurred when Freddie Mac or the Servicer has reason to know from all the facts and circumstances concerning the status of the Mortgaged Premises that the Borrower intended to and has permanently discarded the property from use. If a Servicer determines that an abandonment has occurred and expects to commence foreclosure proceedings within three months, the reporting obligation generally arises at the end of the three-month period. The following events trigger the reporting requirement: ■ Freddie Mac acquisition. (Freddie Mac acquires the Mortgaged Premises at a foreclosure sale or by deed-in-lieu of foreclosure.) ■ Third-party sale. (A third party acquires the Mortgaged Premises at a foreclosure sale.) ■ HUD, RHS or VA acquisition. (The Mortgaged Premises was acquired by HUD, RHS or the VA.) ■ Abandonment. (The Mortgaged Premises has been abandoned, three months have passed and foreclosure proceedings have not begun.) A completed IRS Form 1099-A must be filed electronically with the IRS on or before March 31 of the year following the calendar year in which the reportable event occurred. The Servicer must also furnish the Borrower with an information statement on or before January 31 of that year. The requirement for furnishing such statement to the Borrower can be satisfied by sending a completed IRS Form 1099-A to the Borrower’s last known address. The form must include the following information:
Freddie Mac Guide 8105.1
106-5 ■ The form must show Freddie Mac’s name and address and include a statement that the information is being reported to the IRS ■ The “account number” should include the nine-digit Freddie Mac loan number, followed by one space and the six-digit Seller/Servicer number Note: See Section 8106.2(c) for information related to when both IRS Forms 1099-A and 1099-C, Cancellation of Debt, may be filed as the result of a cancelation of debt in connection with a foreclosure or similar action in the same year for the same Borrower. Instructions for completing IRS Form 1099-A are set forth in Form 1065, Report of IRS Form 1099-A and Form 1099-C Filing. Servicers must comply with the IRS’s and the various States’ requirements, as amended from time to time, for filing IRS Form 1099-A. Servicers should consult with either their tax advisors or the IRS concerning questions on such requirements. The Servicer must file all IRS Forms 1099-A with the IRS electronically. (i) IRS reporting Servicers must file their reports with the IRS no later than March 31 of the year following the calendar year in which the reportable event occurred. Even though a Servicer reports to the IRS electronically, the Servicer is still responsible for providing a copy of the IRS Form 1099-A to the Borrower (copy B) and to those States that require it (copy C). Copy B must be furnished to the Borrower on or before January 31 of the year following the reportable event. IRS requirements for filing electronically are set forth in IRS Publication 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498 and W- 2G. A Servicer may obtain this publication by downloading it from the IRS website at www.irs.gov or by calling the IRS at 1-800-TAX-FORM (1-800-829-3676). When filing electronically, the Servicer must: ■ Insert appropriate header information on the electronic report it files with the IRS in accordance with the following record description: