Freddie Mac Single-Family Seller/Servicer Guide §8601.8 — REO – asset management and compliance (09/10/25)
Freddie Mac Guide §8601.8 (REO – asset management and compliance). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide §8601.8 — REO – asset management and compliance (09/10/25) — 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 8601.8
(09/10/25) The brown font text used throughout this chapter denotes the special requirements for Servicing Senior Subordinate Mortgages. Text in black or green font denotes general Servicing requirements that also apply elsewhere in the Guide. This section contains information related to: ■ REO – General requirements ■ REO – Documentation and reporting requirements ■ REO – Notifying the taxing authority/homeowners association (HOA) (a) REO - General requirements This subsection has been adapted from Section 9603.1(a) to reflect special Servicing requirements for Senior Subordinate Mortgages. Once the Senior Subordinate Trust has acquired a property as an REO and after the Servicer has successfully reported the foreclosure sale or deed-in-lieu of foreclosure in Resolve® pursuant to Section 9603.1(b), the Servicer will no longer be responsible for the following REO activities, including for properties located in States that have a redemption, confirmation process or ratification of sale: ■ Securing, maintaining, protecting, inspecting and preserving the property ■ Making advances to superior lienholders, including condominium/HOA or Cooperative Corporation assessments (see Chapter 8801 for special Servicing requirements for Cooperative Share Loans), Condominium Unit maintenance fees or Cooperative Unit Maintenance Fees and ground rents ■ Evicting the occupants in the property
Freddie Mac Guide 8601.8
601-38 ■ Marketing and rehabilitating the REO Servicers are responsible for the following activities pending the sale of the REO by Freddie Mac or the MI, FHA, RHS or VA: ■ Filing and concluding FHA, RHS and VA claims, if applicable. (Freddie Mac will file MI claims.) ■ Filing and concluding property insurance claims, if applicable, and applying for premium refunds in accordance with Section 9603.1(d). The Servicer is required to cancel any existing property insurance policies no later than 14 days after the foreclosure sale or deed-in-lieu of foreclosure has been successfully reported to Freddie Mac. Freddie Mac may instruct the Servicer to maintain property insurance (even if the property is vacant and has no claimable damage). If Freddie Mac makes this request, the Servicer must continue the insurance coverage until Freddie Mac notifies the Servicer that Freddie Mac has sold the REO. ■ Referring all inquiries and offers regarding purchase of the REO to Freddie Mac (see Directory 6) within one Business Day of the inquiry or offer ■ Fulfilling all requests made by Freddie Mac, including attorney selection. If the Servicer requires the assistance of an attorney in fulfilling any of the obligations set forth in this chapter, the Servicer must use an attorney who meets the criteria in Section 9501.2. ■ Taking such action that Freddie Mac may request regarding a property Servicers may review the REO Overview report, accessible via the “REO” tile of the Servicer’s Servicer Performance Profile (SPP) (see Exhibit 88), for the property status. The Servicer may also call Customer Service at 800-FREDDIE to obtain this information. Freddie Mac will not send the Servicer a written notice of the sale of the REO. (b) REO – Documentation and reporting requirements This subsection has been adapted from Section 9603.3(a) to reflect special Servicing requirements for Senior Subordinate Mortgages. This section details Freddie Mac’s requirements for submitting documentation and reporting information during the REO holding period. The Servicer may review the REO Overview report, accessible via the “REO” tile of the Servicer’s SPP (see Exhibit 88) for the property status, including the Property Condition Certificate completion date. The Servicer may also call Customer Service at 800-FREDDIE to obtain this information. Freddie Mac will not send the Servicer a written notice of the sale of the REO. (c) REO – Notifying the taxing authority/ HOA
Freddie Mac Guide 8601.8
601-39 This subsection has been adapted from Section 9603.1(c), to reflect special Servicing requirements for Senior Subordinate Mortgages. Within five days of successfully reporting the foreclosure sale or deed-in-lieu of foreclosure in Resolve, the Servicer must notify the taxing authority and condominium association, HOA or Cooperative Corporation (see Chapter 8801 for special Servicing requirements for Cooperative Share Loans), as applicable, of the Senior Subordinate Trust’s ownership of the property and Freddie Mac’s management of the property on behalf of the Senior Subordinate Trust to ensure that statements are sent to the appropriate location. When the Servicer contacts these organizations, the Servicer must update the remitter’s name as follows: [Legal Name of Senior Subordinate Trust] c/o Radian Real Estate Management 7730 South Union Park Avenue, Suite 400 Midvale, UT 84047 Important: Freddie Mac will pay the property taxes, condominium/HOA or Cooperative Corporation assessments, Condominium Unit maintenance fees or Cooperative Unit Maintenance Fees and ground rents, as applicable, as they become due after the Servicer successfully reports the foreclosure sale or the deed-in-lieu of foreclosure. Freddie Mac may retain a vendor to conduct such activities. There are special requirements for REO located in California. California taxing authorities reassess properties for supplemental taxes from the foreclosure sale date to the sale date of the REO. Also, taxing authorities often generate a supplemental tax statement long after the REO sale date. Therefore, the Servicer must notify the taxing authority in writing to send any supplemental tax bills to the Senior Subordinate Trust in care of the address above within five days following the foreclosure sale or the deed-in-lieu of foreclosure date.
Freddie Mac Guide 8601.8
701-1 Chapter 8701: Servicing Requirements for Community Land Trust Mortgages