Freddie Mac Single-Family Seller/Servicer Guide 8801.4 — Delinquency management for Cooperative Share Loans

Freddie Mac Single-Family Seller/Servicer Guide 8801.4 — Delinquency management for Cooperative Share Loans

Effective 2026-04-08 · Freddie Mac's stamp for this section

This section contains requirements related to: ■ Preforeclosure referral account review ■ Foreclosure of a Cooperative Share Loan ■ Foreclosure attorney fee ■ Post-foreclosure/REO (a) Preforeclosure referral account review In addition to the requirements in Section 9301.2(a) regarding the preforeclosure referral account review, the Servicer must seek Freddie Mac’s approval (Foreclosures@FreddieMac.com) to refer a Cooperative Share Loan to foreclosure if: ■ The Servicer becomes aware of or has reason to believe that proceeding with foreclosure on the Cooperative Share Loan is not in Freddie Mac’s best interest; and/or ■ A charge off would produce a lesser estimated loss severity, as opposed to proceeding with foreclosure on the Cooperative Share Loan If directed by Freddie Mac, the Servicer must submit a recommendation for a charge-off to Freddie Mac in accordance with the requirements in Section 9210.1(c). (b) Foreclosure of a Cooperative Share Loan When referring a Cooperative Share Loan to foreclosure, the Servicer must follow the requirements in Chapter 9301, as such requirements may be applicable to Cooperative Units. Additionally, consistent with the requirements in Section 9501.2, the Servicer must ensure that the firm accepting the foreclosure referral meets the Firm Minimum Requirements (as that term is described in Section 9501.2), including, but not limited to: ■ Having experience in general housing-related issues such as Cooperative Share Loans; and ■ No substantial part of the firm’s practice includes matters that are adverse to financial institutions, such as Cooperative Corporation foreclosures Servicers may submit any foreclosure-related questions or concerns when foreclosing on a Cooperative Share Loan to Freddie Mac (Foreclosures@FreddieMac.com). Note: See also Section 8801.1(f) regarding certain Servicer warranties required when foreclosing on a Cooperative Share Loan. (c) Foreclosure attorney fees Freddie Mac will reimburse Servicers for reasonable attorney fees incurred in connection with the foreclosure of a Cooperative Share Loan. Servicers must claim reimbursement using expense code 014005 (Foreclosure on a Cooperative Share). Refer to Exhibit 57A, Approved Attorney, Foreclosure, Mediation, Postponement Fees and Title Expenses. See also Section 8801.2(d) regarding reimbursement of expenses incurred on a Cooperative Share Loan. Note: In addition to the legal services included in the attorney fees for an uncontested foreclosure outlined in Section 9701.3(a), any transfer of the Cooperative Shares and Proprietary Lease is also considered included. (d) Post-foreclosure/REO Consistent with the requirements in Sections 8601.8(a) and 9601.1(c), as applicable, once Freddie Mac has acquired a Cooperative Unit in REO, Freddie Mac will pay the Cooperative Corporation assessments and Cooperative Unit Maintenance Fees. Additionally, pursuant to Section 9603.1(b), for a Cooperative Unit in REO, the Servicer must submit to Freddie Mac any information Freddie Mac requests from the Servicer, whether from the Mortgage file or, for documents for which a Document Custodian maintains physical custody, from the Document Custodian. This includes, but is not limited to: ■ The stock certificate, which evidenced the Cooperative Share Loan Borrower’s ownership interest in the Cooperative Corporation ■ The Cooperative Share Loan Borrower’s Proprietary Lease; and ■ The Recognition Agreement

Source: Freddie Mac Single-Family Seller/Servicer Guide 8801.4 — Delinquency management for Cooperative Share Loans · source URL · snapshot 4c94f67729042dd6