Freddie Mac Single-Family Seller/Servicer Guide Section 9501.5 — Servicer oversight and reporting

Freddie Mac Single-Family Seller/Servicer Guide Section 9501.5 — Servicer oversight and reporting

9501.5: Servicer oversight and reporting (09/10/25) This section contains requirements related to: ■ Servicer use of connectivity and invoice processing system ■ Servicer reporting on Freddie Mac Default Legal Matters ■ Servicer monitoring and management of firm ■ Escalation of firm issues to Freddie Mac Freddie Mac Single-Family Seller/Servicer Guide Chapter 9501 As of 09/10/25 Page 9501-21 (a) Servicer use of connectivity and invoice processing system A Servicer, whether acting directly or through any vendor, service provider or outsourcing company, may employ electronic monitoring, management, reporting or information and document delivery processes technology, referred to in this section as a “Connectivity System,” and an invoice processing system as outlined below. (i) Connectivity System A Servicer may employ a Connectivity System to assist with fulfilling Servicing obligations such as: ■ Packaging and referring foreclosure and bankruptcy cases to the firm ■ Communicating information and delivering documents between the Servicer and the firm as well as any other third parties requiring access to the Connectivity System; and ■ Managing and monitoring foreclosure and bankruptcy cases If a Servicer uses a Connectivity System: ■ Freddie Mac will reimburse the Servicer for the actual cost of the connectivity fee up to the maximum expense limit specified in Section 9701.3(a) ■ The Servicer must provide the firm with use of and access to the identical Connectivity System ■ The Servicer must permit or continue to permit the firm to integrate its own technology systems with the Connectivity System at no cost to the firm; and ■ The Servicer must not pass on any Connectivity System related charges to the Borrower or the firm (ii) Invoice processing system A Servicer may employ an invoice processing system for managing the submission and payment of invoices. If a Servicer, whether acting directly or through a vendor or outsourcing company, processes firm invoices electronically: ■ Freddie Mac will reimburse the Servicer for the actual cost of the invoicing fee up to the maximum expense limits specified in Section 9701.3(a); and Freddie Mac Single-Family Seller/Servicer Guide Chapter 9501 As of 09/10/25 Page 9501-22 ■ The Servicer must not pass on any invoice processing related charges to the Borrower or the firm The amounts specified in Section 9701.3(a) for connectivity and invoice processing systems are the maximum amounts for which a Servicer may seek reimbursement for the life of the default (i.e., the duration of the foreclosure, including any Freddie Mac Default Legal Matter such as bankruptcy). Example: If a Servicer has already referred a Mortgage to foreclosure and it then becomes necessary to take action with respect to a bankruptcy related to such Mortgage, or if a Servicer has already referred a file for bankruptcy and foreclosure has commenced following the bankruptcy referral, the Servicer may be reimbursed only for one connectivity fee. Likewise in this scenario, if the Servicer is using an invoice processing system, then the Servicer may only seek reimbursement for one invoicing fee associated with the foreclosure and for one invoicing fee associated with the bankruptcy during the life of the default. (b) Servicer reporting on Freddie Mac Default Legal Matters The Servicer must provide reports related to firm performance, management of foreclosure and bankruptcy processes, oversight of firm compliance and performance and other related matters as required by Freddie Mac. Servicers must ensure that all firms retained for Freddie Mac Default Legal Matters report data required by Freddie Mac directly to Freddie Mac accurately and in the time frames prescribed. This includes required daily reporting by its retained law firms, via the Attorney Data Reporting (ADR) System (see Exhibit 88, Servicing Tools), of key metrics such as: ■ Milestones during the lifecycle of Freddie Mac Default Legal Matters ■ Delays affecting prompt and efficient completion of the Freddie Mac Default Legal Matter ■ Successful loss mitigation activities ■ Litigation detail during the lifecycle of certain non-routine litigation matters ■ Completion of the Freddie Mac Default Legal Matter Key metrics generally must be reported to Freddie Mac within 24 hours of occurrence unless otherwise prescribed in related training materials for the web-based attorney reporting system. Servicers may obtain access to the ADR System and monitor their law firms’ reporting progress by completing the ADR Servicer Access Request Form available on the Freddie Mac Default-Related Legal Services webpage at https://sf.freddiemac.com/working-with-us/servicing/default-related-legal-services. If a Servicer has further questions regarding ADR System access, they may contact Freddie Mac at Foreclosures@FreddieMac.com. Freddie Mac Single-Family Seller/Servicer Guide Chapter 9501 As of 09/10/25 Page 9501-23 (c) Servicer monitoring and management of firm The Servicer is responsible for managing and monitoring all aspects of the firm performance, providing necessary assistance to the firm relating to Freddie Mac Default Legal Matters and undertaking all activities required to protect Freddie Mac’s interest in the Mortgage. The Servicer must also ensure that the firm is in compliance with applicable Freddie Mac requirements and that the firm receives all training and documentation relating to applicable Freddie Mac requirements, either separately or as part of the Servicer’s standard training. (i) Compliance processes The Servicer must develop and have in place policies and procedures regarding oversight and compliance of firms handling Freddie Mac Default Legal Matters. The Servicer must have policies and procedures reasonably designed to ensure that firms handling Freddie Mac Default Legal Matters are in compliance with the limited retention agreement, the applicable provisions of the Guide and applicable law. The Servicer’s ongoing compliance monitoring must address the following minimum elements: ■ Ongoing eligibility under the Firm Minimum Requirements specified in Section 9501.2 ■ Compliance with the limited retention agreement, including the fee and cost guidelines; and ■ Firm performance and processes necessary to ensure Servicer’s compliance with applicable Guide requirements The Servicer must conduct periodic compliance reviews and training as appropriate. In determining the frequency of firm compliance reviews, the Servicer must consider the overall risk posed to Freddie Mac by the firm (legal, reputational and financial), firm file volume, performance, any changes in staffing ratios or levels, any litigation against the firm alleging systemic issues, any media coverage regarding the firm and the prior results of any firm compliance reviews. (ii) Freddie Mac review of compliance process Freddie Mac reserves the right to review the Servicer’s compliance process. Freddie Mac may require Servicers to conduct additional compliance activities related to firms handling Freddie Mac Default Legal Matters, such as additional firm compliance reviews. Freddie Mac Single-Family Seller/Servicer Guide Chapter 9501 As of 09/10/25 Page 9501-24 The Servicer must make available to Freddie Mac upon request the materials relating to its performance and compliance monitoring of firms handling Freddie Mac Default Legal Matters, including: ■ Information regarding the scope and methodology of the Servicer’s compliance monitoring ■ The schedule of firm compliance reviews conducted ■ The identity of any vendors used in the firm compliance reviews ■ All documentation from the firm compliance reviews; and ■ All findings, reports or remediation plans resulting from the firm compliance reviews In addition, Freddie Mac may require a Servicer to change the scope of its compliance process used to monitor firms handling Freddie Mac Mortgages. (iii)Freddie Mac right to audit firm Freddie Mac also reserves the right to directly conduct firm audits and firm on-site visits as Freddie Mac deems necessary. Freddie Mac audits and visits may focus on items such as: ■ Fee and cost compliance ■ Servicer compliance with Freddie Mac requirements, and ■ High-risk issues, including: ❑ Compliance with applicable laws ❑ Reputational risk ❑ Unsatisfactory results of Servicer firm compliance reviews; and ❑ Conflicts of interest involving Freddie Mac-owned or guaranteed Mortgages (d) Escalation of firm issues to Freddie Mac (i) Escalation of issues The Servicer must notify Freddie Mac via e-mail (see Directory 1) within two Business Days of discovery, or sooner if circumstances warrant, if the Servicer becomes aware of any issues or concerns relating to a firm (including a specific employee or vendor of a firm) or a Freddie Mac Default Legal Matter, including, but not limited to: Freddie Mac Single-Family Seller/Servicer Guide Chapter 9501 As of 09/10/25 Page 9501-25 ■ Any information regarding a firm that may warrant a firm’s suspension, termination or Servicer request to transfer Freddie Mac Default Legal Matters to another firm ■ Information suggesting legal or reputational risk posed by the firm such as bar complaints, sanctions or litigation alleging systemic issues with the firm, firm attorney or firm practices ■ Security incidents that compromise the security, confidentiality or integrity of “sensitive customer information” and that the security incident is related to Freddie Mac-owned or guaranteed Mortgages (refer to Section 1301.2(f)) ■ Actual or alleged fraud on the part of the firm ■ Federal, State or local governmental inquiries, including congressional inquiries, regarding a firm, Freddie Mac-owned or guaranteed Mortgages or Freddie Mac or Servicer practices affecting Freddie Mac-owned or guaranteed Mortgages ■ Non-routine litigation (as described in Section 9402.1(b)) ■ Media inquiries relating to Freddie Mac, a firm or Freddie Mac-owned or guaranteed Mortgages ■ Volume or capacity issues with the firm ■ Breach of the limited retention agreement between the firm and Freddie Mac or the contract between the firm and the Servicer ■ Legal matters such as regulatory updates and specific reporting on certain matters (e.g., transfer tax matters) ■ Any systemic issues with the firm ■ Systemic Servicer issues related to file suspensions and foreclosure holds (e.g., failure to properly implement new statutory changes); and ■ Any material changes in the ownership, partnership or organization of the firm after executing the limited retention agreement. Such notifications should include instances where a named partner leaves the firm or a major practice group separates from the firm. (ii) Procedures relating to issues and concerns When a Servicer provides Freddie Mac notice of an issue requiring Freddie Mac’s attention, the Servicer must designate in its e-mail one or more points of contact. Freddie Mac may request that the Servicer obtain additional information from the firm regarding Freddie Mac Single-Family Seller/Servicer Guide Chapter 9501 As of 09/10/25 Page 9501-26 the issue that was escalated to Freddie Mac, and the Servicer must promptly provide the requested information to Freddie Mac. (iii)Freddie Mac rights Freddie Mac reserves the right to issue direction to Servicers and firms regarding escalated issues. Note: Refer to Section 9501.6(c) for more information about Freddie Mac’s reservation of rights. (iv) Escalated issue – confidential information Any issue that is identified and escalated to or by Freddie Mac pursuant to this section (other than non-routine litigation) is considered to be “confidential information” as defined in Sections 1201.8 and 8101.4(d). The Servicer must comply with the requirements of such sections with respect to treatment of any escalated issue. 9501.6: File transfers, termination and suspension of firms (09/10/25) This section contains requirements related to: ■ File transfers, termination and suspension of firms ■ Implementing file transfers and/or the termination and suspension of firms ■ Reservation of rights and remedies for non-compliance concerning litigation (a) File transfers, termination and suspension of firms (i) Servicer-directed suspension of referrals, Freddie Mac Default Legal Matter transfers and terminations If a Servicer becomes aware of information regarding a firm’s handling of Freddie Mac Default Legal Matters that might warrant a suspension of referrals of new Freddie Mac Default Legal Matters, the transfer of Freddie Mac Default Legal Matters to another firm and/or termination of the firm (such as for legal, reputational or operational risk), the Servicer must: ■ Notify Freddie Mac within two Business Days via e-mail or sooner if circumstances warrant, as set forth in Section 9501.5(d); and ■ Conduct due diligence with respect to the issue Freddie Mac Single-Family Seller/Servicer Guide Chapter 9501 As of 09/10/25 Page 9501-27 If the Servicer intends to suspend referrals of new Freddie Mac Default Legal Matters, transfer Freddie Mac Default Legal Matters and/or terminate a firm, the Servicer must provide Freddie Mac with at least five Business Days’ notice (see Directory 1) prior to implementing the decision. Additionally, the notification must provide Freddie Mac with the implementation plan for the course of action chosen by the Servicer, pursuant to Section 9501.6(b). For the transfer of Freddie Mac Default Legal Matters, once a Servicer has determined the eligible law firm(s) that will receive such file transfers, the following must also be included in the notification to Freddie Mac: ■ Servicer name and the six-digit Seller/Servicer number ■ The nine-digit Freddie Mac loan number ■ Servicer loan number ■ Date of transfer ■ Original law firm name ■ New law firm name ■ Freddie Mac Default Legal Matter being transferred (e.g., foreclosure, bankruptcy proof of claim (POC) or bankruptcy motion for relief (MFR)) to the new law firm ■ The State in which the Mortgaged Premises is located In addition, the Servicer must: ■ Upon request, provide Freddie Mac with the reason for the decision and the due diligence materials or other information supporting the decision ■ Inform the firm of the decision; and ■ Keep Freddie Mac periodically updated with respect to the status of implementation of the decision Note: Refer to Section 9501.6(b) for additional information relating to implementation of terminations, transfer of Freddie Mac Default Legal Matters and suspensions. Freddie Mac Single-Family Seller/Servicer Guide Chapter 9501 As of 09/10/25 Page 9501-28 (ii) Freddie Mac-directed suspension of referrals, matter transfers and terminations Freddie Mac may direct the Servicer to initiate an investigation of a firm if Freddie Mac becomes aware of information that might warrant a suspension of: ■ Referrals of new Freddie Mac Default Legal Matters ■ The transfer of Freddie Mac Default Legal Matters, or ■ Termination of the firm Freddie Mac also may conduct due diligence and investigations as necessary. Freddie Mac may instruct Servicers to suspend some or all referrals of new Freddie Mac Default Legal Matters, transfer some or all existing Freddie Mac Default Legal Matters or terminate a firm. In the event of a decision by Freddie Mac to suspend referrals of new Freddie Mac Default Legal Matters, transfer Freddie Mac Default Legal Matters or terminate a firm, Freddie Mac will: ■ Inform the Servicer of the decision and provide direction with respect to required Servicer actions, including direction with respect to transfers of Freddie Mac Default Legal Matters ■ Inform the firm of the decision and provide direction to the firm with respect to required firm actions; and ■ Terminate the limited retention agreement between Freddie Mac and the firm, as appropriate (iii)Documentation of due diligence review The Servicer must maintain documentation of the due diligence review, the Servicer’s decision and all other information supporting the decision for a period of seven years after such decision. (b) Implementing file transfers and/or the termination and suspension of firms (i) Implementation plan Prior to implementing any decision to terminate a contract with a firm, suspend referrals of new Freddie Mac Default Legal Matters and/or transfer Freddie Mac Default Legal Matters from a firm, the Servicer must develop an implementation plan which addresses: ■ File transfers Freddie Mac Single-Family Seller/Servicer Guide Chapter 9501 As of 09/10/25 Page 9501-29 ■ The capacity of other eligible firms in the jurisdiction to handle additional Freddie Mac Default Legal Matters and/or transferred Freddie Mac Default Legal Matters ■ Proration of fees and costs between the transferor and transferee firms ■ Contract provisions during any transition period, including insurance; and ■ Other issues as necessary The implementation plan must take into account any legal, operational or reputational risks that may arise during the transition period and must address these risks in the most cost-efficient and effective manner. Freddie Mac reserves the right to require the modification of the implementation plan and provide additional Servicer requirements relating to the termination of any firm, the suspension of referrals of new Freddie Mac Default Legal Matters and the transfer of Freddie Mac Default Legal Matters. (ii) Servicer monitoring of implementation plan The Servicer must take all necessary steps to ensure that the implementation plan proceeds in an orderly manner and that all Freddie Mac interests are protected during the implementation. Such steps include, but are not limited to: ■ Transferring files relating to Freddie Mac Default Legal Matters to eligible firms ■ Addressing any issues arising from the transfer of files, the suspension of referrals and the termination of a firm ■ Reporting periodically to Freddie Mac on the status of the plan, including such details as how many files are transferred to each new firm, which new firms receive the files and the timing of transfers; and ■ Such other details as requested by Freddie Mac Servicers may not charge Freddie Mac or Borrowers for any fees or costs associated with transferring Freddie Mac Default Legal Matters, and such amounts may not be added to Borrower Mortgage balances. (iii)Freddie Mac’s rights to manage termination, suspension and/or file transfers Freddie Mac may decide, in its sole discretion, that the legal, operational or reputational risks necessitate Freddie Mac’s management of the: ■ Termination of any firm with respect to its handling of Freddie Mac Default Legal Matters Freddie Mac Single-Family Seller/Servicer Guide Chapter 9501 As of 09/10/25 Page 9501-30 ■ Suspension of referrals of Freddie Mac Default Legal Matters to a firm; and/or ■ Transfers of files relating to Freddie Mac Default Legal Matters In such case, the Servicer must cooperate with Freddie Mac in such management and provide all necessary documentation, files and information as requested by Freddie Mac. (c) Reservation of rights and remedies for non-compliance concerning litigation (i) Reservation of rights Freddie Mac reserves the right to direct and control all litigation involving a Freddie Mac loan. The Servicer and firm handling the litigation must cooperate fully with Freddie Mac in the prosecution, defense or handling of the matter. In addition, Freddie Mac reserves the right to: ■ Select the foreclosure counsel for a particular case, whether the case is routine or non- routine litigation ■ Direct and manage the actions taken by the foreclosure counsel on a case-by-case or individual jurisdiction basis ■ Assess additional compensatory fees against the Servicer and/or seek repayment of losses, costs or damages from the Servicer sustained due to errors, omissions or delays by the Servicer or its agent; and ■ Direct and manage the actions taken by Servicers and firms relating to escalated issues specified in Section 9501.5(d) (ii) Remedies for non-compliance If a Servicer fails to comply with the provisions under Chapter 9501, Freddie Mac, in its sole discretion and in addition to any other remedies specified in the Guide or the Servicer’s other Purchase Documents, reserves the right to: ■ Refuse to reimburse the Servicer for any legal fees and costs ■ Offset the entire legal fee from future foreclosure expenses otherwise eligible for reimbursement from Freddie Mac or seek the Servicer’s reimbursement of the entire legal fee with interest if Freddie Mac has already reimbursed the Servicer for the costs involved in the particular foreclosure or bankruptcy ■ Require the Servicer to reimburse the firm or Freddie Mac for any prohibited payments or other financial benefits Freddie Mac Single-Family Seller/Servicer Guide Chapter 9501 As of 09/10/25 Page 9501-31 ■ Prohibit the Servicer from contracting, directly or through any service provider, vendor or outsourcing company, with a firm with respect to products or services ancillary to a foreclosure or bankruptcy case ■ Prohibit the Servicer from contracting with the service provider, vendor or outsourcing company involved in the prohibited activities with respect to Freddie Mac-owned or guaranteed Mortgages ■ Seek Servicer repayment of losses, costs or damages sustained by Freddie Mac due to errors by the Servicer or its agent and/or require repurchase of impacted Mortgage Freddie Mac Single-Family Seller/Servicer Guide Chapter 9601 As of 09/10/25 Page 9601-1 Chapter 9601: Deficiency Recovery 9601.1: Deficiency recovery and management (09/10/25) This section contains requirements related to: ■ Working with vendors to collect deficiencies ■ Assigning deficiency rights after the foreclosure sale ■ Charging off the deficiency (a) Working with vendors to collect deficiencies Freddie Mac may use vendors to assist in the collection of deficiencies. The Servicer must assist such vendors to obtain any necessary case file documentation upon the vendor’s request. This would include data reporting or case file documentation that firms, selected and retained by the Servicer to handle Freddie Mac Default Legal Matters, may have obtained in the course of handling a particular case. At the time the vendor requests documentation for this purpose, as part of the request, the vendor will provide a letter of authorization from Freddie Mac to obtain such information. The Servicer may only execute deficiency assignment documents that transfer deficiency rights from the Servicer to Freddie Mac when requested by an MI or third-party vendor. Note: Refer to Section 9601.1(b) for requirements on assigning deficiency rights. (b) Assigning deficiency rights after the foreclosure sale If the Mortgage has mortgage insurance and is not covered by any other credit enhancement, the Servicer must not execute any assignment of the right to pursue a deficiency or assignment of a deficiency judgment to an MI or a third party. These documents must be sent directly to Freddie Mac (see Directory 5). Freddie Mac will coordinate the execution of these assignment documents. The Servicer may execute deficiency assignment documents that transfer deficiency rights from the Servicer to Freddie Mac when requested by an MI or third-party vendor. For all other issues related to assigning deficiency rights after foreclosure sale, Servicers should direct their questions to Freddie Mac (see Directory 5). (c) Charging off the deficiency Freddie Mac Single-Family Seller/Servicer Guide Chapter 9601 As of 09/10/25 Page 9601-2 The amount that Freddie Mac has determined to be charged off will be reflected on the Draft Report. The Servicer must review the Draft Report and report any discrepancies between its records and the amount on the Draft Report to Freddie Mac via the Freddie Mac Servicing Data Corrections tool (see Exhibit 88, Servicing Tools) within 30 calendar days following Freddie Mac’s posting of the amount to the Draft Report. Servicers may access the Draft Report through the Freddie Mac Cash Manager tool (see Exhibit 88). When reporting a discrepancy, Servicers must input the calculation used to determine the variance and upload any documentation to support the request in the Servicing Data Corrections tool. Freddie Mac will process, at its discretion, discrepancies that are submitted more than 60 calendar days after the initial adjustment is posted to the Draft Report. Such discrepancies may be subject to a contract noncompliance and contract change compensatory fee (see Section 8303.5(i)). If the postsettlement correction request is denied, the Servicer may be liable for any additional losses. Freddie Mac Single-Family Seller/Servicer Guide Chapter 9602 As of 09/10/25 Page 9602-1 Chapter 9602: Post-Sale Reporting to Other Entities 9602.1: Post-foreclosure reporting and compliance (09/10/25) This section contains requirements related to: ■ Servicer reporting of foreclosure sales to credit repositories ■ Servicer reporting to the Internal Revenue Service (IRS) (a) Servicer reporting of foreclosure sales to credit repositories The Servicer must report all foreclosure sales to the credit repositories listed in Exhibit 51, Credit Repositories and Information to Report, according to the requirements in Section 8106.1(d). (b) Servicer reporting to the IRS The Servicer must report the acquisition or abandonment of the property to the IRS according to the requirements in Section 8106.2(b) on IRS Form 1099-A, Acquisition or Abandonment of Secured Property. In the event that deficiency rights were not preserved during the foreclosure process as may be allowed under Section 9301.6(a)(ii), the Servicer must also report the cancelation of debt to the IRS according to the requirements in Section 8106.2(c) on IRS Form 1099-C, Cancellation of Debt. Freddie Mac Single-Family Seller/Servicer Guide Chapter 9603 As of 11/19/25 Page 9603-1 Chapter 9603: REO 9603.1: General REO Servicing requirements (11/19/25) This section contains information related to: ■ General Servicer requirements for REO properties ■ Required REO documentation and reporting ■ Notifying the taxing authority/HOA of REO ■ Property insurance for REO ■ Canceling utilities for REO (a) General Servicer requirements for REO properties Once Freddie Mac has acquired a property in REO and the Servicer has successfully reported the foreclosure sale or deed-in-lieu of foreclosure via Resolve® and the Loan Level Reporting tool (see Exhibit 88, Servicing Tools) pursuant to Section 9603.1(b), the Servicer will no longer have the responsibility for the following REO activities, including for properties located in States that have a redemption, confirmation process or ratification of sale: ■ Securing, maintaining, inspecting, protecting and preserving the property ■ Making advances to superior lienholders, including condominium/homeowners association (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 ■ Marketing and rehabilitating the REO Servicers are responsible for the following activities until 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 Freddie Mac Single-Family Seller/Servicer Guide Chapter 9603 As of 11/19/25 Page 9603-2 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 (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) Required REO documentation and reporting When reporting an REO, the Servicer must report the foreclosure sale result “REO” in Resolve no later than one Business Day immediately following the date of the foreclosure sale. Refer to Section 9301.9(a). The Servicer must submit to Freddie Mac (see Directory 6) any information Freddie Mac requests from the Mortgage file within 15 Business Days of the date of its request. (Refer to Section 3302.1(c) for Freddie Mac’s record retention requirements for Mortgage files on foreclosed Mortgages.) Additionally, for a Cooperative Unit in REO, the Servicer must submit the information listed in Section 8801.4(d) if requested by Freddie Mac. (c) Notifying the taxing authority/HOA of REO Within five days of successfully reporting the foreclosure sale or deed-in-lieu of foreclosure via Resolve, the Servicer must notify all organizations that require notice of Freddie Mac’s ownership of the property to ensure that statements are sent to the appropriate location. This includes, but is not limited to, the taxing authority, condominium association, municipality, HOA or Cooperative Corporation (see Chapter 8801 for special Servicing requirements for Cooperative Share Loans), and any organization as required by law. When the Servicer contacts these organizations, the Servicer must update the remitter’s name as follows: Federal Home Loan Mortgage Corporation Freddie Mac Single-Family Seller/Servicer Guide Chapter 9603 As of 11/19/25 Page 9603-3 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 Freddie Mac at the address above within five days following the foreclosure sale or the deed-in-lieu of foreclosure date. (d) Property insurance for REO The Servicer must maintain or cancel the existing property insurance policy according to the requirements in this section and Section 8202.6. Additionally, the Servicer must assist in the filing of a property insurance claim, when applicable, according to requirements in Section 9603.1(d)(ii) below. (i) Maintaining or canceling property insurance The Servicer must take all actions required in the mortgage clause of all applicable property insurance policies, including, but not limited to, providing all notices to the insurer required under such clause in order to preserve the coverage and its maximum benefits for the Servicer and/or Freddie Mac as mortgagee. The Servicer must cancel such policies within 14 days after the foreclosure sale or deed-in-lieu of foreclosure has been reported to Freddie Mac, even if there is claimable damage to the property or if the property has sold. (ii) Filing claims A property recovery firm will handle the insurance claim filing process on Freddie Mac’s behalf. The Servicer must provide that firm with the necessary information to file and process the claim within three Business Days of their request for such information. (iii) Obtaining a refund for the unearned insurance premiums After canceling the policy, the Servicer must submit a request for the unearned portion of the insurance premium to the insurance company for any premium that the Servicer paid on behalf of the Borrower, if applicable. The Servicer must offset any refund it receives Freddie Mac Single-Family Seller/Servicer Guide Chapter 9603 As of 11/19/25 Page 9603-4 from the insurance company against expenses the Servicer requests via PAID (Payments Automated Intelligent and Dynamic) (see Exhibit 88). (e) Canceling utilities for REO Once the Servicer has successfully reported the foreclosure sale or deed-in-lieu of foreclosure to Freddie Mac, Freddie Mac or its agent/vendor will transfer the utilities to Freddie Mac. The Servicer can obtain reimbursement for any utility bills it paid that Freddie Mac approved in advance or the Servicer incurred up to the foreclosure sale or deed-in-lieu of foreclosure pursuant to the process for reimbursement of expenses in Section 9603.3(d). 9603.2: Filing FHA/VA/RHS and primary mortgage insurance claims (09/10/25) This section contains requirements related to: ■ FHA/VA/RHS claim filing ■ Primary mortgage insurance claim filing ■ Offers to purchase the property with a pending mortgage insurance claim ■ Receipt of claim payment ■ Reduced, suspended or denied claims ■ Remittance of primary mortgage insurance claim payments (a) FHA/VA/RHS claim filing On a Mortgage that is insured by the FHA or guaranteed by the VA or RHS, the Servicer must process the claim for FHA insurance or VA or RHS guaranty benefits within the agency’s established time frames and according to the agency’s requirements to ensure that the claim recipient receives the maximum claim payment amount. (i) FHA, VA or RHS claim filing for Mortgages subject to a recourse obligation, including indemnification The Servicer must file the claim to ensure that payment is made directly to the Servicer. Because the Servicer is the claim recipient, the Servicer should ensure that it receives the maximum claim payment amount to apply towards any expenses incurred, as Freddie Mac will not reimburse the Servicer for expenses incurred on Mortgages subject to a recourse obligation. (See Section 9701.1(d) on Freddie Mac’s rights.) Freddie Mac Single-Family Seller/Servicer Guide Chapter 9603 As of 11/19/25 Page 9603-5 (ii) FHA, VA or RHS claim filing for Mortgages not subject to a recourse obligation or indemnification The Servicer must file the claim in Freddie Mac’s name to ensure that payment is made directly to Freddie Mac (see Directory 6). Because Freddie Mac is the claim recipient, the Servicer should ensure that Freddie Mac receives the claim payment, in the maximum claim payment amount, before seeking reimbursement for expenses incurred on the Mortgage. (b) Primary mortgage insurance claim filing Freddie Mac will file a claim for loss with the MI if the Mortgage is covered by primary mortgage insurance and will manage the claims payment process with the MI. The Servicer must provide all information and documentation pertaining to the claim to the MI no later than 60 days after the foreclosure sale, short sale or acceptance of a deed-in-lieu of foreclosure or within any shorter time frame as specified by the mortgage insurance master policy or by Freddie Mac. (c) Offers to purchase the property with a pending mortgage insurance claim A Servicer that receives an inquiry or an offer regarding purchase of an REO property must contact its Freddie Mac REO claim specialist (see Directory 6) within one Business Day of receiving the inquiry or offer. (d) Receipt of claim payment If the Servicer receives a claim payment intended for Freddie Mac, whether from the MI or applicable entity (see Section 9603.2(a) on FHA/VA/RHS claim filing and Section 9603.2(b) on primary mortgage insurance claim filing), the Servicer must send the funds to Freddie Mac (see Directory 6) within 10 Business Days after the Servicer receives them. The Servicer must also include all supporting documentation relating to the claim payment received from the MI or applicable entity, including a copy of the claim payment check. However, if the Mortgage insured by the FHA or guaranteed by the VA or RHS is subject to a recourse obligation, including indemnification, the Servicer does not need to send the funds to Freddie Mac. (e) Reduced, suspended or denied claims If the claim payment amount is reduced, suspended or denied by the MI due to the Servicer’s actions or inactions including, but not limited to, failure to comply with the Guide or applicable mortgage insurance requirements, then Freddie Mac may exercise its remedies provided by the Guide and the other Purchase Documents for the amount that is reduced, suspended or denied. Refer to Chapter 3602 regarding repurchases, repurchase alternatives and other remedies. (f) Remittance of primary mortgage insurance claim payments Freddie Mac Single-Family Seller/Servicer Guide Chapter 9603 As of 11/19/25 Page 9603-6 When Freddie Mac receives the claim payment from the MI, Freddie Mac will remit any portion of the proceeds due to the Servicer, less any outstanding amounts due to Freddie Mac from the Servicer.

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