Freddie Mac Single-Family Seller/Servicer Guide 9601.1 — Deficiency recovery and management

Freddie Mac Single-Family Seller/Servicer Guide 9601.1 — Deficiency recovery and management

Effective 2025-09-10 · Freddie Mac's stamp for this section

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 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.

Source: Freddie Mac Single-Family Seller/Servicer Guide 9601.1 — Deficiency recovery and management · source URL · snapshot 4c94f67729042dd6