New Web Page Available on Selecting and Managing Law Firms to Handle Default-related Legal Services
November 28, 2012
New tools are available to help you navigate the recently announced requirements for selecting and managing law firms to handle default-related legal services associated with Freddie Mac mortgages for all new referrals, effective June 1, 2013. As of today, you can access the new Web page and a new fact sheet for updated information.
We announced the new requirements for selecting and managing law firms to handle default related-legal services associated with Freddie Mac mortgages, outlined in Single-Family Seller/Servicer Guide (Guide) Bulletin 2012-25, on November 9, 2012. Under the requirements, Servicers are solely responsible for selecting and managing law firms with expertise in end-to-end default-related legal services: foreclosure, bankruptcy, REO, and other litigation matters involving mortgages owned or guaranteed by Freddie Mac, for all new referrals on or after June 1, 2013. The new requirements will replace the existing Designated Counsel Program (DCP) as of the effective date. Current DCP law firms must be processed through the new selection and engagement requirements in order to receive referrals after the effective date.
The new Web page contains resources regarding the new requirements, including:
- Training opportunities.
- A new fact sheet.
- Frequently asked questions for both Servicers and law firms.
- Links to the current DCP law firms, which remain in effect until June 1, 2013.
Servicers must be proactive in selecting and engaging law firms prior to June 1, 2013, to be able to refer Freddie Mac Default Legal Matters by the effective date. You should regularly check for updates to the Web page regarding the new requirements. Servicers may begin submitting completed Guide Exhibit 99, Servicer Selection Form, to Freddie Mac for review starting March 1, 2013.
We encourage you to enroll in our new customer Web training, Bulletin 2012-25, Servicer Selection and Management of Law Firms, through Freddie Mac's Learning Center.
Law firm training, which is mandatory, will be available beginning April 15, 2013. More information about this training will be provided in future communications.
- Read Guide Bulletin 2012-25.
- Contact your Freddie Mac representative.
- Call 800-FREDDIE.