Guide Bulletin 2013-9 announces extension to mandatory adoption date for certain Servicer law firm selection and retention requirements
May 28, 2013
Single-Family Seller/Servicing Guide (Guide) Bulletin 2013-9 announces an extension of the mandatory adoption date to August 1, 2013, for certain Freddie Mac Default-Related Legal Services requirements, which were announced in Guide Bulletin 2012-25. Freddie Mac is working to ensure Servicers have adequate time to comply. Please follow the instructions below for meeting the adoption requirements:
For Servicers who submitted Servicer Selection Forms and have firms eligible to receive referrals according to Guide Chapter 69, Selection, Retention and Management of Law Firms for Freddie Mac Default Legal Matters:
Thank you. You may send referrals related to Freddie Mac Default-Related Legal Services to those eligible firms beginning June 1, 2013.
For Servicers with selected law firms that have not yet been determined to be eligible to receive referrals per Guide Chapter 69 requirements:
Based on Servicer feedback, the mandatory adoption of selection and retention requirements in Guide Chapter 69, has been extended until August 1, 2013. You may still refer Freddie Mac Default-Related Legal Services to those selected law firms from June 1, 2013, through July 31, 2013, but you must follow Guide Chapter A69, now retitled Retention of Counsel for Freddie Mac Default Legal Matters Referred Prior to August 1, 2013.
- Whether you refer to matters under Guide Chapter 69 or Guide Chapter A69, the requirements of Guide Sections 69.10 through 69.14 apply to all referrals on or after June 1, 2013.
Servicers should submit Servicer Selection Forms by June 15, 2013, so all other requirements for law firm eligibility can be met by the new mandatory adoption date of August 1, 2013.
Submit Servicer Selection Forms through SATS
Please use the Servicer Attorney Tracking System (SATS) website to complete and submit required information regarding the law firms you select to handle Freddie Mac Default-Related Legal Services.
Referring loans to foreclosure counsel
The extension of the mandatory adoption date for the new requirements related to law firm selection and retention does not impact your obligation to initiate foreclosure as required by the Guide. As a reminder, the requirements in Guide Section 66.9.1 remain in effect.
Foreclosure bidding requirements
The foreclosure sale bidding requirements announced in Guide Bulletin 2013-6 remain in effect for all foreclosure sales occurring on or after June 1, 2013.
Attorney fee reimbursement limits
Attorney fee reimbursement limits announced in Guide Bulletin 2013-6 remain in effect for all reimbursement claims submitted on or after June 1, 2013.
Please consider enrolling in our customer Web training, Guide Bulletin 2012-25: Servicer Selection and Management of Law Firms available through Freddie Mac's Learning Center.
You also may access the tutorials law firms are required to complete and view the Limited Retention Agreement we will send to law firms on our Default-Related Legal Services Web page using your Servicing Applications ID and password.