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New Default-Related Legal Services Requirements Are Now in Effect

August 1, 2013

New requirements and procedures for selecting and managing law firms handling bankruptcies and default-related legal services for Freddie Mac-owned or guaranteed mortgages (Freddie Mac Default Legal Matters) are now in effect: 

  • Servicers are solely responsible for selecting and managing law firms with expertise in end-to-end default-related legal services: foreclosure, bankruptcy, loss mitigation (e.g., deed-in-lieu of foreclosure), default-related litigation, and real estate owned (REO)-related legal services for all new referrals.  
  • The new requirements, outlined in Single-Family Seller/Servicer Guide (Guide) Bulletin 2012-25 and announced on November 9, 2012, are now mandatory for all new referrals to Default-Related Legal firms.

The following requirements remain in effect for Servicers:

  • The foreclosure sale bidding requirements announced in Guide Bulletin 2013-6 for all foreclosure sales.
  • Obligations to initiate foreclosure as required by Guide Section 66.9.1.
  • Attorney fee reimbursement limits announced in Guide Bulletin 2013-6 for all reimbursement claims.

Legacy Matters

Servicers who elect to leave Legacy Matters at law firms which they did not select and engage in accordance with the new requirements must comply with the requirements of Guide Chapter A69, Retention of Counsel for Freddie Mac Default Legal Matters Referred Prior to August 1, 2013.

Improved Default-Related Legal Services Web Page

We've updated our Default-Related Legal Services Web page with easier navigation and quicker access to topic-specific information for Servicers and law firms.


Servicers are encouraged to enroll in our customer Web training, Guide Bulletin 2012-25: Servicer Selection and Management of Law Firms through Freddie Mac’s Learning Center.

Additionally, you may access the new law firm tutorials that law firms must complete and view the Limited Retention Agreement we send to law firms on our Default-Related Legal Services Web page. Your Servicing Applications ID and password are required.

More Information

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