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Servicers Required to Take Action Based on Termination of DRLS Law Firms

August 12, 2014

Effective today, Freddie Mac has terminated our relationships with the following law firms providing default-related legal services (DRLS) for Freddie Mac Default Legal Matters.

Terminated Law Firms by State

FirmState
Connolly, Geaney, Ablitt & Willard, P.C. Massachusetts
New Hampshire
Rhode Island
Florida
Puerto Rico
The Castle Law Group, LLC Utah
New Mexico
Nevada
Arizona
Wyoming

Freddie Mac Servicers May No Longer Refer Any Default Legal Matters to These Firms.

If you have existing Freddie Mac Default Legal Matters at these law firms, please take immediate steps to secure and transfer them to new law firm (s).  Please note that any new firm receiving transferred files must have received a "No Objection" letter from Freddie Mac as a part of the law firm selection process.

Next Steps and Requirements

You are required to transfer all files on or before October 12, 2014. When moving the files to a new law firm, please:

  • Bill only one attorney fee to Freddie Mac. We won't reimburse extra attorney fees based on Servicers' file transfers.
  • Make sure the one allowable attorney fee is equal to or less than the amount posted in Guide Exhibit 57A, Approved Attorney Fees and Title Expenses, plus any additional fees approved through the request for pre-approval (RPA).
  • Submit reimbursement requests no later than November 12, 2014. Please keep in mind:
    • Freddie Mac will reimburse you up to $250 per file for transfer fees in connection with files transferred between today and October 12, 2014.
    • We will provide a 60-day foreclosure timeline compensatory fee allowance on loans transferred from these law firms between today and October 12, 2014.
    • Additional fees or costs associated with each file transfer cannot be passed on to Freddie Mac, the borrower, or the new law firm.

Once you've determined which new law firm (s) will receive the transferred files, please send your comprehensive transferred files list to Freddie Mac at FBBU@freddiemac.com.  Include the following:

  • Freddie Mac loan number
  • Servicer loan number
  • Date of transfer
  • Original law firm name
  • New law firm name

We need to receive this information so we can update our law firm reporting system and enable new firms to report on the transferred files. We also need it in order to reimburse you for any transfer fees.

Reminder

Servicers are responsible for managing and monitoring all aspects of law firm performance and providing necessary assistance to law firms, relating to Freddie Mac default-related legal services.

Please work with the new law firm (s) to prioritize all Freddie Mac Default Legal Matters requiring immediate action. Instruct the new law firm (s) to manage an orderly review and transfer of the files, and provide additional information as needed. 

Get More Information

  • Refer to Single-Family Seller/Servicer Guide (Guide) Chapter 69, Selection, Retention and Management of Law Firms for Freddie Mac Default Legal Matters.
  • View our Default-Related Legal Services Web page for detailed information for Servicers, law firms, and Legacy Matters.
  • Contact your Freddie Mac representative.
  • Call 800-FREDDIE.

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