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Default-Related Legal Services

Important Update:

New Reporting Requirements for Law Firms

Effective March 17, 2014, there will be new reporting requirements for all law firms providing Default Related Legal Services (DRLS) to Freddie Mac.

Law firms must report additional litigation detail when a Litigation Hold is selected in the Attorney Data Reporting (ADR) system, including the dates and status of the litigation, whether Freddie Mac is a named plaintiff or defendant, and if the litigation involves certain litigation claims.

As a reminder, Freddie Mac’s Single-Family Seller/Servicer Guide (Guide) sections 69.10 and 67.18 require Servicers to ensure that law firms report required data directly via the ADR website hosted by Quandis.

Servicers Overview

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. This web page provides information and links to access:  materials, resources, and training.

Servicer Requirements

Servicer requirements and procedures are now in effect for law firms providing default-related legal services for Default Legal Matters (bankruptcies, foreclosures, loss mitigation and related litigation involving mortgages owned or guaranteed by Freddie Mac).

The new requirements were outlined in Single-Family Seller/Servicer Guide (Guide) Bulletin 2012-25 and announced on November 9, 2012, and Guide Bulletin 2013-9 announced on May 28, 2013.

The following requirements remain in effect for Servicers:
  • The foreclosure sale bidding requirements announced in Guide Bulletin 2013-6.
  • Obligations to initiate foreclosure as required by Guide Section 66.9.1.
  • Attorney fee reimbursement limits announced in Guide Bulletin 2013-6.

Selecting and Engaging Law Firms

  • Servicers must select and engage law firms that meet Freddie Mac’s minimum requirements as outlined in Guide Chapter 69.
  • Please use the Servicer Attorney Tracking System (SATS) website to submit required information regarding the law firms you select to handle Freddie Mac default-related legal services.
  • Servicer Attorney Tracking System (SATS):
    • Servicers are required to submit information on law firms they have selected to Freddie Mac online via SATS, hosted by Freddie Mac’s software vendor Quandis.
    • SATS requires one of the following browsers or browser plugins:
      • Windows® Internet Explorer 8 or later
      • Windows Internet Explorer 6 or 7 with the Google Chrome Frame plugin
      • Google Chrome
        If you experience difficulties installing a compatible browser or plugin, please contact your IT department. If you need further assistance, please contact Quandis support at 949-525-9000, extension 2, or email sats.support@quandis.com.
    • To access SATS, Servicers must complete an online self-registration on the SATS website and create at least one individual user. Servicers will submit a Servicer Selection Form with information about the law firm. Registered Servicers can track each submission’s status during the Freddie Mac review process, as well as respond to our potential requests for additional information via the SATS system. Detailed instructions on SATS and how to register have been posted in the Resources section below.
  • Following receipt of a “no objection” response from Freddie Mac for a submitted law firm, the Servicer will need to enter into a contract with the law firm, if a contract does not already exist.
  • Freddie Mac will send the law firm a Limited Retention Agreement (“LRA”). When the law firm signs and returns the LRA to Freddie Mac, it will receive an automated email from Freddie Mac providing the firm identification number and links to mandatory new law firm training.
  • Firms are required to complete training for each jurisdiction in which they are retained prior to providing default-related legal services for new referrals of Freddie Mac mortgages. After the law firm has completed the training, Freddie Mac will countersign the LRA, and the firm will be eligible for referrals.

Managing and Oversight of Law Firms

  • Servicers are responsible for monitoring and managing all aspects of the law firm’s performance and the firm’s compliance with applicable Freddie Mac requirements.

Suspension and Termination of Law Firms

  • Servicers must perform a due diligence review and take action if issues arise that could lead the Servicer to terminate, suspend, or transfer files from a law firm.

Training

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.

Servicers also may access the mandatory law firm training. The training portal requires your Servicing Applications ID and password to access secured resources. Law firms will receive information on how to access law firm training when they have signed the LRA with Freddie Mac.

Resources

Publications

  • August 1, 2013, Single-Family News Center article.
  • May 28, 2013 Single-Family News Center article.
  • May 2, 2013 Single-Family News Center article.
  • April 15, 2013 Single-Family News Center article.
  • March 1, 2013 Single-Family News Center article.
  • February 15, 2013 Single-Family News Center article.
  • January 30, 2013 Single-Family News Center article.
  • November 9, 2012 Single-Family News Center article.

Servicer Links

Access the Limited Retention Agreement

Access the Law Firm Operational Requirements

Access the Law Firm Training Tutorials

Access the Default-Related Legal Services Reference Guide

Important Updates:

January 31, 2014 – New Servicer Requirements for Default Legal Matters

In Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-1, we provided additional Servicer requirements and guidance for expediting Freddie Mac Default Legal Matters, including:

  • Servicers can use their discretion, without obtaining Freddie Mac’s prior approval, to extend foreclosure sale dates to resolve litigation or expedite final judgment for foreclosure.
  • Updated reimbursement requirements for Servicers who opt to pay a relocation incentive to borrowers in Illinois who consent to judgment.

Please contact Servicers directly for information on these updates and how the requirements may impact your law firm.

New Reporting Requirements for Law Firms

Effective March 17, 2014, there will be new reporting requirements for all law firms providing Default Related Legal Services (DRLS) to Freddie Mac.

Law firms must report additional data when a Litigation Hold is selected in the Attorney Data Reporting (ADR) system, including the status in the litigation, including whether Freddie Mac is a named plaintiff or defendant, and whether the litigation involves certain litigation claims.

All reporting must be done within the ADR website hosted by Quandis, where you may access the new Adding Litigation Detail User’s Guide, which offers step-by-step instruction on how to enter and complete this update.  If you have any questions regarding reporting requirements, please refer to your firm’s Limited Retention Agreement (LRA).

For other questions, please see the Contacts and Resources sections listed below.

Law Firms Overview

Welcome to all law firms onboarded to handle default-related legal services for Default Legal Matters (bankruptcies, foreclosures, loss mitigation and related litigation involving Freddie Mac owned or guaranteed mortgages).  This Web page provides information related to Freddie Mac default-related legal services and links to access: accounts, materials, and training.

All law firms must first be onboarded by Freddie Mac before being allowed access to secured materials.

Law Firm Selection and Onboarding Process

  • Freddie Mac Servicers are responsible for selecting and managing law firms handling Freddie Mac Default Legal Matters.
  • Following receipt of a “no objection” response from Freddie Mac for a submitted law firm, the Servicer will need to enter into a contract with the law firm, if a contract does not already exist.
  • Freddie Mac will send the law firm a Limited Retention Agreement (“LRA”). When the law firm signs and returns the LRA to Freddie Mac, it will receive an automated email from Freddie Mac providing the firm identification number and links to mandatory new law firm training.
  • Firms are required to complete training for each jurisdiction in which they are retained prior to providing default-related legal services for new referrals of Freddie Mac mortgages. After the law firm has completed the training, Freddie Mac will countersign the LRA, and the firm will be eligible for referrals.
  • Selected law firms will generally receive referrals directly from a Freddie Mac Servicer. Foreclosure proceedings will generally be conducted in the name of the Servicer on behalf of Freddie Mac.  
  • When foreclosure proceedings are conducted on Freddie Mac’s behalf, your law firm will represent both Freddie Mac and the Servicer, subject to the terms of the LRA.

Training

Training is mandatory for law firms. Law firms will receive information on how to access law firm training when they have signed and returned the LRA to Freddie Mac.

Law firms with ADR log-in information may revisit the law firm-training modules at any time on the ADR website.

Additionally, any future updates to the training, or additional training, will be available through links available at this site.

Please note: when you log onto the ADR website, please select the Support section to view training videos and law firm operational requirements.

Attorney Data Reporting System

Selected law firms will use the Attorney Data Reporting (ADR) system hosted by Quandis. The Servicer is responsible for ensuring that the law firm timely reports information on all Freddie Mac files the law firm manages using the ADR system.

When a law firm has received it’s fully executed LRA, Quandis will assist with access and setup.

ADR requires one of the following browsers or browser plugins:

  • Windows® Internet Explorer 8 or later
  • Firefox Version 17 or later
  • Google Chrome Version 25 or later
  • Safari Version 5 or later

If you experience difficulties installing a compatible browser or plugin, please contact your IT help desk. If you need further assistance, please contact Quandis support at 949-525-9000, ext. 2 or adr.support@quandis.com.

Resources

Contact

For other DRLS inquiries or reporting, you may reach us via the following topic-specific email accounts:

Law firms handling real-estate owned ("REO"), eviction or bankruptcy matters may reach Freddie Mac via these topic-specific email accounts:

Please select only one email account to send an inquiry or report. If you have selected the wrong email account, we will ensure your email is directed to the appropriate mailbox.

Law Firms Links

  • Limited Retention Agreement (LRA)
    Law firms with existing accounts can access the LRA for law firms by visiting the ADR website.
  • Law Firm Operational Requirements
    Law firms with existing accounts can access the Operational Requirements for law firms by visiting the ADR website.
  • Default-Related Legal Services Reference Guide
    Law firms with existing accounts can access the Default-Related Legal Services Reference Guide by visiting the ADR website.

Legacy Matters Overview

Legacy Matters include all Freddie Mac Default Legal Matters (bankruptcies, foreclosures, loss mitigation and related litigation involving Freddie Mac owned or guaranteed mortgages) referred to a law firm or trustee prior to August 1, 2013.

Requirements for Handling Legacy Matters

The Single-Family Seller/Servicer Guide(Guide) Bulletins 2012-25 and 2013-9 announced new requirements for handling bankruptcies and Default Legal Matters effective August 1, 2013.

Freddie Mac will continue to manage any Legacy Matters (referrals of Default Legal Matters sent to law firms or trustees prior to August 1) in accordance with the requirements of Guide Chapter A69, Retention of Counsel for Freddie Mac Default Legal Matters Referred Prior to August 1.

Contact

Contact your Freddie Mac Servicer if you have specific questions related to Legacy Matters.

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