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Default-Related Legal Services


Important Reminder

June 2, 2015 – Please Remind Your DRLS Law Firms to Protect and Secure All DRLS-Related Information.

Please keep in mind that Servicers are responsible for ensuring that law firms performing DRLS for Freddie Mac protect and secure personally identifiable and confidential information, whether in paper, electronic or other forms. Please check with your DRLS law firms to ensure that they are following these steps, which we’ve posted under the Law Firms tab on this Web page.

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 66.6.1.
  • 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:
      • Windows® Internet Explorer 9 or later
      • Google Chrome® version 26 or later
      • Firefox® version 26 or later

        Please note that Microsoft has discontinued support for Internet Explorer versions prior to IE9 and Google has discontinued support for the Chrome Frame plugin that allowed Internet Explorer 6, 7 and 8 to be fully compatible with SATS. Users of these products may still be able to access SATS but Freddie Mac can no longer guarantee them to be SATS compatible. Users should upgrade their browser to one of the supported browsers.

        If you experience difficulties installing a compatible browser, 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 participate in our tutorial, Servicing Alignment Initiative: Servicer Selection and Management of Law Firms, available 24/7 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.

Servicer Links

You will need your Servicing Applications ID and password to access the following secured resources


Important Reminder

June 2, 2015 – Stay Vigilant about Protecting and Securing All DRLS-Related Information.

Reminder: law firms performing Default-Related Legal Services (DRLS) for Freddie Mac must maintain effective processes and controls for the security and confidentiality of personally identifiable information (PII), including but not limited to:

  • Ensure the security and confidentiality of PII and confidential information, whether in paper, electronic or other form;
  • Protect against any threats or hazards to the security or integrity of such information; and
  • Protect against unauthorized access to or use of such information. 

Please see Single-Family Seller/Servicer Guide Chapter 69.3. 

DRLS law firms should also:

  • Ensure that your firm has comprehensive, multi-faceted PC security software that protects Freddie Mac related information from viruses, spyware, adware, hackers, unwanted emails, phishing scams, and identity theft.
  • Encrypt sensitive information that you send to third parties over the Internet or store on portable storage devices or disks used by your employees on public networks (like the Internet), and consider encrypting sensitive information that is stored on your computer network, or on disks or portable storage devices used by your employees.  We recommend that you also encrypt email transmissions within your business if they contain PII.
  • Remove PII and other confidential information from documents prior to posting or circulating information.
  • Use appropriate methods to prepare and redact documents containing PII and other confidential information to ensure all redactions are impenetrable.  Never use an original document to redact.  Redact a copy and keep the original in a secure location.
    • Use redaction software, such as Adobe Acrobat Pro, and make sure to follow the directions completely before finalizing and sending to the courts.
    • Cut-out (literally) all the text to be redacted and properly dispose of (e.g. shred) the clippings.
    • Use opaque (100% impenetrable by light; neither transparent nor translucent) tape or paper to cover sections to be redacted.

Law Firms Overview

Welcome to 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:

  • Windows® Internet Explorer Versions 9 and 10 
  • Firefox Version 17 or later
  • Google Chrome Version 25 or later
  • Safari Version 5 or later

If you experience difficulties installing a compatible browser, 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

Law firms with existing accounts can access the ADR website.

  • Limited Retention Agreement (LRA)
  • Law Firm Operational Requirements
  • ADR Quick Reference Guide (new as of November 2014) .
  • Default-Related Legal Services Reference Guide

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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