9301.15: Reporting requirements (03/02/16)

© Freddie Mac Single-Family Seller Servicer Guide

The Servicer must notify Freddie Mac via an EDR transmission within the first three Business Days of the month following the month that the Servicer referred the Mortgage to foreclosure. Use a default action code of 43 and provide the date the Mortgage was referred to foreclosure. For additional information on EDR requirements, refer to Section 9102.8.

(a) Monthly foreclosure reporting Once the Servicer has reported that a Mortgage has been referred to foreclosure the Servicer must report a default action code 68 (Date of first legal action) with the corresponding date of the first legal action (as defined in Section 9301.16). The Servicer must continue to report that the Mortgage is in foreclosure in its monthly EDR transmission using a default action code of 43 (Referred to foreclosure) until:

• The Servicer reports the results of a foreclosure sale or the execution of a deed-in-lieu of foreclosure, or
• The Servicer reports that the Mortgage is fully reinstated or paid off, or
• A workout is completed

For additional information on EDR requirements, refer to Section 9102.7.

(b) Responding to and reporting Borrower defenses

(i) Responding to Borrower defenses The Servicer must respond to legal actions brought by the Borrower during the foreclosure. Refer to Chapter 9401for specific requirements for handling bankruptcy and routine litigation and Chapter 9402 for non-routine litigation actions.

(ii) Reporting a bankruptcy filing If the Borrower files bankruptcy during the foreclosure process, the Servicer must report the bankruptcy filing to Freddie Mac. The Servicer must submit this notification via an EDR transmission within the first three Business Days of the month following the month that the bankruptcy was filed. The Servicer must include the date of the filing and the applicable default action code to indicate the bankruptcy chapter number, as shown below.

The Servicer must also notify Freddie Mac when the bankruptcy plan is confirmed by reporting a default action code of 69 (Bankruptcy plan confirmed), and providing the date the plan was confirmed, or in the event of a scheduled Bankruptcy Cramdown, by reporting a default action code of 35 (Bankruptcy Cramdown Scheduled). The Servicer must continue to report each month that the Borrower is in bankruptcy until the bankruptcy is cleared or the stay lifted and the Servicer has reported the event to Freddie Mac. When the bankruptcy is cleared or the stay is lifted, the Servicer must notify Freddie Mac via an EDR transmission within the first three Business days of the month following the month that the action occurred. Use a default action code of 76 (Bankruptcy court clearance obtained/stay lifted) and provide the date that the action occurred. For additional information on EDR requirements refer to Section 9102.7.

(iii) Reporting a contested foreclosure and/or other litigation The Servicer must notify Freddie Mac of a contested foreclosure. The Servicer must also notify Freddie Mac of any pending litigation that affects the enforceability of the Mortgage or the marketability of the property securing the Mortgage. (Refer to Section 9402.2.) The Servicer must submit this notification via an EDR transmission within the first three Business Days of the month following the month in which the Servicer became aware of the contested foreclosure or other litigation. Use a default action code of 33 (Contested foreclosure and litigation) and provide the date that the action occurred. The Servicer must report each month that the foreclosure is being contested or about the other litigation as long as the case is pending. For additional information on EDR requirements, refer to Section 9102.7.

(c) Reporting the scheduled foreclosure sale date The Servicer must notify Freddie Mac via an EDR transmission within the first three Business Days of the month following the month that a foreclosure sale has been scheduled, by reporting a default action code of 71 (Foreclosure sale scheduled) along with the scheduled sale date. When the Servicer reports the scheduled foreclosure sale in its EDR transmission, the Servicer must also indicate that the Mortgage is in foreclosure using a default action code of 43 (Referred to foreclosure). Therefore, the Servicer will be reporting multiple default action codes in the same EDR transmission. For additional information on EDR requirements, refer to Section 9102.7.