8101.6: Error resolution procedures related to the Servicing of a Mortgage (03/02/16)

© Freddie Mac Single-Family Seller Servicer Guide

Servicers must comply with the requirements set forth in this section in resolving errors asserted by a Borrower or Borrower's representative relating to the Servicing of a Mortgage.

Servicers must refer to Chapter 9101 for additional requirements pertaining to a Borrower's right to appeal a denial of a Trial Period Plan based on the Servicer's review of the First Complete Borrower Response Package.

The Servicer must have written policies and procedures to ensure that it reviews and responds to any written request received from a Borrower asserting an error relating to the Servicing of the Mortgage, provided the Borrower's written request includes:

• The Borrower's name
• Information that enables the Servicer to identify the Borrower's Mortgage file; and
• The error the Borrower believes has occurred

At a minimum, the Servicer must:

• Have a sufficient number of adequately trained staff to be able to track and respond to any written notice received from a Borrower asserting an error in accordance with the requirements of this section
• Maintain policies and procedures that are reasonably designed to ensure that the Servicer investigates, responds to and makes corrections in response to complaints asserted by Borrowers
• Conduct reasonable investigations and respond to a Borrower with either:
  • A written notification of the correction, the effective date of the correction and Servicer contact information, including a telephone number for further assistance; or
  • A statement that the Servicer has determined that no error occurred, the reasons for the Servicer's determination, a statement of the Borrower's right to request the documents the Servicer used to reach its decision, information on how the Borrower may request those documents, and contact information, including a telephone number
• Respond to the Borrower's notice of error within the time limits set forth under applicable law
• Regularly review and assess the adequacy of its internal controls and procedures used in connection with Servicing of Freddie Mac Mortgages to ensure compliance with the Guide and other Purchase Documents and applicable law
• Take remedial steps, as appropriate, if any deficiencies are identified as a result of its review of internal controls and processes, or if issues are identified from a review of a Borrower's notification asserting an error. The Servicer must formally document the results of such reviews and make the results available to Freddie Mac upon request.

The Servicer must maintain in the Mortgage file documentation of all communication regarding any case for which the Servicer has received written notification from a Borrower asserting an error, and provide such files or aggregated information to Freddie Mac for review upon request.