Freddie Mac Single-Family Seller/Servicer Guide 9402.2 — Litigation reporting, notification and legal representation

This section contains information related to: ■ Reporting and notification requirements for litigation ■ Counsel retained by Servicers pursuant to Servicer’s duty to indemnify Freddie Mac Freddie Mac Single-Family Seller/Service Guide (a) Reporting and notification requirements for litigation (i) EDR requirements The Servicer must monitor all Freddie Mac Default Legal Matters and act without delay and in accordance with applicable law when responding to any litigation matter. If litigation involves a Mortgage that is 30 or more days delinquent, the Servicer must report the litigation matter to Freddie Mac via EDR within the first three Business Days of the month following the month in which the Servicer became aware of the litigation using default action code 33 (Contested Foreclosure and Litigation). (ii) Legal reporting requirements for non-routine litigation

(A) Notifying Freddie Mac of non-routine litigation The Servicer must act without delay and notify Freddie Mac within two Business Days of determining that the Freddie Mac Default Legal Matter involves or evolves into non-routine litigation. All notifications must be sent via e-mail (see Directory 5). If the Servicer retains counsel not selected and engaged pursuant to Chapter 9501 to handle the non-routine litigation matter (see Sections 8601.5(g) and 9402.2(b)), the notification to Freddie Mac must include the name, address, phone number and email address of the Servicer’s counsel and a brief summary, including but not limited to: ■ The issues presented, ■ The Freddie Mac loan number, ■ The docket number, ■ The case caption and court, and ■ Any relevant pleadings Once Freddie Mac has been notified accordingly, the Servicer and the law firm(s) handling the non-routine litigation matter must periodically update Freddie Mac on the progress of the litigation. Freddie Mac must be provided sufficient opportunity, but no less than five Business Days before the filing deadline, to review and comment upon any substantive pleadings, including, but not limited to: ■ Motions, ■ Replies, ■ Briefs, and Freddie Mac Single-Family Seller/Service Guide ■ ■ Proposed orders

(B) Notification of a modification of a Mortgage subject to active non-routine litigation If the Mortgage is subject to active non-routine litigation, and the Servicer determines the Borrower is eligible for a Freddie Mac Flex Modification®, the Servicer must: ■ Conduct a review through its in-house or outside counsel to determine that it is appropriate to send the Trial Period Plan offer per applicable laws ■ Ensure that any active litigation and settlement negotiations by Servicer’s counsel are not undermined and that Freddie Mac’s interests are not adversely impacted If it is deemed appropriate to send based upon the aforementioned review, the Servicer or the Servicer’s counsel must send the Trial Period Plan offer to an eligible Borrower’s counsel or, if not represented, to the Borrower directly when that Borrower’s Mortgage is subject to active non-routine litigation. (iii)Legal expenses for non-routine litigation The Servicer must obtain Freddie Mac’s prior written approval before incurring any expenses in the Servicing of a non-routine litigation matter. To obtain Freddie Mac’s approval, the Servicer must: ■ Contact Freddie Mac with details of the non-routine litigation matter (see Directory 5) according to the reporting requirements in Section 9402.2(a)(ii) ■ Submit a request for pre-approval (RPA) in PAID (Payments Automated Intelligent and Dynamic) (see Exhibit 88, Servicing Tools) for all non-routine litigation legal expenses that are reimbursable to the Servicer. The RPA submission must include an estimate of the attorney’s fees and litigation costs and the attorney’s hourly rate. When a delay in taking protective action might result in the impairment of the property or jeopardize Freddie Mac’s lien position, the Servicer must immediately submit an RPA. If unusual or emergency circumstances do not allow the Servicer to request Freddie Mac’s prior written approval, then the Servicer must notify Freddie Mac via PAID by the next Business Day after the Servicer incurred the expense. If the Servicer’s determination to incur the expense was reasonable, as determined in Freddie Mac’s sole discretion, Freddie Mac will reimburse the Servicer. (b) Counsel retained by Servicers pursuant to Servicer’s duty to indemnify Freddie Mac (i) Servicer responsibilities for retaining counsel in litigation Freddie Mac Single-Family Seller/Service Guide From time to time, the Servicer may retain counsel to represent Freddie Mac and/or the Servicer in litigation involving allegations that, if true, could subject the Servicer to liability to Freddie Mac for a failure to comply with any selling or Servicing representation or warranty or requirement of the Guide or other Purchase Documents. In these cases: ■ When the Servicer retains counsel for this purpose, the Servicer remains liable for legal fees and costs incurred in the defense of any litigation, as well as any and all losses, judgments, damages and expenses, including fees and costs entered against and incurred on behalf of Freddie Mac ■ Freddie Mac will reimburse the Servicer for Freddie Mac’s proportionate share of expenses for responding to Borrower defenses (ii) Counsel selection and notification requirements Counsel retained and paid by Servicers pursuant to Section 9402.1(b) and this section do not need to be selected and engaged pursuant to Chapter 9501. For all other Freddie Mac Default Legal Matters, the Servicer must use counsel selected and engaged pursuant to Chapter 9501. Servicers must notify Freddie Mac (see Directory 5) of its retention of counsel not selected and engaged pursuant to Chapter 9501 and are required to comply with the reporting requirements in Section 9402.2(a)(ii). (iii)Litigation management and transitioning legal matters The Servicer must ensure that the law firm to which the Freddie Mac Default Legal Matter was originally referred is updated on the current status of the litigation either by the Servicer or its new counsel. Unless the entire legal matter or action is resolved, the Servicer is responsible for transitioning the Freddie Mac Default Legal Matter back to the law firm for further proceedings. This transition must occur no later than one Business Day after the resolution of the litigation matter. (iv) Borrower responsibility for legal fees When the Security Instrument provides for the Borrower to reimburse the Servicer for any legal fees and costs incurred, the Servicer should: ■ Instruct its counsel to notify the Borrower about his or her responsibility for such expenses ■ Ensure its counsel resolve such matters through stipulation or any other expeditious manner that will minimize fees and costs to the Borrower Freddie Mac Single-Family Seller/Service Guide

Refer to Bulletins 2026-G and 2026-11, which announced updates related to Freddie Mac’s new event-based default related reporting requirements. Beginning November 16, 2026, Servicers may implement the new requirements if they are operationally ready to do so. If a Servicer adopts the new event-based default related reporting standards before the mandatory effective date of September 27, 2027, it must comply with the associated Guide requirements that will be effective on September 27, 2027 and, upon such adoption, must discontinue monthly EDR reporting. This section contains information related to: ■ Reporting and notification requirements for litigation ■ Counsel retained by Servicers pursuant to Servicer’s duty to indemnify Freddie Mac (a) Reporting and notification requirements for litigation (i) EDR requirements The Servicer must monitor all Freddie Mac Default Legal Matters and act without delay and in accordance with applicable law when responding to any litigation matter. If litigation involves a Mortgage that is 30 or more days delinquent, the Servicer must report the litigation matter to Freddie Mac via EDR within the first three Business Days of the month following the month in which the Servicer became aware of the litigation using default action code 33 (Contested Foreclosure and Litigation). (ii) Legal reporting requirements for non-routine litigation

(A) Notifying Freddie Mac of non-routine litigation The Servicer must act without delay and notify Freddie Mac within two Business Days of determining that the Freddie Mac Default Legal Matter involves or evolves into non-routine litigation. All notifications must be sent via e-mail (see Directory 5). If the Servicer retains counsel not selected and engaged pursuant to Chapter 9501 to handle the non-routine litigation matter (see Sections 8601.5(g) and 9402.2(b)), the notification to Freddie Mac must include the name, address, phone number and email address of the Servicer’s counsel and a brief summary, including but not limited to: ■ The issues presented, Freddie Mac Single-Family Seller/Service Guide ■ The Freddie Mac loan number, ■ The docket number, ■ The case caption and court, and ■ Any relevant pleadings Once Freddie Mac has been notified accordingly, the Servicer and the law firm(s) handling the non-routine litigation matter must periodically update Freddie Mac on the progress of the litigation. Freddie Mac must be provided sufficient opportunity, but no less than five Business Days before the filing deadline, to review and comment upon any substantive pleadings, including, but not limited to: ■ Motions, ■ Replies, ■ Briefs, and ■ Proposed orders

(B) Notification of a modification of a Mortgage subject to active non-routine litigation If the Mortgage is subject to active non-routine litigation, and the Servicer determines the Borrower is eligible for a Freddie Mac Flex Modification®, the Servicer must: ■ Conduct a review through its in-house or outside counsel to determine that it is appropriate to send the Trial Period Plan offer per applicable laws ■ Ensure that any active litigation and settlement negotiations by Servicer’s counsel are not undermined and that Freddie Mac’s interests are not adversely impacted If it is deemed appropriate to send based upon the aforementioned review, the Servicer or the Servicer’s counsel must send the Trial Period Plan offer to an eligible Borrower’s counsel or, if not represented, to the Borrower directly when that Borrower’s Mortgage is subject to active non-routine litigation. (iii)Legal expenses for non-routine litigation The Servicer must obtain Freddie Mac’s prior written approval before incurring any expenses in the Servicing of a non-routine litigation matter. To obtain Freddie Mac’s approval, the Servicer must: Freddie Mac Single-Family Seller/Service Guide ■ Contact Freddie Mac with details of the non-routine litigation matter (see Directory 5) according to the reporting requirements in Section 9402.2(a)(ii) ■ Submit a request for pre-approval (RPA) in PAID (Payments Automated Intelligent and Dynamic) (see Exhibit 88, Servicing Tools) for all non-routine litigation legal expenses that are reimbursable to the Servicer. The RPA submission must include an estimate of the attorney’s fees and litigation costs and the attorney’s hourly rate. When a delay in taking protective action might result in the impairment of the property or jeopardize Freddie Mac’s lien position, the Servicer must immediately submit an RPA. If unusual or emergency circumstances do not allow the Servicer to request Freddie Mac’s prior written approval, then the Servicer must notify Freddie Mac via PAID by the next Business Day after the Servicer incurred the expense. If the Servicer’s determination to incur the expense was reasonable, as determined in Freddie Mac’s sole discretion, Freddie Mac will reimburse the Servicer. (b) Counsel retained by Servicers pursuant to Servicer’s duty to indemnify Freddie Mac (i) Servicer responsibilities for retaining counsel in litigation From time to time, the Servicer may retain counsel to represent Freddie Mac and/or the Servicer in litigation involving allegations that, if true, could subject the Servicer to liability to Freddie Mac for a failure to comply with any selling or Servicing representation or warranty or requirement of the Guide or other Purchase Documents. In these cases: ■ When the Servicer retains counsel for this purpose, the Servicer remains liable for legal fees and costs incurred in the defense of any litigation, as well as any and all losses, judgments, damages and expenses, including fees and costs entered against and incurred on behalf of Freddie Mac ■ Freddie Mac will reimburse the Servicer for Freddie Mac’s proportionate share of expenses for responding to Borrower defenses (ii) Counsel selection and notification requirements Counsel retained and paid by Servicers pursuant to Section 9402.1(b) and this section do not need to be selected and engaged pursuant to Chapter 9501. For all other Freddie Mac Default Legal Matters, the Servicer must use counsel selected and engaged pursuant to Chapter 9501. Servicers must notify Freddie Mac (see Directory 5) of its retention of counsel not selected and engaged pursuant to Chapter 9501 and are required to comply with the reporting requirements in Section 9402.2(a)(ii). (iii)Litigation management and transitioning legal matters Freddie Mac Single-Family Seller/Service Guide The Servicer must ensure that the law firm to which the Freddie Mac Default Legal Matter was originally referred is updated on the current status of the litigation either by the Servicer or its new counsel. Unless the entire legal matter or action is resolved, the Servicer is responsible for transitioning the Freddie Mac Default Legal Matter back to the law firm for further proceedings. This transition must occur no later than one Business Day after the resolution of the litigation matter. (iv) Borrower responsibility for legal fees When the Security Instrument provides for the Borrower to reimburse the Servicer for any legal fees and costs incurred, the Servicer should: ■ Instruct its counsel to notify the Borrower about his or her responsibility for such expenses ■ Ensure its counsel resolve such matters through stipulation or any other expeditious manner that will minimize fees and costs to the Borrower

■ Reporting and notification requirements for litigation ■ Counsel retained by Servicers pursuant to Servicer’s duty to indemnify Freddie Mac (a) Reporting and notification requirements for litigation (i) Default related reporting events The Servicer must monitor all Freddie Mac Default Legal Matters and act without delay and in accordance with applicable law when responding to any litigation matter. To notify Freddie Mac of litigation involving a Mortgage, the Servicer must report the Litigation default related reporting event in accordance with Section 9102.6 and Exhibit 82, Default Reporting Dataset Guidelines. Note: If the Mortgage was previously referred to foreclosure, the litigation will delay the foreclosure proceeding, then the Servicer must also report the Foreclosure – Hold default related reporting event, identifying the foreclosure delay category type as “Routine Litigation or Non-Routine Litigation, as applicable”, in accordance with Section 9102.6 and Exhibit 82. Freddie Mac Single-Family Seller/Service Guide (ii) Legal reporting requirements for non-routine litigation

(A) Notifying Freddie Mac of non-routine litigation (regardless of delinquency) The Servicer must act without delay and, in addition to reporting the Litigation default related reporting event as set forth above, notify Freddie Mac within two Business Days of determining that the Freddie Mac Default Legal Matter involves or evolves into non-routine litigation. All notifications must be sent via e-mail (see Directory 5). If the Servicer retains counsel not selected and engaged pursuant to Chapter 9501 to handle the non-routine litigation matter (see Sections 8601.5(g) and 9402.2(b)), the notification to Freddie Mac must include the name, address, phone number and email address of the Servicer’s counsel and a brief summary, including but not limited to: ■ The issues presented, ■ The Freddie Mac loan number, ■ The docket number, ■ The case caption and court, and ■ Any relevant pleadings Once Freddie Mac has been notified accordingly, the Servicer and the law firm(s) handling the non-routine litigation matter must periodically update Freddie Mac on the progress of the litigation. Freddie Mac must be provided sufficient opportunity, but no less than five Business Days before the filing deadline, to review and comment upon any substantive pleadings, including, but not limited to: ■ Motions, ■ Replies, ■ Briefs, and ■ Proposed orders

(B) Notification of a modification of a Mortgage subject to active non-routine litigation If the Mortgage is subject to active non-routine litigation, and the Servicer determines the Borrower is eligible for a Freddie Mac Flex Modification®, the Servicer must: Freddie Mac Single-Family Seller/Service Guide ■ Conduct a review through its in-house or outside counsel to determine that it is appropriate to send the Trial Period Plan offer per applicable laws ■ Ensure that any active litigation and settlement negotiations by Servicer’s counsel are not undermined and that Freddie Mac’s interests are not adversely impacted If it is deemed appropriate to send based upon the aforementioned review, the Servicer or the Servicer’s counsel must send the Trial Period Plan offer to an eligible Borrower’s counsel or, if not represented, to the Borrower directly when that Borrower’s Mortgage is subject to active non-routine litigation. (iii)Legal expenses for non-routine litigation The Servicer must obtain Freddie Mac’s prior written approval before incurring any expenses in the Servicing of a non-routine litigation matter. To obtain Freddie Mac’s approval, the Servicer must: ■ Contact Freddie Mac with details of the non-routine litigation matter (see Directory 5) according to the reporting requirements in Section 9402.2(a)(ii) ■ Submit a request for pre-approval (RPA) in PAID (Payments Automated Intelligent and Dynamic) (see Exhibit 88, Servicing Tools) for all non-routine litigation legal expenses that are reimbursable to the Servicer. The RPA submission must include an estimate of the attorney’s fees and litigation costs and the attorney’s hourly rate. When a delay in taking protective action might result in the impairment of the property or jeopardize Freddie Mac’s lien position, the Servicer must immediately submit an RPA. If unusual or emergency circumstances do not allow the Servicer to request Freddie Mac’s prior written approval, then the Servicer must notify Freddie Mac via PAID by the next Business Day after the Servicer incurred the expense. If the Servicer’s determination to incur the expense was reasonable, as determined in Freddie Mac’s sole discretion, Freddie Mac will reimburse the Servicer. (b) Counsel retained by Servicers pursuant to Servicer’s duty to indemnify Freddie Mac (i) Servicer responsibilities for retaining counsel in litigation From time to time, the Servicer may retain counsel to represent Freddie Mac and/or the Servicer in litigation involving allegations that, if true, could subject the Servicer to liability to Freddie Mac for a failure to comply with any selling or Servicing representation or warranty or requirement of the Guide or other Purchase Documents. In these cases: Freddie Mac Single-Family Seller/Service Guide ■ When the Servicer retains counsel for this purpose, the Servicer remains liable for legal fees and costs incurred in the defense of any litigation, as well as any and all losses, judgments, damages and expenses, including fees and costs entered against and incurred on behalf of Freddie Mac ■ Freddie Mac will reimburse the Servicer for Freddie Mac’s proportionate share of expenses for responding to Borrower defenses (ii) Counsel selection and notification requirements Counsel retained and paid by Servicers pursuant to Section 9402.1(b) and this section do not need to be selected and engaged pursuant to Chapter 9501. For all other Freddie Mac Default Legal Matters, the Servicer must use counsel selected and engaged pursuant to Chapter 9501. Servicers must notify Freddie Mac (see Directory 5) of its retention of counsel not selected and engaged pursuant to Chapter 9501 and are required to comply with the reporting requirements in Section 9402.2(a)(ii). (iii)Litigation management and transitioning legal matters The Servicer must ensure that the law firm to which the Freddie Mac Default Legal Matter was originally referred is updated on the current status of the litigation either by the Servicer or its new counsel. Unless the entire legal matter or action is resolved, the Servicer is responsible for transitioning the Freddie Mac Default Legal Matter back to the law firm for further proceedings. This transition must occur no later than one Business Day after the resolution of the litigation matter. (iv) Borrower responsibility for legal fees When the Security Instrument provides for the Borrower to reimburse the Servicer for any legal fees and costs incurred, the Servicer should: ■ Instruct its counsel to notify the Borrower about his or her responsibility for such expenses ■ Ensure its counsel resolve such matters through stipulation or any other expeditious manner that will minimize fees and costs to the Borrower