Freddie Mac Single-Family Seller/Servicer Guide 9603.2 — Filing FHA/VA/RHS and primary mortgage insurance claims

Freddie Mac Single-Family Seller/Servicer Guide 9603.2 — Filing FHA/VA/RHS and primary mortgage insurance claims

Effective 2025-09-10 · Freddie Mac's stamp for this section

This section contains requirements related to: ■ FHA/VA/RHS claim filing ■ Primary mortgage insurance claim filing ■ Offers to purchase the property with a pending mortgage insurance claim ■ Receipt of claim payment ■ Reduced, suspended or denied claims ■ Remittance of primary mortgage insurance claim payments (a) FHA/VA/RHS claim filing On a Mortgage that is insured by the FHA or guaranteed by the VA or RHS, the Servicer must process the claim for FHA insurance or VA or RHS guaranty benefits within the agency’s established time frames and according to the agency’s requirements to ensure that the claim recipient receives the maximum claim payment amount. (i) FHA, VA or RHS claim filing for Mortgages subject to a recourse obligation, including indemnification The Servicer must file the claim to ensure that payment is made directly to the Servicer. Because the Servicer is the claim recipient, the Servicer should ensure that it receives the maximum claim payment amount to apply towards any expenses incurred, as Freddie Mac will not reimburse the Servicer for expenses incurred on Mortgages subject to a recourse obligation. (See Section 9701.1(d) on Freddie Mac’s rights.) (ii) FHA, VA or RHS claim filing for Mortgages not subject to a recourse obligation or indemnification The Servicer must file the claim in Freddie Mac’s name to ensure that payment is made directly to Freddie Mac (see Directory 6). Because Freddie Mac is the claim recipient, the Servicer should ensure that Freddie Mac receives the claim payment, in the maximum claim payment amount, before seeking reimbursement for expenses incurred on the Mortgage. (b) Primary mortgage insurance claim filing Freddie Mac will file a claim for loss with the MI if the Mortgage is covered by primary mortgage insurance and will manage the claims payment process with the MI. The Servicer must provide all information and documentation pertaining to the claim to the MI no later than 60 days after the foreclosure sale, short sale or acceptance of a deed-in-lieu of foreclosure or within any shorter time frame as specified by the mortgage insurance master policy or by Freddie Mac. (c) Offers to purchase the property with a pending mortgage insurance claim A Servicer that receives an inquiry or an offer regarding purchase of an REO property must contact its Freddie Mac REO claim specialist (see Directory 6) within one Business Day of receiving the inquiry or offer. (d) Receipt of claim payment If the Servicer receives a claim payment intended for Freddie Mac, whether from the MI or applicable entity (see Section 9603.2(a) on FHA/VA/RHS claim filing and Section 9603.2(b) on primary mortgage insurance claim filing), the Servicer must send the funds to Freddie Mac (see Directory 6) within 10 Business Days after the Servicer receives them. The Servicer must also include all supporting documentation relating to the claim payment received from the MI or applicable entity, including a copy of the claim payment check. However, if the Mortgage insured by the FHA or guaranteed by the VA or RHS is subject to a recourse obligation, including indemnification, the Servicer does not need to send the funds to Freddie Mac. (e) Reduced, suspended or denied claims If the claim payment amount is reduced, suspended or denied by the MI due to the Servicer’s actions or inactions including, but not limited to, failure to comply with the Guide or applicable mortgage insurance requirements, then Freddie Mac may exercise its remedies provided by the Guide and the other Purchase Documents for the amount that is reduced, suspended or denied. Refer to Chapter 3602 regarding repurchases, repurchase alternatives and other remedies. (f) Remittance of primary mortgage insurance claim payments When Freddie Mac receives the claim payment from the MI, Freddie Mac will remit any portion of the proceeds due to the Servicer, less any outstanding amounts due to Freddie Mac from the Servicer.

Source: Freddie Mac Single-Family Seller/Servicer Guide 9603.2 — Filing FHA/VA/RHS and primary mortgage insurance claims · source URL · snapshot 4c94f67729042dd6