Freddie Mac Single-Family Seller/Servicer Guide Chapter 9701 — Reimbursement of Expenses

fhlmc-9701

Chapter 9701 of the Freddie Mac Single-Family Seller/Servicer Guide governs reimbursement of expenses incurred in connection with a workout or foreclosure of a Freddie Mac Mortgage: general policies, Servicer expense approval authority, Requests for Pre-Approval (RPA), expense reimbursement submission time frames, property-related reimbursements, and non-reimbursable expenses. NOTE: actual title is "Reimbursement of Expenses", not "REO / Disposition".

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source:
  type: regulation
  id: fhlmc-9701
  authority: Freddie Mac Single-Family Seller/Servicer Guide Chapter 9701 — Reimbursement of Expenses
  description: |
    Chapter 9701 of the Freddie Mac Single-Family Seller/Servicer Guide
    governs reimbursement of expenses incurred in connection with a
    workout or foreclosure of a Freddie Mac Mortgage: general policies,
    Servicer expense approval authority, Requests for Pre-Approval (RPA),
    expense reimbursement submission time frames, property-related
    reimbursements, and non-reimbursable expenses. NOTE: actual title is
    "Reimbursement of Expenses", not "REO / Disposition".
obligations:
  - id: fhlmc-9701-pre-approval-required-for-excess-expenses
    canonical_id: fhlmc-9701-pre-approval-required-for-excess-expenses
    section: Freddie Mac Guide Section 9701.1(c) — Request for pre-approval (RPA)
    description: |
      Prior to incurring the expense or expenses, if possible, [LENDER]
      must obtain written pre-approval from Freddie Mac by submitting an
      RPA via the RPA functionality in PAID before exceeding the expense
      limits in Exhibits 57, 57A, and 57B, or incurring expenses set forth
      in Exhibit 74, or incurring expenses not set forth in Exhibit 74.
    type: do
    audit_question: Can [LENDER] evidence that, for every expense exceeding Exhibit 57/57A/57B limits or covered by Exhibit 74 (or not set forth in Exhibit 74), written pre-approval from Freddie Mac via an RPA submission in PAID was obtained prior to incurring the expense?
    program_review: Does the program ensure written pre-approval via an RPA in PAID is obtained (prior to incurring, if possible) before exceeding Exhibit 57/57A/57B limits or incurring Exhibit 74 (or not-set-forth-in-74) expenses?
    file_review: For excess/non-standard expenses, confirm an RPA pre-approval in PAID predated incurring the expense where possible.
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: foreclosure_specialist
    secondary_owner_role: compliance_officer
    cadence: per-rpa-event
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - fhlmc
      - freddie-mac
      - servicing-guide
      - expense-reimbursement
      - rpa
      - pre-approval
      - promoted
    primary_source:
      tier: 1
      authority: Freddie Mac Single-Family Seller/Servicer Guide Section 9701.1(c)
      source_class: fhlmc-guide
      source_url: https://guide.freddiemac.com/ci-guide
      snapshot_id: 5869ee9e606cd4ae
      fetched_at: '2026-05-23T00:27:40Z'
      content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
      paragraph_quote: Prior to the Servicer incurring the expense or expenses, if possible, the Servicer must obtain
      drafter_attestation: Copied verbatim from Freddie Mac Guide snapshot 5869ee9e606cd4ae (Chapter 9701) at 2026-05-22.
    promoted_at: '2026-05-23T01:13:25+00:00'
    promoted_from: fhlmc-9701-roundb-v1.yaml
  - id: fhlmc-9701-loan-mod-expenses-in-paid-90-days
    canonical_id: fhlmc-9701-loan-mod-expenses-in-paid-90-days
    section: Freddie Mac Guide Section 9701.1(e)(i) — Reimbursement of loan modification expenses
    description: |
      With the exception of recordation fees, [LENDER] must enter all loan
      modification-related expenses in PAID that were not capitalized in
      the modification or otherwise paid by the Borrower no later than 90
      days after the settlement date in Freddie Mac systems; recordation
      fees (expense code 300003) must be submitted no later than 180 days
      after the settlement date.
    type: do
    audit_question: Can [LENDER] evidence that, for every Freddie Mac loan modification it settled, non-capitalized loan-modification expenses (excluding recordation fees) were entered in PAID within 90 days of the settlement date, and recordation fees within 180 days?
    program_review: Does the program ensure non-capitalized, non-Borrower-paid loan-modification expenses are entered in PAID within 90 days of settlement, and recordation fees (code 300003) within 180 days?
    file_review: For settled modifications, confirm modification expenses were entered in PAID within 90 days and recordation fees within 180 days.
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: foreclosure_specialist
    secondary_owner_role: compliance_officer
    cadence: per-modification-settlement
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - fhlmc
      - freddie-mac
      - servicing-guide
      - expense-reimbursement
      - paid
      - loan-modification
      - 90-day
      - 180-day
      - promoted
    primary_source:
      tier: 1
      authority: Freddie Mac Single-Family Seller/Servicer Guide Section 9701.1(e)(i)
      source_class: fhlmc-guide
      source_url: https://guide.freddiemac.com/ci-guide
      snapshot_id: 5869ee9e606cd4ae
      fetched_at: '2026-05-23T00:27:40Z'
      content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
      paragraph_quote: With the exception of recordation fees, Servicers must enter all loan modification-related
      drafter_attestation: Copied verbatim from Freddie Mac Guide snapshot 5869ee9e606cd4ae (Chapter 9701) at 2026-05-22.
    promoted_at: '2026-05-23T01:13:25+00:00'
    promoted_from: fhlmc-9701-roundb-v1.yaml
  - id: fhlmc-9701-ca-supplemental-tax-notification
    canonical_id: fhlmc-9701-ca-supplemental-tax-notification
    section: Freddie Mac Guide Section 9701.2(a) — California supplemental tax notification
    description: |
      In California, within five days following the foreclosure sale or
      deed-in-lieu of foreclosure date, [LENDER] must notify the taxing
      authority, in writing, to send any supplemental tax bills to Freddie
      Mac, and must send Freddie Mac a copy of the letter sent to the
      taxing authority.
    type: notify
    audit_question: Can [LENDER] evidence that, for every California foreclosure sale or DIL on a Freddie Mac Mortgage, written notification was sent to the taxing authority within five days of the sale/DIL date to redirect supplemental tax bills to Freddie Mac, with a copy of the notification sent to Freddie Mac?
    program_review: Does the program ensure that for California foreclosure sales/DILs, the taxing authority is notified in writing within five days to redirect supplemental tax bills to Freddie Mac, with a copy of the letter to Freddie Mac?
    file_review: For CA foreclosure-sale/DIL files, confirm the written taxing-authority notice within five days and the copy to Freddie Mac.
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: foreclosure_specialist
    secondary_owner_role: compliance_officer
    cadence: per-ca-foreclosure-dil
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - fhlmc
      - freddie-mac
      - servicing-guide
      - expense-reimbursement
      - california
      - supplemental-tax
      - 5-day
      - promoted
    primary_source:
      tier: 1
      authority: Freddie Mac Single-Family Seller/Servicer Guide Section 9701.2(a)
      source_class: fhlmc-guide
      source_url: https://guide.freddiemac.com/ci-guide
      snapshot_id: 5869ee9e606cd4ae
      fetched_at: '2026-05-23T00:27:40Z'
      content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
      paragraph_quote: the Servicer must notify the taxing authority, in writing, to send
      drafter_attestation: Copied verbatim from Freddie Mac Guide snapshot 5869ee9e606cd4ae (Chapter 9701) at 2026-05-22.
    promoted_at: '2026-05-23T01:13:25+00:00'
    promoted_from: fhlmc-9701-roundb-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-23T01:13:25+00:00'
    candidate_path: obligations\_remediation\_round_b_drafts\fhlmc-9701-roundb-v1.yaml
    candidates_promoted: 3
    candidates_skipped_existing: 0

Verbatim regulatory text (3)

Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide Chapter 9701 — Reimbursement of Expenses — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

Freddie Mac Guide Section 9701.1(c) — Request for pre-approval (RPA)

Prior to the Servicer incurring the expense or expenses, if possible, the Servicer must obtain

Source: Freddie Mac Single-Family Seller/Servicer Guide Section 9701.1(c) · source URL · snapshot 5869ee9e606cd4ae

Freddie Mac Guide Section 9701.1(e)(i) — Reimbursement of loan modification expenses

With the exception of recordation fees, Servicers must enter all loan modification-related

Source: Freddie Mac Single-Family Seller/Servicer Guide Section 9701.1(e)(i) · source URL · snapshot 5869ee9e606cd4ae

Freddie Mac Guide Section 9701.2(a) — California supplemental tax notification

the Servicer must notify the taxing authority, in writing, to send

Source: Freddie Mac Single-Family Seller/Servicer Guide Section 9701.2(a) · source URL · snapshot 5869ee9e606cd4ae