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As a reminder, publication service providers or vendors can potentially influence the actual costs based on such
things as knowledge about different newspaper publishing specifications. Use of service providers owned or
affiliated with the law firm may result in noncompetitively priced or poor quality services. To ensure that
publication services are competitively priced and of high quality, Servicers must require foreclosure counsel to
disclose the identity of, and relationship with, any companies the firm relies upon to provide third-party support
functions related to the publication of legal notices. Servicers must also require foreclosure counsel to review,
monitor and compare the performance of such service providers or vendors to other vendors operating in the
market to ensure high quality and competitive pricing (see Sections 69.3, Firm Minimum Requirements, and 69.8,
Prohibitions Related to Freddie Mac Default Legal Matters).
Provisions to expedite Freddie Mac Default Legal Matters
Effective February 8, 2014
We are updating Chapter A66, Provisions for Expediting Freddie Mac Default Legal Matters, to include additional
requirements when providing a relocation incentive to Borrowers willing to enter into consent judgments for
Mortgaged Premises located in Illinois, as well as adding new Section A66.9, Foreclosure Sale Date Extensions,
as a means for expediting Freddie Mac Default Legal Matters.
Relocation incentive reimbursement process
In Bulletin 2013-15, Freddie Mac authorized Servicers to expedite Freddie Mac Default Legal Matters using
various legal procedures, including obtaining a consent judgment with Borrowers in Illinois. Section A66.8,
Expedited Foreclosures – Illinois, provides requirements for when a Servicer opts to pay a relocation incentive to
a Borrower in Illinois who consents to judgment. We have updated Section A66.8 to provide that, in the event
relocation assistance funds have been distributed by the Servicer following the entry of judgment, the Servicer
may now request reimbursement of up to $3,000 for the relocation assistance from Freddie Mac via the
Freddie Mac Reimbursement System. The Servicer must use expense code 013006 (Borrower Relocation
Assistance) when submitting a claim request in the Reimbursement System for the relocation assistance funds
paid to the Borrower.
Exhibits 57 and 74, Expense and Income Codes for Expense Reimbursement Claims, have been updated to
reflect this new expense code.
Foreclosure sale date extensions
We have added new Section A66.9 to provide that in some instances, it may be in Freddie Mac's best interest to
extend the foreclosure sale date, including, but not limited to, cases where an extension of the sale date will
expeditiously resolve litigation and/or obtain a Borrower’s consent to the final judgment of foreclosure on an
expedited basis.
If the Servicer determines that extending the foreclosure sale date is in Freddie Mac's best interest, then the
Servicer may use its discretion without obtaining Freddie Mac's prior approval to extend the sale.
However, foreclosure time line requirements set forth in Section 66.30, State Foreclosure Time Lines, will not be
waived in consideration of extending the foreclosure sale date. Servicers and their counsel must use their
discretion to determine whether extending the foreclosure sale date is in Freddie Mac’s best interest based on the
jurisdiction, the Mortgage and the Mortgaged Premises that is the subject of the foreclosure.
Additional foreclosure updates
Foreclosure sale bidding
Effective March 17, 2014
We have updated the Guide to require that Servicers bid an amount at foreclosure sale that would minimize or
avoid the imposition of a redemption, confirmation or ratification period if State law would impose such additional
periods. Also, in the event Freddie Mac’s right to pursue a deficiency action was preserved, or the Servicer filed a
judicial foreclosure to preserve Freddie Mac’s right to pursue a deficiency judgment, the Servicer should bid an
amount at foreclosure sale that preserves the right to pursue deficiencies after the foreclosure sale on a case-by-
case basis.