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?
  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
  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
- 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?
  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
  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
- 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?
  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
  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
_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
