source:
  type: regulation
  id: fhlmc-9701.3
  authority: Freddie Mac Single-Family Seller/Servicer Guide §9701.3 — Legal and foreclosure-related reimbursements
    (04/08/26)
  description: "Freddie Mac Guide §9701.3 (Legal and foreclosure-related reimbursements). Gap-fill (verbatim, ID-diff).\
    \ \n"
obligations:
- id: fhlmc-9701.3-0
  canonical_id: fhlmc-9701.3-0
  section: Freddie Mac Guide 9701.3
  description: '9701.3 Legal and foreclosure-related reimbursements: (04/08/26) This section contains information
    related to: ■ Reimbursement of fees and costs incurred during legal proceedings ■ Reimbursement requirements
    when foreclosure must be restarted ■ Reimbursement of BPO/appraisal reports ■ REO related costs and expenses
    (a) Reimbursement…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §9701.3 — Legal and foreclosure-related reimbursements
      (04/08/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '(04/08/26) This section contains information related to: ■ Reimbursement of fees and costs
      incurred during legal proceedings ■ Reimbursement requirements when foreclosure must be restarted ■ Reimbursement
      of BPO/appraisal reports ■ REO related costs and expenses (a) Reimbursement of fees and costs incurred during
      legal proceedings Certain legal fees and costs are reimbursable when the Servicer forecloses on a property
      or takes other routine or non-routine legal action. All foreclosure and related legal fees and costs must
      be reasonable and comparable to those customarily charged in the area where the'
    drafter_attestation: Verbatim from Freddie Guide §9701.3 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-9701.3-1
  canonical_id: fhlmc-9701.3-1
  section: Freddie Mac Guide 9701.3
  description: '9701.3 Legal and foreclosure-related reimbursements: 701-11 property is located (see Section 9301.3(e)
    regarding foreclosure counsel fees). Those fees and costs include such items as: 1. Foreclosure attorney fees
    as set forth in Exhibit 57A, Approved Attorney, Foreclosure, Mediation, Postponement Fees and Title Expenses,
    and forecl…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §9701.3 — Legal and foreclosure-related reimbursements
      (04/08/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '701-11 property is located (see Section 9301.3(e) regarding foreclosure counsel fees). Those
      fees and costs include such items as: 1. Foreclosure attorney fees as set forth in Exhibit 57A, Approved Attorney,
      Foreclosure, Mediation, Postponement Fees and Title Expenses, and foreclosure attorney fees incurred that
      exceed the expense limits in Exhibit 57A, if the Servicer has submitted and Freddie Mac has granted written
      pre-approval of the Servicer’s request via PAID (Payments Automated Intelligent and Dynamic) (see Exhibit
      88, Servicing Tools). Foreclosure attorney fees listed in Exhibit 57A are the approved attorney fees for an
      uncontested foreclosure. This generally includes but is not limited to: ■ All activities necessary to complete
      the first legal action ■ Review of supporting documentation and loan status ■ Verification that the Borrower
      is not a Servicemember currently serving a Period of Military Service (as those terms are referenced in Section
      8503.1(a)), or if the Borrower was a Servicemember, that more than one year has elapsed since his or her Period
      of Military Service ended. (See Section 8503.1(b) regarding foreclosure relief options exclusive to Servicemembers
      and their Dependents.) Verification must be completed following the referral of a Mortgage to foreclosure
      but prior to the first legal action and again prior to foreclosure sale. ■ Review of title examination ■ Preparation
      and filing of all necessary papers and notices, including the publication and posting of notices of foreclosure
      or other legal proceedings as required by State or local law, as well as obtaining service of process on all
      defendants or parties entitled to notice ■ Obtain orders for alternate or special service if doing so will
      expedite service of process at little or no additional cost ■ All necessary court appearances required in
      an uncontested foreclosure ■ Preparing documentation for and obtaining entry of judgment in a judicial foreclosure
      action or preparing all documentation necessary to conduct the foreclosure sale in a non-judicial foreclosure
      action ■ Handling the foreclosure sale, including any actions required to postpone (see Section 9301.7(a)
      regarding foreclosure sale postponements), cancel, reset and set aside the sale ■ Preparation and recording
      of conveyance deeds'
    drafter_attestation: Verbatim from Freddie Guide §9701.3 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-9701.3-2
  canonical_id: fhlmc-9701.3-2
  section: Freddie Mac Guide 9701.3
  description: '9701.3 Legal and foreclosure-related reimbursements: 701-12 ■ For Cooperative Share Loans, any transfer
    of the Cooperative Shares and Proprietary Lease (see Section 8801.4 regarding delinquency management for Cooperative
    Share Loans) If a Servicer relies on its foreclosure counsel, as a vendor, to perform or handle services normall…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §9701.3 — Legal and foreclosure-related reimbursements
      (04/08/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '701-12 ■ For Cooperative Share Loans, any transfer of the Cooperative Shares and Proprietary
      Lease (see Section 8801.4 regarding delinquency management for Cooperative Share Loans) If a Servicer relies
      on its foreclosure counsel, as a vendor, to perform or handle services normally performed by a Servicer, including
      Delinquency management requirements (and the Servicer has not submitted a request for pre-approval (RPA) and
      received Freddie Mac approval), then any additional fee or service charges billed by the law firm should be
      paid by the Servicer at its own expense. See the table below for details related to Delinquency management
      requirements. Note: Servicers should refer to Section 9701.4(a) for details regarding non-reimbursable expenses.
      Additional guidance related to Delinquency management requirements Topic Guide location Property seizure Chapter
      8402 Abandoned Properties, distressed properties and properties that pose a Risk of Property Ownership Chapter
      8403 Servicing Mortgages impacted by a Disaster Chapter 8404 Freddie Mac loss mitigation evaluation hierarchy
      and performance standards Chapter 9201 Evaluating the Borrower Chapter 9202 Reinstatements and relief options
      Chapter 9203 Freddie Mac workout options Chapter 9204 Home Affordable Modification ProgramSM Chapter 9205
      Modifications Chapter 9206 Workout Mortgage assumption Chapter 9207 Freddie Mac Standard Short Sale Chapter
      9208 Freddie Mac Standard Deed-in-Lieu of Foreclosure Chapter 9209 Charge-off Chapter 9210 Hardest Hit Fund
      Chapter 9211'
    drafter_attestation: Verbatim from Freddie Guide §9701.3 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-9701.3-3
  canonical_id: fhlmc-9701.3-3
  section: Freddie Mac Guide 9701.3
  description: '9701.3 Legal and foreclosure-related reimbursements: 701-13 Foreclosure Chapter 9301 Bankruptcy
    Chapter 9401 Other litigation involving Freddie Mac-owned or guaranteed Mortgages Chapter 9402 Selection, retention
    and management of law firms for Freddie Mac Default Legal Matters Chapter 9501 Deficiency recovery Chapter 9601
    Post-sale…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §9701.3 — Legal and foreclosure-related reimbursements
      (04/08/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 701-13 Foreclosure Chapter 9301 Bankruptcy Chapter 9401 Other litigation involving Freddie
      Mac-owned or guaranteed Mortgages Chapter 9402 Selection, retention and management of law firms for Freddie
      Mac Default Legal Matters Chapter 9501 Deficiency recovery Chapter 9601 Post-sale reporting to other entities
      Chapter 9602 Non-reimbursable expenses Section 9701.4(a) 2. Filing costs are reimbursable for required paper
      and e-filing, including costs associated with third-party vendors, unless the option to file electronically
      can be done without vendor-related costs 3. The cost of obtaining a copy of a death certificate if needed
      to facilitate prompt and efficient completion of the legal proceeding 4. Costs as set forth in Exhibit 57A
      for title work required for foreclosures, which include the cost of an update to the title if required by
      the State or to ensure clear and marketable title to the Mortgaged Premises after the foreclosure sale. Freddie
      Mac will not reimburse for any additional title abstract, commitment or policy. If the Servicer must obtain
      an additional update to the title because the original is stale due to bankruptcy delay, Freddie Mac will
      reimburse the Servicer up to $125 for the update in Maryland, Ohio and Virginia and $75 for all other States.
      Servicers must contact Freddie Mac for written pre- approval for an additional update if the title becomes
      stale for any other reason. 5. Costs of serving legal notices, when required by applicable law 6. Cost of
      publication of notices of foreclosure or other legal proceedings as required by State or local law. Reimbursable
      costs incurred for the publication of such legal notices include actual charges imposed by the newspaper or
      publication. The foreclosure attorney fees in Exhibit 57A cover fees for acquiring the publication, including
      the cost of preparing, submitting and verifying the legal notices. 7. Cost of posting of notices of foreclosure
      or other legal proceedings, as required by State or local law. Reimbursable costs incurred for the posting
      of such legal notices are for actual charges imposed for the physical posting of notices on the property.
      8. Postage for certified or registered mail that is required for legal notices as required by applicable law
    drafter_attestation: Verbatim from Freddie Guide §9701.3 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-9701.3-4
  canonical_id: fhlmc-9701.3-4
  section: Freddie Mac Guide 9701.3
  description: '9701.3 Legal and foreclosure-related reimbursements: 701-14 9. Bankruptcy costs and fees as set
    forth in Exhibit 57B, Approved Bankruptcy Attorney Fees, and bankruptcy expenses incurred that exceed the expense
    limits in Exhibit 57B if the Servicer has submitted and Freddie Mac has granted written pre-approval of the
    Servicer’s requ…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §9701.3 — Legal and foreclosure-related reimbursements
      (04/08/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '701-14 9. Bankruptcy costs and fees as set forth in Exhibit 57B, Approved Bankruptcy Attorney
      Fees, and bankruptcy expenses incurred that exceed the expense limits in Exhibit 57B if the Servicer has submitted
      and Freddie Mac has granted written pre-approval of the Servicer’s request via PAID. However, if the Borrower
      is delinquent and files for bankruptcy protection and a reorganization plan is approved, the Servicer must
      seek reimbursement for its allowable expenses through the Borrower’s bankruptcy plan. If the Borrower breaches
      the bankruptcy plan, the Servicer must not submit a claim for expense reimbursement until after the applicable
      event or activity described in Section 9701.1(e). 10. Contested foreclosure fees and court costs required
      to continue with the foreclosure process, if the Servicer has submitted and Freddie Mac has granted written
      pre-approval of the Servicer’s request via PAID. For legal expenses that are related to a non-routine litigation
      matter and are considered reimbursable, Servicers must first contact Freddie Mac with details of the non-routine
      litigation matter according to the reporting requirements in Section 9402.2(a)(ii) and include an estimate
      of the attorney’s fees and litigation costs, as well as the attorney’s hourly rate, in the Servicer’s request
      for Freddie Mac’s pre-approval via PAID. Contested foreclosure fees and court costs are: Contested foreclosure
      fees and court costs Contested foreclosure Fees and court costs Contested foreclosure resolved by motion for
      summary judgment (judicial) Foreclosure attorney fee for a contested foreclosure in which a defendant files
      an answer requiring the filing of a summary judgment motion. This includes work leading up to the filing of
      the summary judgment motion, all court appearances and all written discovery. Responding to a motion to dismiss
      (judicial) Foreclosure attorney fee for responding to a motion to dismiss, including the preparation and filing
      of a response and attendance at all hearings. Contested foreclosure resolved by trial (judicial) Foreclosure
      attorney fee for trial, set by court upon its own motion, including, but not limited to, pre-trial preparation
      and correspondence, preparation and filing documents necessary for trial, witness preparation and all necessary
      court appearances.'
    drafter_attestation: Verbatim from Freddie Guide §9701.3 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-9701.3-5
  canonical_id: fhlmc-9701.3-5
  section: Freddie Mac Guide 9701.3
  description: '9701.3 Legal and foreclosure-related reimbursements: 701-15 Contested foreclosure resolved by motion
    to dismiss (non-judicial) Foreclosure attorney fee for a contested foreclosure (i.e., Borrower’s filing of a
    lawsuit to challenge a non-judicial foreclosure) resolved by the filing of a motion to dismiss and subsequent
    entry of an o…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §9701.3 — Legal and foreclosure-related reimbursements
      (04/08/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 701-15 Contested foreclosure resolved by motion to dismiss (non-judicial) Foreclosure attorney
      fee for a contested foreclosure (i.e., Borrower’s filing of a lawsuit to challenge a non-judicial foreclosure)
      resolved by the filing of a motion to dismiss and subsequent entry of an order granting motion to dismiss.
      This includes all work leading up to the filing of the motion to dismiss and all necessary court appearances.
      Contested foreclosure resolved by summary judgment motion (non- judicial) Foreclosure attorney fee for a contested
      foreclosure (i.e., Borrower’s filing of a lawsuit to challenge a non-judicial foreclosure) resolved by the
      filing of a motion for summary judgment and subsequent entry of an order granting motion for summary judgment.
      This includes all work leading up to the filing of the summary judgment motion, all court appearances and
      all written discovery. Probate proceedings Foreclosure attorney fee for probate proceedings during a contested
      foreclosure. Motion for mediation in a contested foreclosure Foreclosure attorney fee for attendance and appearance
      at a mediation session for a contested foreclosure that is not part of a State or local law pre-foreclosure
      mediation program. Borrower initiated motions Foreclosure attorney fee for responding to a motion initiated
      by the Borrower or Borrower’s counsel, including the preparation and filing of a response and attendance at
      all hearings. Reply to affirmative defenses/motion to strike Foreclosure attorney fee for responding to a
      discovery request or propounding discovery in a contested foreclosure, including the preparation and filing
      of a response and attendance at all hearings. Discovery (request for production of documents, request for
      admissions, interrogatories) Foreclosure attorney fee for responding to a discovery request or propounding
      discovery in a contested foreclosure, including the preparation and filing of a response and attendance at
      all hearings. Contested foreclosure fee – other Foreclosure attorney fee for additional work needed to resolve
      a contested foreclosure that enters into litigation, whether routine or non-routine, in order to proceed with
      the foreclosure.
    drafter_attestation: Verbatim from Freddie Guide §9701.3 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-9701.3-6
  canonical_id: fhlmc-9701.3-6
  section: Freddie Mac Guide 9701.3
  description: '9701.3 Legal and foreclosure-related reimbursements: 701-16 11. For the life of the default, the
    actual cost of system connectivity fees, technology fees and invoice processing fees up to the following maximum
    expense limits: ■ Connectivity fees are reimbursable up to a maximum of $25 per referral, on or after April
    1, 2011, for th…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §9701.3 — Legal and foreclosure-related reimbursements
      (04/08/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '701-16 11. For the life of the default, the actual cost of system connectivity fees, technology
      fees and invoice processing fees up to the following maximum expense limits: ■ Connectivity fees are reimbursable
      up to a maximum of $25 per referral, on or after April 1, 2011, for the life of the default ■ Technology fees
      are reimbursable up to a maximum of $5 per referral, before April 1, 2011, for the life of the default ■ Invoicing
      fees are reimbursable up to a maximum of $5 to process foreclosure invoices and an additional maximum of $5
      to process bankruptcy invoices for the life of the default on referrals on or after April 1, 2011 For details
      on system connectivity and invoice processing, refer to Section 9501.5(a). 12. Attorney fees to shorten a
      redemption period, when allowed by applicable State law, if the Servicer has submitted and Freddie Mac has
      granted written pre-approval of the Servicer’s request via PAID 13. Reasonable attorney fees incurred in connection
      with the foreclosure of a Cooperative Share Loan. Servicers must claim reimbursement using expense code 014005
      (Foreclosure on a Cooperative Share). Refer to Chapter 8801 for additional details on Servicing requirements
      related to Cooperative Share Loans. 14. Attorney fees for appearance and attendance at a status, conciliation
      or case management conference, when required by State or local law or set by the court, if the Servicer has
      submitted and Freddie Mac has granted written pre-approval of the Servicer’s request via PAID. This includes
      fees for appearance and attendance at pre-mediation hearings or conferences when required by State or local
      law or set by the court. 15. Certain expenses (e.g., legal fees and/or legal costs) considered unrecoverable
      from the Borrower under applicable federal, State or local law upon reinstatement or payoff of the Mortgage
      or upon completion of a mortgage modification. Note: Refer to Section 9701.1(e)(iv) regarding unrecoverable
      expenses. In the event of a foreclosure of the property or a bankruptcy of the Borrower, attorneys’ invoices
      paid by the Servicer pursuant to Section 8103.2(b) must match or exceed the claim for reimbursement in PAID.
      Servicers must pay attorneys’ invoices timely and should not be delaying the payment of attorneys’ invoices
      until after the expenses have been reimbursed by Freddie Mac. Freddie Mac will not reimburse the Servicer
      for attorney’s fees and litigation costs on Mortgages sold to Freddie Mac with full recourse or subject to
      indemnification. For Mortgages sold to Freddie Mac with recourse or subject to indemnification, the Servicer
      must'
    drafter_attestation: Verbatim from Freddie Guide §9701.3 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-9701.3-7
  canonical_id: fhlmc-9701.3-7
  section: Freddie Mac Guide 9701.3
  description: '9701.3 Legal and foreclosure-related reimbursements: 701-17 inform counsel retained for foreclosure,
    eviction or bankruptcy that the Servicer is responsible for paying all associated fees and costs. (b) Reimbursement
    requirements when foreclosure must be restarted In certain States, if the Servicer must restart a foreclosure
    procee…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §9701.3 — Legal and foreclosure-related reimbursements
      (04/08/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '701-17 inform counsel retained for foreclosure, eviction or bankruptcy that the Servicer is
      responsible for paying all associated fees and costs. (b) Reimbursement requirements when foreclosure must
      be restarted In certain States, if the Servicer must restart a foreclosure proceeding, in whole or in part,
      due to an allowable delay as defined in Section 9301.11(b), Freddie Mac will reimburse the Servicer as follows:
      1. All of the reimbursable actual costs (per the requirements of the Guide) of each foreclosure attempt and
      the completed foreclosure 2. Up to 70% of the approved foreclosure attorney fees for the first foreclosure
      attempt 3. Up to 100% of the approved foreclosure attorney fees for the completed foreclosure Additionally,
      for any foreclosure attempt subsequent to the first foreclosure attempt, except for the completed foreclosure,
      the Servicer may be reimbursed up to 70% of the approved foreclosure attorney fees with prior written approval
      from Freddie Mac. To obtain written approval from Freddie Mac, the Servicer must submit an RPA via the RPA
      functionality in PAID. Freddie Mac will not reimburse the Servicer for any fees or costs associated with a
      restarted foreclosure if the Servicer has to restart a foreclosure proceeding due to a delay that is not considered
      an allowable delay as defined in Section 9301.11(b) or due to Servicer non- compliance with the Guide. The
      States affected by this requirement are identified in Exhibit 57A, Approved Attorney, Foreclosure, Mediation,
      Postponement Fees and Title Expenses. In all other States, Freddie Mac will reimburse the Servicer for only
      one occurrence of the foreclosure attorney fee and reimbursable actual costs (per the requirements of the
      Guide). (c) Reimbursement of BPO/appraisal reports Since the Servicer does not incur an expense when it orders
      a BPO or appraisal report from Freddie Mac via BPOdirect® in connection with a workout or a foreclosure, a
      BPO or appraisal report via BPOdirect is not an expense for which the Servicer may seek reimbursement. Freddie
      Mac will only reimburse the Servicer for an appraisal report ordered from an appraiser of its choice if the
      Servicer has complied with Section 9202.4(a). (d) REO related costs and expenses Freddie Mac will reimburse
      the Servicer for post-acquisition activities that a Servicer must perform for Freddie Mac, the MI, the FHA
      and/or the VA. (Refer to Chapter 9603 for information on these activities.)'
    drafter_attestation: Verbatim from Freddie Guide §9701.3 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-9701.3-8
  canonical_id: fhlmc-9701.3-8
  section: Freddie Mac Guide 9701.3
  description: '9701.3 Legal and foreclosure-related reimbursements: Non-reimbursable expenses, adjustments and
    expense offsets (12/17/25) This section contains information related to: ■ Non-reimbursable expenses ■ Denials
    and adjustments of expense reimbursement requests ■ Default reporting requirements and reimbursement of claims
    ■ Expense offse…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §9701.3 — Legal and foreclosure-related reimbursements
      (04/08/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 'Non-reimbursable expenses, adjustments and expense offsets (12/17/25) This section contains
      information related to: ■ Non-reimbursable expenses ■ Denials and adjustments of expense reimbursement requests
      ■ Default reporting requirements and reimbursement of claims ■ Expense offsets ■ Forwarding remittances to
      Freddie Mac (a) Non-reimbursable expenses Consistent with Section 8101.1(b), standard operating costs incurred
      by a Servicer or its Servicing Agent and/or Outsourced Vendor(s), as applicable, in connection with the Servicer’s
      obligations and duties owed to Freddie Mac are part of the Servicer’s cost of doing business and, therefore,
      are not reimbursable by Freddie Mac unless expressly provided for otherwise in the Servicing Contract. Standard
      operating costs and expenses that are non-reimbursable by Freddie Mac (together referred to as “non-reimbursable
      expenses”) include, but are not limited to: ■ Appraisal reports, except when approved by Freddie Mac in advance
      ■ Attorneys fees resulting from correction of matters that should have been resolved preforeclosure, including
      any costs to resolve real property title issues that are the result of the Seller’s or Servicer’s actions
      or inactions ■ Documentary stamp taxes/transfer taxes/excise taxes on real estate conveyance (Freddie Mac
      is exempt under Title 12 of the United States Code, Section 1452(e)), unless the Servicer received Freddie
      Mac’s prior written approval via PAID (Payments Automated Intelligent and Dynamic) (see Exhibit 88, Servicing
      Tools). (See Section 9301.10(c) for additional requirements for reimbursement of transfer taxes after a foreclosure
      sale or when closing a deed-in-lieu of foreclosure transaction.) ■ Sales tax ■ Facsimile transmission (fax)
      charges ■ Interest, penalties (except for the first tax penalty (and second tax penalty in California as provided
      in Section 9701.2(a) incurred as defined in Section 9701.2(a))), late charges,'
    drafter_attestation: Verbatim from Freddie Guide §9701.3 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-9701.3-9
  canonical_id: fhlmc-9701.3-9
  section: Freddie Mac Guide 9701.3
  description: '9701.3 Legal and foreclosure-related reimbursements: 701-19 collection expenses or legal fees for
    late payment of property taxes or condominium/homeowners association or Cooperative Corporation assessments
    unless otherwise provided in the Guide. (See Chapter 8801 for special Servicing requirements for Cooperative
    Share Loans.) ■ Lo…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §9701.3 — Legal and foreclosure-related reimbursements
      (04/08/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 701-19 collection expenses or legal fees for late payment of property taxes or condominium/homeowners
      association or Cooperative Corporation assessments unless otherwise provided in the Guide. (See Chapter 8801
      for special Servicing requirements for Cooperative Share Loans.) ■ Long-distance telephone calls ■ Mailgram
      charges ■ Mileage or travel costs ■ Mortgage credit life insurance premiums ■ Other costs of an attorney,
      such as time or fees for curing a Delinquency, document preparation, word processing or notary public services
      performed by an attorney; co- counsel fees; referral fees, packaging fees or other similar fees and new case
      start-up fees ■ Photocopy costs ■ Photographs ■ Regular postage ■ The actual or imputed value of in-house
      counsel time expended when the reimbursable matter is handled by in-house counsel ■ Additional fees for preparing
      a foreclosure deed because the cost of doing so is included in the attorney’s fees listed in Exhibit 57A,
      Approved Attorney, Foreclosure, Mediation, Postponement Fees and Title Expenses ■ Credit reports ■ Additional
      fees or service charges billed by a law firm or any entities the firm relies upon to provide third-party support
      functions performed on the Servicer’s behalf that are considered included in the attorney’s fees listed in
      Exhibit 57A and Exhibit 57B, Approved Bankruptcy Attorney Fees ■ Additional fees or service charges that are
      billed by a law firm or any entity the Servicer relies upon and are associated with Servicer functions. Servicers
      should pay vendors for handling such Servicer functions at their own expense. For non-reimbursable expenses,
      Servicers or their Permitted Vendors (see Section 2405.1(b) regarding use of PAID by Permitted Vendors) should
      not be requesting Freddie Mac’s written pre-approval by submitting a request for pre-approval (RPA) via the
      RPA functionality in PAID for these expense amounts.
    drafter_attestation: Verbatim from Freddie Guide §9701.3 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
