source:
  type: regulation
  id: fhlmc-9401
  authority: "Freddie Mac Single-Family Seller/Servicer Guide Chapter 9401 — Bankruptcy"
  description: 'Chapter 9401 of the Freddie Mac Single-Family Seller/Servicer Guide

    provides Servicing requirements for Mortgages subject to bankruptcy

    proceedings: bankruptcy overview, general requirements, Freddie Mac

    rights, managing bankruptcy filings, multiple bankruptcy filings,

    bankruptcy cramdowns, and post-bankruptcy actions. NOTE: actual

    title is "Bankruptcy"; Freddie''s foreclosure rules live in Chapter

    9301.

    '
obligations:
- id: fhlmc-9401-protect-freddie-interest-in-bankruptcy
  canonical_id: fhlmc-9401-protect-freddie-interest-in-bankruptcy
  section: "Freddie Mac Guide Section 9401.1(a) — Bankruptcy"
  description: '[LENDER] must take appropriate action to protect Freddie Mac''s

    interest during bankruptcy proceedings in which the Borrower is the

    debtor, for any Mortgage subject to such proceedings.

    '
  type: do
  audit_question: Can [LENDER] evidence that, for every Freddie Mac-serviced Mortgage subject to a Borrower bankruptcy, appropriate action was taken to protect Freddie Mac's interest in the proceedings?
  workflow_phase: servicing
  owner_role: bankruptcy_specialist
  secondary_owner_role: compliance_officer
  cadence: per-bankruptcy-event
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - fhlmc
  - freddie-mac
  - servicing-guide
  - bankruptcy
  - promoted
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide Section 9401.1(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 take appropriate action to
    drafter_attestation: Copied verbatim from Freddie Mac Guide snapshot 5869ee9e606cd4ae (Chapter 9401) at 2026-05-22.
  promoted_at: '2026-05-23T01:10:49+00:00'
  promoted_from: fhlmc-9401-roundb-v1.yaml
  program_review: Does the program ensure appropriate action is taken to protect Freddie Mac's interest in any Borrower bankruptcy proceeding?
  file_review: For loans in bankruptcy, review the file/notes; the compliance person judges whether the actions taken were appropriate to protect Freddie Mac's interest.
  judgment: true
- id: fhlmc-9401-bankruptcy-notice-required-actions
  canonical_id: fhlmc-9401-bankruptcy-notice-required-actions
  section: "Freddie Mac Guide Section 9401.1(c) — Bankruptcy general requirements"
  description: 'When [LENDER] receives notice or confirms information that a Borrower

    has filed a bankruptcy petition, at a minimum [LENDER] must comply

    with all applicable laws and regulations, obtain a copy of the

    Borrower''s bankruptcy petition or other bankruptcy notice, accurately

    complete and file a proof of claim within the time limitations set

    by the bankruptcy court, monitor the proceedings, and maintain copies

    of all relevant bankruptcy documents.

    '
  type: do
  audit_question: Can [LENDER] evidence that, on every notice or confirmation that a Borrower has filed for bankruptcy, the Section 9401.1(c) actions (compliance with applicable law, obtaining the petition/notice, timely proof of claim filing, monitoring the proceedings, and maintaining bankruptcy document copies) were performed?
  workflow_phase: servicing
  owner_role: bankruptcy_specialist
  secondary_owner_role: compliance_officer
  cadence: per-bankruptcy-filing
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - fhlmc
  - freddie-mac
  - servicing-guide
  - bankruptcy
  - proof-of-claim
  - monitoring
  - promoted
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide Section 9401.1(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: When the Servicer receives notice or confirms information that a Borrower has filed a
    drafter_attestation: Copied verbatim from Freddie Mac Guide snapshot 5869ee9e606cd4ae (Chapter 9401) at 2026-05-22.
  promoted_at: '2026-05-23T01:10:49+00:00'
  promoted_from: fhlmc-9401-roundb-v1.yaml
  program_review: Does the program ensure that on notice/confirmation of a Borrower bankruptcy the §9401.1(c) minimum actions occur — comply with applicable law, obtain the petition/notice, timely file a proof of claim within court limits, monitor the proceedings, and retain bankruptcy documents?
  file_review: For bankruptcy files, confirm the petition/notice copy, a timely proof of claim, monitoring evidence, and retained documents.
  judgment: false
- id: fhlmc-9401-inform-borrower-mod-conditioned-on-court-approval
  canonical_id: fhlmc-9401-inform-borrower-mod-conditioned-on-court-approval
  section: "Freddie Mac Guide Section 9401.1(c) — Modification conditioned on bankruptcy court approval"
  description: '[LENDER] must inform the Borrower, the Borrower''s counsel, or the

    bankruptcy trustee that an approved modification is conditioned on

    obtaining the bankruptcy court''s approval, if necessary, to modify

    the Mortgage prior to the due date of the first modified payment.

    '
  type: notify
  audit_question: Can [LENDER] evidence that, for every approved modification of a Mortgage with a Borrower in bankruptcy, the Borrower, Borrower's counsel, or bankruptcy trustee was informed that the modification was conditioned on obtaining bankruptcy-court approval (if necessary) prior to the due date of the first modified payment?
  workflow_phase: servicing
  owner_role: bankruptcy_specialist
  secondary_owner_role: loss_mitigation_specialist
  cadence: per-bankruptcy-modification
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - fhlmc
  - freddie-mac
  - servicing-guide
  - bankruptcy
  - modification
  - court-approval
  - promoted
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide Section 9401.1(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: "Servicers must inform the Borrower, Borrower’s counsel or bankruptcy trustee that an"
    drafter_attestation: Copied verbatim from Freddie Mac Guide snapshot 5869ee9e606cd4ae (Chapter 9401) at 2026-05-22.
  promoted_at: '2026-05-23T01:10:49+00:00'
  promoted_from: fhlmc-9401-roundb-v1.yaml
  program_review: Does the program ensure that for an approved modification of a loan in bankruptcy, the Borrower/counsel/trustee is informed the modification is conditioned on bankruptcy-court approval (if necessary) before the first modified payment due date?
  file_review: For in-bankruptcy modifications, confirm the court-approval-condition notice to Borrower/counsel/trustee predated the first modified payment due date.
  judgment: false
_promotion_history:
- promoted_at: '2026-05-23T01:10:49+00:00'
  candidate_path: obligations\_remediation\_round_b_drafts\fhlmc-9401-roundb-v1.yaml
  candidates_promoted: 3
  candidates_skipped_existing: 0
