source:
  type: regulation
  id: fhlmc-8601.2
  authority: Freddie Mac Single-Family Seller/Servicer Guide §8601.2 — Limited power of attorney (09/10/25)
  description: "Freddie Mac Guide §8601.2 (Limited power of attorney). Gap-fill (verbatim, ID-diff). \n"
obligations:
- id: fhlmc-8601.2-0
  canonical_id: fhlmc-8601.2-0
  section: Freddie Mac Guide 8601.2
  description: '8601.2 Limited power of attorney: The brown font text used throughout this chapter denotes the special
    requirements for Servicing Senior Subordinate Mortgages. Text in black or green font denotes general Servicing
    requirements that also apply elsewhere in the Guide. This section contains requirements related to: …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8601.2 — Limited power of attorney (09/10/25)
    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: 'The brown font text used throughout this chapter denotes the special requirements for Servicing
      Senior Subordinate Mortgages. Text in black or green font denotes general Servicing requirements that also
      apply elsewhere in the Guide. This section contains requirements related to: ■ Limited power of attorney ■
      Requesting a limited power of attorney (a) Limited power of attorney Each Senior Subordinate Trust appoints
      Freddie Mac as attorney-in-fact to act on behalf of each Senior Subordinate Trust for purposes of: ■ Signing
      all documents necessary to service the Senior Subordinate Mortgage ■ Pursuing foreclosure ■ Releasing the
      lien ■ Endorsing the Note and executing other instruments and documents in connection with the Senior Subordinate
      Mortgage ■ Taking title to the Mortgaged Premises as a result of a deed-in-lieu of foreclosure or foreclosure
      sale ■ Selling the Senior Subordinate Trust’s REO and taking all other necessary actions in connection with
      the Servicing of a Senior Subordinate Mortgage and for the preservation, maintenance and disposition of REO
      owned by the Senior Subordinate Trust Further, each Senior Subordinate Trust authorizes Freddie Mac to further
      delegate to Servicers Freddie Mac’s authority to act as attorney-in-fact on behalf of each Senior Subordinate
      Trust for the purposes stated above and, in furtherance of such authority, Freddie Mac has provided the Servicer
      with a limited power of attorney to act as attorney-in-fact on behalf of each Senior Subordinate Trust. Before
      exercising the authority delegated by Freddie Mac under the limited power of attorney, the Servicer must:
      ■ Determine, in consultation with its retained counsel, whether the Servicer may, under applicable law, rely
      on the limited power of attorney before pursuing foreclosure on behalf of the Senior Subordinate Trust or
      otherwise exercising the authority set forth in the limited power of attorney in connection with the Servicer’s
      Servicing of a Senior'
    drafter_attestation: Verbatim from Freddie Guide §8601.2 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8601.2-1
  canonical_id: fhlmc-8601.2-1
  section: Freddie Mac Guide 8601.2
  description: '8601.2 Limited power of attorney: 601-6 Subordinate Mortgage and/or taking action in connection
    with the preservation, management or disposition of the REO ■ If the Servicer determines that it is unable to
    rely on the limited power of attorney in connection with its intended exercise of any of the authority grant…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8601.2 — Limited power of attorney (09/10/25)
    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: '601-6 Subordinate Mortgage and/or taking action in connection with the preservation, management
      or disposition of the REO ■ If the Servicer determines that it is unable to rely on the limited power of attorney
      in connection with its intended exercise of any of the authority granted under the limited power of attorney
      in connection with its obligations under the Guide, then the Servicer must notify Freddie Mac (see Directory
      5) and await further instructions (b) Requesting a limited power of attorney A Servicer that has determined
      they are in need of one or more limited powers of attorney in order to properly service one or more Senior
      Subordinate Mortgages must submit a request to Freddie Mac (see Directory 5) that includes the following:
      1. The name of the applicable Senior Subordinate Trust, including the associated Series number 2. The legal
      name of the Servicer 3. A statement, in the subject line of the request, that specifies the request is for
      a limited power of attorney on behalf of a Senior Subordinate Trust 4. The number of limited powers of attorney
      requested 5. A shipping label, included as an attachment, listing the name, mailing address and phone number
      of the Servicer employee that will receive the limited powers of attorney'
    drafter_attestation: Verbatim from Freddie Guide §8601.2 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8601.2-2
  canonical_id: fhlmc-8601.2-2
  section: Freddie Mac Guide 8601.2
  description: '8601.2 Limited power of attorney: Regulatory reporting and Internal Revenue Service compliance (09/10/25)
    The brown font text used throughout this chapter denotes the special requirements for Servicing Senior Subordinate
    Mortgages. Text in black or green font denotes general Servicing requirements that also apply…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8601.2 — Limited power of attorney (09/10/25)
    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: 'Regulatory reporting and Internal Revenue Service compliance (09/10/25) The brown font text
      used throughout this chapter denotes the special requirements for Servicing Senior Subordinate Mortgages.
      Text in black or green font denotes general Servicing requirements that also apply elsewhere in the Guide.
      This section contains requirements related to: ■ Internal Revenue Service (IRS) Form 1099-A, Acquisition or
      Abandonment of Secured Property ■ IRS Form 1099-C, Cancellation of Debt ■ IRS Form 1099-MISC, Miscellaneous
      Income (a) IRS Form 1099-A'
    drafter_attestation: Verbatim from Freddie Guide §8601.2 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8601.2-3
  canonical_id: fhlmc-8601.2-3
  section: Freddie Mac Guide 8601.2
  description: '8601.2 Limited power of attorney: 601-7 This subsection has been adapted from Section 8106.2(b)
    to reflect special Servicing requirements for Senior Subordinate Mortgages. The Servicer must provide IRS Form
    1099-A to the IRS and the Borrower as required under Section 6050J of the Internal Revenue Code. This repor…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8601.2 — Limited power of attorney (09/10/25)
    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: '601-7 This subsection has been adapted from Section 8106.2(b) to reflect special Servicing
      requirements for Senior Subordinate Mortgages. The Servicer must provide IRS Form 1099-A to the IRS and the
      Borrower as required under Section 6050J of the Internal Revenue Code. This reporting must be done whenever
      a Senior Subordinate Trust or a third party acquires an interest in a property in full or partial satisfaction
      of the Senior Subordinate Trust’s secured debt or when Freddie Mac or the Servicer knows or has reason to
      know that a property has been abandoned. For the purposes of filing these reports, the following definitions
      apply: ■ The Senior Subordinate Trust acquires an interest in Mortgaged Premises either: ❑ On the date of
      the foreclosure sale or the date the Borrower’s right of redemption, if any, expires, whichever occurs later,
      and the Senior Subordinate Trust or the Servicer on the Senior Subordinate Trust’s behalf is the winning bidder
      for the Mortgaged Premises, or ❑ At the time a deed-in-lieu of foreclosure is recorded ■ A third party acquires
      an interest at the time of the foreclosure sale ■ Abandonment has occurred when Freddie Mac or the Servicer
      has reason to know from all the facts and circumstances concerning the status of the Mortgaged Premises that
      the Borrower intended to and has permanently discarded the property from use. If a Servicer determines that
      an abandonment has occurred and expects to commence foreclosure proceedings within three months, the reporting
      obligation generally arises at the end of the three-month period. The following events trigger the reporting
      requirement: ■ Acquisition by the Senior Subordinate Trust (the Senior Subordinate Trust acquires the Mortgaged
      Premises at a foreclosure sale or by deed-in-lieu of foreclosure) ■ Third-party sale (a third-party acquires
      the Mortgaged Premises at a foreclosure sale) ■ HUD, RHS or VA acquisition (the Mortgaged Premises were acquired
      by HUD, RHS or the VA) ■ Abandonment (the Mortgaged Premises have been abandoned, three months have passed
      and foreclosure proceedings have not begun) A completed IRS Form 1099-A must be filed electronically with
      the IRS on or before March 31 of the year following the calendar year in which the reportable event occurred.
      The Servicer must also furnish the Borrower with an information statement on or before January 31 of that
      year. The requirement for furnishing such statement to the Borrower can be'
    drafter_attestation: Verbatim from Freddie Guide §8601.2 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8601.2-4
  canonical_id: fhlmc-8601.2-4
  section: Freddie Mac Guide 8601.2
  description: '8601.2 Limited power of attorney: 601-8 satisfied by sending a completed IRS Form 1099-A to the
    Borrower’s last known address. The form must name the Senior Subordinate Trust that owns the Mortgage and identify
    it as the owner of the Mortgage, name Freddie Mac trustee to that Senior Subordinate Trust, list Freddi…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8601.2 — Limited power of attorney (09/10/25)
    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: '601-8 satisfied by sending a completed IRS Form 1099-A to the Borrower’s last known address.
      The form must name the Senior Subordinate Trust that owns the Mortgage and identify it as the owner of the
      Mortgage, name Freddie Mac trustee to that Senior Subordinate Trust, list Freddie Mac’s address and include
      a statement that the information is being reported to the IRS. On the form, the “account number” should include
      the nine-digit Freddie Mac loan number, followed by one space and the six-digit Servicer number. Note: See
      Section 8601.3(b) in the event that both IRS Form 1099-A and IRS Form 1099-C may be filed as the result of
      a cancelation of debt in connection with a foreclosure or similar action in the same year for the same Borrower.
      Instructions for completing IRS Form 1099-A are set forth in Form 1065A, Report of IRS Form 1099-A and Form
      1099-C Filing for a Senior Subordinate Trust. Servicers must comply with the IRS’s and the various States’
      requirements, as amended from time to time, for filing IRS Form 1099-A. Servicers should consult with either
      their tax advisors or the IRS concerning questions on such requirements. Note: The Servicer must file all
      IRS Forms 1099-A with the IRS electronically. (i) Electronic reporting Servicers must file their reports with
      the IRS no later than March 31 of the year following the calendar year in which the reportable event occurred.
      Even though a Servicer reports to the IRS electronically, the Servicer must provide a copy of IRS Form 1099-A
      to the Borrower (copy B) and to those States that require it (copy C). Copy B must be furnished to the Borrower
      on or before January 31 of the year following the reportable event. IRS requirements for filing electronically
      are set forth in IRS Publication 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921,
      3922, 5498 and W- 2G. A Servicer may obtain this publication by downloading it from the IRS website at www.irs.gov
      or by calling the IRS at 1-800-TAX-FORM (1-800-829-3676). When filing electronically, the Servicer must: ■
      Insert appropriate header information on the electronic report it files with the IRS in accordance with the
      following record description:'
    drafter_attestation: Verbatim from Freddie Guide §8601.2 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8601.2-5
  canonical_id: fhlmc-8601.2-5
  section: Freddie Mac Guide 8601.2
  description: '8601.2 Limited power of attorney: 601-9 Appropriate header information Field name Data description
    “A” Record Payer’s TIN [Insert Senior Subordinate Trust’s TIN as provided in the written notice from Freddie
    Mac] First payer name line [Insert name of Senior Subordinate Trust as provided in the written notice from…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8601.2 — Limited power of attorney (09/10/25)
    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: '601-9 Appropriate header information Field name Data description “A” Record Payer’s TIN [Insert
      Senior Subordinate Trust’s TIN as provided in the written notice from Freddie Mac] First payer name line [Insert
      name of Senior Subordinate Trust as provided in the written notice from Freddie Mac] Payer shipping address
      c/o Freddie Mac, Trustee for [insert name of Senior Subordinate Trust] Payer shipping address 8200 Jones Branch
      Drive Payer city, State and ZIP CodeTM McLean, VA 22102-3100 “B” Record Payer’s account number The nine-digit
      Freddie Mac loan number and the six- digit Seller/Servicer number, separating these two numbers by one space
      ■ Notify Freddie Mac that the Servicer reported to the IRS electronically: ❑ When the report is sent to the
      IRS, the Servicer must submit Form 1065A to Freddie Mac (see Directory 3) ❑ A Servicer should not send Freddie
      Mac copies of the report that it filed with the IRS (ii) Correcting or voiding previously submitted IRS Forms
      1099-A To correct or void a previously submitted IRS Form 1099-A, the Servicer must refer to IRS requirements
      to determine how to report either for electronic corrections or voids. To avoid or minimize penalties that
      may be imposed by the IRS, the Servicer must report corrections or voids to the IRS when an error is discovered.
      When corrections or voids'
    drafter_attestation: Verbatim from Freddie Guide §8601.2 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8601.2-6
  canonical_id: fhlmc-8601.2-6
  section: Freddie Mac Guide 8601.2
  description: '8601.2 Limited power of attorney: 601-10 are submitted to the IRS, a copy of Form 1065A must be
    submitted to Freddie Mac (see Directory 3). Form 1065A should indicate the number of corrected or voided IRS
    Forms 1099-A submitted to the IRS. (iii) Filing accuracy and documentation Servicers are responsible for comp…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8601.2 — Limited power of attorney (09/10/25)
    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: 601-10 are submitted to the IRS, a copy of Form 1065A must be submitted to Freddie Mac (see
      Directory 3). Form 1065A should indicate the number of corrected or voided IRS Forms 1099-A submitted to the
      IRS. (iii) Filing accuracy and documentation Servicers are responsible for completing IRS Form 1099-A and
      providing the information to the IRS and to the Borrower in a timely and accurate manner. The Servicer must
      maintain copies of all statements and reports that Freddie Mac requires the Servicer to provide directly to
      the Borrowers and the IRS in compliance with Section 6050J of the Internal Revenue Code. The Servicer must
      make such copies available for examination by Freddie Mac upon request until Freddie Mac agrees, in writing,
      that such records may be destroyed. If the IRS penalizes Freddie Mac or any Senior Subordinate Trust or assesses
      any fee for failure to produce such information or because a Servicer failed to file a return or statement
      or filed an untimely, incorrect or incomplete return or statement, the Servicer will be required to reimburse
      Freddie Mac for all costs incurred by Freddie Mac or any Senior Subordinate Trust as a result of such penalty
      or assessment and an amount representing Freddie Mac’s or any Senior Subordinate Trust’s total tax liability
      resulting from such reimbursement. Such reimbursement will not be required if the Servicer can show that it
      met the filing requirements. (b) IRS Form 1099-C This subsection has been adapted from Section 8106.2(c) to
      reflect special Servicing requirements for Senior Subordinate Mortgages. The Servicer must report cancelations
      of Borrowers’ Mortgage debt on IRS Form 1099-C, as required under Section 6050P of the Internal Revenue Code
      for all cancelations of mortgage debt of $600 or more occurring on or after January 1, 2005, with respect
      to any Senior Subordinate Mortgage. IRS Form 1099-C must be filed regardless of whether the Borrower must
      report the cancelation of debt as income. Form 1065A includes instructions for completing IRS Form 1099-C.
      (i) Coordination with IRS Form 1099-A If, in the same calendar year, the Servicer cancels a debt in connection
      with a foreclosure or abandonment of the Mortgaged Premises, it is not necessary to file both IRS Form 1099-A
      (see Section 8601.3(a)) and IRS Form 1099-C for the same Borrower. The Servicer will meet the filing requirement
      for IRS Form 1099-A by completing boxes 4, 5 and 7 on IRS Form 1099-C. However, the Servicer may complete
      both IRS Forms 1099- A and 1099-C separately; in that case, do not complete boxes 4, 5 and 7 on IRS Form 1099-C.
      (See Form 1065A for filing instructions for IRS Forms 1099-A and 1099-C.)
    drafter_attestation: Verbatim from Freddie Guide §8601.2 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8601.2-7
  canonical_id: fhlmc-8601.2-7
  section: Freddie Mac Guide 8601.2
  description: '8601.2 Limited power of attorney: 601-11 (ii) Requesting taxpayer identification numbers (TINs)
    A Servicer must make a reasonable effort to obtain the correct name and TIN of the Borrower whose debt was canceled.
    If the Servicer does not obtain the TIN before the debt is canceled, it must request the Borrower’s T…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8601.2 — Limited power of attorney (09/10/25)
    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: '601-11 (ii) Requesting taxpayer identification numbers (TINs) A Servicer must make a reasonable
      effort to obtain the correct name and TIN of the Borrower whose debt was canceled. If the Servicer does not
      obtain the TIN before the debt is canceled, it must request the Borrower’s TIN. Such request must clearly
      notify the Borrower that the IRS requires the Borrower to furnish the TIN and that failure to furnish such
      TIN subjects the Borrower to a $50 penalty imposed by the IRS. Use IRS Form W- 9, Request for Taxpayer Identification
      Number and Certification, to request the TIN. However, a Borrower is not required to certify the TIN under
      penalties of perjury. (iii) Exceptions The Servicer is not required to report the following on IRS Form 1099-C:
      ■ Certain bankruptcies. Debt canceled in bankruptcy is not reported unless the debt was incurred for business
      or investment purposes. Senior Subordinate Mortgages may be incurred either for personal purposes or for business
      or investment purposes. Thus, Servicers should only file IRS Form 1099-C for discharges of debt in bankruptcy
      if they are aware that the Borrower is holding the property for investment and not as a Primary Residence
      or second home, such as in the case of an Investment Property Mortgage, determined at origination. In that
      case, report debt canceled for the later of: ❑ The year in which the amount of canceled debt first can be
      determined, or ❑ The year in which the debt is canceled in bankruptcy ■ Interest. Servicers do not need to
      include interest as part of the canceled debt in box 2. However, if interest is reported as part of the canceled
      debt in box 2, show the interest separately in box 3. ■ Nonprincipal amounts. Nonprincipal amounts include
      penalties, fines, fees and administrative costs. These do not need to be reported. ■ Release of a Borrower.
      IRS Form 1099-C does not need to be filed if one of the Borrowers on a Senior Subordinate Mortgage is released
      as long as the remaining Borrowers remain liable for the full amount of the unpaid Mortgage. ■ Guarantor or
      surety.'
    drafter_attestation: Verbatim from Freddie Guide §8601.2 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8601.2-8
  canonical_id: fhlmc-8601.2-8
  section: Freddie Mac Guide 8601.2
  description: '8601.2 Limited power of attorney: 601-12 IRS Form 1099-C does not need to be filed for a guarantor
    or surety. A guarantor is not a debtor for purposes of IRS Form 1099-C, even if demand for payment is made to
    the guarantor. ■ Multiple Borrowers. For Senior Subordinate Mortgages originated after 1994 that involve …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8601.2 — Limited power of attorney (09/10/25)
    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: '601-12 IRS Form 1099-C does not need to be filed for a guarantor or surety. A guarantor is
      not a debtor for purposes of IRS Form 1099-C, even if demand for payment is made to the guarantor. ■ Multiple
      Borrowers. For Senior Subordinate Mortgages originated after 1994 that involve Borrowers who are jointly and
      severally liable for the Mortgage, report the entire amount of the canceled debt on each Borrower’s IRS Form
      1099-C. Multiple Borrowers are jointly and severally liable for a debt if there is no clear and convincing
      evidence to the contrary. If it can be shown that joint and several liability does not exist, an IRS Form
      1099-C is required for each Borrower for whom the Servicer canceled a debt of $600 or more. For Senior Subordinate
      Mortgages originated before 1995, the Servicer must file IRS Form 1099-C only for the primary (or first-named)
      Borrower. If the Servicer knows or has reason to know that the multiple Borrowers were husband and wife who
      were living at the same address when the debt was incurred, and it has no information that these circumstances
      have changed, the Servicer may file only one IRS Form 1099-C. See the instructions to Form 1065A for the application
      of these rules to entity borrowers (e.g., estates or trusts). (iv) Definitions For purposes of these reports,
      the following definitions apply: ■ A debt may include all amounts owed, including stated principal, stated
      interest, fees, penalties, administrative costs and fines. However, only stated principal is required to be
      reported. If accrued interest is included in the amount of the stated debt (in box 2), then it must be reported
      in box 3. ■ A debt is canceled on the date an identifiable event occurs. An identifiable event is: ❑ A discharge
      in bankruptcy under Title 11 of the U.S. Code (but see exceptions in Section 8601.3(b)(iii), above) ❑ A cancelation
      or extinguishment making the debt unenforceable in a receivership, foreclosure or similar proceeding ❑ A cancelation
      or extinguishment when the statute of limitations for collecting the debt expires or when the statutory period
      for filing a claim or beginning a deficiency judgment proceeding expires. Expiration of the statute of limitations
      is'
    drafter_attestation: Verbatim from Freddie Guide §8601.2 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8601.2-9
  canonical_id: fhlmc-8601.2-9
  section: Freddie Mac Guide 8601.2
  description: '8601.2 Limited power of attorney: 601-13 an identifiable event only when the Borrower’s affirmative
    statute of limitations defense is upheld in a final judgment or decision of a court and the appeal period has
    expired ❑ A cancelation or extinguishment when deficiency rights were not preserved during the foreclosu…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8601.2 — Limited power of attorney (09/10/25)
    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: 601-13 an identifiable event only when the Borrower’s affirmative statute of limitations defense
      is upheld in a final judgment or decision of a court and the appeal period has expired ❑ A cancelation or
      extinguishment when deficiency rights were not preserved during the foreclosure process ❑ A cancelation or
      extinguishment when Freddie Mac (or its vendor per Section 9601.1(a)) makes the determination not to pursue
      a deficiency action post- foreclosure and notifies the Servicer of such determination ❑ A cancelation or extinguishment
      when a creditor elects foreclosure remedies that by law end or bar the creditor’s right to collect the debt.
      This event applies if collection is barred by local law after a “power of sale” in the Mortgage or deed of
      trust is exercised. ❑ A cancelation or extinguishment due to a probate or similar proceeding ❑ A discharge
      of indebtedness under an agreement with the debtor to cancel the debt at less than full consideration (e.g.,
      a short sale). Freddie Mac will advise the Servicer if such an agreement is reached with a Borrower. ❑ A discharge
      of indebtedness because of a decision or a defined policy of the creditor to discontinue collection activity
      and cancel the debt. A creditor’s defined policy can be in writing or an established business practice. A
      practice to stop collection activity and abandon a debt when a particular nonpayment period expires is a defined
      policy. Facts and circumstances indicating that a debt was not canceled include the existence of a lien relating
      to the debt (up to the value of the security) or the sale or packaging for sale of the debt by the creditor.
      In the event of a foreclosure sale where deficiency rights were preserved, the Servicer must not initially
      file IRS Form 1099-C. Freddie Mac will determine whether to pursue collection of the deficiency of that Mortgage.
      If Freddie Mac makes a determination not to pursue collection of the deficiency, Freddie Mac will notify the
      Servicer in the report described below, and the Servicer must then file IRS Form 1099-C. Servicers must review
      the 1099-C Loan Detail report, accessible via the “Default Reporting” tile of the Servicer’s Servicer Performance
      Profile (SPP) (see Exhibit 88, Servicing Tools), by the end of January annually and ensure that IRS Form 1099-C
      is filed with the IRS as required in Section 8601.3(b)(v) and is provided to the Borrower as required in Section
      8601.3(b)(vi) for all Senior Subordinate Mortgages in which the debt has been discharged in the prior year.
      This report will list all Freddie Mac-Owned or Guaranteed Mortgages whereby Freddie Mac has determined not
      to pursue collection of the deficiency on behalf of the Senior Subordinate Trust in the prior year.
    drafter_attestation: Verbatim from Freddie Guide §8601.2 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
