Freddie Mac Single-Family Seller/Servicer Guide Chapter 9401 — Bankruptcy

fhlmc-9401

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.

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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?
    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
    feeds: []
    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
  - 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?
    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
    feeds: []
    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
  - 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?
    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
    feeds: []
    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
_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

Verbatim regulatory text (3)

Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide Chapter 9401 — Bankruptcy — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

Freddie Mac Guide Section 9401.1(a) — Bankruptcy

The Servicer must take appropriate action to

Source: Freddie Mac Single-Family Seller/Servicer Guide Section 9401.1(a) · source URL · snapshot 5869ee9e606cd4ae

Freddie Mac Guide Section 9401.1(c) — Bankruptcy general requirements

When the Servicer receives notice or confirms information that a Borrower has filed a

Source: Freddie Mac Single-Family Seller/Servicer Guide Section 9401.1(c) · source URL · snapshot 5869ee9e606cd4ae

Freddie Mac Guide Section 9401.1(c) — Modification conditioned on bankruptcy court approval

Servicers must inform the Borrower, Borrower’s counsel or bankruptcy trustee that an

Source: Freddie Mac Single-Family Seller/Servicer Guide Section 9401.1(c) · source URL · snapshot 5869ee9e606cd4ae

Operationalizing Freddie Mac Single-Family Seller/Servicer Guide Chapter 9401 — Bankruptcy

This is verbatim, source-snapshotted regulator text from the Claude for Compliance open corpus. To turn a rule like this into compliance work product: gap-analyze your policies and procedures (P&Ps) against these requirements to surface stale, conflicting, or missing provisions; operationalize any change with a ready-to-run update kit; and produce audit-ready evidence — every step grounded only in the regulator’s own words, never invented.

Source of record: https://claudeforcompliance.com/regs/fhlmc-9401/ · register fhlmc-9401 · Claude for Compliance. Free to read and download; see regulatory updates and methodology.