Default-Related Legal Services

Law Firms Overview

Welcome to law firms onboarded to handle default-related legal services for Default Legal Matters (bankruptcies, foreclosures, loss mitigation and related litigation involving Freddie Mac owned or guaranteed mortgages).  This Web page provides information related to Freddie Mac default-related legal services and links to access: accounts, materials, and training.

All law firms must first be onboarded by Freddie Mac before being allowed access to secured materials.

Law Firm Selection and Onboarding Process

• Freddie Mac Servicers are responsible for selecting and managing law firms handling Freddie Mac Default Legal Matters.
• Following receipt of a “no objection” response from Freddie Mac for a submitted law firm, the Servicer will need to enter into a contract with the law firm, if a contract does not already exist.
• Freddie Mac will send the law firm a Limited Retention Agreement (“LRA”). When the law firm signs and returns the LRA to Freddie Mac, it will receive an automated email from Freddie Mac providing the firm identification number and links to mandatory new law firm training.
• Firms are required to complete training for each jurisdiction in which they are retained prior to providing default-related legal services for new referrals of Freddie Mac mortgages. After the law firm has completed the training, Freddie Mac will countersign the LRA, and the firm will be eligible for referrals.
• Selected law firms will generally receive referrals directly from a Freddie Mac Servicer. Foreclosure proceedings will generally be conducted in the name of the Servicer on behalf of Freddie Mac.  
• When foreclosure proceedings are conducted on Freddie Mac’s behalf, your law firm will represent both Freddie Mac and the Servicer, subject to the terms of the LRA.

Reminder

• Law firms performing Default-Related Legal Services (DRLS) for Freddie Mac must maintain effective processes and controls for the security and confidentiality of personally identifiable information (PII), including but not limited to:
• Ensure the security and confidentiality of PII and confidential information, whether in paper, electronic or other form;
• Protect against any threats or hazards to the security or integrity of such information; and
• Protect against unauthorized access to or use of such information. 

DRLS law firms should also:

• Ensure that your firm has comprehensive, multi-faceted PC security software that protects Freddie Mac related information from viruses, spyware, adware, hackers, unwanted emails, phishing scams, and identity theft.
• Encrypt sensitive information that you send to third parties over the Internet or store on portable storage devices or disks used by your employees on public networks (like the Internet), and consider encrypting sensitive information that is stored on your computer network, or on disks or portable storage devices used by your employees.  We recommend that you also encrypt email transmissions within your business if they contain PII.
• Remove PII and other confidential information from documents prior to posting or circulating information.
• Use appropriate methods to prepare and redact documents containing PII and other confidential information to ensure all redactions are impenetrable.  Never use an original document to redact.  Redact a copy and keep the original in a secure location.
  • Use redaction software, such as Adobe Acrobat Pro, and make sure to follow the directions completely before finalizing and sending to the courts.
  • Cut-out (literally) all the text to be redacted and properly dispose of (e.g. shred) the clippings.
  • Use opaque (100% impenetrable by light; neither transparent nor translucent) tape or paper to cover sections to be redacted.

Training

Training is mandatory for law firms. Law firms will receive information on how to access law firm training when they have signed and returned the LRA to Freddie Mac.

Law firms with ADR log-in information may revisit the law firm-training modules at any time within Attorney Data Reporting, available via Servicing Gateway.

Additionally, any future updates to the training, or additional training, will be available through links available at this site.

Please note: when you log onto the ADR website, please select the Support section to view training videos and law firm operational requirements.

Attorney Data Reporting System

Selected law firms will use the Attorney Data Reporting (ADR) system hosted by Quandis. The Servicer is responsible for ensuring that the law firm timely reports information on all Freddie Mac files the law firm manages using the ADR system.

When a law firm has received it’s fully executed LRA, Quandis will assist with access and setup.

ADR requires one of the following browsers:

• Windows^® Internet Explorer Versions 9 and 10 
• Firefox Version 17 or later
• Google Chrome Version 25 or later
• Safari Version 5 or later

If you experience difficulties installing a compatible browser, please contact your IT help desk. If you need further assistance, please contact Quandis support at 949-525-9000, ext. 2 or [email protected].

Resources

• Clarifications Related to Servicing Guide Section 9501.11

Contact

For other DRLS inquiries or reporting, you may reach us via the following topic-specific email accounts:

• Default Legal Matters Escalation reporting and inquiries: [email protected].
• Non-routine litigation reporting and inquiries: [email protected].
• Limited Retention Agreement and onboarding inquiries: [email protected].
• Loan file level attorney data reporting and inquiries: [email protected].
• All other single-family Default Legal Matter inquiries: [email protected].

Law firms handling real-estate owned ("REO"), eviction or bankruptcy matters may reach Freddie Mac via these topic-specific email accounts:

• REO, eviction, and bankruptcy matter inquiries: [email protected].
• Post-foreclosure REO litigation matter inquiries: [email protected].

Please select only one email account to send an inquiry or report. If you have selected the wrong email account, we will ensure your email is directed to the appropriate mailbox.

Law Firm Resources

Law firms with existing accounts can access the below resources from the ADR website.

• Limited Retention Agreement (LRA)
• ADR Quick Reference Guide
• Default-Related Legal Services Reference Guide
• Compliance Certification

Legacy Matters Overview

Legacy Matters include all Freddie Mac Default Legal Matters (bankruptcies, foreclosures, loss mitigation and related litigation involving Freddie Mac owned or guaranteed mortgages) referred to a law firm or trustee prior to August 1, 2013.

Requirements for Handling Legacy Matters

The Single-Family Seller/Servicer Guide(Guide) Bulletins 2012-25 and 2013-9 announced new requirements for handling bankruptcies and Default Legal Matters effective August 1, 2013.

Freddie Mac will continue to manage any Legacy Matters (referrals of Default Legal Matters sent to law firms or trustees prior to August 1) in accordance with the requirements of archived Guide Chapter 9502, Retention of Counsel for Freddie Mac Default Legal Matters Referred Prior to August 1. 

Contact

Contact your Freddie Mac Servicer if you have specific questions related to Legacy Matters.