Freddie Mac Single-Family Seller/Servicer Guide 8701.2 — Early Delinquency Counseling and

Freddie Mac Single-Family Seller/Servicer Guide 8701.2 — Early Delinquency Counseling and

Delinquency management for Community Land Trust Mortgages (09/10/25) This section contains requirements related to: ■ Early Delinquency Counseling ■ Delinquency management process for Community Land Trust Mortgages (a) Early Delinquency Counseling Unless otherwise noted below, the requirements for special Servicing and Early Delinquency Counseling as described in Sections 9101.1 and 9102.4, as applicable, apply to Community Land Trust Mortgages, regardless of the Mortgage Product type. If the Servicer has knowledge or reason to believe that a lessor (Community Land Trust or its duly authorized representative) has established program requirements to offer Early Delinquency Counseling (e.g., analyzing the Borrower's financial situation during a counseling session and developing a plan of action for solving the Delinquency) and/or has offered Early Delinquency Counseling to a delinquent Borrower on a Community Land Trust Mortgage, then the Servicer is not required to offer Early Delinquency Counseling. If the Servicer is not required to offer Early Delinquency Counseling, as noted above, the Servicer must document the basis for not offering such counseling in the Mortgage file. (b) Delinquency management process for Community Land Trust Mortgages The steps below describe the process that Servicers must follow, in addition to other Servicing requirements of the Guide, when a Borrower obligated under a Community Land Trust Mortgage is delinquent in his or her Mortgage payments: 1. Servicing requirements for Community Land Trust Mortgages during Delinquency (i) Early Delinquency Counseling Pursuant to Section 8701.2(a) above, if applicable, Servicers of Community Land Trust Mortgages must offer Early Delinquency Counseling as described in Sections 9101.1 and 9102.4, as applicable. (ii) Lessors rights during Delinquency Certain rights available to the lessor under the ground lease, as amended, include, but are not limited to, curing the Delinquency on behalf of the Borrower or, if curing the Delinquency on behalf of the Borrower is determined by the lessor not to be a viable solution to the Delinquency, paying off the Community Land Trust Mortgage (e.g., by finding a new potential lessee to purchase the property from the Borrower for an amount that pays off the total debt). 2. Servicing requirements for Community Land Trust Mortgages prior to referral to foreclosure Servicers of Community Land Trust Mortgages must complete a preforeclosure referral account review in accordance with the requirements in Section 9301.2(a). The Servicer must refer a Community Land Trust Mortgage to foreclosure if nothing in the Servicer’s preforeclosure referral account review prevents the Servicer from referring the Community Land Trust Mortgage to foreclosure. 3. Servicing requirements for Community Land Trust Mortgages post-referral to foreclosure During the foreclosure process, the Servicer may, but is not obligated to, provide notice to the lessor that describes how it may, via written notice to the Servicer, express its intention to exercise certain rights available to it under the ground lease, as amended. Upon delivery of such notice to the lessor, if applicable, the lessor must give written notice to the Servicer of its intention to exercise certain rights available to it under the ground lease, as amended, within the time frame specified by the Servicer. If such written notice is given to the Servicer timely, upon receipt, the Servicer may suspend foreclosure proceedings to allow the lessor to exercise such rights. If a foreclosure sale date is scheduled, the Servicer may, to the extent possible and in accordance with applicable law, extend the foreclosure sale date.

Source: Freddie Mac Single-Family Seller/Servicer Guide 8701.2 — Early Delinquency Counseling and · source URL · snapshot 4c94f67729042dd6