Freddie Mac Single-Family Seller/Servicer Guide 9102.1 — General requirements for Servicing delinquent Mortgages

This section contains information related to: ■ Servicer responsibilities ■ Delinquency rates ■ Collection records ■ Funds in buydown accounts ■ FHA, RHS, VA and MI requirements ■ Freddie Mac rights ■ Remitting compensatory and other fees ■ Receiving reimbursement of expenses/payment of incentives via Automated Clearing House (ACH) credit entries

(a) Servicer responsibilities The Servicer must develop, follow and maintain prudent and efficient written procedures that meet Freddie Mac requirements for promptly curing Delinquencies and comply with all applicable laws. In addition: ■ The Servicer must employ staff that is experienced and skilled in financial counseling and Mortgage collection techniques. The Servicer’s staff must assist a Borrower in bringing a Mortgage current while protecting the Borrower’s equity and credit rating and protecting Freddie Mac’s interests. The Servicer must also employ staff that is adequately trained to discuss interest rate adjustments for Step-Rate Mortgages, in accordance with the requirements in Chapter 8501. ■ Freddie Mac encourages Servicers to develop a Borrower Delinquency management model that allows a Borrower to contact one individual or a dedicated team of individuals in the Servicer’s organization to obtain accurate information on the various alternatives to foreclosure available to the Borrower ■ If the Servicer develops a Borrower Delinquency management model, the individual or dedicated team of individuals should also be able to handle and resolve Borrower issues throughout the Delinquency management process and provide updates on the status of any request for an alternative to foreclosure and the status of pending foreclosure proceedings

(b) Delinquency rates The Servicer’s continued eligibility to service Mortgages for Freddie Mac is contingent on maintaining Delinquency rates that are acceptable to Freddie Mac. Freddie Mac may disqualify or suspend a Servicer if the Servicer’s 30-, 60- or 90+-day Delinquency rate or REO rate exceeds the national or regional average (e.g., Standard Metropolitan Statistical Area, county or State in which the Mortgaged Premises is located) by more than 50% for Mortgages owned or guaranteed by Freddie Mac with similar Mortgage and Borrower characteristics (e.g., origination year, loan-to-value ratio and documentation type (full documentation, reduced documentation).

(c) Collection records The Servicer must maintain records of all collection efforts and make the records available for Freddie Mac’s inspection on request. The Servicer’s collection records must evidence: ■ Dates that letters and notices were sent ■ Dates and results of personal contacts with the Borrower via telephone, e-mail, face-toface or other responsible collection techniques ■ Reasons for prior and current defaults ■ Terms of any repayment arrangements ■ Documentation of property inspections, as required in Section 9202.3(b)

(d) Funds in buydown accounts The Servicer must not apply funds in a buydown account to bring a delinquent Mortgage current unless it is otherwise required per the Guide or the terms of the applicable buydown agreement.

(e) FHA, RHS, VA and MI requirements The Servicer must be familiar with and satisfy all applicable requirements of the FHA, RHS, VA or MI. The Servicer is required to file on a timely basis all notices to the FHA, RHS, VA or MI. Copies of routine notices sent to the FHA, RHS, VA, MI or Borrower must be maintained in the Mortgage file but need not be sent to Freddie Mac unless specifically requested. Each notice to the MI must state that Freddie Mac is the owner of each related Mortgage.

(f) Freddie Mac rights Freddie Mac retains the right in its discretion to: ■ Impose additional Servicing requirements as Freddie Mac deems appropriate ■ Direct the Servicer to transfer Servicing of any delinquent Mortgage serviced for Freddie Mac that has two or more payments outstanding as of a date in the month specified by Freddie Mac (the “Determination Date”) to a Servicer designated by Freddie Mac. The Transfer of Servicing of delinquent Mortgages will occur monthly, effective as of a date in the month specified by Freddie Mac (the “Transfer Date”). Any Mortgage identified as two or more payments in arrears on the Determination Date will transfer on the Transfer Date, regardless of whether the loan becomes current before the Transfer Date. Freddie Mac will provide the Servicer (the Transferor Servicer) with written notice at least 90 days in advance of the first Transfer of Servicing date for such Mortgages. With respect to such a Transfer of Servicing: ❑ The Servicing compensation for the Mortgages being transferred shall be determined by Freddie Mac and shall be payable to the new Servicer ❑ No compensation will be paid to the Transferor Servicer ❑ The Transferor Servicer will be responsible for any transfer-related expenses. Note: See Section 3603.1(a)(i)(A) for a description of such expenses. ❑ Such Mortgages will remain with the Transferee Servicer, whether or not they become current after the Determination Date The Transfer of Servicing does not relieve the Transferor Servicer of any of its obligations under the Purchase Documents with respect to the Mortgages for which Servicing is transferred. Freddie Mac may discontinue the monthly transfer of delinquent Mortgages at any time upon written notice to the Transferor Servicer and may provide up to 180 days’ notice prior to the discontinuation of the monthly transfer of delinquent Mortgages if requested by the Servicer. The Transferor Servicer must cooperate with Freddie Mac and is responsible for: ❑ Facilitating, at its expense, the transfer of the Mortgage file, payment history, Escrow account, copies of all correspondence with the Borrower and any other information and records or documentation pertaining to the Mortgages requested by Freddie Mac ❑ Providing the Borrower with any notice of the change with respect to the Servicing activities as may be required by Freddie Mac ❑ Informing any necessary third parties, such as tax and insurance services, attorneys, and vendors of the change with respect to the Servicing activities

(g) Remitting compensatory and other fees Servicers may be assessed compensatory and other fees (e.g., failing to comply with Freddie Mac’s EDR requirements, late foreclosure sale reporting compensatory fees or State foreclosure timeline compensatory fees) associated with its failure to comply with certain Freddie Mac requirements as provided under the Guide. Such fees will be billed to the Servicer on the Servicer’s monthly Servicer Non-Performing Loans Invoice. (i) Remitting payments via an ACH draft Servicers must remit payment of Servicer Non-Performing Loans Invoices via an ACH draft initiated by Freddie Mac. Freddie Mac will initiate the ACH draft on the last Business Day of the month in which the Servicer receives the Servicer Non-Performing Loans Invoice. To authorize ACH drafting of Servicer Non-Performing Loans Invoices or to make changes to ACH draft account instructions previously provided, Servicers must complete, execute and submit a Form 1132, Authorization for Automatic Transfer of Funds Through the Automated Clearing House (ACH) for Servicers, no later than 15 Business Days before the last Business Day of the first month in which the Servicer owes any compensatory and other fees to Freddie Mac reflected on the Servicer Non-Performing Loans Invoice. The Servicer must deliver Form 1132 to Freddie Mac as an Electronic Record (as defined in Section 1401.1(b)), using a Portable Document Format (PDF) (or other Electronic Record format commonly used in the mortgage industry), that has been completed and contains the copy or representation of the pen and ink signature of the Servicer’s Authorized Employee (such copy or representation of the Authorized Employee’s signature shall be such Authorized Employee’s adopted Electronic Signature as defined in Section 1401.1(b)) and either: ■ Attach to an e-mail and deliver to Freddie Mac at [email protected]; or ■ Upload through the Freddie Mac eBilling system Freddie Mac and the Servicer agree that the delivery of Electronic Records with Electronic Signatures are eligible Electronic Transactions (as defined in Section 1401.1(b)) and are governed by the applicable provisions of Chapter 1401. The employee authorized to execute Form 1132 on the Servicer’s behalf must be designated as an “Authorized Employee” on the Servicer’s Form 988SF, Certificate of Incumbency for a Bank, Savings Bank, Savings and Loan Association, Credit Union, Corporation or Limited Liability Company, or Form 989SF, Certificate of Incumbency for Limited Partnerships, as applicable. (ii) Establishing an ACH draft account The account the Servicer designates as the ACH draft account must not be a Custodial Account. Servicers may establish one ACH account for the payment of invoices for both the Performing Loans Monthly Servicer Billing Statement and the Servicer NonPerforming Loans Invoice or establish two separate accounts. Servicers may submit billing inquires or billing-related requests to [email protected]. Note: See Sections 8303.1(d) and 8303.5(b) concerning Performing Loans remittances. The term “Performing Loans Invoices” on Form 1132 includes, but is not limited to, “Performing Loans monthly Servicer Billing Statements” and “PL001 (Performing Loans).” The term “Nonperforming Loans Invoices” on Form 1132 includes, but is not limited to, “Servicer Non-Performing Loans Invoices” and “NPL01 (Non Performing Loans).”

(h) Receiving reimbursement of expenses/payment of incentives via ACH credit entries To be reimbursed for expenses and paid incentives (see Section 9204.3(a) regarding Servicer compensation for alternatives to foreclosure), Servicers must authorize Freddie Mac to make such payments via ACH credit entries into their commercial checking accounts. See Section 2405.1(a) for information on authorizing receipt of ACH credit entries or making changes to ACH credit account instructions previously provided. Servicers may submit ACH credit-related questions or concerns to [email protected]. Servicers should refer to Chapter 9701 for detailed information related to the reimbursement of expenses and the use of PAID (Payments Automated Intelligent and Dynamic) (see Exhibit 88, Servicing Tools). Note: Before a Servicer may receive expense reimbursements and incentive payments via ACH credit entries, the Servicer must have completed the certificate of incumbency (COI) process requirements in Section 2201.1, and Freddie Mac must have accepted the Servicer’s COI and all other required forms and documents. The employee authorized to execute Form 1132 (the “ACH Authorization”) on the Servicer’s behalf must be designated as an “Authorized Employee” on the Servicer’s Form 988SF or 989SF, as applicable.

Mortgages (Future effective date 11/16/26) Refer to Bulletins 2026-G and 2026-11, which announced updates related to Freddie Mac’s new event-based default related reporting requirements. Beginning November 16, 2026, Servicers may implement the new requirements if they are operationally ready to do so. If a Servicer adopts the new event-based default related reporting standards before the mandatory effective date of September 27, 2027, it must comply with the associated Guide requirements that will be effective on September 27, 2027 and, upon such adoption, must discontinue monthly EDR reporting. This section contains information related to: ■ Servicer responsibilities ■ Delinquency rates ■ Collection records ■ Funds in buydown accounts ■ FHA, RHS, VA and MI requirements ■ Freddie Mac rights ■ Remitting compensatory and other fees ■ Receiving reimbursement of expenses/payment of incentives via Automated Clearing House (ACH) credit entries

(a) Servicer responsibilities The Servicer must develop, follow and maintain prudent and efficient written procedures that meet Freddie Mac requirements for promptly curing Delinquencies and comply with all applicable laws. In addition: ■ The Servicer must employ staff that is experienced and skilled in financial counseling and Mortgage collection techniques. The Servicer’s staff must assist a Borrower in bringing a Mortgage current while protecting the Borrower’s equity and credit rating and protecting Freddie Mac’s interests. The Servicer must also employ staff that is adequately trained to discuss interest rate adjustments for Step-Rate Mortgages, in accordance with the requirements in Chapter 8501. ■ Freddie Mac encourages Servicers to develop a Borrower Delinquency management model that allows a Borrower to contact one individual or a dedicated team of individuals in the Servicer’s organization to obtain accurate information on the various alternatives to foreclosure available to the Borrower ■ If the Servicer develops a Borrower Delinquency management model, the individual or dedicated team of individuals should also be able to handle and resolve Borrower issues throughout the Delinquency management process and provide updates on the status of any request for an alternative to foreclosure and the status of pending foreclosure proceedings

(b) Delinquency rates The Servicer’s continued eligibility to service Mortgages for Freddie Mac is contingent on maintaining Delinquency rates that are acceptable to Freddie Mac. Freddie Mac may disqualify or suspend a Servicer if the Servicer’s 30-, 60- or 90+-day Delinquency rate or REO rate exceeds the national or regional average (e.g., Standard Metropolitan Statistical Area, county or State in which the Mortgaged Premises is located) by more than 50% for Mortgages owned or guaranteed by Freddie Mac with similar Mortgage and Borrower characteristics (e.g., origination year, loan-to-value ratio and documentation type (full documentation, reduced documentation).

(c) Collection records The Servicer must maintain records of all collection efforts and make the records available for Freddie Mac’s inspection on request. The Servicer’s collection records must evidence: ■ Dates that letters and notices were sent ■ Dates and results of personal contacts with the Borrower via telephone, e-mail, face-toface or other responsible collection techniques ■ Reasons for prior and current defaults ■ Terms of any repayment arrangements ■ Documentation of property inspections, as required in Section 9202.3(b)

(d) Funds in buydown accounts The Servicer must not apply funds in a buydown account to bring a delinquent Mortgage current unless it is otherwise required per the Guide or the terms of the applicable buydown agreement.

(e) FHA, RHS, VA and MI requirements The Servicer must be familiar with and satisfy all applicable requirements of the FHA, RHS, VA or MI. The Servicer is required to file on a timely basis all notices to the FHA, RHS, VA or MI. Copies of routine notices sent to the FHA, RHS, VA, MI or Borrower must be maintained in the Mortgage file but need not be sent to Freddie Mac unless specifically requested. Each notice to the MI must state that Freddie Mac is the owner of each related Mortgage.

(f) Freddie Mac rights Freddie Mac retains the right in its discretion to: ■ Impose additional Servicing requirements as Freddie Mac deems appropriate ■ Direct the Servicer to transfer Servicing of any delinquent Mortgage serviced for Freddie Mac that has two or more payments outstanding as of a date in the month specified by Freddie Mac (the “Determination Date”) to a Servicer designated by Freddie Mac. The Transfer of Servicing of delinquent Mortgages will occur monthly, effective as of a date in the month specified by Freddie Mac (the “Transfer Date”). Any Mortgage identified as two or more payments in arrears on the Determination Date will transfer on the Transfer Date, regardless of whether the loan becomes current before the Transfer Date. Freddie Mac will provide the Servicer (the Transferor Servicer) with written notice at least 90 days in advance of the first Transfer of Servicing date for such Mortgages. With respect to such a Transfer of Servicing: ❑ The Servicing compensation for the Mortgages being transferred shall be determined by Freddie Mac and shall be payable to the new Servicer ❑ No compensation will be paid to the Transferor Servicer ❑ The Transferor Servicer will be responsible for any transfer-related expenses. Note: See Section 3603.1(a)(i)(A) for a description of such expenses. ❑ Such Mortgages will remain with the Transferee Servicer, whether or not they become current after the Determination Date The Transfer of Servicing does not relieve the Transferor Servicer of any of its obligations under the Purchase Documents with respect to the Mortgages for which Servicing is transferred. Freddie Mac may discontinue the monthly transfer of delinquent Mortgages at any time upon written notice to the Transferor Servicer and may provide up to 180 days’ notice prior to the discontinuation of the monthly transfer of delinquent Mortgages if requested by the Servicer. The Transferor Servicer must cooperate with Freddie Mac and is responsible for: ❑ Facilitating, at its expense, the transfer of the Mortgage file, payment history, Escrow account, copies of all correspondence with the Borrower and any other information and records or documentation pertaining to the Mortgages requested by Freddie Mac ❑ Providing the Borrower with any notice of the change with respect to the Servicing activities as may be required by Freddie Mac ❑ Informing any necessary third parties, such as tax and insurance services, attorneys, and vendors of the change with respect to the Servicing activities

(g) Remitting compensatory and other fees Servicers may be assessed compensatory and other fees (e.g., failing to comply with Freddie Mac’s EDR requirements, late foreclosure sale reporting compensatory fees or State foreclosure timeline compensatory fees) associated with its failure to comply with certain Freddie Mac requirements as provided under the Guide. Such fees will be billed to the Servicer on the Servicer’s monthly Servicer Non-Performing Loans Invoice. (i) Remitting payments via an ACH draft Servicers must remit payment of Servicer Non-Performing Loans Invoices via an ACH draft initiated by Freddie Mac. Freddie Mac will initiate the ACH draft on the last Business Day of the month in which the Servicer receives the Servicer Non-Performing Loans Invoice. To authorize ACH drafting of Servicer Non-Performing Loans Invoices or to make changes to ACH draft account instructions previously provided, Servicers must complete, execute and submit a Form 1132, Authorization for Automatic Transfer of Funds Through the Automated Clearing House (ACH) for Servicers, no later than 15 Business Days before the last Business Day of the first month in which the Servicer owes any compensatory and other fees to Freddie Mac reflected on the Servicer Non-Performing Loans Invoice. The Servicer must deliver Form 1132 to Freddie Mac as an Electronic Record (as defined in Section 1401.1(b)), using a Portable Document Format (PDF) (or other Electronic Record format commonly used in the mortgage industry), that has been completed and contains the copy or representation of the pen and ink signature of the Servicer’s Authorized Employee (such copy or representation of the Authorized Employee’s signature shall be such Authorized Employee’s adopted Electronic Signature as defined in Section 1401.1(b)) and either: ■ Attach to an e-mail and deliver to Freddie Mac at [email protected]; or ■ Upload through the Freddie Mac eBilling system Freddie Mac and the Servicer agree that the delivery of Electronic Records with Electronic Signatures are eligible Electronic Transactions (as defined in Section 1401.1(b)) and are governed by the applicable provisions of Chapter 1401. The employee authorized to execute Form 1132 on the Servicer’s behalf must be designated as an “Authorized Employee” on the Servicer’s Form 988SF, Certificate of Incumbency for a Bank, Savings Bank, Savings and Loan Association, Credit Union, Corporation or Limited Liability Company, or Form 989SF, Certificate of Incumbency for Limited Partnerships, as applicable. (ii) Establishing an ACH draft account The account the Servicer designates as the ACH draft account must not be a Custodial Account. Servicers may establish one ACH account for the payment of invoices for both the Performing Loans Monthly Servicer Billing Statement and the Servicer NonPerforming Loans Invoice or establish two separate accounts. Servicers may submit billing inquires or billing-related requests to [email protected]. Note: See Sections 8303.1(d) and 8303.5(b) concerning Performing Loans remittances. The term “Performing Loans Invoices” on Form 1132 includes, but is not limited to, “Performing Loans monthly Servicer Billing Statements” and “PL001 (Performing Loans).” The term “Nonperforming Loans Invoices” on Form 1132 includes, but is not limited to, “Servicer Non-Performing Loans Invoices” and “NPL01 (Non Performing Loans).”

(h) Receiving reimbursement of expenses/payment of incentives via ACH credit entries To be reimbursed for expenses and paid incentives (see Section 9204.3(a) regarding Servicer compensation for alternatives to foreclosure), Servicers must authorize Freddie Mac to make such payments via ACH credit entries into their commercial checking accounts. See Section 2405.1(a) for information on authorizing receipt of ACH credit entries or making changes to ACH credit account instructions previously provided. Servicers may submit ACH credit-related questions or concerns to [email protected]. Servicers should refer to Chapter 9701 for detailed information related to the reimbursement of expenses and the use of PAID (Payments Automated Intelligent and Dynamic) (see Exhibit 88, Servicing Tools). Note: Before a Servicer may receive expense reimbursements and incentive payments via ACH credit entries, the Servicer must have completed the certificate of incumbency (COI) process requirements in Section 2201.1, and Freddie Mac must have accepted the Servicer’s COI and all other required forms and documents. The employee authorized to execute Form 1132 (the “ACH Authorization”) on the Servicer’s behalf must be designated as an “Authorized Employee” on the Servicer’s Form 988SF or 989SF, as applicable.

Mortgages (Future effective date 09/27/27) This section contains information related to: ■ Servicer responsibilities ■ Delinquency rates ■ Collection records ■ Funds in buydown accounts ■ FHA, RHS, VA and MI requirements ■ Freddie Mac rights ■ Remitting compensatory and other fees ■ Receiving reimbursement of expenses/payment of incentives via Automated Clearing House (ACH) credit entries

(a) Servicer responsibilities The Servicer must develop, follow and maintain prudent and efficient written procedures that meet Freddie Mac requirements for promptly curing Delinquencies and comply with all applicable laws. In addition: ■ The Servicer must employ staff that is experienced and skilled in financial counseling and Mortgage collection techniques. The Servicer’s staff must assist a Borrower in bringing a Mortgage current while protecting the Borrower’s equity and credit rating and protecting Freddie Mac’s interests. The Servicer must also employ staff that is adequately trained to discuss interest rate adjustments for Step-Rate Mortgages, in accordance with the requirements in Chapter 8501. ■ Freddie Mac encourages Servicers to develop a Borrower Delinquency management model that allows a Borrower to contact one individual or a dedicated team of individuals in the Servicer’s organization to obtain accurate information on the various alternatives to foreclosure available to the Borrower ■ If the Servicer develops a Borrower Delinquency management model, the individual or dedicated team of individuals should also be able to handle and resolve Borrower issues throughout the Delinquency management process and provide updates on the status of any request for an alternative to foreclosure and the status of pending foreclosure proceedings

(b) Delinquency rates The Servicer’s continued eligibility to service Mortgages for Freddie Mac is contingent on maintaining Delinquency rates that are acceptable to Freddie Mac. Freddie Mac may disqualify or suspend a Servicer if the Servicer’s 30-, 60- or 90+-day Delinquency rate or REO rate exceeds the national or regional average (e.g., Standard Metropolitan Statistical Area, county or State in which the Mortgaged Premises is located) by more than 50% for Mortgages owned or guaranteed by Freddie Mac with similar Mortgage and Borrower characteristics (e.g., origination year, loan-to-value ratio and documentation type (full documentation, reduced documentation).

(c) Collection records The Servicer must maintain records of all collection efforts and make the records available for Freddie Mac’s inspection on request. The Servicer’s collection records must evidence: ■ Dates that letters and notices were sent ■ Dates and results of personal contacts with the Borrower via telephone, e-mail, face-toface or other responsible collection techniques ■ Reasons for prior and current defaults ■ Terms of any repayment arrangements ■ Documentation of property inspections, as required in Section 9202.3(b)

(d) Funds in buydown accounts The Servicer must not apply funds in a buydown account to bring a delinquent Mortgage current unless it is otherwise required per the Guide or the terms of the applicable buydown agreement.

(e) FHA, RHS, VA and MI requirements The Servicer must be familiar with and satisfy all applicable requirements of the FHA, RHS, VA or MI. The Servicer is required to file on a timely basis all notices to the FHA, RHS, VA or MI. Copies of routine notices sent to the FHA, RHS, VA, MI or Borrower must be maintained in the Mortgage file but need not be sent to Freddie Mac unless specifically requested. Each notice to the MI must state that Freddie Mac is the owner of each related Mortgage.

(f) Freddie Mac rights Freddie Mac retains the right in its discretion to: ■ Impose additional Servicing requirements as Freddie Mac deems appropriate ■ Direct the Servicer to transfer Servicing of any delinquent Mortgage serviced for Freddie Mac that has two or more payments outstanding as of a date in the month specified by Freddie Mac (the “Determination Date”) to a Servicer designated by Freddie Mac. The Transfer of Servicing of delinquent Mortgages will occur monthly, effective as of a date in the month specified by Freddie Mac (the “Transfer Date”). Any Mortgage identified as two or more payments in arrears on the Determination Date will transfer on the Transfer Date, regardless of whether the loan becomes current before the Transfer Date. Freddie Mac will provide the Servicer (the Transferor Servicer) with written notice at least 90 days in advance of the first Transfer of Servicing date for such Mortgages. With respect to such a Transfer of Servicing: ❑ The Servicing compensation for the Mortgages being transferred shall be determined by Freddie Mac and shall be payable to the new Servicer ❑ No compensation will be paid to the Transferor Servicer ❑ The Transferor Servicer will be responsible for any transfer-related expenses. Note: See Section 3603.1(a)(i)(A) for a description of such expenses. ❑ Such Mortgages will remain with the Transferee Servicer, whether or not they become current after the Determination Date The Transfer of Servicing does not relieve the Transferor Servicer of any of its obligations under the Purchase Documents with respect to the Mortgages for which Servicing is transferred. Freddie Mac may discontinue the monthly transfer of delinquent Mortgages at any time upon written notice to the Transferor Servicer and may provide up to 180 days’ notice prior to the discontinuation of the monthly transfer of delinquent Mortgages if requested by the Servicer. The Transferor Servicer must cooperate with Freddie Mac and is responsible for: ❑ Facilitating, at its expense, the transfer of the Mortgage file, payment history, Escrow account, copies of all correspondence with the Borrower and any other information and records or documentation pertaining to the Mortgages requested by Freddie Mac ❑ Providing the Borrower with any notice of the change with respect to the Servicing activities as may be required by Freddie Mac ❑ Informing any necessary third parties, such as tax and insurance services, attorneys, and vendors of the change with respect to the Servicing activities

(g) Remitting compensatory and other fees Servicers may be assessed compensatory and other fees (e.g., failing to comply with Freddie Mac’s default reporting requirements, late foreclosure sale reporting compensatory fees or State foreclosure timeline compensatory fees) associated with its failure to comply with certain Freddie Mac requirements as provided under the Guide. Such fees will be billed to the Servicer on the Servicer’s monthly Servicer Non-Performing Loans Invoice. (i) Remitting payments via an ACH draft Servicers must remit payment of Servicer Non-Performing Loans Invoices via an ACH draft initiated by Freddie Mac. Freddie Mac will initiate the ACH draft on the last Business Day of the month in which the Servicer receives the Servicer Non-Performing Loans Invoice. To authorize ACH drafting of Servicer Non-Performing Loans Invoices or to make changes to ACH draft account instructions previously provided, Servicers must complete, execute and submit a Form 1132, Authorization for Automatic Transfer of Funds Through the Automated Clearing House (ACH) for Servicers, no later than 15 Business Days before the last Business Day of the first month in which the Servicer owes any compensatory and other fees to Freddie Mac reflected on the Servicer Non-Performing Loans Invoice. The Servicer must deliver Form 1132 to Freddie Mac as an Electronic Record (as defined in Section 1401.1(b)), using a Portable Document Format (PDF) (or other Electronic Record format commonly used in the mortgage industry), that has been completed and contains the copy or representation of the pen and ink signature of the Servicer’s Authorized Employee (such copy or representation of the Authorized Employee’s signature shall be such Authorized Employee’s adopted Electronic Signature as defined in Section 1401.1(b)) and either: ■ Attach to an e-mail and deliver to Freddie Mac at [email protected]; or ■ Upload through the Freddie Mac eBilling system Freddie Mac and the Servicer agree that the delivery of Electronic Records with Electronic Signatures are eligible Electronic Transactions (as defined in Section 1401.1(b)) and are governed by the applicable provisions of Chapter 1401. The employee authorized to execute Form 1132 on the Servicer’s behalf must be designated as an “Authorized Employee” on the Servicer’s Form 988SF, Certificate of Incumbency for a Bank, Savings Bank, Savings and Loan Association, Credit Union, Corporation or Limited Liability Company, or Form 989SF, Certificate of Incumbency for Limited Partnerships, as applicable. (ii) Establishing an ACH draft account The account the Servicer designates as the ACH draft account must not be a Custodial Account. Servicers may establish one ACH account for the payment of invoices for both the Performing Loans Monthly Servicer Billing Statement and the Servicer NonPerforming Loans Invoice or establish two separate accounts. Servicers may submit billing inquires or billing-related requests to [email protected]. Note: See Sections 8303.1(d) and 8303.5(b) concerning Performing Loans remittances. The term “Performing Loans Invoices” on Form 1132 includes, but is not limited to, “Performing Loans monthly Servicer Billing Statements” and “PL001 (Performing Loans).” The term “Nonperforming Loans Invoices” on Form 1132 includes, but is not limited to, “Servicer Non-Performing Loans Invoices” and “NPL01 (Non Performing Loans).”

(h) Receiving reimbursement of expenses/payment of incentives via ACH credit entries To be reimbursed for expenses and paid incentives (see Section 9204.3(a) regarding Servicer compensation for alternatives to foreclosure), Servicers must authorize Freddie Mac to make such payments via ACH credit entries into their commercial checking accounts. See Section 2405.1(a) for information on authorizing receipt of ACH credit entries or making changes to ACH credit account instructions previously provided. Servicers may submit ACH credit-related questions or concerns to [email protected]. Servicers should refer to Chapter 9701 for detailed information related to the reimbursement of expenses and the use of PAID (Payments Automated Intelligent and Dynamic) (see Exhibit 88, Servicing Tools). Note: Before a Servicer may receive expense reimbursements and incentive payments via ACH credit entries, the Servicer must have completed the certificate of incumbency (COI) process requirements in Section 2201.1, and Freddie Mac must have accepted the Servicer’s COI and all other required forms and documents. The employee authorized to execute Form 1132 (the “ACH Authorization”) on the Servicer’s behalf must be designated as an “Authorized Employee” on the Servicer’s Form 988SF or 989SF, as applicable.