Freddie Mac Single-Family Seller/Servicer Guide 9401.2 — Managing bankruptcy filings and delinquency

This section contains requirements related to: ■ Multiple bankruptcy filings ■ Notifying Freddie Mac of bankruptcy proceedings ■ Managing new bankruptcy filings ■ Managing Mortgages that become delinquent subsequent to bankruptcy filing ■ Bankruptcy cramdowns

(a) Multiple bankruptcy filings (i) Identifying previous bankruptcy filings A Borrower may file for bankruptcy protection more than once or under different chapters of the bankruptcy laws. When the Servicer receives notice of a Borrower filing a petition for protection under the bankruptcy laws, the Servicer must: ■ Check its Mortgage records to determine if the Borrower has previously filed for bankruptcy protection ■ Refer the bankruptcy case to counsel if the Servicer’s records disclose a previous bankruptcy filing for that Borrower and the Mortgage is delinquent (ii) Actions for bankruptcy filings The Servicer must direct counsel to take appropriate action, including: ■ If the Borrower has filed multiple times but the bankruptcies are more than 12 months apart: 1. Motion to annul the automatic stay to confirm foreclosure sale if the Servicer was unaware that the Borrower had filed for bankruptcy and the Servicer had conducted a foreclosure sale Freddie Mac Single-Family Seller/Service Guide 2. Motion to dismiss the bankruptcy case if it can be shown that there has been no substantial change in the Borrower’s financial circumstances since the last bankruptcy filing or the Borrower has no prospect of repayment under a reorganization plan 3. Object to the confirmation of a Chapter 13 plan and a motion to dismiss in connection with a Chapter 13 bankruptcy in which the reorganization plan appears to be infeasible or offered in bad faith or it can be shown that there has been no substantial change in the Borrower’s financial circumstances since the last bankruptcy filing 4. Motion for “in rem” relief or 180-day bar to prevent the Borrower from filing another bankruptcy case in the future affecting the property securing Freddie Mac’s Mortgage when there are successive filings with a scheme of fraudulent property transfers 5. Perform any other actions as deemed appropriate and permitted under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ■ If the multiple filing is within 12 months of the previous filing: 1. Object in the event that the Borrower petitions to extend the automatic stay: ■ When the Borrower’s bankruptcy is presumptively filed not in good faith under the Bankruptcy Code ■ When the Servicer believes that the filing was offered in bad faith, or ■ If there has been no substantial change in the Borrower’s financial circumstances since the last bankruptcy filing. (See Exhibit 57B, Approved Bankruptcy Attorney Fees, for the related allowable fee for filing an objection to an extension of the automatic stay and attending the related court hearings.) 2. Take any other actions as deemed appropriate and permitted under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

(b) Notifying Freddie Mac of bankruptcy proceedings The Servicer must report a bankruptcy filing to Freddie Mac, regardless of whether the Borrower is current or delinquent in his or her Mortgage payments. The Servicer must submit this notification via an EDR transmission within the first three Business Days of the month following the month in which the Servicer received notice of the filing. The Servicer must also include the filing date and the applicable default action code (as listed below) to indicate the bankruptcy chapter number. Freddie Mac Single-Family Seller/Service Guide Refer to Section 9301.11(b) and Exhibit 83A, Determining State Foreclosure Timeline Performance Compensatory Fees, for allowable State foreclosure timeline delays related to the Borrower filing for bankruptcy protection. The bankruptcy petition chapters and applicable default action codes are: Bankruptcy petition chapters and applicable default action codes Bankruptcy chapter Default action code Chapter 7 65 Chapter 11 66 Chapter 12 59 Chapter 13 67 The Servicer must also notify Freddie Mac when the court confirms the bankruptcy plan by reporting default action code 69 (Bankruptcy plan confirmed) or, in the event of a scheduled Bankruptcy Cramdown, default action code of 35 (Bankruptcy Cramdown Scheduled) within the first three Business Days of the month following the month in which the confirmation occurred. The Servicer must continue to report via an EDR transmission each month that the Borrower is in bankruptcy until the court clears the bankruptcy or lifts the stay. The Servicer must notify Freddie Mac within the first three Business Days of the month following the month in which either of these actions occur via an EDR transmission using default action code 76 (Bankruptcy court clearance obtained/Stay lifted). The Servicer must include the date the action occurred. If a bankruptcy converts from one chapter to another, the Servicer must report a default action code 76 (Bankruptcy court clearance) to close the prior bankruptcy chapter. The conversion date is the bankruptcy release date for the prior bankruptcy chapter and the filing date for the new chapter. Example: If a Chapter 13 converted to a Chapter 7 on 01/30/xx, the Servicer would report default action code 76 using 01/30/xx to close the Chapter 13 status and a default action code 65 using 01/30/xx to open the Chapter 7 bankruptcy. Note: For additional information on EDR reporting requirements, refer to Section 9102.6. Freddie Mac Single-Family Seller/Service Guide

(c) Managing new bankruptcy filings (i) For Mortgages current at the time of filing If a Borrower is current in his or her Mortgage payments at the time the Borrower files a Chapter 7, 12 or 13 bankruptcy petition, the Servicer is not required to refer the matter to counsel, and Freddie Mac will not reimburse the Servicer if the Servicer does so. If the Servicer determines that special circumstances exist that require case management by counsel on a current Mortgage (e.g., if the Servicer receives a proposed reorganization plan that includes a bankruptcy cramdown), then the Servicer must obtain Freddie Mac’s prior written approval via e-mail (see Directory 5) to obtain counsel and to incur the legal expense by submitting a request for pre-approval via PAID (Payments Automated Intelligent and Dynamic) (see Exhibit 88, Servicing Tools). All Chapter 11 bankruptcy cases must be referred to counsel as soon as the Servicer receives notice that the Borrower has filed for bankruptcy protection, regardless of whether the Mortgage payments are current. If applicable, refer to Section 9401.2(d) for requirements related to managing Mortgages that become delinquent subsequent to bankruptcy filing. (ii) For Mortgages delinquent at the time of filing or for bankruptcy filings after a foreclosure sale The Servicer must refer the bankruptcy to counsel, whether a Chapter 7, 11, 12 or 13 bankruptcy petition, within three Business Days of the Servicer’s receipt of notice that a petition has been filed if: ■ The Borrower is at least 30 days delinquent in his or her Mortgage payments at the time bankruptcy is filed ■ The Borrower files a bankruptcy petition after the foreclosure sale and the bankruptcy filing invalidates the foreclosure sale. (See Section 9301.10(a) for requirements on requesting a rollback if the Servicer determines that the foreclosure sale is legally invalid or void.) ■ The Borrower files a bankruptcy petition after the foreclosure sale but prior to the expiration of a redemption, confirmation or ratification period. (See Section 9301.10(a) regarding circumstances where it may be in Freddie Mac’s best interest to process a rollback to allow the Servicer to report applicable information relating to a bankruptcy repayment plan, if applicable.) Freddie Mac will reimburse the Servicer for expenses the Servicer incurs in accordance with Section 9401.4 and Chapter 9701. Freddie Mac Single-Family Seller/Service Guide The Servicer must instruct counsel to file a motion for relief from the automatic stay: ■ In a Chapter 7 case: ❑ If the Borrower is at least 60 days delinquent in his or her Mortgage payments at the time of filing, at the same time the Servicer refers the case to counsel ❑ If the Borrower is less than 60 days delinquent in his or her Mortgage payments at the time of filing, no later than the 60th day of Delinquency ■ In a Chapter 11, 12, or 13 case, upon determining the Borrower became 60 days delinquent in his or her post-petition and/or plan payments to either the Servicer or the trustee but no later than the 75th day of Delinquency

(d) Managing Mortgages that become delinquent subsequent to bankruptcy filing If the Borrower was current at the time of filing bankruptcy and subsequently becomes at least 30 days delinquent in payments to either the Servicer or the trustee, then the Servicer must refer the case to counsel. Freddie Mac will reimburse the Servicer for expenses the Servicer incurs in accordance with Section 9401.4 and Chapter 9701. The Servicer must instruct counsel to file for relief from the automatic stay: 1. In a Chapter 7 bankruptcy case, no later than the 60th day of Delinquency 2. In a Chapter 12 or 13 bankruptcy case, upon determining the Borrower became 60 days delinquent in his or her post-petition and/or plan payments to either the Servicer or the trustee but no later than the 75th day of Delinquency For Chapter 11 bankruptcy cases already referred to counsel pursuant to Section 9401.2(c)(i), the Servicer must instruct counsel to file for relief from the automatic stay upon determining the Borrower became 60 days delinquent in his or her post-petition and/or plan payments to either the Servicer or the trustee but no later than the 75th day of Delinquency.

(e) Bankruptcy cramdowns When a Borrower files bankruptcy and the value of the property has declined to a value less than the amount owed on the Mortgage, a federal bankruptcy judge may, in some instances, order a division of the bankruptcy claim. Under this process, the court divides the Mortgage debt into two claims: a secured claim in the amount of the current appraised value of the property and an unsecured claim for the remaining balance of the debt. All or a portion of the remaining unsecured claim balance is forgiven upon completion of the court-ordered repayment plan. This is known as a bankruptcy cramdown. Bankruptcy Freddie Mac Single-Family Seller/Service Guide cramdowns are not permitted on Mortgages secured by the Primary Residence of a Borrower who has filed a Chapter 13 bankruptcy. (i) Notifying Freddie Mac of a proposed bankruptcy cramdown If the Servicer receives a proposed reorganization plan that includes a bankruptcy cramdown, the Servicer must advise its counsel to file an objection to the reorganization plan. In doing so, the Servicer must direct its counsel to assert that the proposed plan may not modify the original Security Instrument and Note by means of a bankruptcy cramdown. Additionally, the Servicer must complete and send a copy of Form 1155, Bankruptcy Cramdown Pre-Confirmation Proposal of Settlement Terms, to notify Freddie Mac (see Directory 5) of the proposed plan within one Business Day of receiving the plan. Freddie Mac will review the submitted Form 1155 and make a decision to approve or make a counteroffer to the terms of the proposed plan. In some instances, Freddie Mac may request additional information in its review. The Servicer must ensure that all terms of the proposed plan are updated and correctly stated on each amendment, if applicable. If a proposed reorganization plan includes a bankruptcy cramdown that is not in compliance with Freddie Mac workout options in Chapter 9204, the Servicer must object, and Freddie Mac will not agree to the terms of the reorganization plan. If the Servicer agrees to a reorganization plan without Freddie Mac’s written approval, Freddie Mac reserves the right to exercise any remedies provided by the Guide and the other Purchase Documents. Refer to Chapter 3602 regarding repurchases, repurchase alternatives and other remedies. (ii) Notifying Freddie Mac of a confirmed bankruptcy cramdown If a reorganization plan that includes a bankruptcy cramdown has been confirmed, the Servicer must notify Freddie Mac of the confirmed plan within one Business Day of receiving the plan. In doing so, the Servicer must transmit the final terms of the confirmed bankruptcy cramdown (a “bankruptcy cramdown modification”) to Freddie Mac via the custom modification screen in Resolve® as follows. (A) Entering the data into Resolve By completing and submitting the custom modification template in Resolve and submitting the bankruptcy cramdown modification for settlement, the Servicer represents and warrants to Freddie Mac that it has completed the data entry in accordance with the instructions set forth in Resolve Online Help and that all information set forth in the custom modification template is accurate and in accordance with the terms of the confirmed plan. In submitting the bankruptcy Freddie Mac Single-Family Seller/Service Guide cramdown modification via the custom modification template, the Servicer represents and warrants, among other things, that: ❑ The data entered on the custom modification template matches the final terms of the confirmed bankruptcy cramdown ❑ The property value is either the BPO or appraisal, depending on what was required by the court (B) Modification pending update report and modification status Once the data entered in the custom modification template has been submitted to Freddie Mac, Servicers should monitor the Modification Pending Update report, accessible via the “Modifications” tile of the Servicer’s Servicer Performance Profile (SPP) (see Exhibit 88). All Mortgages that are scheduled to be processed in Freddie Mac’s systems will appear on this report in the SPP. In addition, Freddie Mac will notify Servicers that the bankruptcy cramdown modification has been processed in Freddie Mac’s systems via the Modification Status Overview report in the SPP. If a Servicer attempts to report a monthly loanlevel transaction on a Mortgage based on the modified terms prior to the bankruptcy cramdown modification being processed in Freddie Mac’s systems, the Servicer will not be able to successfully complete the transaction. (iii) Other requirements The Servicer must ensure that proper EDR requirements are followed in accordance with Section 9401.2(b). Upon determining the Borrower became 60 days delinquent in his or her payments under a confirmed reorganization plan that includes a bankruptcy cramdown but no later than the 75th day of Delinquency, the Servicer must instruct counsel to file for relief from the automatic stay. (See Sections 9401.2(c) and 9401.2(d), as applicable, regarding filing for relief from the automatic stay.) For any other default under the terms of a confirmed reorganization plan that includes a bankruptcy cramdown, the Servicer must notify Freddie Mac (see Directory 5) within one Business Day of such default and indicate the type of default and include the Servicer’s recommendation as to how to proceed.

(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 Freddie Mac Single-Family Seller/Service Guide 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 requirements related to: ■ Multiple bankruptcy filings ■ Notifying Freddie Mac of bankruptcy proceedings ■ Managing new bankruptcy filings ■ Managing Mortgages that become delinquent subsequent to bankruptcy filing ■ Bankruptcy cramdowns

(a) Multiple bankruptcy filings (i) Identifying previous bankruptcy filings A Borrower may file for bankruptcy protection more than once or under different chapters of the bankruptcy laws. When the Servicer receives notice of a Borrower filing a petition for protection under the bankruptcy laws, the Servicer must: ■ Check its Mortgage records to determine if the Borrower has previously filed for bankruptcy protection ■ Refer the bankruptcy case to counsel if the Servicer’s records disclose a previous bankruptcy filing for that Borrower and the Mortgage is delinquent (ii) Actions for bankruptcy filings The Servicer must direct counsel to take appropriate action, including: ■ If the Borrower has filed multiple times but the bankruptcies are more than 12 months apart: 1. Motion to annul the automatic stay to confirm foreclosure sale if the Servicer was unaware that the Borrower had filed for bankruptcy and the Servicer had conducted a foreclosure sale 2. Motion to dismiss the bankruptcy case if it can be shown that there has been no substantial change in the Borrower’s financial circumstances since the last bankruptcy filing or the Borrower has no prospect of repayment under a reorganization plan Freddie Mac Single-Family Seller/Service Guide 3. Object to the confirmation of a Chapter 13 plan and a motion to dismiss in connection with a Chapter 13 bankruptcy in which the reorganization plan appears to be infeasible or offered in bad faith or it can be shown that there has been no substantial change in the Borrower’s financial circumstances since the last bankruptcy filing 4. Motion for “in rem” relief or 180-day bar to prevent the Borrower from filing another bankruptcy case in the future affecting the property securing Freddie Mac’s Mortgage when there are successive filings with a scheme of fraudulent property transfers 5. Perform any other actions as deemed appropriate and permitted under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ■ If the multiple filing is within 12 months of the previous filing: 1. Object in the event that the Borrower petitions to extend the automatic stay: ■ When the Borrower’s bankruptcy is presumptively filed not in good faith under the Bankruptcy Code ■ When the Servicer believes that the filing was offered in bad faith, or ■ If there has been no substantial change in the Borrower’s financial circumstances since the last bankruptcy filing. (See Exhibit 57B, Approved Bankruptcy Attorney Fees, for the related allowable fee for filing an objection to an extension of the automatic stay and attending the related court hearings.) 2. Take any other actions as deemed appropriate and permitted under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

(b) Notifying Freddie Mac of bankruptcy proceedings The Servicer must report a bankruptcy filing to Freddie Mac, regardless of whether the Borrower is current or delinquent in his or her Mortgage payments. The Servicer must submit this notification via an EDR transmission within the first three Business Days of the month following the month in which the Servicer received notice of the filing. The Servicer must also include the filing date and the applicable default action code (as listed below) to indicate the bankruptcy chapter number. Refer to Section 9301.11(b) and Exhibit 83A, Determining State Foreclosure Timeline Performance Compensatory Fees, for allowable State foreclosure timeline delays related to the Borrower filing for bankruptcy protection. The bankruptcy petition chapters and applicable default action codes are: Freddie Mac Single-Family Seller/Service Guide Bankruptcy petition chapters and applicable default action codes Bankruptcy chapter Default action code Chapter 7 65 Chapter 11 66 Chapter 12 59 Chapter 13 67 The Servicer must also notify Freddie Mac when the court confirms the bankruptcy plan by reporting default action code 69 (Bankruptcy plan confirmed) or, in the event of a scheduled Bankruptcy Cramdown, default action code of 35 (Bankruptcy Cramdown Scheduled) within the first three Business Days of the month following the month in which the confirmation occurred. The Servicer must continue to report via an EDR transmission each month that the Borrower is in bankruptcy until the court clears the bankruptcy or lifts the stay. The Servicer must notify Freddie Mac within the first three Business Days of the month following the month in which either of these actions occur via an EDR transmission using default action code 76 (Bankruptcy court clearance obtained/Stay lifted). The Servicer must include the date the action occurred. If a bankruptcy converts from one chapter to another, the Servicer must report a default action code 76 (Bankruptcy court clearance) to close the prior bankruptcy chapter. The conversion date is the bankruptcy release date for the prior bankruptcy chapter and the filing date for the new chapter. Example: If a Chapter 13 converted to a Chapter 7 on 01/30/xx, the Servicer would report default action code 76 using 01/30/xx to close the Chapter 13 status and a default action code 65 using 01/30/xx to open the Chapter 7 bankruptcy. Note: For additional information on EDR reporting requirements, refer to Section 9102.6.

(c) Managing new bankruptcy filings (i) For Mortgages current at the time of filing Freddie Mac Single-Family Seller/Service Guide If a Borrower is current in his or her Mortgage payments at the time the Borrower files a Chapter 7, 12 or 13 bankruptcy petition, the Servicer is not required to refer the matter to counsel, and Freddie Mac will not reimburse the Servicer if the Servicer does so. If the Servicer determines that special circumstances exist that require case management by counsel on a current Mortgage (e.g., if the Servicer receives a proposed reorganization plan that includes a bankruptcy cramdown), then the Servicer must obtain Freddie Mac’s prior written approval via e-mail (see Directory 5) to obtain counsel and to incur the legal expense by submitting a request for pre-approval via PAID (Payments Automated Intelligent and Dynamic) (see Exhibit 88, Servicing Tools). All Chapter 11 bankruptcy cases must be referred to counsel as soon as the Servicer receives notice that the Borrower has filed for bankruptcy protection, regardless of whether the Mortgage payments are current. If applicable, refer to Section 9401.2(d) for requirements related to managing Mortgages that become delinquent subsequent to bankruptcy filing. (ii) For Mortgages delinquent at the time of filing or for bankruptcy filings after a foreclosure sale The Servicer must refer the bankruptcy to counsel, whether a Chapter 7, 11, 12 or 13 bankruptcy petition, within three Business Days of the Servicer’s receipt of notice that a petition has been filed if: ■ The Borrower is at least 30 days delinquent in his or her Mortgage payments at the time bankruptcy is filed ■ The Borrower files a bankruptcy petition after the foreclosure sale and the bankruptcy filing invalidates the foreclosure sale. (See Section 9301.10(a) for requirements on requesting a rollback if the Servicer determines that the foreclosure sale is legally invalid or void.) ■ The Borrower files a bankruptcy petition after the foreclosure sale but prior to the expiration of a redemption, confirmation or ratification period. (See Section 9301.10(a) regarding circumstances where it may be in Freddie Mac’s best interest to process a rollback to allow the Servicer to report applicable information relating to a bankruptcy repayment plan, if applicable.) Freddie Mac will reimburse the Servicer for expenses the Servicer incurs in accordance with Section 9401.4 and Chapter 9701. The Servicer must instruct counsel to file a motion for relief from the automatic stay: ■ In a Chapter 7 case: Freddie Mac Single-Family Seller/Service Guide ❑ If the Borrower is at least 60 days delinquent in his or her Mortgage payments at the time of filing, at the same time the Servicer refers the case to counsel ❑ If the Borrower is less than 60 days delinquent in his or her Mortgage payments at the time of filing, no later than the 60th day of Delinquency ■ In a Chapter 11, 12, or 13 case, upon determining the Borrower became 60 days delinquent in his or her post-petition and/or plan payments to either the Servicer or the trustee but no later than the 75th day of Delinquency

(d) Managing Mortgages that become delinquent subsequent to bankruptcy filing If the Borrower was current at the time of filing bankruptcy and subsequently becomes at least 30 days delinquent in payments to either the Servicer or the trustee, then the Servicer must refer the case to counsel. Freddie Mac will reimburse the Servicer for expenses the Servicer incurs in accordance with Section 9401.4 and Chapter 9701. The Servicer must instruct counsel to file for relief from the automatic stay: 1. In a Chapter 7 bankruptcy case, no later than the 60th day of Delinquency 2. In a Chapter 12 or 13 bankruptcy case, upon determining the Borrower became 60 days delinquent in his or her post-petition and/or plan payments to either the Servicer or the trustee but no later than the 75th day of Delinquency For Chapter 11 bankruptcy cases already referred to counsel pursuant to Section 9401.2(c)(i), the Servicer must instruct counsel to file for relief from the automatic stay upon determining the Borrower became 60 days delinquent in his or her post-petition and/or plan payments to either the Servicer or the trustee but no later than the 75th day of Delinquency.

(e) Bankruptcy cramdowns When a Borrower files bankruptcy and the value of the property has declined to a value less than the amount owed on the Mortgage, a federal bankruptcy judge may, in some instances, order a division of the bankruptcy claim. Under this process, the court divides the Mortgage debt into two claims: a secured claim in the amount of the current appraised value of the property and an unsecured claim for the remaining balance of the debt. All or a portion of the remaining unsecured claim balance is forgiven upon completion of the court-ordered repayment plan. This is known as a bankruptcy cramdown. Bankruptcy cramdowns are not permitted on Mortgages secured by the Primary Residence of a Borrower who has filed a Chapter 13 bankruptcy. (i) Notifying Freddie Mac of a proposed bankruptcy cramdown Freddie Mac Single-Family Seller/Service Guide If the Servicer receives a proposed reorganization plan that includes a bankruptcy cramdown, the Servicer must advise its counsel to file an objection to the reorganization plan. In doing so, the Servicer must direct its counsel to assert that the proposed plan may not modify the original Security Instrument and Note by means of a bankruptcy cramdown. Additionally, the Servicer must complete and send a copy of Form 1155, Bankruptcy Cramdown Pre-Confirmation Proposal of Settlement Terms, to notify Freddie Mac (see Directory 5) of the proposed plan within one Business Day of receiving the plan. Freddie Mac will review the submitted Form 1155 and make a decision to approve or make a counteroffer to the terms of the proposed plan. In some instances, Freddie Mac may request additional information in its review. The Servicer must ensure that all terms of the proposed plan are updated and correctly stated on each amendment, if applicable. If a proposed reorganization plan includes a bankruptcy cramdown that is not in compliance with Freddie Mac workout options in Chapter 9204, the Servicer must object, and Freddie Mac will not agree to the terms of the reorganization plan. If the Servicer agrees to a reorganization plan without Freddie Mac’s written approval, Freddie Mac reserves the right to exercise any remedies provided by the Guide and the other Purchase Documents. Refer to Chapter 3602 regarding repurchases, repurchase alternatives and other remedies. (ii) Notifying Freddie Mac of a confirmed bankruptcy cramdown If a reorganization plan that includes a bankruptcy cramdown has been confirmed, the Servicer must notify Freddie Mac of the confirmed plan within one Business Day of receiving the plan. In doing so, the Servicer must transmit the final terms of the confirmed bankruptcy cramdown (a “bankruptcy cramdown modification”) to Freddie Mac via the custom modification screen in Resolve® as follows. (A) Entering the data into Resolve By completing and submitting the custom modification template in Resolve and submitting the bankruptcy cramdown modification for settlement, the Servicer represents and warrants to Freddie Mac that it has completed the data entry in accordance with the instructions set forth in Resolve Online Help and that all information set forth in the custom modification template is accurate and in accordance with the terms of the confirmed plan. In submitting the bankruptcy cramdown modification via the custom modification template, the Servicer represents and warrants, among other things, that: ❑ The data entered on the custom modification template matches the final terms of the confirmed bankruptcy cramdown Freddie Mac Single-Family Seller/Service Guide ❑ The property value is either the BPO or appraisal, depending on what was required by the court (B) Modification pending update report and modification status Once the data entered in the custom modification template has been submitted to Freddie Mac, Servicers should monitor the Modification Pending Update report, accessible via the “Modifications” tile of the Servicer’s Servicer Performance Profile (SPP) (see Exhibit 88). All Mortgages that are scheduled to be processed in Freddie Mac’s systems will appear on this report in the SPP. In addition, Freddie Mac will notify Servicers that the bankruptcy cramdown modification has been processed in Freddie Mac’s systems via the Modification Status Overview report in the SPP. If a Servicer attempts to report a monthly loanlevel transaction on a Mortgage based on the modified terms prior to the bankruptcy cramdown modification being processed in Freddie Mac’s systems, the Servicer will not be able to successfully complete the transaction. (iii) Other requirements The Servicer must ensure that proper EDR requirements are followed in accordance with Section 9401.2(b). Upon determining the Borrower became 60 days delinquent in his or her payments under a confirmed reorganization plan that includes a bankruptcy cramdown but no later than the 75th day of Delinquency, the Servicer must instruct counsel to file for relief from the automatic stay. (See Sections 9401.2(c) and 9401.2(d), as applicable, regarding filing for relief from the automatic stay.) For any other default under the terms of a confirmed reorganization plan that includes a bankruptcy cramdown, the Servicer must notify Freddie Mac (see Directory 5) within one Business Day of such default and indicate the type of default and include the Servicer’s recommendation as to how to proceed.

(Future effective date 09/27/27) This section contains requirements related to: ■ Multiple bankruptcy filings ■ Bankruptcy reporting requirements ■ Managing new bankruptcy filings Freddie Mac Single-Family Seller/Service Guide ■ Managing Mortgages that become delinquent subsequent to bankruptcy filing ■ Bankruptcy cramdowns

(a) Multiple bankruptcy filings (i) Identifying previous bankruptcy filings A Borrower may file for bankruptcy protection more than once or under different chapters of the bankruptcy laws. When the Servicer receives notice of a Borrower filing a petition for protection under the bankruptcy laws, the Servicer must: ■ Check its Mortgage records to determine if the Borrower has previously filed for bankruptcy protection ■ Refer the bankruptcy case to counsel if the Servicer’s records disclose a previous bankruptcy filing for that Borrower and the Mortgage is delinquent (ii) Actions for bankruptcy filings The Servicer must direct counsel to take appropriate action, including: ■ If the Borrower has filed multiple times but the bankruptcies are more than 12 months apart: 1. Motion to annul the automatic stay to confirm foreclosure sale if the Servicer was unaware that the Borrower had filed for bankruptcy and the Servicer had conducted a foreclosure sale 2. Motion to dismiss the bankruptcy case if it can be shown that there has been no substantial change in the Borrower’s financial circumstances since the last bankruptcy filing or the Borrower has no prospect of repayment under a reorganization plan 3. Object to the confirmation of a Chapter 13 plan and a motion to dismiss in connection with a Chapter 13 bankruptcy in which the reorganization plan appears to be infeasible or offered in bad faith or it can be shown that there has been no substantial change in the Borrower’s financial circumstances since the last bankruptcy filing 4. Motion for “in rem” relief or 180-day bar to prevent the Borrower from filing another bankruptcy case in the future affecting the property securing Freddie Mac’s Mortgage when there are successive filings with a scheme of fraudulent property transfers Freddie Mac Single-Family Seller/Service Guide 5. Perform any other actions as deemed appropriate and permitted under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ■ If the multiple filing is within 12 months of the previous filing: 1. Object in the event that the Borrower petitions to extend the automatic stay: ■ When the Borrower’s bankruptcy is presumptively filed not in good faith under the Bankruptcy Code ■ When the Servicer believes that the filing was offered in bad faith, or ■ If there has been no substantial change in the Borrower’s financial circumstances since the last bankruptcy filing. (See Exhibit 57B, Approved Bankruptcy Attorney Fees, for the related allowable fee for filing an objection to an extension of the automatic stay and attending the related court hearings.) 2. Take any other actions as deemed appropriate and permitted under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

(b) Bankruptcy reporting requirements The Servicer must notify Freddie Mac of a bankruptcy filing, regardless of whether the Borrower is current or delinquent in his or her Mortgage payments. The Servicer must report the Bankruptcy Filed default related reporting event in accordance with Section 9102.6 and Exhibit 82, Default Reporting Dataset Guidelines. Note: If the Mortgage was previously referred to foreclosure, and the bankruptcy will delay the foreclosure proceeding, then the Servicer must also report the Foreclosure – Hold default related reporting event, identifying the foreclosure delay category type as “Bankruptcy Filed”, in accordance with Section 9102.6 and Exhibit 82. Refer to Section 9301.11(b) and Exhibit 83A, Determining State Foreclosure Timeline Performance Compensatory Fees, for allowable State foreclosure timeline delays related to the Borrower filing for bankruptcy protection. After the Bankruptcy Filed default related reporting event has been reported, the Servicer must keep Freddie Mac apprised of the status of the bankruptcy case by reporting the following default related reporting events in accordance with Section 9102.6 and Exhibit 82: Freddie Mac Single-Family Seller/Service Guide ■ Bankruptcy – Proof of Claim Filed; ■ Bankruptcy – Motion for Relief Activity (report the initial filing and subsequent approval or denial); and ■ Bankruptcy – Plan Confirmation (report initial plan confirmation and any subsequent change to the post-petition next payment due date) If a bankruptcy proceeding is delayed, the Servicer must report the Bankruptcy – Delays default related reporting event, including the date the delay began and the reason for such delay, in accordance with Section 9102.6 and Exhibit 82. When a bankruptcy proceeding is dismissed, discharged or closed, the Servicer must report the Bankruptcy – Result Update default related reporting event in accordance with Section 9102.6 and Exhibit 82. If a bankruptcy converts from one chapter to another, the Servicer must first report the Bankruptcy – Result Update to indicate the initial bankruptcy case has been closed and then report the Bankruptcy Filed default related reporting event indicating the new bankruptcy chapter and date filed. Example: If a Chapter 13 is converted to a Chapter 7 on 1/30/XX, the Servicer would first report Bankruptcy – Result Update and indicate the bankruptcy case result = “case closed” and bankruptcy case closed date = “1/30/XX”. The Servicer would then report Bankruptcy Filed and indicate bankruptcy chapter = “Chapter 7 Bankruptcy” and bankruptcy filed date = “1/30/XX”. Note: For additional information on reporting requirements, refer to Section 9102.6.

(c) Managing new bankruptcy filings (i) For Mortgages current at the time of filing If a Borrower is current in his or her Mortgage payments at the time the Borrower files a Chapter 7, 12 or 13 bankruptcy petition, the Servicer is not required to refer the matter to counsel, and Freddie Mac will not reimburse the Servicer if the Servicer does so. If the Servicer determines that special circumstances exist that require case management by counsel on a current Mortgage (e.g., if the Servicer receives a proposed reorganization plan that includes a bankruptcy cramdown), then the Servicer must obtain Freddie Mac’s prior written approval via e-mail (see Directory 5) to obtain counsel and to incur the legal expense by submitting a request for pre-approval via PAID (Payments Automated Intelligent and Dynamic) (see Exhibit 88, Servicing Tools). Freddie Mac Single-Family Seller/Service Guide All Chapter 11 bankruptcy cases must be referred to counsel as soon as the Servicer receives notice that the Borrower has filed for bankruptcy protection, regardless of whether the Mortgage payments are current. If applicable, refer to Section 9401.2(d) for requirements related to managing Mortgages that become delinquent subsequent to bankruptcy filing. (ii) For Mortgages delinquent at the time of filing or for bankruptcy filings after a foreclosure sale The Servicer must refer the bankruptcy to counsel, whether a Chapter 7, 11, 12 or 13 bankruptcy petition, within three Business Days of the Servicer’s receipt of notice that a petition has been filed if: ■ The Borrower is at least 30 days delinquent in his or her Mortgage payments at the time bankruptcy is filed ■ The Borrower files a bankruptcy petition after the foreclosure sale and the bankruptcy filing invalidates the foreclosure sale. (See Section 9301.10(a) for requirements on requesting a rollback if the Servicer determines that the foreclosure sale is legally invalid or void.) ■ The Borrower files a bankruptcy petition after the foreclosure sale but prior to the expiration of a redemption, confirmation or ratification period. (See Section 9301.10(a) regarding circumstances where it may be in Freddie Mac’s best interest to process a rollback to allow the Servicer to report applicable information relating to a bankruptcy repayment plan, if applicable.) Freddie Mac will reimburse the Servicer for expenses the Servicer incurs in accordance with Section 9401.4 and Chapter 9701. The Servicer must instruct counsel to file a motion for relief from the automatic stay: ■ In a Chapter 7 case: ❑ If the Borrower is at least 60 days delinquent in his or her Mortgage payments at the time of filing, at the same time the Servicer refers the case to counsel ❑ If the Borrower is less than 60 days delinquent in his or her Mortgage payments at the time of filing, no later than the 60th day of Delinquency ■ In a Chapter 11, 12, or 13 case, upon determining the Borrower became 60 days delinquent in his or her post-petition and/or plan payments to either the Servicer or the trustee but no later than the 75th day of Delinquency Freddie Mac Single-Family Seller/Service Guide

(d) Managing Mortgages that become delinquent subsequent to bankruptcy filing If the Borrower was current at the time of filing bankruptcy and subsequently becomes at least 30 days delinquent in payments to either the Servicer or the trustee, then the Servicer must refer the case to counsel. Freddie Mac will reimburse the Servicer for expenses the Servicer incurs in accordance with Section 9401.4 and Chapter 9701. The Servicer must instruct counsel to file for relief from the automatic stay: 1. In a Chapter 7 bankruptcy case, no later than the 60th day of Delinquency 2. In a Chapter 12 or 13 bankruptcy case, upon determining the Borrower became 60 days delinquent in his or her post-petition and/or plan payments to either the Servicer or the trustee but no later than the 75th day of Delinquency For Chapter 11 bankruptcy cases already referred to counsel pursuant to Section 9401.2(c)(i), the Servicer must instruct counsel to file for relief from the automatic stay upon determining the Borrower became 60 days delinquent in his or her post-petition and/or plan payments to either the Servicer or the trustee but no later than the 75th day of Delinquency.

(e) Bankruptcy cramdowns When a Borrower files bankruptcy and the value of the property has declined to a value less than the amount owed on the Mortgage, a federal bankruptcy judge may, in some instances, order a division of the bankruptcy claim. Under this process, the court divides the Mortgage debt into two claims: a secured claim in the amount of the current appraised value of the property and an unsecured claim for the remaining balance of the debt. All or a portion of the remaining unsecured claim balance is forgiven upon completion of the court-ordered repayment plan. This is known as a bankruptcy cramdown. Bankruptcy cramdowns are not permitted on Mortgages secured by the Primary Residence of a Borrower who has filed a Chapter 13 bankruptcy. (i) Notifying Freddie Mac of a proposed bankruptcy cramdown If the Servicer receives a proposed reorganization plan that includes a bankruptcy cramdown, the Servicer must advise its counsel to file an objection to the reorganization plan. In doing so, the Servicer must direct its counsel to assert that the proposed plan may not modify the original Security Instrument and Note by means of a bankruptcy cramdown. Additionally, the Servicer must complete and send a copy of Form 1155, Bankruptcy Cramdown Pre-Confirmation Proposal of Settlement Terms, to notify Freddie Mac (see Directory 5) of the proposed plan within one Business Day of receiving the plan. Freddie Freddie Mac Single-Family Seller/Service Guide Mac will review the submitted Form 1155 and make a decision to approve or make a counteroffer to the terms of the proposed plan. In some instances, Freddie Mac may request additional information in its review. The Servicer must ensure that all terms of the proposed plan are updated and correctly stated on each amendment, if applicable. If a proposed reorganization plan includes a bankruptcy cramdown that is not in compliance with Freddie Mac workout options in Chapter 9204, the Servicer must object, and Freddie Mac will not agree to the terms of the reorganization plan. If the Servicer agrees to a reorganization plan without Freddie Mac’s written approval, Freddie Mac reserves the right to exercise any remedies provided by the Guide and the other Purchase Documents. Refer to Chapter 3602 regarding repurchases, repurchase alternatives and other remedies. (ii) Notifying Freddie Mac of a confirmed bankruptcy cramdown If a reorganization plan that includes a bankruptcy cramdown has been confirmed, the Servicer must notify Freddie Mac of the confirmed plan within one Business Day of receiving the plan. In doing so, the Servicer must transmit the final terms of the confirmed bankruptcy cramdown (a “bankruptcy cramdown modification”) to Freddie Mac via the custom modification screen in Resolve® as follows. (A) Entering the data into Resolve By completing and submitting the custom modification template in Resolve and submitting the bankruptcy cramdown modification for settlement, the Servicer represents and warrants to Freddie Mac that it has completed the data entry in accordance with the instructions set forth in Resolve Online Help and that all information set forth in the custom modification template is accurate and in accordance with the terms of the confirmed plan. In submitting the bankruptcy cramdown modification via the custom modification template, the Servicer represents and warrants, among other things, that: ❑ The data entered on the custom modification template matches the final terms of the confirmed bankruptcy cramdown ❑ The property value is either the BPO or appraisal, depending on what was required by the court (B) Modification pending update report and modification status Once the data entered in the custom modification template has been submitted to Freddie Mac, Servicers should monitor the Modification Pending Update report, accessible via the “Modifications” tile of the Servicer’s Servicer Performance Profile Freddie Mac Single-Family Seller/Service Guide (SPP) (see Exhibit 88). All Mortgages that are scheduled to be processed in Freddie Mac’s systems will appear on this report in the SPP. In addition, Freddie Mac will notify Servicers that the bankruptcy cramdown modification has been processed in Freddie Mac’s systems via the Modification Status Overview report in the SPP. If a Servicer attempts to report a monthly loanlevel transaction on a Mortgage based on the modified terms prior to the bankruptcy cramdown modification being processed in Freddie Mac’s systems, the Servicer will not be able to successfully complete the transaction. (iii) Other requirements Upon determining the Borrower became 60 days delinquent in his or her payments under a confirmed reorganization plan that includes a bankruptcy cramdown but no later than the 75th day of Delinquency, the Servicer must instruct counsel to file for relief from the automatic stay. (See Sections 9401.2(c) and 9401.2(d), as applicable, regarding filing for relief from the automatic stay.) For any other default under the terms of a confirmed reorganization plan that includes a bankruptcy cramdown, the Servicer must notify Freddie Mac (see Directory 5) within one Business Day of such default and indicate the type of default and include the Servicer’s recommendation as to how to proceed.