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

Name: Freddie Mac Single-Family Seller/Servicer Guide Chapter 9401 — Bankruptcy — machine-readable register
Creator: Claude for Compliance
License: https://creativecommons.org/licenses/by-nd/4.0/

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.

This register: .xlsx .csv

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/okcsFattach/get/1002095_2
      snapshot_id: e399c3dcaab28da0
      fetched_at: '2026-10-18T14:06:56+00:00'
      content_hash: sha256:e399c3dcaab28da0d24a9eb1976e659d3cfad3f9314d5454c8b2135f31bb2b66
      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. Re-verified word for word on 2026-10-13 in the Guide as of Bulletin 2026-13 (published October 7, 2026; snapshot b2a8502812eeb077). Re-verified word for word on 2026-10-18 in the Guide as of Bulletin 2026-14 (published October 14, 2026; snapshot e399c3dcaab28da0).
      window_corroborated_by: cdn.lhfs.com (Freddie Guide re-host)
      window_corroborated_on: '2026-09-13'
      verbatim_gate: raw
      reverified_edition: '2026-10-14'
      restamped_from: b2a8502812eeb077
    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/okcsFattach/get/1002095_2
      snapshot_id: e399c3dcaab28da0
      fetched_at: '2026-10-18T14:06:56+00:00'
      content_hash: sha256:e399c3dcaab28da0d24a9eb1976e659d3cfad3f9314d5454c8b2135f31bb2b66
      paragraph_quote: 'When the Servicer receives notice or confirms information that a Borrower has filed a bankruptcy petition, at a minimum, the Servicer must: 1.'
      drafter_attestation: Copied verbatim from Freddie Mac Guide snapshot 5869ee9e606cd4ae (Chapter 9401) at 2026-05-22. Re-verified word for word on 2026-10-13 in the Guide as of Bulletin 2026-13 (published October 7, 2026; snapshot b2a8502812eeb077). Re-verified word for word on 2026-10-18 in the Guide as of Bulletin 2026-14 (published October 14, 2026; snapshot e399c3dcaab28da0).
      quote_healed: true
      window_corroborated_by: cdn.lhfs.com (Freddie Guide re-host)
      window_corroborated_on: '2026-09-13'
      verbatim_gate: raw
      reverified_edition: '2026-10-14'
      restamped_from: b2a8502812eeb077
    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/okcsFattach/get/1002095_2
      snapshot_id: e399c3dcaab28da0
      fetched_at: '2026-10-18T14:06:56+00:00'
      content_hash: sha256:e399c3dcaab28da0d24a9eb1976e659d3cfad3f9314d5454c8b2135f31bb2b66
      paragraph_quote: Servicers must inform the Borrower, Borrower’s counsel or 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.
      drafter_attestation: Copied verbatim from Freddie Mac Guide snapshot 5869ee9e606cd4ae (Chapter 9401) at 2026-05-22. Re-verified word for word on 2026-10-13 in the Guide as of Bulletin 2026-13 (published October 7, 2026; snapshot b2a8502812eeb077). Re-verified word for word on 2026-10-18 in the Guide as of Bulletin 2026-14 (published October 14, 2026; snapshot e399c3dcaab28da0).
      quote_healed: true
      window_corroborated_by: cdn.lhfs.com (Freddie Guide re-host)
      window_corroborated_on: '2026-09-13'
      verbatim_gate: raw
      reverified_edition: '2026-10-14'
      restamped_from: b2a8502812eeb077
    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 e399c3dcaab28da0

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

When the Servicer receives notice or confirms information that a Borrower has filed a bankruptcy petition, at a minimum, the Servicer must: 1.

Source: Freddie Mac Single-Family Seller/Servicer Guide Section 9401.1(c) · source URL · snapshot e399c3dcaab28da0

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 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.

Source: Freddie Mac Single-Family Seller/Servicer Guide Section 9401.1(c) · source URL · snapshot e399c3dcaab28da0

Get this regulation in your AI window

Bulletins replace Guide sections, and the old text stays widely quoted. An assistant will answer from a version a later Bulletin already retired. Put the verbatim text and its effective date in front of your assistant, instead of whatever it remembers.

Add to Claude Add to ChatGPT

Add to Claude shows the one-time setup: paste one address, no account with us. Add to ChatGPT adds the free C4C app from ChatGPT’s app directory. Either way it’s free.

Get notified if this rule changes

One email when Freddie Mac Single-Family Seller/Servicer Guide Chapter 9401 — Bankruptcy changes: what changed, the new verbatim text, and the effective date. Nothing else.

Double opt-in: we send a confirmation link first. Following one section does not subscribe you to anything else. Privacy.

Source of record: https://claudeforcompliance.com/regs/fhlmc-9401/ · register fhlmc-9401 · verbatim, source-snapshotted regulator text from the Claude for Compliance corpus. To work from every register at once, download the corpus and follow the methodology.