Notice
The information in this publication is offered to all Servicers as a tool in helping Servicers complete and submit Form 104SF, Statement of Loan, Workout and REO Expenses and Income.
This information is offered as an aid in - not a substitute for - complying with the requirements set forth in the Single-Family Seller/Servicer Guide (the Guide), as amended. Each Freddie Mac approved Servicer must comply with all the provisions of the Guide, and of all other purchase documents, as that term is defined in the Guide. This publication does not constitute a part of the Guide.
The requirements and guidelines referenced in this publication are subject to change at any time by Freddie Mac.
Publication Number: 239
Last Updated: September 2010
Copyright© 2010 Federal Home Loan Mortgage Corporation.
All rights reserved.
Freddie Mac Document Expense Reimbursement Desk Reference i September 2010
Table of Contents
Topic Page About Your Expense Reimbursement Desk Reference ......................................... iii
Online Reimbursement System for Forms 104SF and 104DC................................1
Using the Online Reimbursement System........................................................1
How to Obtain Your User ID and Password for the Online Reimbursement System....................................................................................1
How to Access the Online Reimbursement System.........................................4
Reports..............................................................................................................6
Preparing and Submitting Your Request .................................................................9
Guidelines for Preparing and Submitting Your Expense Reimbursement Request...................................................................................9
Submission Types and Timeframes................................................................10
Parts of the Paper Form 104SF.......................................................................13
Sample Paper Form 104SF.............................................................................16
Supporting Documentation.............................................................................20
Expense Reimbursement and the MI Claim Filing Process ...........................21
Documenting Expenses and Income/Credit...........................................................23
Documenting the Billing Period and Vendor .................................................23
Documenting Insurance Expenses..................................................................24
Documenting Tax Expenses ...........................................................................25
Documenting Yard Maintenance Expenses ...................................................27
Documenting Income/Credit to Offset Expenses ...........................................28
Documenting Similar Expense and Income/Credit Items ..............................29
Documenting HOA, PUD, and Condominium Assessments .........................30
Expense and Income Codes ...................................................................................31
Expense Codes Listed by Activity Type ........................................................31
Income Codes Listed by Activity Type..........................................................37
Expense Codes Listed in Alphabetical Order ................................................38
Income Codes Listed in Alphabetical Order ..................................................42
Table of Contents
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 ii
1-4 Unit Approved Expense Amounts...................................................................43
Property Preservation and Maintenance Expense Limits...............................43
Miscellaneous Expense Limits.......................................................................46
Attorney Fees and Title Work Expense Limits ..............................................47
Bankruptcy Expense Limits ...........................................................................51
Requesting Approval to Exceed Freddie Mac’s Expense Limits...................51
Form 104DC ..........................................................................................................53
Submitting Form 104DC ................................................................................53
Sample Paper Form 104DC............................................................................54
Form 104SF Audit Process ....................................................................................57
Adjustment Codes..................................................................................................59
Non-reimbursable Expenses ..................................................................................65
List of Non-reimbursable Expenses ...............................................................65
Non-reimbursable Item Codes........................................................................67
Check the Status of Your Requests........................................................................69
How to Access Expense Manager ..................................................................69
The Status Overview Report ..........................................................................70
How to Access the Status Overview Report ..................................................72
How to Determine if a Check was Issued for Your Expense Reimbursement Request.................................................................................74
Eligible 104 Forms Report .............................................................................75
Freddie Mac Document Expense Reimbursement Desk Reference iii September 2010
About Your Expense Reimbursement Desk Reference
We created this desk reference to give you quick and easy access to information that will help you complete your expense reimbursement requests. Each section contains requirements and guidelines to help you prepare and send Freddie Mac an accurate and complete Form 104SF. Information on how to use Expense ManagerSM to check the status of your expense reimbursement requests is also included in this desk reference.
Refer to Chapter 71 in the Single-Family Seller/Servicer Guide (Guide) for detailed requirements on expense reimbursement.
This desk reference also includes information on Form 104DC, Designated Counsel/Trustee. If you use our designated counsel or trustees, they will generate an online 104DC that will be available for you to transmit to us.
Please note that unless specifically stated otherwise in this document, all references to Form 104SF and Form 104DC refer to both the paper and online versions of the forms.
If you have any questions about completing your expense reimbursement requests after reviewing the desk reference, please contact (800) FREDDIE.
About Your Expense Reimbursement Desk Reference
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 iv
This Page Intentionally Left Blank
Freddie Mac Document Expense Reimbursement Desk Reference 1 September 2010
Online Reimbursement System for Forms 104SF and 104DC
Using the Online Reimbursement System
You are required to submit most expense reimbursement requests via the Online Reimbursement available on FreddieMac.com.
You must continue to use the paper Form 104SF for the following types of expense reimbursement activities:
Expense reimbursement requests for FHA, VA, and RHS mortgages
Resubmissions for expenses we adjusted or denied on a previous claim
Expense reimbursement requests for mortgages sold to a third party for less than total debt
How to Obtain Your User ID and Password for the Online Reimbursement System
If you do not already have access to the Online Reimbursement System you will need to complete the Online Reimbursement Sign Up Form to obtain a user ID and password. To do this, perform the following steps:
1. Access the Servicing Technology Tools page at the following URL on FreddieMac.com: http://www.freddiemac.com/singlefamily/service/tools.html. The Servicing Technology Tools page displays.
Online Reimbursement System for Forms 104SF and 104DC
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 2
2. Scroll down and click on Online Reimbursement Sign Up Form.
The Online Reimbursement Sign Up Form displays:
Online Reimbursement System for Forms 104SF and 104DC
Freddie Mac Document Expense Reimbursement Desk Reference 3 September 2010
3. Complete the form, and click Submit.
You will receive your user ID and password within 48 to 72 hours.
Online Reimbursement System for Forms 104SF and 104DC
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 4
How to Access the Online Reimbursement System
Perform the following steps to access the Online Reimbursement System:
1. Access the Servicing Technology Tools page at the following URL on FreddieMac.com: http://www.freddiemac.com/singlefamily/service/tools.html.
2. Click Log In under Online Reimbursement System.
Online Reimbursement System for Forms 104SF and 104DC
Freddie Mac Document Expense Reimbursement Desk Reference 5 September 2010
3. Enter your user name and password.
4. Click Log In to access the application.
After you access the Online Reimbursement you are ready to being entering your data. For specific instructions on how to enter data for your requests, refer to the Online Reimbursement System Users’ Guide.
Online Reimbursement System for Forms 104SF and 104DC
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 6
Reports
To help you manage your expense reimbursement activities, the Online Reimbursement System gives you the ability to generate the following reports.
104SF Productivity Report
This report displays, for a selected date range, information about 104SF expense reimbursement requests that you have transmitted to us via the Online Reimbursement System. Expense reimbursement requests that you have entered and saved in the Online Reimbursement System, but not yet transmitted to us will not display on this report.
104SF Over Approved Limit Report
This report identifies, for a selected date range, 104SF expense reimbursement requests with amounts that exceed our approved expense limits as outlined in Exhibit 57, 1-4 Unit Property Approved Expense Amounts, and Exhibit 57A, Approved Attorney Fees and Title Expenses, of the Guide. Expense reimbursement requests that you have entered and saved in the Online Reimbursement System, but not yet transmitted to us will not display on this report.
Online Reimbursement System for Forms 104SF and 104DC
Freddie Mac Document Expense Reimbursement Desk Reference 7 September 2010
104SF Claims in Process Report
This report identifies all 104SF expense reimbursement requests that you have entered and saved in the Online Reimbursement System, but have not yet transmitted to us. We recommend that you review this report on a weekly basis to ensure that your 104SF expense reimbursement requests are transmitted to us in a timely manner.
This report also identifies duplicate requests that you have entered. Send an e-mail to 104_Expense@Freddie Mac.com to delete duplicate requests.
104DC Productivity Report
This report displays, for a selected date range, information about 104DC expense reimbursement requests that you have transmitted to us via the Online Reimbursement System. Expense reimbursement requests that you have entered and saved in the Online Reimbursement System, but not yet transmitted to us will not display on this report.
Online Reimbursement System for Forms 104SF and 104DC
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 8
104DC Pending Submission Report
This report displays all Form 104DC expense reimbursement requests that designated counsel have completed for your organization and are pending your submission.
104SF Daily Log Report
This report displays all Form 104SF expense reimbursement requests submitted to us on the date you generate this report. Expense reimbursement requests that you have entered and saved in the Online Reimbursement System, but not yet transmitted to us will not display on this report.
For additional information and step-by-step procedures, refer to the Freddie Mac Online Reimbursement System Users’ Guide.
Freddie Mac Document Expense Reimbursement Desk Reference 9 September 2010
Preparing and Submitting Your Request
You must submit most Form 104SF, Statement of Loan, Workout, and REO Expenses and Income, and Form 104DC, Designated Counsel/Trustee, expense reimbursement requests via the Online Reimbursement System with exception of the following, which must be submitted via the paper form:
Expense reimbursement requests for FHA, VA, and RHS mortgages
Resubmissions for expenses we adjusted or denied on a previous claim
Expense reimbursement requests for mortgages secured by properties sold to a third party for less than total debt
You must also submit Form 104SF credit transactions (transactions where income reported exceeds expenses requested) through the Online Reimbursement System. If you have no expenses to offset the income, you will be unable to complete a Form 104SF. In this case, send a check made payable to the Federal Home Loan Mortgage Corporation for any amount due Freddie Mac. Refer to the following page for information on where to send the check.
You are not required to submit supporting documentation for expense reimbursement requests you transmit to us via the Online Reimbursement System, unless we request documentation for specific expenses. If we request documentation, you must fax the documentation to us within one business day of our request to avoid any delay in the payment of your expense reimbursement.
Do not use Form 104SF to request compensation for workouts. Freddie Mac will track all workouts that you settle on a monthly basis. Each month, we will send you a check and the loan detail for all eligible workouts and repayment plans you settle during the period for which you are being compensated.
Guidelines for Preparing and Submitting Your Expense Reimbursement Request
Refer to the following guidelines when preparing your expense reimbursement requests:
Ensure that you submit your request via the Online Reimbursement System unless you are required to submit the paper Form 104SF.
Complete each section of Form 104SF when requesting expense reimbursement. See “Parts of the Form 104SF” in this section for additional information.
Preparing and Submitting Your Request
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 10
Verify that you do not exceed Freddie Mac’s approved expense limits, unless we have provided prior written approval. For a complete listing of Freddie Mac’s approved expense amounts, refer to Exhibit 57, 1-4 Unit Property Approved Expense Amounts, and Exhibit 57A, Approved Attorney Fees and Title Expenses, in the Guide, or the 1-4 Unit Property Approved Expense Amounts section in this desk reference. Please refer to the Guide for any updates to approved expense limits.
Send a check made payable to the Federal Home Loan Mortgage Corporation for any amount due Freddie Mac to the following address if the net income/credit exceeds net expenses. You must include the Freddie Mac loan number on the check.
JP Morgan Chase Bank 131 S. Dearborn – 6th Floor
Chicago, IL 60603 Attn: Freddie Mac / 93434
When submitting your request via the paper Form 104SF, attach supporting documents such as invoices, loan histories, receipts and check vouchers in the same order as you list the expense on the Form 104SF. Ensure that the loan history documents the billing cycle or billing period, or include a screen print.
Retain a copy of the paper Form 104SF for your records.
Send your Form 104SF package to the following address:
Freddie Mac 1 First American Way
DFW 4-5 Westlake, TX 76262
Submission Types and Timeframes
Reimbursement requests for REO and non-REO expenses have different submission types and timeframes. This section outlines the various submission types and their timeframes.
We recommend that you use the Eligible 104 Forms report available in Expense Manager, in conjunction with your internal tracking systems, to ensure that your expense reimbursement requests are submitted in accordance with Freddie Mac’s requirements. The Eligible 104 Forms report identifies upcoming submission deadlines for your expense reimbursement requests.
Non-REO Expenses
Non-REO expenses are expenses incurred for activity that does not result in the property being acquired by Freddie Mac at a foreclosure sale or through a deed-in-lieu of foreclosure, and include, but are not limited to, costs associated with the following:
Completion of a short payoff or deed-in-lieu of foreclosure
Full reinstatement of a mortgage in foreclosure
Preparing and Submitting Your Request
Freddie Mac Document Expense Reimbursement Desk Reference 11 September 2010
Purchase of a property at the foreclosure sale by a third party for less than the total indebtedness (after Freddie Mac’s approval of the charge-off amount)
Completion of a bankruptcy (after final court action while the loan remains current)
Mortgages guaranteed by the Rural Housing Service (RHS)
Title and in-house credit reports related to rejected workouts
Use the following table to determine when you must submit your reimbursement request for non-REO expenses.
Expense Type Submission Type
Submission Timeframe
Expenses you incurred for the non-REO activity
Final
So that we receive it within 45 calendar days after the completion of the non-REO workout activity or event
This extended submission timeframe is a temporary requirement and is in effect until further notice as announced in Single-Family Seller/Servicer Guide Bulletin 2009-11.
An expense omitted from the final Form 104SF; usually a delayed invoice
So that we receive it no later than 60 calendar days from the completion of the non-REO activity or event
Expenses incurred that we adjusted or denied in a previous claim submission (i.e., expense adjustments you are correcting or contesting)
Supplemental So that we receive it within 10 calendar days of the final Form 104SF due date.
Must be submitted via the paper Form 104SF. Cannot submit via the Online Reimbursement System.
Document only the expenses that were previously denied on the Form 104SF. Remember to include supporting documentation.
Resubmission does not guarantee payment.
Preparing and Submitting Your Request
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 12
REO Expenses
We consider a property to be REO when we acquire it at foreclosure sale or at the end of a redemption or confirmation period, or by accepting a deed-in-lieu of foreclosure. REO expenses include costs you incur
From the due date of the last paid installment (DDLPI) through the acquisition date
During the REO holding period
Use the following table to determine when you must submit your reimbursement request for REO expenses.
Expense Type Submission Type
Submission Timeframe
Expenses incurred up to and including the acquisition date
Initial
So that we receive it within 45 calendar days of the acquisition date or foreclosure sale date (whichever occurs later).
This extended submission timeframe is a temporary requirement and is in effect until further notice as announced in Single-Family Seller/Servicer Guide Bulletin 2009-11.
The acquisition date is defined as either the foreclosure sale or redemption date or the date of the expiration of the redemption or confirmation, whichever occurs later, or the date the deed-in-lieu of foreclosure is accepted.
Expenses incurred that we adjusted or denied in a previous claim submission (i.e., expense adjustments you are correcting or contesting)
Supplemental
So that we receive it within 10 calendar days of the initial Form 104SF due date.
Must be submitted via the paper Form 104SF. Cannot submit via the Online Reimbursement System.
Document only the expenses that were previously denied on the Form 104SF. Remember to include supporting documentation.
Resubmission does not guarantee payment.
Allowable expenses incurred after the acquisition date
Final May be submitted any time as necessary after the acquisition date, but must be submitted no later than 60 calendar days after the settlement of the sale of the REO.
Preparing and Submitting Your Request
Freddie Mac Document Expense Reimbursement Desk Reference 13 September 2010
Parts of the Paper Form 104SF
Use the following table to help you complete each section of the Form 104SF.
Form 104SF Section Important Tips
Payee Information Provide complete information for all fields within the payee information section.
Servicer number
Payee/vendor number
Servicer loan number
Servicer name
Servicer address
City, state, zip
Remember to provide your payee/vendor number, as it is critical for timely reimbursement. If you do not know your payee/vendor number, contact (800) FREDDIE.
Mortgage/Property Information
Provide complete information for all fields within the mortgage/property information section.
Freddie Mac loan number
Borrower name
Property address
City
State
Zip
Preparing and Submitting Your Request
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 14
Form 104SF Section Important Tips
REO Identify the type of REO activity for which you are requesting reimbursement of expenses:
Deed-in-Lieu of Foreclosure Foreclosure
Non-REO Identify the type of non-REO activity for which you are requesting reimbursement of expenses:
Rejected Workout FHA/VA/RHS Mortgage Charge-off Short Payoff Third party purchase at foreclosure sale for less than total debt Other (provide explanation) Full Reinstatement
Escrowed Mortgage Indicate if the mortgage is escrowed or non-escrowed. Check “Yes” only if the mortgage was escrowed as of the due date of the last paid installment (DDLPI).
Submission Type Indicate the Form 104SF submission type:
Initial Supplemental (Also check this box for re-submissions since a
re-submission requires you to complete a new form.) Final
Expenses Provide complete information for all fields within the Expenses section of Form 104SF. Consider the following as you complete the Expenses section: Provide the six-digit expense code for each expense. List expenses with different expense codes on separate lines. Label the expense code in the supporting documentation. Include all required documentation for each expense code. Indicate the “date paid” for taxes and insurance.
Provide a billing period (a “from” date and a “to” date) for all expenses. Refer to “Documenting Expenses and Income/Credit” in this desk reference for an example of how to document billing periods.
Preparing and Submitting Your Request
Freddie Mac Document Expense Reimbursement Desk Reference 15 September 2010
Form 104SF Section Important Tips
Income/Credit to Offset Expenses
Identify the amount of each applicable income/credit item. The corresponding income/credit codes and descriptions are preprinted on Form 104SF. Provide documentation such as check copies and loan histories.
Non-reimbursable Items
Optional. If your internal accounting practices require that you report all incurred expenses, you may document the non-reimbursable expenses in this section of the Form 104SF.
If you incur expenses that exceed our approved expense amounts, and we have not given you approval to exceed the amount, you may report the portion of the expense that exceeds our approved amount and is non-reimbursable in this section. Do not include non-reimbursable expenses or workout compensation requests in the Expenses section of the Form 104SF.
Servicer Comments Document any relevant information that is not already on the Form 104SF.
Certification Read the certification statement and provide the typed or printed name and telephone number of the person who prepared the Form 104SF. Also include the preparation date.
Preparing and Submitting Your Request
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 16
Sample Paper Form 104SF
Preparing and Submitting Your Request
Freddie Mac Document Expense Reimbursement Desk Reference 17 September 2010
Preparing and Submitting Your Request
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 18
Preparing and Submitting Your Request
Freddie Mac Document Expense Reimbursement Desk Reference 19 September 2010
Preparing and Submitting Your Request
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 20
Supporting Documentation
When you are required to send a paper Form 104SF, you must attach a complete copy of any necessary supporting documents for each expense for which you are requesting reimbursement. Remember, you are not required to provide supporting documentation when you submit your expense reimbursement request via the Online Reimbursement System unless we request specific documentation after we receive your transmission.
Supporting Document Purpose Required For
A copy of the bill or invoice
Identifies the service performed, the date the service was performed and the property address.
All expenses documented on the paper Form 104SF except taxes and insurance
A copy of the check or the loan history*
*If the loan history does not trace the check disbursement, you must include a copy of the check.
Identifies the
Freddie Mac loan number (may be handwritten)
Transaction code, payment due date, date and amount paid
Expense description or transaction code legend
Escrow balance (if applicable)
All expenses and positive escrow balances documented on the paper Form 104SF
Copies of the claim filed with the RHS
Identifies expenses submitted to the RHS.
All expenses documented on the paper Form 104SF related to RHS insured mortgages
For reimbursement requests submitted via the Online Reimbursement System, you are not required to submit supporting documentation unless we request documentation for a specific expense. If we request supporting documentation, you must fax it to us within one business day of our request to avoid any delay in the payment of your expense reimbursement.
Incomplete or missing documentation will delay the reimbursement process and will require that you resubmit a complete paper Form 104SF package.
Clearly label all supporting documentation and attach it to the paper Form 104SF in the same order that the item is listed on the form.
If you are still owed reimbursable expenses or reimbursable principal and interest for third party foreclosure sales for less than the total indebtedness after remitting the required amount to us, fax the following documentation to us:
− Copy of the completed paper Form 104SF with supporting documentation
Preparing and Submitting Your Request
Freddie Mac Document Expense Reimbursement Desk Reference 21 September 2010
− Completed Form 105, Multipurpose Loan Servicing Transmittal, with Section D Indebtedness completed
− Copy of the proceeds check − Itemization of the distribution of proceeds, if the sale proceeds are less than
the sale price − Copy of the BPO used for the foreclosure bid − Copy of Form 104DC, if you used Freddie Mac designated counsel for the
foreclosure Send your fax to (571) 382-4791, Attn: Third Party Sales.
The Third Party Sales group will forward the Form 104SF and Form 104DC to our Fees and Claims area so that you will receive reimbursement for allowable fees and costs.
Expense Reimbursement and the MI Claim Filing Process
Freddie Mac files MI claims on its own behalf. We rely upon the timeliness and quality of the data you provide to file accurate and complete MI claims. Specifically, we use the Form 104SF and Form 104DC data you submit to determine the expenses we claim.
To facilitate the processing of your Freddie Mac MI claims, take the following actions when preparing and submitting your expense reimbursement requests.
Submit Form 104SF and Form 104DC within the timeframes outlined in Section 71.7 of the Guide. Late filing may cause Freddie Mac a reduction in claim proceeds and Freddie Mac may reduce your reimbursements in the event the submissions are late.
Use expense code 404006 – Inspection Fees Payable by MI, to facilitate reimbursement for property inspection fees payable by the mortgage insurer.
Ensure that your expense reimbursement request is accurate and complete. Missing or inaccurate information delay your reimbursement.
Provide the correct expense codes. Refer to the Expense and Income Codes section in this desk reference and Exhibit 74, Expense and Income Codes for Form 104SF, in the Guide for a complete listing of expense and income codes. If expenses are not coded correctly, the mortgage insurance companies may ask you for more information or documentation.
Document the “from” date and “to” date for foreclosure fees and costs correctly. Refer to “Documenting Expenses and Income Credit’ in this desk reference for additional information.
Provide supporting documentation to the MI company or Freddie Mac, as requested.
Preparing and Submitting Your Request
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 22
If You Receive a Mortgage Insurance Premium Refund
The MI companies should send mortgage insurance premium refunds directly to Freddie Mac. However, if you receive a mortgage insurance premium refund, document the mortgage insurance premium refund using income code 815050, Mortgage Insurance Premium Refund, in the Income/Credit to Offset Expenses section of the Form 104SF when you file your expense reimbursement request.
If you receive the refund after you have submitted the final Form 104SF to Freddie Mac, submit a supplemental Form 104SF. Document the mortgage insurance premium refund using income code 815050, Mortgage Insurance Premium Refund, in the Income/Credit to Offset Expenses section.
Notice of Default Fee
The Notice of Default (NOD) fee on the Servicer Statement includes MI curtailments that are billable to the Servicer. Examples include, but are not limited to, expenses incurred due to untimely delays in notice of default, foreclosure completion, and acquiring the title. You will also receive an Explanation of Benefits that provides a detailed itemization of the fee.
To appeal the NOD fee, contact the MI company directly and provide documentation regarding the MI curtailment. Most MI companies allow 60 days to appeal the curtailment. If the MI company approves the appeal, contact Freddie Mac. When Freddie Mac receives the funds from the MI company, Freddie Mac will remove the fee from the Servicer Statement for primary workout and pool claims.
REO primary MI curtailments are not billed on the Servicer Statement. Therefore, adjustments to these curtailments will be reflected through a separate billing process.
Freddie Mac Document Expense Reimbursement Desk Reference 23 September 2010
Documenting Expenses and Income/Credit
Documenting the Billing Period and Vendor
Provide the “from” date and “to” date to identify the billing period for all expenses. The billing period is the block of time during which the vendor rendered the service, not the date you paid the expense.
When providing the billing period for foreclosure fees and costs, the “from” date must reflect the date foreclosure was initiated. The “to” date must reflect the acquisition date. The acquisition date is defined as either the foreclosure sale or redemption date or the date of the expiration of the redemption or confirmation, whichever occurs later, or the date the deed-in-lieu of foreclosure is accepted.
For bankruptcy fees and costs, the “from” date must reflect the date the bankruptcy was filed. The “to” date must reflect the date the stay was lifted or the date the bankruptcy was confirmed.
Billing periods for mortgage insurance premiums and property insurance premiums must correspond to the billing periods indicated on the policy. Freddie Mac will not reimburse insurance premiums if the billing periods you list overlap with previously paid insurance periods.
Billing periods for taxes must reflect the tax cycle indicated by the tax authority on the tax bills. Freddie Mac will not reimburse tax expenses if the billing periods you list overlap with previously submitted billing periods.
When documenting the vendor, provide the vendor name, not the description of the expense (for example, XYZ Insurance Company, not insurance).
Example
This example illustrates how to correctly provide the “from” date, “to” date and the vendor name.
EXPENSES BILLING PERIOD (SEE EXPENSE/INCOME CODES)
Expense Code
# of actions
Vendor Name From Date MM/DD/YY
To Date MM/DD/YY
Date Paid MM/DD/YY
(taxes and insurance only, mandatory as of
January 1, 2008)
Requested Amount
060000 1 XYZ Insurance Co. 1/01/xx 12/31/xx 1/01/xx 1,500.45 070000 1 LA County Tax 1/01/xx 6/30/xx 1/01/xx 800.50
Fill in the six-digit expense code here.
Fill in the vendor(s) name here.
Fill in the billing periods here.
Indicate the date you paid the expense here.
Documenting Expenses and Income/Credit
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 24
Documenting Insurance Expenses
The following table outlines when insurance premiums are reimbursable:
When reimbursable Type of insurance premium Prior to the
DDLPI After the DDLPI
Property insurance premiums
Property insurance premiums incurred and paid up to 12 months prior to the DDLPI are reimbursable.
For a period up to 14 days after the final non-REO activity or up to 14 days after you receive the Property Condition Certificate (PCC) from a broker indicating the property has been inspected and is vacant.
Note: You must take all actions required in the mortgage clause of all applicable property insurance policies including, but not limited to, providing all notices to the insurer required under such clause, in order to preserve the coverage and its maximum benefits for you and/or Freddie Mac, as mortgagee. You must cancel such policies within 14 days after the property has been inspected and is vacant, even if there is claimable damage to the property. You will be notified that the property has been inspected and is vacant via the PCC. In the event you do not receive the PCC within five business days after REO acquisition, you must check the status via REO Manager or you can call (800) FREDDIE. If the REO is located in a state in which the borrower may be permitted to redeem the property, you must wait to cancel the insurance until the redemption period has expired and you have received a PCC from the broker indicating the occupancy status.
After the policy is cancelled, you must submit a request to the insurance company for reimbursement for the unearned portion of the insurance premium that you paid on behalf of the borrower. Include a copy of the Deed of Trust with your cancellation request.
Refer to Section 70.16 of the Guide for additional information.
Mortgage insurance premiums
Not reimbursable prior to DDLPI.
If paid after the DDLPI and before the REO acquisition date.
Documenting Expenses and Income/Credit
Freddie Mac Document Expense Reimbursement Desk Reference 25 September 2010
Documenting Tax Expenses Freddie Mac will reimburse for taxes incurred and paid beginning no more than 12 months prior to the DDLPI, and through the REO sale date. If 12 months prior to the DDLPI falls within a tax period, the entire tax period is reimbursable.
Example
You are requesting reimbursement for taxes you paid in 11/xx for a property located in California. The DDLPI is 10/01/xy. Twelve months prior to the DDLPI is 10/01/xx. Even though you paid the tax bill in 11/xx, Freddie Mac will reimburse you for the entire billing period because 12 months prior to the DDLPI (10/01/xx) falls within the 7/01/xx - 12/31/xx billing period.
Freddie Mac will not reimburse you for any late fees, penalties, or interest for late payment of taxes other than the first tax penalty incurred on a non-escrowed mortgage. The first tax penalty is the first penalty assessed for any tax, not the first penalty assessed on each type of tax. We will reimburse you for the first tax penalty on a non-escrowed mortgage only if you meet the conditions outlined in Section 59.2 of the Guide. If tax bills are paid out of cycle or paid in a lump sum, you must submit documentation from the taxing authority or tax service that verifies the breakdown of the taxes, penalties and interest.
When requesting reimbursement for taxes paid on a property with multiple parcels, combine amounts for the same expense code and same tax cycle and report on one line. Indicate the number of parcels in the vendor name field on the Form 104SF.
Tax period
DDLPI
7/01/xx 10/01/xx 11/01/xx 12/31/xx 10/01/xy
Tax bill paid 12 months prior
to DDLPI
Documenting Expenses and Income/Credit
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 26
Example
This example illustrates how to request reimbursement for taxes paid on a property with multiple parcels.
EXPENSES
BILLING PERIOD (SEE EXPENSE/INCOME CODES) Expense
Code # of
actions Vendor Name From Date
MM/DD/YY To Date
MM/DD/YY Date Paid MM/DD/YY
(taxes and insurance only, mandatory as of
January 1, 2008)
Requested Amount
070000 1 LA County Tax (Parcels A and B – 2 parcels)
1/01/xx 06/30/xx 1/01/xx 850.00
Enter the six-digit expense code here.
Combine all parcels on one line. Indicate the total number of parcels in the vendor name field.
Enter the total amount paid for all parcels.
Documenting Expenses and Income/Credit
Freddie Mac Document Expense Reimbursement Desk Reference 27 September 2010
Documenting Yard Maintenance Expenses
Follow the guidelines below to ensure that you are documenting your reimbursement request for yard maintenance expenses accurately.
Document the number of weeks covered in the time period in the “number of actions” column. Do not indicate the number of times the yard was cut in the “number of actions” column.
Document the date on which the yard maintenance was performed by entering the same date in both the “from” date and “to” date” columns.
Confirm that grass cutting is permitted year-round if requesting reimbursement for this expense between October 1 and March 31. For additional information, Refer to Exhibit 57, 1-4 Unit Property Approved Expense Amounts, in the Guide.
Example
This example illustrates how to correctly document yard maintenance.
EXPENSES BILLING PERIOD (SEE EXPENSE/INCOME CODES)
Expense Code
# of actions
Vendor Name From Date MM/DD/YY
To Date MM/DD/YY
Date Paid MM/DD/YY
(taxes and insurance only, mandatory as of
January 1, 2008)
Requested Amount
094000 2 Best Landscape, Inc. 5/01/xx 5/01/xx 5/05/xx 80.00 094000 4 Best Landscape, Inc. 6/01/xx 6/01/xx 6/30/xx 80.00
Enter the six-digit expense code here.
Enter the vendor(s) name here.
Enter the date on which the maintenance was performed here.
The number of actions should reflect the number of weeks covered in the time period for which you are requesting reimbursement.
Documenting Expenses and Income/Credit
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 28
Documenting Income/Credit to Offset Expenses
Document expenses and income/credit items in their respective sections on Form 104SF. Do not document the net effect of expenses and income in the Expenses section of the Form 104SF.
Do not offset anticipated or received property insurance claim proceeds or sales proceeds against any expenses incurred. Send Freddie Mac a check made payable to the Federal Home Loan Mortgage Corporation for funds you receive for property insurance claim proceeds.
You must provide a loan history for all loans, whether escrowed or non-escrowed, to support a zero or positive escrow balance.
Document the positive escrow balance as of the DDLPI only in the Income/Credit to Offset Expenses section of the Form 104SF. Escrow disbursements for taxes and insurance must be claimed as expenses on the Form 104SF.
Example
You are requesting reimbursement for payment of a hazard insurance premium. The annual premium of $1,500 covers the billing period of 1/01/xx through 12/31/xx. Freddie Mac acquired the property on 10/01/xx. You received a hazard insurance premium refund for $375 for the period covering 10/01/xx through 12/31/xx. Prepare your request as shown in the following example.
EXPENSES BILLING PERIOD (SEE EXPENSE/INCOME CODES)
Expense Code
# of actions
Vendor Name From Date MM/DD/YY
To Date MM/DD/YY
Date Paid MM/DD/YY
(taxes and insurance only, mandatory as of
January 1, 2008)
Requested Amount
060000 1 XYZ Insurance Co. 1/01/xx 12/31/xx 1/01/xx 1,500.00
INCOME/CREDIT TO OFFSET EXPENSES Income code
Description of Income Less Income:
811000 Escrow balance at default (positive) ( ) 812000 Subsidy Fund (buydown account) ( ) 814000 Rental income ( ) 815000 Other: specify ( ) 815050 Mortgage Insurance Premium Refund ( ) 815060 Hazard Insurance Premium Refund ($375.00)
Document the income/credit ($375 hazard insurance premium refund) here.
Document the expense ($1,500 hazard insurance premium for the entire billing period) here. The “from” date and “to” date reflect the billing period.
Documenting Expenses and Income/Credit
Freddie Mac Document Expense Reimbursement Desk Reference 29 September 2010
Documenting Similar Expense and Income/Credit Items
Report similar expense and income/credit items on different lines, even though they have the same expense code and same vendor. Do not add similar expense and income/credit items together and enter the total on one line.
Example
You are requesting reimbursement for payment of county taxes and foreclosure expenses for a property located in California. The due date of the last paid installment (DDLPI) is 7/01/xx. Foreclosure was initiated on 11/27/xx and the loan went to foreclosure sale on 4/09/xy. This example illustrates a Form 104SF Expenses section that was correctly completed.
EXPENSES
BILLING PERIOD (SEE EXPENSE/INCOME CODES) Expense
Code # of
actions Vendor Name From Date
MM/DD/YY To Date
MM/DD/YY Date Paid MM/DD/YY
(taxes and insurance only, mandatory as of
January 1, 2008)
Requested Amount
070000 1 LA County Tax 7/01/xx 12/31/xx 7/01/xx 800.50 070000 1 LA County Tax 1/01/xy 6/30/xy 1/01/xy 800.50 010000 1 ABC Attorney 11/27/xx 4/09/xy 500.00 020000 1 ABC Attorney 11/27/xx 4/09/xy 60.00 040000* 4 ABC Attorney 11/27/xx 4/09/xy 40.65 300000 1 ABC Attorney 11/27/xx 4/09/xy 350.00
*You can combine and report expenses for code 040000 (court costs) on one line if the same vendor provided the service. Remember to indicate the number of actions or occurrences.
Expenses for same code and vendor are reported as individual items on different lines.
The billing period correctly reflects the tax cycle.
Documenting Expenses and Income/Credit
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 30
Documenting HOA, PUD, and Condominium Assessments
When requesting reimbursement for homeowners’ association (HOA) or Planned Unit Development (PUD) dues, document the first month’s assessment as one line item. Combine the remaining months’ assessments and document as one line item. If the monthly assessment amount changed during the time period for which you are requesting reimbursement, document the first month the assessment changed as a separate line item and then combine the remaining months’ assessments at the new rate and report as another line item.
Transfer fees assessed by an HOA on the sale of an REO (not the foreclosure sale) are reimbursable up to $150. When requesting reimbursement, do not combine the transfer fee expense with the monthly HOA assessment expense. Use expense code 080003 when requesting reimbursement for transfer fees assessed by an HOA.
When monthly HOA or PUD assessments are paid to two different vendors, combine expense amounts with the same dates and report on one line using expense code 080000.
You must pay post-foreclosure condominium, HOA, and PUD regular assessments (dues) and special assessments from the foreclosure sale date up to the REO settlement date.
We will reimburse you for post-foreclosure condominium, HOA, and PUD regular assessments (dues) and special assessments incurred from the foreclosure sale date through the REO settlement date. We will not reimburse you for any late fees, interest, collection expenses, or attorney fees for late payment of HOA, PUD or condominium assessments.
If state law creates a lien priority for condominium, HOA or PUD assessments, or for leasehold estates, the lease, over the mortgage lien for fees assessed before the foreclosure sale date, then we will reimburse up to a total of six months over the life of the mortgage for regular condominium, HOA or PUD assessments and ground rent payments incurred prior to the foreclosure sale date. We will not reimburse you for late fees, interest, collections expenses or attorney fees.
Freddie Mac Document Expense Reimbursement Desk Reference 31 September 2010
Expense and Income Codes
Expense Codes Listed by Activity Type
The following table identifies Freddie Mac’s expense codes by activity type.
Activity Expense Code Description Additional Requirements
Bankruptcy 011000 Trustee/Attorney Fees
Bankruptcy – Chapter 7 Indicate the number of actions. Include 341 Notice.
011009 Trustee/Attorney Fees
Bankruptcy – Chapter 11
011010 Trustee/Attorney Fees
Bankruptcy – Chapter 12
011011 Trustee/Attorney Fees
Bankruptcy – Chapter 13
011012 Trustee/Attorney Fees
Bankruptcy – Multi-filer Defense
None
041000 Court Costs
401000 Appraisal Charge Freddie Mac’s prior approval
is required.
Foreclosure 010000 Trustee/Attorney Fees Indicate the number of
actions reported via EDR.
010000 Trustee/Attorney Fees -
Probate None
010000 Trustee/Attorney Fees -
Contested
010002 Trustee/Attorney Fees –
Torrens Act Limited to applicable properties in Minnesota only.
020000 Advertising Fees - Posting None
021000 Advertising Fees - Publication
030000 Sheriff/Auctioneer Fees
040000 Court Costs
300000 Title Work
Expense and Income Codes
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 32
Activity Expense Code Description Additional Requirements
Foreclosure 300005 Torrens Act – Costs (MN
only) Limited to applicable properties in MN only.
400001 Appraisal Charge Freddie Mac’s prior approval
is required.
Homeowners’ Association
080000 Homeowners’ Association and PUD Fees
Refer to Section 71.13 of the Guide regarding such expense liens that could prime the mortgage.
080002 Special Assessments None
080003 Condominium Project
Documents / HOA Transfer Fee
Insurance and Taxes
050000 Mortgage Insurance Premiums
None
051000 FHA Insurance Premiums
060000 Hazard Insurance Premiums
061000 Flood Insurance Premiums
062000 Force-placed Insurance
Premiums
064000 Supplemental Windstorm
Coverage
070000 County Property Taxes
071001 Municipal (City) Property
Taxes
071002 Borough Property Taxes
071003 Town Property Taxes
071004 Village Property Taxes
072000 School Taxes
073000 Sewer Charges
Expense and Income Codes
Freddie Mac Document Expense Reimbursement Desk Reference 33 September 2010
Activity Expense Code Description Additional Requirements
Insurance and Taxes
074001 Other Property Taxes Provide a brief description of the cost in the Comments section of the Form 104SF.
074002 Supplemental Tax None
074003 Transfer Tax Prior approval is required.
Refer to Section 71.18 of the Guide.
074004 Ground Rents None
074005 First Tax Penalty on Non-
escrowed Mortgages (must not include interest)
076000 Ad Valorem Tax
Liens 500000 Superior (First) Liens Freddie Mac’s prior approval
is required.
501000 IRS Liens Provide a brief description of
the cost in the Comments section of the Form 104SF.
502000 Other Liens
Maintenance and Preservation
090001 Securing/Re-keying
One door only.
090002 Boarding Where needed as required by
local ordinances. All missing windows and doors should be boarded, not repaired.
090003 Extermination Fumigation by a professional
extermination company
090008 Police/Fire Report None
090009 Pool and Spa Securing One time charge
091001 Initial Property Cleaning Cleaning of interior to
include kitchen and bathroom.
Expense and Income Codes
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 34
Activity Expense Code Description Additional Requirements
Maintenance and Preservation
091002 Trash Removal/Dumping Fees
Interior/exterior debris removal. Do not remove personal property.
093000 Initial Yard Maintenance Full yard and/or perimeter
cut and trimming per summer season*.
093003 Pest Removal Removal of dead vermin
from property.
094000 Yard Maintenance (Bi-weekly) grass cutting on
an on-going basis while in summer season
095001 Winterization One time charge during
winter season**.
095002 Dewinterization Freddie Mac’s prior approval
is required.
191001 Other Maintenance Costs Prior approval is required.
Provide a brief description of the approved expenses on the Form 104SF.
191003 Snow Removal As needed in winter
season**.
404005 Property Inspection Maximum aggregate amount
per property ($16) for all inspections provided by an outside service.
404006 Inspection Fees Payable by
MI For mortgages with primary mortgage insurance. Include all property inspection fees incurred.
Expense and Income Codes
Freddie Mac Document Expense Reimbursement Desk Reference 35 September 2010
Activity Expense Code Description Additional Requirements
Other 404001 Freddie Mac Special
Inspection Freddie Mac’s prior approval is required.
503000 Principal Reimbursement Attach amortization schedule
and loan history to reflect the unpaid principal balance for Super Arc guaranteed loans.
Other Legal 013000 Deed-in-Lieu of Foreclosure -
Attorney Fees None
014000 Receiver Fees
032000 Sheriff/Auctioneer Fees -
Other Actions
043000 Court Costs – Other Actions
Property Repairs
200000 Roof Repair/Replacement One time charge to tarp or repair roof.
201000 Interior Painting Freddie Mac’s prior approval
is required.
202000 Exterior Painting
203000 Sump Pump/HVAC
Repair/Replacement Servicing and restart
204000 Flooring Repair Freddie Mac’s prior approval
is required.
205000 Appliance
Repair/Replacement
206000 Other Repairs Prior approval is required.
Provide a brief description of the approved expenses on the Form 104SF.
207000 Other Replacements
Utilities 100000 Electric None
101000 Gas
102000 Oil
Expense and Income Codes
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 36
Activity Expense Code Description Additional Requirements
Utilities 103000 Water None
105000 Other Utilities Prior approval is required.
Provide a brief description of the approved expenses on the Form 104SF.
*Summer season dates are April 1st through September 30th. **Winter season dates are October 1st through March 31st.
Grass cutting is permitted year-round in the following states:
Alabama Guam Nevada Arizona Hawaii Oklahoma Arkansas Kansas Puerto Rico California Louisiana South Carolina Florida Mississippi Texas Georgia New Mexico Virgin Islands
Winterization is permitted year-round in the following states regardless of the month during which the property is secured:
Alaska Maine North Dakota Pennsylvania Connecticut Massachusetts Nebraska Rhode Island Iowa Michigan New Hampshire South Dakota Illinois Minnesota New York Vermont Indiana Montana Ohio Wisconsin
Expense and Income Codes
Freddie Mac Document Expense Reimbursement Desk Reference 37 September 2010
Income Codes Listed by Activity Type
The following table identifies Freddie Mac’s income codes by activity type.
Activity Income Code Description Additional Requirements
Escrow 811000 Escrow Balance at DDLPI
(positive) None
Insurance Refunds
815060 Property Insurance Premium Refund
None
815061 Flood Insurance Premium
Refund
815062 Lender-placed Insurance
Premium Refund
Interest on Escrow
815065 Interest on Escrow None
Other 815000 Other Income (Income
received after DDLPI) Provide a brief description of the item in the Comments section of the Form 104SF.
815050 Mortgage Insurance Premium
Refund None
Rental Income 814000 Rental Income None
Rental/Subsidy Buydown
812000 Subsidy Fund (buydown account)
None
Tax Refunds 815070 County Tax Refund None
815071 Municipal, Borough, Town,
Village Tax Refund
815072 School Tax Refund
815073 Sewer Tax Refund
815074 Supplemental Tax Refund
Expense and Income Codes
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 38
Expense Codes Listed in Alphabetical Order
The following table identifies Freddie Mac’s expense codes in alphabetical order.
Expense Code Description
076000 Ad Valorem Tax
020000 Advertising Fees - Posting
021000 Advertising Fees - Publication
205000 Appliance Repair/Replacement
401000 Appraisal Charge - Bankruptcy
400001 Appraisal Charge - Foreclosure
090002 Boarding
071002 Borough Property Taxes
080003 Condominium Project Documents/HOA Transfer Fees
070000 County Property Taxes
041000 Court Costs - Bankruptcy
040000 Court Costs - Foreclosure
043000 Court Costs - Other Actions - Other Legal
013000 Deed-in-Lieu of Foreclosure - Attorney Fees
095002 Dewinterization
100000 Electric
202000 Exterior Painting
090003 Extermination
051000 FHA Insurance Premiums
Expense and Income Codes
Freddie Mac Document Expense Reimbursement Desk Reference 39 September 2010
Expense Code Description
074005 First Tax Penalty on Non-escrowed Mortgages (must not include interest)
061000 Flood Insurance Premiums
204000 Flooring Repair
404001 Freddie Mac Special Inspection
101000 Gas
074004 Ground Rents
080000 Homeowners’ Association Fees (Condo, Coops, PUDs)
203000 Sump Pump/HVAC Repair/Replacement
091001 Initial Property Cleaning
093000 Initial Yard Maintenance
404006 Inspection Fees Payable by MI
201000 Interior Painting
501000 IRS Liens
062000 Lender-placed Insurance Premiums
050000 Mortgage Insurance Premiums
071001 Municipal Property Taxes
102000 Oil
102000 Oil Receiver Fees
502000 Other Liens
Expense and Income Codes
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 40
Expense Code Description
191001 Other Maintenance
074001 Other Property Taxes
206000 Other Repairs
207000 Other Replacements
105000 Other Utilities
093003 Pest Removal
090008 Police/Fire Report
090009 Pool and Spa Securing
503000 Principal Reimbursement
404005 Property Inspection
060000 Property Insurance Premiums
014000 Receiver Fees
090001 Re-keying
200000 Roof Repair/Replacement
072000 School Taxes
090001 Securing
073000 Sewer Charges
030000 Sheriff/Auctioneer Fees - Foreclosure
032000 Sheriff/Auctioneer Fees - Other Actions
191003 Snow Removal
080002 Special Assessments
Expense and Income Codes
Freddie Mac Document Expense Reimbursement Desk Reference 41 September 2010
Expense Code Description
203000 Sump Pump/HVAC Repair/Replacement
500000 Superior (First) Liens
074002 Supplemental Tax
064000 Supplemental Windstorm Coverage
300000 Title Work
300005 Torrens Act – Costs (Minnesota only)
071003 Town Property Taxes
074003 Transfer Tax
091002 Trash Removal/Dumping Fee
011000 Trustee/Attorney Fees – Bankruptcy Chapter 7
011009 Trustee/Attorney Fees – Bankruptcy Chapter 11
011010 Trustee/Attorney Fees – Bankruptcy Chapter 12
011011 Trustee/Attorney Fees – Bankruptcy Chapter 13
011012 Trustee/Attorney Fees – Multi-filer Defense
010000 Trustee/Attorney Fees - Contested Foreclosure
010000 Trustee/Attorney Fees - Foreclosure
010000 Trustee/Attorney Fees - Probate
010002 Trustee/Attorney Fees – Torrens Act (Minnesota only)
071004 Village Property Taxes
103000 Water
095001 Winterization
094000 Yard Maintenance
Expense and Income Codes
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 42
Income Codes Listed in Alphabetical Order
The following table identifies Freddie Mac’s income codes in alphabetical order.
Income Code Description
815071 Borough Tax Refund
815070 County Tax Refund
811000 Escrow Balance at DDLPI (positive)
815061 Flood Insurance Premium Refund
815062 Lender-placed Insurance Premium Refund
815065 Interest on Escrow
815050 Mortgage Insurance Premium Refund
815071 Municipal Tax Refund
815000 Other Income (Income received after DDLPI)
815060 Property Insurance Premium Refund
814000 Rental Income
815072 School Tax Refund
815073 Sewer Tax Refund
812000 Subsidy Fund (buydown account)
815074 Supplemental Tax Refund
815071 Town Tax Refund
815071 Village Tax Refund
Freddie Mac Document Expense Reimbursement Desk Reference 43 September 2010
1- 4 Unit Property Approved Expense Amounts Property Preservation and Maintenance Expense Limits
The following table outlines Freddie Mac’s approved limits for property preservation and maintenance expenses. You must request our approval for fees and costs that exceed our property preservation and maintenance expense limits. If you fail to obtain our prior written approval for expenses that exceed our limits, we may adjust your expense reimbursement amount.
Item Code Maximum Allowable Expense
Securing/Re-keying (One door only)
Contact us at [email protected] if the property has more than one unit.
090001 $75
Boarding Where needed as required by local ordinances. All missing windows and doors should be boarded, not repaired.
090002 $900
Extermination Fumigation by a professional extermination company.
090003 $350
Police/Fire Report 090008 $150
Initial Property Cleaning Cleaning of interior to include kitchen and bathroom.
091001 $400
Trash Removal/Dumping Fee Interior/exterior debris removal. Do not remove personal property.
091002 $600
Initial Yard Maintenance Full yard and/or perimeter cut and trimming per summer season*.
093000 $300
Pest Removal Removal of dead vermin from property.
093003 $75
1 - 4 Unit Property Approved Expense Amounts
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 44
Item Code Maximum Allowable Expense
Yard Maintenance Bi-weekly grass cutting during the summer season*.
094000 $125
Winterization One time charge during the winter season**.
095001 $250
Pool and Spa Securing One time charge.
090009 $1,100
Utilities:
Electric
Gas
Oil
Water
Other Utilities
100000
101000
102000
103000
105000
Actual paid amount, excluding interest and penalties. Prior approval is not required for the reimbursement of necessary utility expenses incurred from the due date of the last paid installment (DDLPI) to the date you receive the Property Condition Certificate (PCC) as outlined in Sections 66.36 and 67.28 of the Single-Family Seller/Servicer Guide.
Utilities will only be reimbursed in the case of abandoned properties when it is necessary to incur the cost of utilities to protect the property from waste, damage, and vandalism.
Snow Removal As needed during winter season**.
191003 $75
Roof Repair/Replacement One time charge to tarp or repair roof.
200000 $1,000
1 - 4 Unit Property Approved Expense Amounts
Freddie Mac Document Expense Reimbursement Desk Reference 45 September 2010
Preservation and maintenance of properties must be performed in accordance with the requirements set forth in Chapter 70 of the Single-Family Seller/Servicer Guide. Prior approval from Freddie Mac is required before incurring any expense in excess of the above amounts. As outlined in Section B65.50 of the Single-Family Seller/Servicer Guide, you must not incur property preservation expenses on low balance mortgages without Freddie Mac’s prior approval. To request approval, send an e-mail to [email protected].
*Summer season dates are April 1 through September 30.
**Winter season dates are October 1 through March 31.
Grass cutting is permitted year-round in the following states:
Alabama Guam Nevada Arizona Hawaii Oklahoma Arkansas Kansas Puerto Rico California Louisiana South Carolina Florida Mississippi Texas Georgia New Mexico Virgin Islands
Winterization is permitted year-round in the following states regardless of the month during which the property is secured: Alaska Maine North Dakota Pennsylvania Connecticut Massachusetts Nebraska Rhode Island Iowa Michigan New Hampshire South Dakota Illinois Minnesota New York Vermont Indiana Montana Ohio Wisconsin
1 - 4 Unit Property Approved Expense Amounts
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 46
Miscellaneous Expense Limits
The following table outlines Freddie Mac’s approved limits for miscellaneous expenses. You must request our prior written approval for fees and costs that exceed the following expense limits. If you fail to obtain our prior written approval, we may adjust your expense reimbursement amount.
Item Maximum Allowable Expense
Code
Foreclosure Advertising Fees – Posting California only.
$60 020000
Foreclosure Advertising Fees – Publication California only. $210 021000
Sump Pump/HVAC Repair/Replacement Servicing and restart.
$50 203000
Property Inspection Maximum aggregate amount per property for all inspections provided by an outside service. For loans with MI, document and submit property inspection fees not covered under code 404005 under code 404006.
$16 404005
1 - 4 Unit Property Approved Expense Amounts
Freddie Mac Document Expense Reimbursement Desk Reference 47 September 2010
Attorney Fees and Title Work Expense Limits
The following table outlines Freddie Mac’s approved expense limits for attorney fees and costs, and title work. Unless you use one of our designated counsel or trustee firms, you must request our prior approval for attorney fees and costs that exceed our limits. If you fail to obtain our prior written approval for expenses that exceed our limits, we may adjust your expense reimbursement amount.
Attorney Fees Title Work*
State Judicial Foreclosure
Attorney Fee
Trustee/ Non-judicial Foreclosure
Attorney Fee
Eviction Attorney
Fee1
Deed-in-Lieu Attorney Fee
Expense Limits
Code 010000 Code 010000 Code 013000 Code 300000
AK*,** ---- $1,000 $500 $200 TSG
AL** ---- 500 500 200 $200
AR** ---- 500 350 200 250
AZ*,*** ---- 500 400 200 TSG
CA*** ---- 500 550 250 350 FOR LIMITED
TSG
CO* ---- 700 450 225 TSG
CT*** $1,450 ---- 400 225 225
DC** ---- 750 400 300 150
DE 900 ---- 450 225 150
FL*** 950 ---- 400 300 200
GA**,*** ---- 550 450 300 200
GU** ---- 1,200 350 250 150
HI** ---- 1,200 500 250 250
IA 750 ---- 350 250 500
1 - 4 Unit Property Approved Expense Amounts
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 48
Attorney Fees Title Work*
State Judicial Foreclosure
Attorney Fee
Trustee/ Non-judicial Foreclosure
Attorney Fee
Eviction Attorney
Fee1
Deed-in-Lieu Attorney Fee
Expense Limits
Code 010000 Code 010000 Code 013000 Code 300000
ID*,** ---- $500 $400 $250 TSG
IL*** $900 ---- 400 250 $275
IN*** 900 ---- 450 250 250
KS 750 ---- 400 200 200
KY 1,000 ---- 400 300 250
LA 1,050 ---- 500 200 250
MA**,*** ---- 1,200 600 225 150
MD**,*** ---- 800 500 300 150
ME 1,500 ---- 500 225 150
MI**,*** ---- 500 425 250 150
MN** The approved attorney fee for Torrens Act (expense code 010002) is $500.
---- 500 400 250 200
MO** ---- 500 450 200 200
MS** ---- 500 400 300 200
MT*,** ---- 600 400 250 TSG
NC**,*** ---- 650 400 300 200
ND 800 ---- 350 250 300
NE+ 750 500 350 250 275
1 - 4 Unit Property Approved Expense Amounts
Freddie Mac Document Expense Reimbursement Desk Reference 49 September 2010
Attorney Fees Title Work*
State Judicial Foreclosure
Attorney Fee
Trustee/ Non-judicial Foreclosure
Attorney Fee
Eviction Attorney
Fee1
Deed-in-Lieu Attorney Fee
Expense Limits
Code 010000 Code 010000 Code 013000 Code 300000
NH** ---- $800 $400 $225 $225
NJ*** $750 ---- 500 250 100
NM 750 ---- 400 200 400
NV*,*** ---- 500 650 250 TSG
NY*** 900 ---- 600 225 250
OH*** 900 ---- 600 250 250
OK 700 ---- 350 200 400
OR* ---- 600 400 250 TSG
PA*** 1,000 ---- 450 225 250
PR 750 ---- 300 225 150
RI** ---- 800 500 225 225
SC*** 750 ---- 450 300 200
SD 700 ---- 400 250 350
TN** ---- 550 350 300 225
TX**,*** ---- 500 400 200 175
UT ---- 500 400 225 300
VA**,*** ---- 550 600 300 150
VI $800 ---- 225 225 200
VT++ 1,300 700 350 225 200
1 - 4 Unit Property Approved Expense Amounts
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 50
Attorney Fees Title Work*
State Judicial Foreclosure
Attorney Fee
Trustee/ Non-judicial Foreclosure
Attorney Fee
Eviction Attorney
Fee1
Deed-in-Lieu Attorney Fee
Expense Limits
Code 010000 Code 010000 Code 013000 Code 300000
WA*,*** ---- 600 450 250 TSG
WI+ 1,000 ---- 400 250 325
WV** ---- 500 400 300 150
WY*,** ---- 700 500 250 TSG
*Trustee Sale Guaranty (TSG): Freddie Mac will reimburse for the actual full or limited TSG policy if the mortgaged premises goes to foreclosure sale. Freddie Mac will not reimburse for any additional title abstract or commitment. If you must get an update to the title because the original is stale due to bankruptcy delay, Freddie Mac will reimburse you up to $75 for the update. You must contact Freddie Mac for prior approval for an update if the title becomes stale for any other reason.
**In these states, if you have to re-start a new foreclosure proceeding due to a delay in the process, such as bankruptcy or a delay for which you have secured our prior written approval, we will reimburse you as follows:
All of the actual costs of each foreclosure in accordance with the requirements of the Guide.
Up to 100 percent of the approved attorney or trustee’s fees for the first foreclosure attempt.
Up to 70 percent of the approved attorney or trustee’s fees for the subsequent foreclosure.
***You must use Freddie Mac’s designated counsel/trustee in accordance with Section 66.15 of the Guide unless the mortgage was sold to Freddie Mac with recourse.
You must obtain Freddie Mac’s prior written approval before you incur any expense in excess of any of the expense amounts.
+This expense limit for title work includes $75 to cover the additional title update the State requires during the foreclosure process.
++The higher attorney fee listed is for cases where there is equity in the property, thus requiring a foreclosure by judicial sale.
1The REO division manages the eviction process; therefore the Servicer Form 104SF expense reimbursement process does not apply to eviction fees.
1 - 4 Unit Property Approved Expense Amounts
Freddie Mac Document Expense Reimbursement Desk Reference 51 September 2010
Bankruptcy Expense Limits
The following table outlines Freddie Mac’s approved bankruptcy expense limits. If a case converts, we will reimburse you for up to the allowable legal fee for each of the chapters filed.
Bankruptcy Expense Allowable Fee
Chapter 7 $500
Chapters 11, 12, and 13 $450 through confirmation of the plan
$350 for post plan confirmation default, if applicable
Multi-filer defense +++ $350
+++If a borrower is a multiple bankruptcy filer and petitions the court to extend the automatic stay, we will reimburse you up to $350 to file an objection to an extension of the automatic stay and attend the related court hearings. If the objection to an extension of the stay is denied and you must then handle protecting our interests in the bankruptcy proceeding, we will additionally reimburse you for the allowable bankruptcy fee for the chapter of bankruptcy filed.
Requesting Approval to Exceed Freddie Mac’s Expense Limits
Itemize expenses by expense code to determine if you are going to exceed Freddie Mac’s expense limits. Unless you use one of our designated counsel or trustee firms, you must obtain our prior approval for attorney fees and costs that exceed our limits. You must also obtain our prior approval for fees and costs that exceed our property preservation and maintenance expense limits.
Obtain our approval for fees and costs that exceed our expense limits before you incur the cost. We may not reimburse fees and costs that exceed our approved limits if you request approval after you have incurred the cost.
If you are requesting approval for property preservation or maintenance in an amount that is greater than
Submit
$1,000 for a specific expense Two bids for review
$3,000 for a specific expense Three bids for review
When documenting your request, be sure to identify any fees or costs that you have already incurred for the expense code, as we need to consider the total amount that may be incurred for the expense.
1 - 4 Unit Property Approved Expense Amounts
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 52
You are not required to provide a copy of our approval to exceed an expense limit when you submit your expense reimbursement request, regardless of whether you submit your request via the paper Form 104SF or Online Reimbursement System.
Expenses that do not exceed our approved limits in Exhibits 57 and 57A of the Guide do not require our approval.
To submit a request to exceed our expense limits, take one of the following actions: − Fax Form 105, Multipurpose Loan Servicing Transmittal, to Freddie Mac at
(703) 388-7863. − Send an e-mail to [email protected].
Freddie Mac Document Expense Reimbursement Desk Reference 53 September 2010
Form 104DC
Form 104DC
When you use our designated counsel and trustees, you pay them directly for foreclosure and bankruptcy expenses and advances for services to be performed, and do not need our prior approval for foreclosure fees and costs that exceed the limits outlined in Exhibit 57 of the Guide.
Submit the Form 104DC, Designated Counsel/Trustee, via the Online Reimbursement System, to request reimbursement for the foreclosure and bankruptcy costs you incurred and paid to our designated counsel and trustees. Our designated counsel and trustees will generate a Form 104DC online that will be ready for your submission through the Online Reimbursement System. Verify the pre-populated fields before you transmit the Form 104DC to us. Do not request reimbursement of foreclosure or bankruptcy costs incurred and paid to our designated counsel/trustees on the Form 104SF.
Our designated counsel and trustees will retain all supporting documentation for the services they provide. If we need any additional information, we will contact our designated counsel or trustees directly.
For step-by-step instructions on how to submit Form 104DC after designated counsel has generated the form, refer to the Online Reimbursement System Users’ Guide.
For a complete listing of our designated counsel and trustees refer to our Designated Counsel/Trustee List available on our website at http://www.freddiemac.com/service/msp/desig_counsel.html.
When to Submit Form 104DC
For REO expenses, submit your Form 104DC so that we receive it within 45 calendar days of the acquisition date. The acquisition date is defined as either the foreclosure sale or redemption date or the date of the expiration of the redemption or confirmation, whichever occurs later, or the date the deed-in-lieu of foreclosure is accepted.
For non-REO expenses, submit Form 104DC so that we receive it within 45 calendar days of the completion of the non-REO workout activity or event.
These extended submission timeframes are temporary requirements and are in effect until further notice as announced in Single-Family Seller/Servicer Guide Bulletin 2009-11.
Form 104DC
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 54
Sample Paper Form 104DC
Our designated counsel and trustees will complete this form and forward it to you.
Form 104DC
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 56
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Freddie Mac Document Expense Reimbursement Desk Reference 57 September 2010
Form 104SF Audit Process
Each month, we select a random sampling of the expense reimbursement requests you submitted through the Online Reimbursement System and perform a more extensive post audit to ensure compliance with our expense reimbursement requirements. You must provide any supporting documentation related to the expense reimbursement request within 10 business days of our request.
If your expense reimbursement request does not comply with our established guidelines, we may further adjust your expense reimbursement amount. We will notify you of the results of the post-submission audit if any of your expense reimbursement requests are selected for review.
The results of the post audit may indicate that
Adjustments were required which resulted in additional funds due to you. We will send you a check for the funds due to you within 30 calendar days of the date we notify you of the audit findings.
Adjustments were required which resulted in funds due Freddie Mac. We will bill you for the amounts due back to Freddie Mac. These amounts due will display as a separate line item, 104 Expense, on your Non-performing Loans Invoice.
No adjustments were necessary.
Form 104SF Audit Process
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 58
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Freddie Mac Document Expense Reimbursement Desk Reference 59 September 2010
Adjustment Codes
Freddie Mac uses the following adjustment codes to explain adjustments for errors or omissions that could delay or modify your request for reimbursement.
Adjustment Code Adjustment Reason
02 This mortgage has been or is in the process of being repurchased, has recourse, or you are required to make us whole. Reimbursement is denied.
03 This expense or income/credit was previously submitted and paid by Freddie Mac.
04 This expense was previously paid by Freddie Mac at closing.
06 Required documentation or the from date/to date for this expense was insufficient or omitted. Please resubmit this expense accompanied by the appropriate documentation within 10 business days.
08 Prior written approval from Freddie Mac is required for payment of this expense.
09 You must cancel the policy within 14 days after the property has been inspected and is vacant, even if there is claimable damage to the property. You will be notified that the property has been inspected and is vacant via the Property Condition Certificate (PCC). In the event you do not receive the PCC within five business days after acquisition, you must check the status via REO Manager or by calling 800-FREDDIE.
11 If there is a positive escrow balance as of the due date of the last paid installment (DDLPI), it must be shown as Income code 811 on the Form 104SF.
12 This expense is not reimbursable per Section 71.18 of the Guide.
13 Property inspection fees are only reimbursable up to Freddie Mac’s approved limit. Refer to Exhibit 57, 1-4 Unit Property Approved Expense Amounts.
Adjustment Codes
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 60
Adjustment Code Adjustment Reason
14 Appraisals are not reimbursable without prior approval.
15 Tax and insurance expenses that are assessed and paid more than 12 months prior to the due date of the last paid installment (DDLPI) are not reimbursable.
16 Late fees, interest, and penalties are not reimbursable.
17 Condominium, HOA or PUD assessments are only reimbursable:
Up to a total of six months of regular assessments over the life of the mortgage if they were incurred prior to REO acquisition and the property is located in a state that gives first lien priority, or
If these expenses were incurred from the foreclosure sale date through the REO settlement date.
19 This expense amount exceeds Freddie Mac’s generally approved limits.
20 A review of the Form 104SF has resulted in the determination that a check is due to Freddie Mac rather than a reimbursement to you. Please submit a check to the applicable Freddie Mac office within 10 business days accompanied by a copy of this form.
21 This expense was adjusted for other reasons. Please refer to the comments section of the Form 104SF payment advice.
22 Taxes requested on your Form 104SF were paid by Freddie Mac at closing. Please contact the appropriate taxing authority for a refund per Section 71.9 of the Guide.
23 Your expense dates appear to be incorrect. Please resubmit your request within 10 business days with the supporting documents and the correct dates, if applicable.
24 Your initial Form 104SF is due within 30 days of acquisition. Your form was received after this date and reimbursement is denied.
25 Your initial Form 104SF should include expenses incurred from the due date of last paid installment (DDLPI) through acquisition.
Adjustment Codes
Freddie Mac Document Expense Reimbursement Desk Reference 61 September 2010
Adjustment Code Adjustment Reason
26 Your final Form 104SF is due no later than 60 days after the day the REO sales proceeds have been received by our REO department. Your request was received after this date and reimbursement is denied.
27 Your final Form 104SF included pre-acquisition expenses that should have been included on your initial Form 104SF, therefore reimbursement is denied.
29 You must resubmit this expense with documentation on a paper Form 104SF within 10 business days.
30 Your workout settlement is still pending. Please contact your workout specialist.
31 The property has not been acquired. Please resubmit when acquisition occurs.
33 Your expense reimbursement request is not reimbursable at this time. Freddie Mac approval of this expense is required.
36 Incorrect season for expense – Summer season is April 1 through September 30, and winter season is October 1 through March 31. Refer to Exhibit 57, 1-4 Unit Property Approved Expense Amounts.
55 Recourse credit enhanced mortgage. Expense not payable. Contact [email protected].
64 Your supplemental Form 104SF or 104DC is due no later than 10 days after the initial form submission due date. Your request was received after this date and reimbursement is denied.
68 The expenses you submitted have been denied since they were submitted after the specified timeframe.
75 This expense line spans across calendar years. Please resubmit an individual line item per calendar year.
Adjustment Codes
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 62
Adjustment Code Adjustment Reason
76 Designated counsel and non-designated counsel expenses were submitted on the same form. Submit Form 104DC that was completed by designated counsel for attorney fees and costs.
77 Designated counsel expenses submitted in a state where the designated counsel program does not exist. Submit Form 104SF.
78 Mortgage should have been assigned to designated counsel. Refer to Section 66.15.1.
81 Mortgage has not been referred to foreclosure or no bankruptcy has been filed.
82 Mortgage assigned to Freddie Mac designated counsel, non-designated counsel expense codes submitted.
83 Repurchase funds were received. Expense is not payable.
84 Redemption period has not expired. Claim denied.
85 Mortgage insurance premiums are reimbursable if paid after the due date of the last paid installment (DDLPI) and before the REO acquisition date. The acquisition date is the foreclosure sale date, the date of the expiration of the redemption period and /or confirmation/ratification date, whichever occurs last. Reimbursement denied.
86 Mortgage must be a completed workout or in REO status before fees are paid.
87 Income refund not accepted.
88 Your final Form 104SF or 104DC is due no later than 30 days after the completion of the non-REO workout activity or event. Your request was received after this date and reimbursement is denied.
89 Your supplemental Form 104SF or 104DC is due no later than 60 days after the completion of the non-REO workout activity or event. Your request was received after this date and reimbursement is denied.
Adjustment Codes
Freddie Mac Document Expense Reimbursement Desk Reference 63 September 2010
Adjustment Code Adjustment Reason
90 Your final Form 104SF included expenses that, when incurred after acquisition, are not reimbursable expenses.
91 End date adjusted based on expense 062000 and amount prorated.
92 End date adjusted based on the date the Property Condition Certificate (PCC) was received, and as a result, the amount was prorated.
93 End date adjusted based on non-REO activity date and amount prorated.
94 Start date adjusted based on DDLPI and amount prorated.
95 Start date adjusted based on DDLPI, end date adjusted based on expense 062000, and amount prorated.
96 Start date adjusted based on DDLPI, end date adjusted on PCC date, and amount prorated.
97 Start date adjusted based on DDLPI, end date adjusted based on non-REO activity date, and amount prorated.
98 Income adjusted to $0 since expense was previously prorated.
99 Income adjusted to $0 since no expense was paid.
Adjustment Codes
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 64
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Freddie Mac Document Expense Reimbursement Desk Reference 65 September 2010
Non-reimbursable Expenses
List of Non-reimbursable Expenses
The Non-reimbursable Items section on the Form 104SF allows you to document expenses you incurred that Freddie Mac identifies as non-reimbursable. If your internal accounting practices require that you report all incurred expenses, you may report the non-reimbursable expenses in the Non-reimbursable Items section of the Form 104SF.
If you request reimbursement for an expense we identified as non-reimbursable, we will deny reimbursement and display the appropriate non-reimbursable item code on your payment advice.
Non-reimbursable Expense Exception(s)
Additional fees for preparing a foreclosure deed
None – the cost for any additional fees has already been included in the attorney fees listed in Exhibit 57A, Approved Attorney Fees and Title Expenses, in the Guide.
Appraisals
The appraisal is
Approved or requested by Freddie Mac
Reimbursed by the Veteran’s Administration
Attorney costs incurred for
Curing a delinquency
Document preparation
Word processing
None
Attorney fees that result from correction of matters that you should have resolved prior to the foreclosure sale
None
Documentary stamp taxes/transfer taxes/excise taxes on real property conveyance
You have received Freddie Mac’s written approval to pay the taxes prior to the foreclosure sale.
Facsimile transmission (fax) charges None
Flood insurance premiums paid after REO acquisition
The property is occupied, or
There is an outstanding hazard insurance claim, or
Freddie Mac has requested in writing that the insurance be maintained.
Non-reimbursable Expenses
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 66
Non-reimbursable Expense Exception(s)
Property insurance premiums if the premiums were paid on the property after it became REO
Freddie Mac will reimburse for a period up to 14 days after the final non-REO activity or up to 14 days after you receive the Property Condition Certificate (PCC) from a broker indicating the property has been inspected and is vacant.
The property is occupied.
Freddie Mac has requested in writing that the insurance be maintained.
In-house counsel time when the reimbursable matter is handled by in-house counsel
None
Interest, penalties, late charges, or legal fees imposed for late payment of taxes and HOA dues
Freddie Mac will reimburse you for the first tax penalty incurred on a non-escrowed mortgage if you have complied with the requirements outlined in Section 59.2 of the Guide. Freddie Mac will not reimburse you for the interest or other charges accrued on delinquent taxes.
Legal costs incurred for contested foreclosures or other actions
You have received Freddie Mac’s written approval prior to incurring the expense.
Long distance telephone calls None
Mailgram charges None
Mileage or travel costs None
Mortgage credit life insurance premiums None
Negative escrow balance at default or other charges outstanding prior to default
None
New case start-up fees None
Notary public services performed by you or the attorney
None
Photocopy costs None
Photographs None
Regular postage None
Title insurance policies Policies are approved or requested by Freddie Mac. Refer to Exhibit 57A, Approved Attorney Fees and Title Expenses, in the Guide.
Non-reimbursable Expenses
Freddie Mac Document Expense Reimbursement Desk Reference 67 September 2010
Non-reimbursable Item Codes
If you request reimbursement for an expense that Freddie Mac has identified as non-reimbursable, a non-reimbursable item code displays on your payment advice. The following table identifies the non-reimbursable item codes and their descriptions.
Non-reimbursable Item Code
Description
NRI001 Photographs are not reimbursable.
NRI002 Property Inspection fees for more than $16 per property are not reimbursable.
NRI003 Credit reports are not reimbursable.
NRI004 Long distance phone call charges are not reimbursable.
NRI005 Mileage or travel costs are not reimbursable.
NRI006 Regular postage is not reimbursable.
NRI007 Fax charges are not reimbursable.
NRI008 Photocopy costs are not reimbursable.
NRI009 Attorney costs incurred for curing a delinquency, document preparation, or word processing are not reimbursable.
NRI010 In-house counsel time when the matter is handled by in-house counsel is not reimbursable.
NRI011 Attorney fees for corrective actions that should have been resolved before the foreclosure sale are not reimbursable.
NRI012 Legal costs for contested foreclosures or other actions without prior approval from Freddie Mac are not reimbursable.
NRI013 Hazard insurance premiums paid after the REO acquisition date are not reimbursable.
NRI014 Flood insurance premiums paid after REO acquisition date are not reimbursable.
NRI015 A negative escrow balance prior to default is not reimbursable.
Non-reimbursable Expenses
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 68
Non-reimbursable Item Code
Description
NRI016 Interest, penalties, late charges, or legal fees imposed for late payment of taxes, condominium fees, HOA and PUD dues, utility bills, and first lien principal and interest payments are not reimbursable.
NRI017 Appraisals obtained without Freddie Mac’s prior approval are not reimbursable.
NRI018 Title insurance policies obtained without Freddie Mac’s approval are not reimbursable.
NRI019 Mortgage credit life premiums are not reimbursable.
NRI020 Mailgram charges are not reimbursable.
NRI021 Documentary Tax Stamp costs are not reimbursable.
NRI022 Taxes incurred and paid more than 12 months prior to DDLPI are not reimbursable.
NRI023 Documentation is missing.
NRI024 You must itemize the base tax expense and penalty portion of your reimbursement request.
NRI025 “From” Dates and “To” Dates must be provided.
NRI026 Expense was previously reimbursed.
NRI027 Freddie Mac pre-approval is required.
NRI028 The date reported is a future date, and therefore is not reimbursable.
NRI029 No expense code is provided.
NRI030 Line items are illegible.
NRI031 No vendor name is provided.
NRI032 Other
Freddie Mac Document Expense Reimbursement Desk Reference 69 September 2010
Check the Status of Your Requests
After you submit your expense reimbursement request, Expense ManagerSM, available on FreddieMac.com, gives you the ability to check the status of your request online.
How to Access Expense Manager
Perform the following steps to access Expense Manager:
1. Access the Servicing Technology Tools page at the following URL on FreddieMac.com: http://www.freddiemac.com/singlefamily/service/tools.html.
2. Click Log In under Expense Manager.
Check the Status of Your Requests
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 70
3. Enter your user ID and password.
4. Click on your Servicer Family number.
The Status Overview Report
The Status Overview report provides a breakdown, by process status, of your expense reimbursement requests. Within each process status, there are various claim statuses that link you to detailed information on the status of your expense reimbursement claim requests. Following is an example of the Status Overview.
Process Statuses
The following table identifies each process status and its description.
Process Status Description
Pending Your expense reimbursement request has been received and is awaiting processing.
Pending Review Your expense reimbursement request has been partially processed and is pending review.
Completed Your expense reimbursement request has completed processing.
Process Status
Claim Status
Check the Status of Your Requests
Freddie Mac Document Expense Reimbursement Desk Reference 71 September 2010
Claim Statuses
The following table identifies each claim status and its description.
Claim Status Description
Entered Your expense reimbursement request (Form 104SF or Form 104DC) has been received.
Referred Your expense reimbursement request has been referred for evaluation.
Research Your expense reimbursement request is being researched.
Held Your expense reimbursement request is on hold pending updated vendor information.
Completed Your expense reimbursement request has completed processing and a check or non-payment advice has been issued.
Check the Status of Your Requests
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 72
How to Access the Status Overview Report
After you access Expense Manager, perform the following steps to access the Status Overview report.
1. Click on Status Overview. The Status Overview page displays and provides links to detailed information for each of the claim statuses.
2. Click on the process status link you want to review. For example, to view a listing of completed expense reimbursement requests, click on the Completed link under the Claim Status column.
Check the Status of Your Requests
Freddie Mac Document Expense Reimbursement Desk Reference 73 September 2010
Each link displays detailed information for the last 50 loans processed in a particular status. The following illustrates the type of information that displays when you click on the Completed link.
See More Details
Load Spreadsheet
FHLMC Loan #
Servicer Loan # Servicer City State
Check Number
Date Check Issued
Amount Requested
Amount Approved
Date Received
Date Entered
Days Since Date Entered
136214587 965412 123456 Norwood IN 963541 03/03/xx $945 $945 03/03/xx 03/03/xx 0
964521369 632541 123456 Southfield MI 963548 03/03/xx $1,050 $1,000 03/03/xx 03/03/xx 0
946521364 946523 123456 Summerfield NC 963549 03/03/xx $3,508 $3,508 03/03/xx 03/03/xx 0
965412358 495786 123456 Bay City SC 963560 03/03/xx $2,109 $2,109 03/03/xx 03/03/xx 0
The links located in the center of the screen provide access to the detailed information you reported for each expense, as well as information about the amount Freddie Mac approved.
See More Details
Load Spreadsheet
FHLMC Loan #
Servicer Loan # Servicer City State
Check Number
Date Check Issued
Amount Requested
Amount Approved
Date Received
Date Entered
Days Since Date Entered
136214587 965412 123456 Norwood IN 963541 03/03/xx $945 $945 03/03/xx 03/03/xx 0
964521369 632541 123456 Southfield MI 963548 03/03/xx $1,050 $1,000 03/03/xx 03/03/xx 0
946521364 946523 123456 Summerfield NC 963549 03/03/xx $3,508 $3,508 03/03/xx 03/03/xx 0
965412358 495786 123456 Bay City SC 963560 03/03/xx $2,109 $2,109 03/03/xx 03/03/xx 0
Drilldown on Processed Forms ABC Bank / 123456
For Period Ending Wednesday, July 11, xxxx Last Updated Friday, July 13,xxx at 12:47 am.
Drilldown on Processed Forms ABC Bank / 123456
For Period Ending Wednesday, July 11, xxxx Last Updated Friday, July 13, xxxx at 12:47 am. Click See More Details to view
detailed information for the last 50 loans processed for the selected status.
Click Load Spreadsheet to display a Microsoft® Excel spreadsheet that provides a detailed breakdown, including adjustment reasons, for expense reimbursement requests processed within the last 12 months for the selected status.
Check the Status of Your Requests
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 74
How to Determine if a Check was Issued for Your Expense Reimbursement Request
To determine if a check has been issued for an expense reimbursement request, perform the following steps:
1. Access the Status Overview report in Expense Manager.
2. Review your expense reimbursement requests that have a process and claim status of “Completed.”
If a check Then
Was issued The Date Check Issued column will display a date.
If a check was issued, but you have not received it, we require that a check be at least 30 days old before we issue a stop payment order.
Was not issued Send an email to [email protected].
Check the Status of Your Requests
Freddie Mac Document Expense Reimbursement Desk Reference 75 September 2010
The Eligible 104 Forms Report
You may also use the Eligible 104 Forms report, available in Expense Manager, in conjunction with your internal tracking systems to ensure that your expense reimbursement claim requests are submitted in accordance with Freddie Mac’s requirements. The Eligible 104 Forms report identifies upcoming submission deadlines for your expense reimbursement requests.
After you access Expense Manager, perform the following steps to view the Eligible 104 Forms report:
1. Click on Eligible 104 Forms Overview. The Eligible 104 Forms Overview page displays.
Eligible 104 Forms Overview ABC Bank / 123456
For Period Ending Wednesday, July 11, xxxx Last Updated Friday, July 13, xxxx at 12:47 am.
This report represents trigger activity since Saturday, July 1, xxxw
Check the Status of Your Requests
Expense Reimbursement Desk Reference Freddie Mac Document September 2010 76
2. Click on the Subtotals link. The Eligible 104 Forms report page displays. In this example, we have drilled down on the subtotal for REO related claims.
REO Loans eligible for Initial or Final 104 filing
Load Spreadsheet
FHLMC Loan #
Servicer Loan # Servicer
Eligible Submission Type
REO Event
Event Date
Due Date
Last Input Date
Last Status
Last Request Amount
Total Amount Paid
111111111 888888 123456 Initial REO Acquisition 07/07/xxxx 08/06/xxxx
222222222 555555 123456 Initial REO Acquisition 07/06/xxxx 08/05/xxxx
333333333 650000 123456 Initial REO Acquisition 07/06/xxxx 08/05/xxxx
444444444 777777 123456 Initial REO Acquisition 07/06/xxxx 08/05/xxxx
555555555 100000 123456 Final REO Settlement 07/06/xxxx 09/04/xxxx 06/26/xxxx Completed $2,573.98 $2,538.98
666666666 600000 123456 Initial REO Acquisition 07/05/xxxx 08/04/xxxx
777777777 900000 123456 Initial REO Acquisition 07/05/xxxx 08/04/xxxx
Drilldown on Eligible 104 Forms - REO ABC Bank / 123456
For Period Ending Wednesday, July 11, xxxx Last Updated Friday, July 13, xxxx at 12:47 am.