Freddie Mac Single-Family Seller/Servicer Guide Section 1301.4 — Authorization and agreements

Freddie Mac Single-Family Seller/Servicer Guide Section 1301.4 — Authorization and agreements

1301.4: Authorization and agreements (12/17/25) This section contains requirements related to: ■ Seller authorized to sell Mortgages ■ Servicer authorized to service Mortgages ■ Servicer agreements (a) Seller authorized to sell Mortgages The Seller must have the full legal authority, taken all action required by law and by its organizational documents and obtained any consent required to sell, transfer and assign a Mortgage to Freddie Mac free and clear of all claims, security interests or other encumbrances. The Note and the Security Instrument must be enforceable by the Seller. Transfer of the Note and the Security Instrument in whole or in part to any subsequent purchaser must not detract from their enforceability. The Purchase Documents must be valid, binding and enforceable according to its terms and conditions. Compliance with the terms and conditions of the Purchase Documents by the Seller must not conflict with, result in a breach of or default under or be adversely affected by the following: ■ Any terms and conditions of the charter or bylaws or other type of organization constituent documents of the Seller ■ Any agreement or instrument to which the Seller is a party ■ Any judgment, order or regulation to which the Seller is subject Each Seller that is an “insured depository institution,” as that term is defined in Section 1813(c)(2) of Title 12 of the United States Code, as amended, acknowledges, agrees, covenants, represents and warrants to Freddie Mac that the Seller’s Master Agreements and other applicable Purchase Documents entered into by and between the Seller and Freddie Mac: Freddie Mac Single-Family Seller/Servicer Guide Chapter 1301 As of 05/06/26 Page 1301-13 ■ Are in writing or are Records or Electronic Records, as those terms are defined in Section 1401.1(b) ■ Were executed or authenticated by the Seller and Freddie Mac contemporaneously with the agreement reached by the Seller and Freddie Mac for sale of Mortgages by the Seller to Freddie Mac in return for cash and/or UMBS®, MBS or WAC ARM PCs received by the Seller ■ Were approved by the Seller’s board of directors or the Seller’s officers or employees who were duly authorized by the board of directors to enter into such agreements and board approvals, resolutions and/or delegations of authority are reflected in the minutes of the board; and ■ Have been, continuously from the time of their execution or authentication, official records of the Seller (b) Servicer authorized to service Mortgages The Servicer must be eligible to service Mortgages for Freddie Mac under the requirements of the Purchase Documents. The Servicer warrants that it has complied with all applicable laws related to licensing, qualification to do business or approval to service Mortgages. The Servicer also warrants that the Purchase Documents have been duly authorized, executed and delivered and are valid and enforceable according to their terms. The Servicer further warrants that compliance with the terms and conditions thereof will not conflict with, result in a breach of or default under or be adversely affected by the following: ■ Any terms and conditions of the Servicer’s charter ■ Any agreement or instrument to which the Servicer is a party ■ Any judgment, order or regulation to which the Servicer is subject (c) Servicer agreements In addition to general warranty statements elsewhere in this Guide, the Servicer agrees that, in Servicing Mortgages and REO for Freddie Mac, the Servicer will: ■ Comply with the Purchase Documents and any instruction, request or requirement issued by Freddie Mac ■ Abide by Freddie Mac’s decision with respect to any of the Mortgages or REO ■ Hold Freddie Mac harmless for any loss the Servicer may suffer from any decision made by Freddie Mac with respect to any of the Mortgages or REO Freddie Mac Single-Family Seller/Servicer Guide Chapter 1301 As of 05/06/26 Page 1301-14 ■ Reimburse Freddie Mac for any expenses (including court costs and reasonable attorney fees) incurred by Freddie Mac, at its sole discretion, in remedying or correcting any failure of the Servicer to service a Mortgage or REO in accordance with the requirements of the Purchase Documents ■ Reimburse Freddie Mac for any costs incurred by Freddie Mac as a result of a Servicer’s delays in meeting the foreclosure or bankruptcy timelines when the delay results from any failure of a Seller/Servicer to originate a Mortgage or service a Mortgage or REO in accordance with the requirements of the Purchase Documents; such costs will be determined in Freddie Mac’s sole discretion. 1301.5: Warranties, representations and review (12/17/25) This section contains requirements related to: ■ Reliance on the Seller/Servicer warranties and representations ■ Review of Mortgages by Freddie Mac prior to purchase ■ Warranties and representations by the Seller ■ Survival of warranties; remedies (a) Reliance on the Seller/Servicer warranties and representations The Seller/Servicer should carefully read the Purchase Documents. The Seller/Servicer acknowledges that Freddie Mac and any transferees or assignees of Freddie Mac purchase Mortgages and trade in any related securities in reliance on the accuracy and truth of the Seller/Servicer’s warranties and representations and on its compliance with the agreements, requirements, terms and conditions set forth in the Purchase Documents. (b) Review of Mortgages by Freddie Mac prior to purchase Before the Freddie Mac Funding Date (Cash programs) or Settlement Date of the UMBS®, MBS or WAC ARM PC (Guarantor programs), Freddie Mac may, in its discretion, refuse to purchase any Mortgage if it determines any of the following: ■ The Mortgage is not of investment quality ■ The Seller has failed to satisfy or has breached any of the provisions of the Purchase Documents Freddie Mac Single-Family Seller/Servicer Guide Chapter 1301 As of 05/06/26 Page 1301-15 ■ Any of the warranties or representations of the Seller to Freddie Mac are untrue ■ The Seller has failed to provide Freddie Mac with information that is true, complete and accurate as to the Mortgage For each Mortgage it refuses to purchase, Freddie Mac may require the Seller to substitute in its place another Mortgage that is satisfactory to Freddie Mac. (c) Warranties and representations by the Seller As of the Delivery Date, the Funding Date or the Settlement Date (as applicable), and the date of any substitution of Mortgages pursuant to the Purchase Documents, the Seller makes the warranties and representations in this section for each Mortgage purchased by Freddie Mac. The Seller is fully liable for all warranties and representations made to Freddie Mac, regardless of whether the Seller originated the Mortgage. (i) General warranties and representations 1. The terms, conditions and requirements stated in the Purchase Documents have been fully satisfied 2. All warranties and representations of the Seller are true and correct 3. The Seller is in compliance with its agreements contained in the Purchase Documents 4. The Seller has not misstated, misrepresented or omitted any material fact about the Mortgage 5. The Seller has given correctly and on a timely basis to the Borrower all disclosures and notices required under Applicable Laws and the terms of the Note and the Security Instrument 6. With respect to each ARM, the Seller has calculated any and all adjustments to the interest rate or the monthly payment correctly and given on a timely basis any and all notices of such adjustments completely in accordance with the terms of the Note and Security Instrument and with the requirements of applicable law 7. The Seller has adopted Exhibit 35, Appraiser Independence Requirements, and, for each conventional Mortgage delivered with an appraisal report, the appraisal report was obtained in a manner consistent with Exhibit 35 8. No person or entity on the Freddie Mac Exclusionary List as of the Note Date played a role, as described in Section 3101.1, in the origination or sale of such Mortgage or the related real estate transaction Freddie Mac Single-Family Seller/Servicer Guide Chapter 1301 As of 05/06/26 Page 1301-16 9. Solely with respect to a Mortgage registered with MERS®, MERS is the mortgagee of record (either by being named in the Security Instrument as nominee for the Seller or as the assignee in a recorded assignment of the Security Instrument), or, where applicable, MERS is not the mortgagee of record for purposes of MERS iRegistration 10. The Seller has adopted Exhibit 42, Property Data Collector Independence Requirements, and, for each conventional Mortgage delivered with a PDR, the property data collection was obtained in a manner consistent with Exhibit 42 Upon Freddie Mac’s written request, either before or after the Funding Date, the Seller will supply evidence satisfactory to Freddie Mac of the Seller’s compliance with any provision of the Purchase Documents. Before the Funding Date, the Seller must obtain Freddie Mac’s written approval of any waivers or modifications to the provisions of the Purchase Documents. The Seller represents and warrants that all persons executing documents on behalf of the Seller are duly authorized to do so. The Seller warrants that it and, if applicable, the originator of the Mortgages it sells to Freddie Mac have complied with all applicable laws relating to licensing, qualification to do business or approval to originate Mortgages. Before the Funding Date, the Seller may contact Freddie Mac to request review of a Mortgage in order to obtain a waiver of the warranty requirements of Sections 3101.1(d) and 1301.5(c)(i)(8). The Seller should make such request to the Freddie Mac Exclusionary List Mailbox at [email protected]. As part of the request, the Seller must: ■ Inform Freddie Mac of the nature and extent of the role played by the person or entity on the Exclusionary List in connection with the Mortgage, and ■ Provide other relevant information upon request If Freddie Mac reviews the Mortgage and subsequently elects to purchase the Mortgage, Freddie Mac will provide the Seller with written notice of such election, in which case the warranty concerning the involvement of an excluded person or entity will not be applicable to the sale of the Mortgage. All other requirements of the Purchase Documents relating to the sale of the Mortgage will remain in full force and effect. Freddie Mac’s election to review and its decision to purchase such a Mortgage are within its sole discretion. (ii) Seller sole Mortgage owner; Mortgage not subject to any other interest As of the Delivery Date, the Seller must be the sole owner of the Mortgage. Freddie Mac Single-Family Seller/Servicer Guide Chapter 1301 As of 05/06/26 Page 1301-17 As of the Funding Date or the Settlement Date, whichever is applicable, all Mortgages purchased by Freddie Mac must be free and clear of all claims, security interests or other encumbrances. The Seller agrees to take or cause to be taken such further actions, including, without limitation, the preparation, execution and filing of additional documents and instruments, as may be reasonably necessary to assure and confirm to Freddie Mac that the Mortgages purchased by Freddie Mac are free and clear of any and all security interests as of the Funding Date or the Settlement Date. The Seller warrants to Freddie Mac that as of the Freddie Mac Funding Date (Cash programs) or Settlement Date of the UMBS, MBS or WAC ARM PC (Guarantor programs), the Mortgage is not subject to any other interest. The Seller further warrants and agrees not to sell, assign, convey, hypothecate, pledge or in any other way transfer (conditionally or otherwise) its interest in a Mortgage that Freddie Mac has purchased except as expressly permitted in the Purchase Documents. (iii)eMortgage representations and warranties For additional representations and warranties related to eMortgages, see Section 1402.3(c)(viii). (d) Survival of warranties; remedies The warranties and representations in the Purchase Documents for any Mortgage purchased by Freddie Mac survive payment of the purchase price by Freddie Mac. The warranties and representations are not affected by any investigation made by, or on behalf of, Freddie Mac except when expressly waived in writing by Freddie Mac. When any party has purchased a Mortgage from Freddie Mac that Freddie Mac previously purchased from a Seller, Freddie Mac may exercise any rights or remedies at law or in equity on behalf of the party to the extent that the party does not affirmatively do so. Freddie Mac may also exercise its discretion to disqualify or suspend a Seller or a Servicer pursuant to Chapter 2301 or Section 9102.1. For each Mortgage purchased by Freddie Mac, the Seller and the Servicer agree that Freddie Mac may, at any time and without limitation, require the Seller or the Servicer, at the Seller’s or the Servicer’s expense, to make such endorsements to and assignments and recordations of any of the Mortgage documents so as to reflect the interests of Freddie Mac and/or its successors and assigns. Freddie Mac Single-Family Seller/Servicer Guide Chapter 1301 As of 05/06/26 Page 1301-18 1301.6: Enforcement of representations and warranties related to underwriting of the Borrower, Mortgaged Premises and project (05/06/26) This section contains requirements related to: ■ Representations and warranties ■ Eligible Mortgages ■ Life-of-loan representations and warranties Freddie Mac will not exercise its remedies, including the issuance of a repurchase request, in connection with the Seller/Servicer’s breaches of certain selling representations and warranties as described below. Mortgages that are processed by the Seller through Loan Collateral Advisor® and Loan Product Advisor® may also qualify for additional enforcement relief related to value, condition and marketability, provided certain conditions are met. See Section 5602.2 for details. Selling representation and warranty framework The requirements below are effective for Mortgages with Freddie Mac Settlement Dates on and after July 1, 2014. (a) Representations and warranties For Mortgages, including Mortgages sold pursuant to negotiated provisions, that comply with the eligibility requirements set forth in (b) below, Freddie Mac will not exercise its remedies, including the issuance of a repurchase request, in connection with the Seller/Servicer’s breaches of selling representations and warranties in the topics, chapters and sections of the Guide listed in the table below1, relating to: ■ The underwriting of the Borrower, which includes the Seller’s assessment of the Borrower’s loan terms, credit history, employment and income, assets, and other financial information used for qualifying the Borrower for the Mortgage ■ The underwriting of the Mortgaged Premises, which is the analysis of the description and valuation of the Mortgaged Premises to determine its adequacy as collateral for the Mortgage ■ The underwriting of the project in which the Mortgaged Premises is located, which is the analysis of the Planned Unit Development (PUD), Condominium Project or Cooperative Project 1 This includes the topics, chapters and sections as amended by the Seller’s Purchase Documents, if applicable. Freddie Mac Single-Family Seller/Servicer Guide Chapter 1301 As of 05/06/26 Page 1301-19 For Guide provisions not listed in this table, the Seller/Servicer will continue to be responsible for representations and warranties for the life of the loan. Seller/Servicer representations and warranties Guide topic/chapter/section Title of topic, chapter or section and where noted, exclusions to provisions in the topic/chapter/section Note: Where the following provisions of the Guide contain references to requirements located in other topics, chapters and/or sections of the Guide, Freddie Mac will not exercise its remedies in connection with breaches of representations and warranties related to those requirements only if the topic/chapter/section where the requirement is located is included below. Section 4101.1 The Mortgage application Section 4201.1 Investment Quality Mortgage, with the following exceptions: ■ The Mortgage is adequately secured by real property ■ For all Mortgages with Application Received Dates on or after July 1, 2021, and all Mortgages with Settlement Dates after August 31, 2021, all ATR Covered Mortgages sold to Freddie Mac must satisfy the requirements in the Revised General QM Rule Section 4201.3 Amortization and term, with the following exceptions: For a Mortgage with an Application Received Date prior to January 10, 2014, and a Freddie Mac Settlement Date on or before July 31, 2014: The Mortgage must not have an original term that exceeds 40 years from the date that is one month before the first payment Due Date as described in Section 4201.3. For a Mortgage with an Application Received Date on or after January 10, 2014, or a Freddie Mac Settlement Date after July 31, 2014: The Mortgage must not have an original term that exceeds 30 years from the date that is one month before the first payment Due Date as described in Section 4201.3. Subsection 4201.4(c) Additional requirements for Mortgages with Settlement Dates More than 120 days After the Note Date Freddie Mac Single-Family Seller/Servicer Guide Chapter 1301 As of 05/06/26 Page 1301-20 Seller/Servicer representations and warranties Guide topic/chapter/section Title of topic, chapter or section and where noted, exclusions to provisions in the topic/chapter/section Note: Where the following provisions of the Guide contain references to requirements located in other topics, chapters and/or sections of the Guide, Freddie Mac will not exercise its remedies in connection with breaches of representations and warranties related to those requirements only if the topic/chapter/section where the requirement is located is included below. Section 4201.7 Assumption of Mortgage Section 4201.10 No circumstances adversely affecting value of Mortgage Section 4201.11 Mortgages secured by Primary Residences Section 4201.12 Second home Mortgages Section 4201.13 Investment Property Mortgages Section 4201.14 Impact of Contaminated Sites Chapter 4203 Maximum Loan Amounts and LTV, TLTV and HTLTV Ratios Chapter 4204 Secondary Financing and Other Financing Arrangements, with the following exceptions: ■ The requirement that for any Mortgage with a buydown plan, the initial interest rate may not be more than 3% below the Note Rate and the buydown plan may not extend for more than 3 years ■ Subsection 4204.3(a) regarding Borrower qualification and qualifying rates, as follows: For all Mortgages with Application Received Dates on or after July 1, 2021, and all Mortgages with Settlement Dates after August 31, 2021, the qualifying rate must, at a minimum, equal the maximum interest rate that may apply during the first five years after the date on which the first regular periodic payment will be due, based on the loan amount over the loan term. Chapter 4301 Refinance Mortgages Freddie Mac Single-Family Seller/Servicer Guide Chapter 1301 As of 05/06/26 Page 1301-21 Seller/Servicer representations and warranties Guide topic/chapter/section Title of topic, chapter or section and where noted, exclusions to provisions in the topic/chapter/section Note: Where the following provisions of the Guide contain references to requirements located in other topics, chapters and/or sections of the Guide, Freddie Mac will not exercise its remedies in connection with breaches of representations and warranties related to those requirements only if the topic/chapter/section where the requirement is located is included below. With the exception of Section 4301.3 regarding refinance practices Subsection 4401.2(b) ARM qualifying rates, with the following exception: For all Mortgages with Application Received Dates on or after July 1, 2021, and all Mortgages with Settlement Dates after August 31, 2021, the qualifying rate must, at a minimum, equal the maximum interest rate that may apply during the first five years after the date on which the first regular periodic payment will be due, based on the loan amount over the loan term. Chapter 4402 Seller-Owned Converted and Seller-Owned Modified Mortgages Chapter 4404 Land Contract; Contract for Deed Chapter 4405 Energy Conservation Improvements Chapter 4406 Mortgages Secured by Properties Subject to Resale Restrictions Chapter 4407 Properties Impacted by Disasters Chapter 4408 Mortgages Made Pursuant to Employee Relocation Programs Topic 4500 Affordable Mortgages and Duty to Serve Topic 4600 Special Freddie Mac Mortgage Products Subsection 4701.2(a) Borrower-paid financed premiums (mortgage insurance premiums) Freddie Mac Single-Family Seller/Servicer Guide Chapter 1301 As of 05/06/26 Page 1301-22 Seller/Servicer representations and warranties Guide topic/chapter/section Title of topic, chapter or section and where noted, exclusions to provisions in the topic/chapter/section Note: Where the following provisions of the Guide contain references to requirements located in other topics, chapters and/or sections of the Guide, Freddie Mac will not exercise its remedies in connection with breaches of representations and warranties related to those requirements only if the topic/chapter/section where the requirement is located is included below. Topic 5100 Determining Borrower Eligibility With the exception of: ■ Section 5103.2 regarding requirements for permanent and nonpermanent resident aliens ■ Section 5103.5 regarding requirements for living trusts Topic 5200 Credit Assessment Topic 5300 Stable Monthly Income and Asset Qualification Sources Topic 5400 Evaluation of Monthly Obligations Topic 5500 Assets Topic 5600 Property Eligibility and Valuation With the exception of: ■ Subsection 5601.1(a), Eligible properties ■ Subsection 5603.1(b) relating to Exhibit 35, Appraiser Independence Requirements ■ Section 5603.1 relating to the Uniform Standards of Professional Appraisal Practice ■ Subsection 5603.5(a) relating to Exhibit 42, Property Data Collector Independence Requirements Chapter 5701 Condominiums With the exception of: ■ Section 5701.2 relating to project insurance requirements ■ Section 5701.2 relating to title insurance Freddie Mac Single-Family Seller/Servicer Guide Chapter 1301 As of 05/06/26 Page 1301-23 Seller/Servicer representations and warranties Guide topic/chapter/section Title of topic, chapter or section and where noted, exclusions to provisions in the topic/chapter/section Note: Where the following provisions of the Guide contain references to requirements located in other topics, chapters and/or sections of the Guide, Freddie Mac will not exercise its remedies in connection with breaches of representations and warranties related to those requirements only if the topic/chapter/section where the requirement is located is included below. ■ Subsection 5701.3(a), Projects in which the unit owners do not have an undivided ownership or leasehold interest in the land on which the project is located ■ Subsection 5701.3(b), Condominium Hotel ■ Subsection 5701.3(d), Project with excessive commercial or non-residential space ■ Subsection 5701.3(e), Tenancy-in-Common apartment project ■ Subsection 5701.3(f), Timeshare project or project with segmented ownership ■ Subsection 5701.3(g), Houseboat project ■ Subsection 5701.3(k), Continuing Care Retirement Community (CCRC) ■ Subsection 5701.3(l), Manufactured Homes ■ Subsection 5701.3(m), Project with mandatory dues or similar membership fees for use of Amenities such as clubhouses or recreational facilities ■ Subsection 5701.6(e), Compliance with laws ■ Subsection 5701.6(f), Limitations on ability to sell/right of first refusal ■ Subsection 5701.6(h), Mortgagee consent ■ Subsection 5701.6(i), Rights of Condominium mortgagees and guarantors Chapter 5702 Planned Unit Developments (PUDs) With the exception of Subsection 5702.1(f) relating to insurance requirements Freddie Mac Single-Family Seller/Servicer Guide Chapter 1301 As of 05/06/26 Page 1301-24 Seller/Servicer representations and warranties Guide topic/chapter/section Title of topic, chapter or section and where noted, exclusions to provisions in the topic/chapter/section Note: Where the following provisions of the Guide contain references to requirements located in other topics, chapters and/or sections of the Guide, Freddie Mac will not exercise its remedies in connection with breaches of representations and warranties related to those requirements only if the topic/chapter/section where the requirement is located is included below. Chapter 5703 Manufactured Homes With the exception of Section 5703.2 and Subsections 5703.3(a) and (b) regarding the characteristics and requirements of a Manufactured Home Chapter 5704 Leasehold Estates Chapter 5705 Cooperative Projects and Cooperative Share Loans With the exception of: ■ Subsection 5705.2(a)(4), Compliance with law ■ Subsection 5705.2(b)(1), Cooperative Project insurance ■ Subsection 5705.2(b)(2), Title insurance ■ Subsection 5705.3(a), Ownership of Cooperative Project land and Cooperative Units ■ Subsection 5705.3(b), Cooperative Hotel ■ Subsection 5705.3(d), Cooperative Project with excessive commercial or non-residential space ■ Subsection 5705.3(g), Houseboat Cooperative Project ■ Subsection 5705.3(h), Ownership and use of Common Elements in the Cooperative Project ■ Subsection 5705.3(k), Continuing Care Retirement Community (CCRC) ■ Subsection 5705.3(l), Cooperative Projects comprised of Manufactured Homes ■ Subsection 5705.3(n), Limited Equity Cooperative Project ■ Subsection 5705.4(b), Owner-occupancy requirement Freddie Mac Single-Family Seller/Servicer Guide Chapter 1301 As of 05/06/26 Page 1301-25 Seller/Servicer representations and warranties Guide topic/chapter/section Title of topic, chapter or section and where noted, exclusions to provisions in the topic/chapter/section Note: Where the following provisions of the Guide contain references to requirements located in other topics, chapters and/or sections of the Guide, Freddie Mac will not exercise its remedies in connection with breaches of representations and warranties related to those requirements only if the topic/chapter/section where the requirement is located is included below. ■ Subsection 5705.4(i), Prior Cooperative Project financing ■ Subsection 5705.5(h), Cooperative Corporation’s approval ■ Subsection 5705.5(i), Cooperative Project that is not a Cooperative Housing Corporation ■ Subsection 5705.6(b), Right of first refusal ■ Subsection 5705.6(d), Rights of Cooperative Shareholders and Sellers ■ Subsection 5705.6(e), Cooperative membership ■ Subsection 5705.6(g), Assignment of Shareholder’s Cooperative Interest ■ Subsection 5705.6(h), Cooperative Corporation Responsibilities and Seller/Servicer Rights ■ Subsection 5705.9(e), Closing requirements for combined Cooperative Units ■ Subsection 5705.10(c), Prior Cooperative Project financing (b) Eligible Mortgages Freddie Mac will not exercise its remedies in connection with breaches of representations and warranties described in Section 1301.6(a) for Mortgages that meet the following requirements: ■ The Mortgage must have a Freddie Mac Settlement Date on or after July 1, 2014 ■ The Mortgage must be a conventional Mortgage delivered to Freddie Mac through a flow purchase contract Freddie Mac Single-Family Seller/Servicer Guide Chapter 1301 As of 05/06/26 Page 1301-26 ■ The Mortgage must not be a Mortgage that Freddie Mac and the Seller/Servicer have agreed is subject to any credit enhancement other than primary mortgage insurance ■ The Mortgage must have either an acceptable payment history or a satisfactory conclusion of a Freddie Mac quality control review as more fully described below: Acceptable payment history The Mortgage has an acceptable payment history if it meets the following eligibility requirements: ❑ For Mortgages other than Freddie Mac Relief RefinanceSM Mortgages and Freddie Mac Enhanced Relief Refinance® Mortgages: ■ Following the Freddie Mac Settlement Date, the Borrower (i) made the first 36 monthly payments due with no more than two 30-day Delinquencies and no 60- day or greater Delinquencies; and (ii) must not be 30 or more days delinquent with respect to the 36th monthly payment ❑ For Freddie Mac Relief Refinance Mortgages and Freddie Mac Enhanced Relief Refinance Mortgages: ■ Following the Freddie Mac Settlement Date, the Borrower made the first 12 monthly payments due with no 30-day or greater Delinquencies, or ■ Following the Freddie Mac Settlement Date, the Borrower (i) made the first 36 monthly payments due with no more than two 30-day Delinquencies, and no 60- day or greater Delinquencies; and (ii) must not be 30 or more days delinquent with respect to the 36th monthly payment ❑ In addition, during the applicable payment history period: ■ With the exception of temporary subsidy buydown arrangements permitted by the Purchase Documents, neither the Seller/Servicer nor any third party may escrow or advance funds to be used for payment of any monthly installment, principal, interest or other charge payable under the terms of the Mortgage ■ The Mortgage must not have been subject to a repayment plan, or otherwise have been modified from its original terms, except as otherwise stated below for a disaster-related forbearance plan ■ The Mortgage must not have an outstanding request for a repurchase, a repurchase alternative or a make-whole Freddie Mac Single-Family Seller/Servicer Guide Chapter 1301 As of 05/06/26 Page 1301-27 ❑ The Mortgage may have been subject to a disaster-related forbearance plan during the applicable payment history period as a result of the Borrower being impacted by an Eligible Disaster pursuant to Chapter 8404, provided that: ■ The Mortgage is fully reinstated, as described in Section 9203.1(c), or ■ The Borrower agrees to a repayment plan and complies with the terms of the repayment plan, restoring the Mortgage to a current status, or ■ The disaster-related forbearance transitions into a Disaster Payment Deferral, restoring the Mortgage to a current status, or ■ The disaster-related forbearance transitions into a permanent modification, restoring the Mortgage to a current status, or ■ For all four options described above, payments due during the disaster-related forbearance period are considered to have been made on time for the purposes of this section Note: The Servicer must report the Borrower’s payment status of the Mortgage in accordance with Section 8303.1(c). Satisfactory conclusion of a Freddie Mac quality control review For a Mortgage to obtain a satisfactory conclusion of a Freddie Mac quality control review, it must meet one of the following requirements: ■ Freddie Mac completes a quality control review of the Mortgage file, which includes a review of the credit underwriting and eligibility of the Borrower, the Mortgaged Premises (including its value) and the project in which the Mortgaged Premises is located, if applicable (“quality control review”), and determines that the Mortgage is acceptable (that is, the Mortgage is not subject to a repurchase request) ■ Freddie Mac completes the quality control review and determines the Mortgage is not acceptable because of a loan deficiency that is curable, and the Seller/Servicer cures the deficiency to Freddie Mac’s satisfaction. Example: If the Mortgage file delivered to Freddie Mac did not contain the required verification of income, the loan deficiency would be deemed to be corrected if the Seller/Servicer provided the missing documentation within the time frame specified. Another example of an action taken to correct a loan deficiency is rectifying a prior lien by producing evidence of a recorded satisfaction or release of such prior lien within the time frame specified. Freddie Mac Single-Family Seller/Servicer Guide Chapter 1301 As of 05/06/26 Page 1301-28 ■ Freddie Mac completes the quality control review and determines the Mortgage is not acceptable, but Freddie Mac and the Seller/Servicer agreed upon an alternative to repurchase that has since expired or terminated by its terms. Example: If Freddie Mac determined a Mortgage was not acceptable and, as a repurchase alternative, Freddie Mac and the Seller/Servicer agreed that the Mortgage would be subject to recourse for five years, then the Seller/Servicer will be relieved from Freddie Mac’s enforcement of the representations and warranties described in Section 1301.6(a) at the end of the five-year period. Other possible repurchase alternatives include indemnification, make-whole arrangements and certain split loss agreements. (c) Life-of-loan representations and warranties For Mortgages that meet the eligibility requirements set forth in (b) above, the Seller/Servicer will not be relieved from Freddie Mac’s enforcement of its representations and warranties with respect to the following matters, even if such issues are referenced in the Guide topics, chapters or sections in the table above. Instead, the Seller/Servicer will be responsible for all such representations and warranties for the life of the loan. ■ Charter matters Each Mortgage must be eligible for purchase under the Freddie Mac Charter Act in the following respects: ❑ The Mortgage must be secured by a residential property that is located within any of the 50 States, the District of Columbia, Guam, Puerto Rico or the U.S. Virgin Islands at the time of Freddie Mac’s purchase, as set forth in Section 4201.1 and the definition of a State in the Glossary ❑ The original UPB of the Mortgage must not exceed the maximum original loan amounts set forth in Sections 4203.1(c) and 4603.2 ❑ The Mortgage must not be secured by vacant land or property primarily used for agriculture, farming or commercial enterprise at the time of Freddie Mac’s purchase ❑ The Mortgage must be secured by a residential property consisting of one to four dwelling units at the time of Freddie Mac’s purchase ❑ Any Mortgage with an LTV ratio in excess of 80% at the time of Freddie Mac’s purchase must (i) have mortgage insurance on the portion of the Mortgage in excess of 80% of the property’s value (determined in accordance with Section 4701.1), or in the case of Freddie Mac Relief Refinance Mortgages and Freddie Mac Enhanced Relief Refinance Mortgages, meet the applicable mortgage insurance requirements in the Guide, (ii) be sold with recourse, within the meaning of Section 6201.2(b)(i) Freddie Mac Single-Family Seller/Servicer Guide Chapter 1301 As of 05/06/26 Page 1301-29 ■ Misstatements, misrepresentations and omissions The Mortgage must not have any misstatements misrepresentations or omissions (“misrepresentations”) by any party to the Mortgage transaction (including, but not limited to, the Seller, Borrowers, property sellers, builders, real estate agents, lenders, mortgage brokers, loan officers, originators, appraisers, appraisal companies, closing agents, title companies or other third party vendors) pertaining to the requirements described in the topics, chapters and sections of the Guide set forth in the table above that are made with or without the Seller’s knowledge and that: ❑ Involve three or more Mortgages sold to Freddie Mac by the same Seller, and ❑ Were made pursuant to a common pattern of activity in connection with the Mortgage origination or sale based on information in the Mortgage file or other facts or circumstances that existed on the Settlement Date that involved at least one party common to all the Mortgages (if the common party is the Seller, then the same individual; if the common party is a third party, then the same individual or entity), and ❑ Are “significant” in that, using true and accurate information, either Freddie Mac determines that: 1. The Mortgage would not have been eligible for sale under the terms of the Seller’s Purchase Documents in effect on the Settlement Date, or 2. The Mortgage would have been eligible for sale, but under different terms For purposes of finding three or more Mortgages to constitute the pattern, both Mortgages that have obtained relief under the framework and Mortgages that have not obtained relief may be counted. If Mortgages that have not obtained relief are counted for purposes of establishing a pattern, those Mortgages must meet all requirements of this exclusion (i.e., three or more Mortgages, common pattern of activity, significance) in order for Freddie Mac to enforce a remedy for each Mortgage. In determining whether a misrepresentation is significant, Freddie Mac will rely on its Loan Product Advisor simulator, which approximates the Risk Class at the time of delivery. Freddie Mac will compare the Loan Product Advisor simulator assessment using true and accurate information with the Loan Product Advisor simulator assessment received at the time of delivery. A misrepresentation will be considered significant only if the Mortgage receives a worse Loan Product Advisor assessment from the simulator than was received at the time of delivery to Freddie Mac, except that Freddie Mac will also take into account any applicable negotiated terms of business and the impact of any undisclosed Freddie Mac Single-Family Seller/Servicer Guide Chapter 1301 As of 05/06/26 Page 1301-30 concessions, concealed transaction terms or other violations of the Seller’s Purchase Documents that are involved in the misrepresentation but are not assessed by the Loan Product Advisor simulator when determining significance. Freddie Mac will notify the Seller/Servicer of any such undisclosed matters or violations that are considered in connection with determining significance and will provide the Seller/Servicer with documentation supporting the significance determination. If Freddie Mac determines that the Mortgage would have been eligible for sale but under different terms than those under which the Mortgage was sold, as described in number 2 of the third bullet above, Freddie Mac will not seek repurchase but instead will re-price the Mortgage, consistent with the Seller’s Purchase Documents in effect on the Settlement Date, to reflect the true risk profile of the Mortgage. As an exception to the above, Mortgages involving fraud will be subject to repurchase, regardless of whether the above test (three or more Mortgages, common pattern of activity, significance) has been met. For purposes of this life-of-loan representation and warranty only, “fraud” is established either by: ■ An adjudicated claim affirming fraud by or against the Seller or other party to the Mortgage transaction, or ■ Freddie Mac finding clear and convincing evidence that a Seller or other party to the Mortgage transaction knowingly executed or participated in a scheme or artifice in connection with the underwriting, origination or sale of a Mortgage to: ❑ Defraud Freddie Mac or any other party to the Mortgage transaction, or ❑ Obtain any moneys, funds, credits, assets, securities or other properties from Freddie Mac or any other party to the Mortgage transaction by means of fraudulent pretenses, representations or promises ■ Data inaccuracies The Mortgage must not have any Uniform Loan Delivery Dataset (ULDD) data inaccuracies pertaining to the requirements described in the topics, chapters and sections of the Guide set forth in the table above, if and to the extent: ❑ The data inaccuracies affect five or more Mortgages and involve the same delivery data element(s), and ❑ The ULDD data differs from the information in the Mortgage file, and ❑ The data inaccuracies are “significant” in that, using the information in the Mortgage file to qualify the Borrower, Mortgaged Premises and/or project in which the Mortgaged Premises is located, Freddie Mac determines that either: Freddie Mac Single-Family Seller/Servicer Guide Chapter 1301 As of 05/06/26 Page 1301-31 1. The Mortgage would not have been eligible for sale under the terms of the Seller’s Purchase Documents in effect on the Settlement Date, or 2. The Mortgage would have been eligible for sale but under different terms For purposes of finding five or more Mortgages involving the same delivery data element inaccuracy, both Mortgages that have obtained relief under the framework and Mortgages that have not obtained relief may be counted. If Mortgages that have not obtained relief are counted for purposes of establishing that there were five or more Mortgages with the same delivery data element inaccuracy, those Mortgages must meet all other requirements of this exclusion (i.e., same delivery data elements, data differs from information in the Mortgage file, significance) in order for Freddie Mac to enforce a remedy for each Mortgage. In determining whether the data inaccuracy is significant, Freddie Mac will rely on its Loan Product Advisor simulator, which approximates the Risk Class at the time of delivery. Freddie Mac will compare the Loan Product Advisor simulator assessment using true and accurate information with the Loan Product Advisor simulator assessment received at the time of delivery. A data inaccuracy will be considered significant only if the Mortgage receives a worse Loan Product Advisor assessment from the simulator than was received at the time of delivery to Freddie Mac, except that Freddie Mac will also take into account any applicable negotiated terms of business when determining significance. Freddie Mac will provide the Seller/Servicer with documentation supporting the significance determination. If Freddie Mac determines that the Mortgage would have been eligible for sale but under different terms than those under which the Mortgage was sold, as described in number 2 of the third bullet above, Freddie Mac will not seek repurchase but instead will re-price the Mortgage, consistent with the Seller’s Purchase Documents in effect on the Settlement Date, to reflect the true risk profile of the Mortgage. ■ Clear title/First Lien priority: The Mortgage must be enforceable as a First Lien (with no pending condemnation proceedings) and have clear title through foreclosure ■ Compliance with laws: The Mortgage must comply with all applicable federal, State and local laws, ordinances, regulations and orders, including, without limitation, State anti-predatory lending laws and regulations. For all Mortgages with Application Received Dates on or after July 1, 2021, and all Mortgages with Settlement Dates after August 31, 2021, in addition to ensuring compliance with applicable laws, Sellers must ensure that all ATR Freddie Mac Single-Family Seller/Servicer Guide Chapter 1301 As of 05/06/26 Page 1301-32 Covered Mortgages satisfy the QM requirements of the Revised General QM Rule, even if the Seller is not required by law or regulation to comply with the Revised General QM Rule. ■ Unacceptable Mortgage products: The Mortgage must be a Mortgage product acceptable for sale to Freddie Mac. The Seller/Servicer will not be relieved of Freddie Mac’s enforcement of its representations and warranties for unacceptable Mortgage products, including, but not limited to, the following: ❑ A Mortgage with an interest-only feature ❑ A graduated-payment Mortgage ❑ A Mortgage originated with stated or no income and/or asset documentation. (Freddie Mac Relief Refinance Mortgages and Freddie Mac Enhanced Relief Refinance Mortgages are not considered a Mortgage originated with stated or no income and/or asset documentation.) ❑ A Mortgage subject to negative amortization ❑ A construction loan (other than a Construction to Permanent Mortgage) ❑ A daily simple interest Mortgage ❑ A Prepayment Penalty Mortgage with an Application Received Date on or after January 10, 2014 or a Freddie Mac Settlement Date after July 31, 2014 ❑ A reverse Mortgage ❑ A Mortgage with balloon payments (with or without a reset option) ❑ A second Mortgage

Source: Freddie Mac Single-Family Seller/Servicer Guide Section 1301.4 — Authorization and agreements · source URL · snapshot 5869ee9e606cd4ae