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

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

Effective 2025-12-17 · Freddie Mac's stamp for this section

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: ■ 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 ■ 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.

Source: Freddie Mac Single-Family Seller/Servicer Guide 1301.4 — Authorization and agreements · source URL · snapshot 4c94f67729042dd6