Freddie Mac Single-Family Seller/Servicer Guide 2101.1 — Eligibility criteria

Freddie Mac Single-Family Seller/Servicer Guide 2101.1 — Eligibility criteria

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

(a) Approval required An institution must be approved by Freddie Mac as a Seller/Servicer before it can sell Mortgages to and/or service Mortgages for Freddie Mac. Once approved, the Seller/Servicer must comply with all the applicable requirements in the Purchase Documents, including the requirements in this chapter. A Seller/Servicer must be separately and specifically approved before it can sell eMortgages to and/or service eMortgages for Freddie Mac. (See Sections 1402.1(c) and 1402.5(a).) (b) Representations, warranties, covenants and agreements The Seller/Servicer represents and warrants to, and covenants and agrees with, Freddie Mac that at all times it: ■ Is a viable organization and, as applicable, able effectively to: ❑ Originate or otherwise acquire Mortgages acceptable for sale to Freddie Mac in accordance with the Guide and applicable Purchase Documents and/or ❑ Service Mortgages in accordance with the Servicing Contract ■ Maintains a minimum Tangible Net Worth and other financial requirements (see Section 2101.2) ■ Will comply with any additional requirements, as deemed appropriate by Freddie Mac in its sole discretion. Freddie Mac will provide Seller/Servicer with notice of any additional requirements ■ Will provide audited or Reviewed Financial Statements, as may be required by Freddie Mac, at the time of approval and otherwise as may be required by Freddie Mac, including audited or Reviewed Financial Statements for the Seller/Servicer’s parent, subsidiaries, and affiliates ■ Maintains fidelity and errors and omissions insurance coverages as set forth in Sections 2101.6 through 2101.9 ■ Maintains a quality control program that is acceptable to Freddie Mac (see Chapter 3402) ■ Is able to demonstrate to Freddie Mac’s satisfaction, that it has sufficient capitalization, profitability, liquidity and funding sources to support its ongoing operations and its commitments to Freddie Mac ■ Complies with the information security and business continuity planning requirements in Chapter 1302, and ■ Upon request, provides information related to Related Third Parties, including but not limited to the nature of the relationship and address of the Related Third Party Freddie Mac’s determinations regarding Seller/Servicer’s compliance with the representations, warranties, covenants and agreements listed above shall be conclusive and in Freddie Mac’s sole discretion. (c) Freddie Mac may request additional organizational documents In addition to the other information and documents required at the time of application in accordance with the Freddie Mac Single-Family Seller/Servicer Application Document Checklist, Freddie Mac in its sole discretion may request the applicant provide additional information related to its application including, without limitation, any or all of the following: ■ Articles of Incorporation/Organization of the applicant and any amendments thereto ■ Operating Agreement/Bylaws of the applicant and any amendments thereto ■ Certificate of Formation of the applicant ■ Identification information for every person who directly or indirectly has the right to vote a material portion of a class of a voting interest of the company or has the power to sell or direct the sale of a material portion of a class of voting interests of the company (d) Special purpose entities For applicants whose ownership structure or affiliate relationships may pose a bankruptcy consolidation risk (such as special purpose entities, special purpose vehicles or organizations that have or are requested by Freddie Mac to have a similar organizational structure), Freddie Mac may require that the applicant (and its parent) adopt some or all of the separateness covenants substantially similar to those in Exhibit 115, Special Purpose Entity (“SPE”) Covenants Sample Provisions. Freddie Mac may require a non-consolidation opinion from a law firm generally acceptable to Freddie Mac and containing only industry standard qualifications and assumptions. Freddie Mac may deny approval or request additional assurances if an applicant is a recycled entity or vehicle.

Source: Freddie Mac Single-Family Seller/Servicer Guide 2101.1 — Eligibility criteria · source URL · snapshot 4c94f67729042dd6