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

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

2101.1: Eligibility criteria (12/17/25) (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) Freddie Mac Single-Family Seller/Servicer Guide Chapter 2101 As of 05/06/26 Page 2101-2 ■ 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. Freddie Mac Single-Family Seller/Servicer Guide Chapter 2101 As of 05/06/26 Page 2101-3 2101.2: Acceptable Net Worth and other financial requirements (12/31/23) (a) Defined terms Seller/Servicers should be familiar with the following terms used in this section as they relate to financial requirements: ■ Agency Mortgage Servicing: The aggregate Residential First Lien Mortgage Servicing UPB of all Mortgages serviced for the Enterprises and Ginnie Mae ■ Enterprise: Freddie Mac and Fannie Mae, each an “Enterprise” and collectively the “Enterprises.” ■ Large Non-Depository Institutions: Non-depository institutions with $50 billion or more in Residential First Lien Mortgage Servicing UPB plus Other Servicing UPB as determined at the end of each calendar quarter. ■ Liquidity: Cash and cash equivalents (unrestricted), certain unpledged investment grade securities that are available for sale or held for trade (including single-family mortgage- backed securities backed solely by Agency Mortgage Servicing, obligations of the Enterprises, and Treasury obligations), and 50% of committed/unused Agency Mortgage Servicing advance lines of credit. ■ Long-Term Senior Unsecured Debt Rating: A rating assigned to a financial obligation with an original maturity of one year or more that reflects both on the likelihood of a default on contractually promised payments on senior unsecured debts and the expected financial loss suffered in the event of default on such debts from a Rating Agency. ■ Long-Term Corporate Family Rating: A long-term rating that reflects the relative likelihood of a default on a corporate family’s debt and debt-like obligations and the expected financial loss suffered in the event of default from a Rating Agency. ■ Other Servicing UPB: Using the fields from the Form 1055, Mortgage Bankers’ Financial Reporting Form (MBFRF), the outstanding UPB of a Seller/Servicer’s portfolio of one- to four- unit residential First Lien Mortgages the Seller/Servicer is contractually obligated to service for all investors other than the Enterprises and Ginnie Mae, plus the following regardless of the investor: ❑ Second lien Mortgages, ❑ Funded home equity lines of credit, ❑ Reverse Mortgages, plus Freddie Mac Single-Family Seller/Servicer Guide Chapter 2101 As of 05/06/26 Page 2101-4 ❑ Construction and land development Mortgages This does not include the outstanding UPB of Mortgages serviced under a subservicing arrangement. ■ Rating Agency: An entity that is a “Nationally Recognized Statistical Rating Organization” as defined by Section 78c(a) of Title 15 of the United States Code (15 U.S.C. 78c(a)). ■ Residential First Lien Mortgage Servicing UPB: Using the fields from the Form 1055, Mortgage Bankers’ Financial Reporting Form (MBFRF), the outstanding UPB of a Seller/Servicer’s portfolio of one- to four- unit residential First Lien Mortgages the Seller/Servicer is contractually obligated to service for the Enterprises and Ginnie Mae, as applicable, excluding: ❑ Funded home equity lines of credit, ❑ Reverse Mortgages, plus ❑ Construction and land development Mortgages This does not include the outstanding UPB of Mortgages serviced under a subservicing arrangement. ■ Servicer Rating: An evaluation of a servicer for its capacity to carry out servicing business, which is different from evaluations of financial instruments or credit standing of corporations, from a Rating Agency. Servicer Ratings may be conducted based upon the type of servicing actions performed, including evaluations for entities that act as primary servicers, special servicers or master servicers. ■ Small Seller: A Seller that originates $1 billion or less in one- to four- unit residential first lien Mortgages (excluding reverse Mortgages, one-to four-unit residential construction and land development loans to home buyers, and lot loans to consumers) in the most recent four-quarter period. ■ Tangible Net Worth: Total equity (as determined by generally accepted accounting principles (GAAP)) less receivables due from related entities, less goodwill and other intangible assets, less carrying value of pledged assets net of associated liabilities, less deferred tax assets net of associated deferred tax liabilities. Note: If the deferred tax liabilities are greater than the deferred tax assets, then the deduction from the Tangible Net Worth will be zero. Freddie Mac Single-Family Seller/Servicer Guide Chapter 2101 As of 05/06/26 Page 2101-5 (b) Seller/Servicers that are depository institutions Seller/Servicers that are depository institutions must maintain at all times a Tangible Net Worth of $2,500,000 plus a dollar amount equal to or exceeding the sum of: ■ 25 basis points of that portion of the Seller/Servicer’s Residential First Lien Mortgage Servicing UPB serviced for the Enterprises, ■ 25 basis points of the Other Servicing UPB, plus ■ 35 basis points of that portion of the Seller/Servicer’s Residential First Lien Mortgage Servicing UPB serviced for Ginnie Mae Seller/Servicers that are depository institutions must maintain compliance with their applicable capital and liquidity requirements imposed by their regulators. (c) Seller/Servicers that are non-depository institutions Seller/Servicers that are non-depository institutions must maintain at all times the Tangible Net Worth requirements applicable to depository institutions above, and must also maintain: ■ A Tangible Net Worth/total assets ratio greater than or equal to 6%, where total assets are determined in accordance with GAAP, and ■ A base Liquidity of eligible assets equal to or exceeding the sum of: ❑ 7 basis points of that portion of the Seller/Servicer’s Residential First Lien Mortgage Servicing UPB serviced for the Enterprises, if the Seller/Servicer remits (or an Enterprise draws) interest or principal, or both, as scheduled, regardless of whether principal or interest has been collected from the Borrower, ❑ 3.5 basis points of that portion of the of the Seller/Servicer’s Residential First Lien Mortgage Servicing UPB serviced for the Enterprises, if the Seller/Servicer remits (or an Enterprise draws) the interest and principal only as actually collected from the Borrower, ❑ 3.5 basis points of the Seller/Servicer’s Other Servicing UPB, plus ❑ 10 basis points of that portion of the Seller/Servicer’s Residential First Lien Mortgage Servicing UPB serviced for Ginnie Mae ■ An origination Liquidity* equal to or exceeding 50 basis points of the sum of the following as reported by Seller/Servicer using the fields from the Form 1055, Mortgage Bankers’ Financial Reporting Form (MBFRF): Freddie Mac Single-Family Seller/Servicer Guide Chapter 2101 As of 05/06/26 Page 2101-6 ❑ One-to-four unit residential first lien (excluding reverse Mortgages, one-to-four-unit residential construction and land development loans to home buyers, and lot loans to consumers) Mortgages held for sale, at lower of cost or market, ❑ One-to-four unit residential first lien (excluding reverse Mortgages, one-to-four-unit residential construction and land development loans to home buyers, and lot loans to consumers) Mortgages held for sale, at fair value, plus ❑ UPB of interest rate lock commitments after fallout adjustments. *Note: These origination Liquidity requirements do not apply to Small Sellers. (d) Seller/Servicers that are Large Non-Depository Institutions In addition to the Liquidity requirements specified in subsection (c) above, all Seller/Servicers that are Large Non-Depository Institutions must at all times maintain supplemental Liquidity equal to or exceeding the sum of: ■ 2 basis points of that portion of the Seller/Servicer’s Residential First Lien Mortgage Servicing UPB serviced for the Enterprises, plus ■ 5 basis points of that portion of the Seller/Servicer’s Residential First Lien Mortgage Servicing UPB serviced for Ginnie Mae (e) Additional requirements Notwithstanding the above, Freddie Mac may, as it deems appropriate and in its sole discretion: ■ Modify a Seller/Servicer’s Tangible Net Worth requirement ■ Impose limitations, restrictions or qualifications on the sale of Mortgages to, or the Servicing of Mortgages for Freddie Mac by any Seller/Servicer, and ■ Impose additional financial requirements on any Seller/Servicer, including, but not limited to, (i) requirements relating to liquidity and profitability, regardless of the Seller/Servicer’s Tangible Net Worth, and (ii) the requirement that any Seller/Servicer execute and deliver a Collateral Pledge Agreement, in substantially the form and substance of Exhibit 104, whereby the Seller/Servicer will pledge certain collateral (whether cash, securities or otherwise), as pledgor, to Freddie Mac, as secured party, in such amount as determined by Freddie Mac, in its sole discretion Freddie Mac will provide the Seller/Servicer with notice of any modification to the Seller/Servicer’s Tangible Net Worth or other financial requirements, any additional requirements, and any limitations, restrictions or qualifications on the sale of Mortgages or Servicing of Mortgages. Freddie Mac Single-Family Seller/Servicer Guide Chapter 2101 As of 05/06/26 Page 2101-7 2101.3: Activity thresholds and no-activity fee (04/07/21) Beginning January 1, 2014, a Seller/Servicer that does not meet certain activity thresholds may be assessed a no-activity fee. To avoid being assessed the no-activity fee, Seller/Servicers must meet at least one of the following activity thresholds: ■ Sell to Freddie Mac during the immediately preceding 36 months, or ■ Service, or be a Servicing Agent for, a Mortgage portfolio for Freddie Mac as of December 31 of the immediately preceding calendar year New Seller/Servicers are exempt from the fee until they have been approved by Freddie Mac for three years. The no-activity fee may also be assessed for each subsequent calendar year in which the Seller/Servicer does not meet the activity threshold but remains an approved Freddie Mac Seller/Servicer. The fee will be assessed and paid in accordance with the requirements of Chapter 6303.

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