Freddie Mac Single-Family Seller/Servicer Guide Section 3403.1 — Servicer's quality control program

Freddie Mac Single-Family Seller/Servicer Guide Section 3403.1 — Servicer's quality control program

3403.1: Servicer’s quality control program (02/11/26) The Servicer must implement a quality control program with respect to its Servicing of Mortgages for Freddie Mac, and, in implementing this program, it may leverage its existing processes. Freddie Mac may review and require changes to a Servicer’s quality control program. Servicers must: ■ Have written policies and procedures documenting its quality control program’s requirements ■ Consistently monitor compliance with these policies and procedures as part of a prudent risk management framework ■ Regularly review and assess the adequacy of its internal controls, procedures and systems used in connection with the Servicing of Freddie Mac Mortgages to ensure compliance with the Guide and other Purchase Documents The Servicer must take remedial steps, as appropriate, to address any deficiencies identified regardless of whether such deficiencies are: ■ Discovered by the Servicer, ■ Identified and communicated by Freddie Mac, ■ Identified by a Borrower and confirmed by the Servicer, or ■ Identified by a third party (e.g., external auditor, law firm, regulatory agency) and confirmed by the Servicer The Servicer must formally document the results of its reviews and assessments and make the results, including any remediation plan or completed remediation, available to Freddie Mac upon request. A Servicer must provide evidence of its quality control program upon Freddie Mac’s request. At a minimum, the program must: 1. Comply with the fraud prevention and detection requirements of Section 3201.1(c), as well as other applicable fraud prevention, detection and reporting requirements of Chapter 3201 Freddie Mac Single-Family Seller/Servicer Guide Chapter 3403 As of 02/11/26 Page 3403-2 2. Evaluate whether the Servicer is maintaining accurate and complete records as required by Chapter 3302 and the document retention and Document Custodian requirements set forth in Sections 9206.4(b), 9205.1(b) and 9205.3 3. Establish control and identification features for all Mortgage files, in accordance with Section 3302.1(c) 4. Provide for periodic reviews of the Servicer’s cash accounting, investor reporting and remitting, escrow management and notifications to Borrowers, portfolio reconciliation and custodial accounts management processes and controls, using a Mortgage sample size that reflects a meaningful representation of the UPB of the Mortgages the Servicer services for Freddie Mac 5. Assess ARM adjustment accuracy and notifications to Borrowers 6. Periodically perform quality control reviews or audits on any authorized Outsourced Vendor’s use of any Servicing Tool to ensure compliance with the Guide and other Purchase Documents 7. Evaluate whether its operations personnel and, if applicable, Outsourced Vendors are complying with and accurately conducting the preforeclosure referral Mortgage file review requirements of Sections 9101.1(e), 9102.4(b) and 9301.2(a) and preforeclosure sale account review requirements of Section 9301.7(b) 8. Periodically review notices of default, notices of acceleration, right to cure notices and, where applicable, right to appeal a loan modification denial notice to ensure that they are properly dated, timely sent and otherwise provide Borrowers with all rights required by applicable law and assess whether all condition precedents to proceeding with foreclosure are met 9. Periodically review compliance with Freddie Mac’s loss mitigation requirements, which includes compliance with Freddie Mac’s modification program requirements and short sales 10. Maintain policies and procedures that are reasonably designed to ensure that the Servicer investigates, responds to and makes corrections in response to complaints or errors asserted by Borrowers Freddie Mac Single-Family Seller/Servicer Guide Chapter 3501 As of 11/19/25 Page 3501-1 Chapter 3501: Freddie Mac Servicer Success File Reviews and Performance Criteria 3501.1: Freddie Mac Servicer Success File Reviews (11/19/25) This section contains requirements related to: ■ Types of File Reviews ■ File Review requests ■ Review conclusions and appeal As part of the Servicing Success Program, as described at https://sf.freddiemac.com/content/_assets/resources/pdf/step-by-step- guides/serv_success_prog.pdf, Freddie Mac will be conducting reviews of delinquent Mortgage files from time to time as discussed below. These file reviews (“Servicer Success File Reviews” or “File Reviews”) are in addition to any audit of Mortgage files specified in Section 8101.4(c). (a) Types of File Reviews Freddie Mac will notify a Servicer in writing that certain Mortgages have been selected for a Servicer Success File Review. Freddie Mac may conduct the following types of File Reviews: ■ Prudent Servicing Review: An assessment of the Servicer’s collection activities, loss mitigation activities, timeline management and property preservation processes ■ Short Sale Compliance Review: An assessment of the Servicer’s compliance with the requirements of the Guide and other Purchase Documents, as applicable, regarding completed short sales ■ Loan Modification Compliance Review: An assessment of the Servicer’s compliance with the requirements of the Guide and other Purchase Documents, as applicable, regarding completed modifications Freddie Mac may modify or expand the types of File Reviews from time to time. (b) File Review requests Freddie Mac will notify a Servicer in writing that certain Mortgages have been selected for a File Review. Freddie Mac Single-Family Seller/Servicer Guide Chapter 3501 As of 11/19/25 Page 3501-2 Servicers must comply with the instructions and any requirements set forth in a File Review request from Freddie Mac, which will: ■ Include the Freddie Mac loan numbers associated with the Mortgage files being requested, ■ Specify the documentation that must be included with each type of file (e.g., short sale under Chapter 9204 or modification under Chapter 9204 or 9205), ■ Provide detailed instructions on the manner in which the documents are to be submitted to Freddie Mac, and ■ State that Freddie Mac must receive the requested file documentation within 30 calendar days from the date of the letter requesting the documentation or such other time frame Freddie Mac specifies in the request All documentation sent to Freddie Mac may be used in the File Review, even if the Servicer includes documentation that is not required. Freddie Mac may request additional Mortgage files and/or additional documents during the File Review. The Servicer must submit the requested documentation in the manner specified by Freddie Mac, or Freddie Mac may refuse to accept the documentation. A Servicer’s failure to submit requested documentation will be considered a violation of the Purchase Documents, and Freddie Mac will pursue all rights and remedies available under the Purchase Documents and applicable law. Additionally, failure to submit the documentation is considered a file defect and may be considered in determining a Servicer’s overall performance in accordance with Section 3501.2. (c) Review conclusions and appeal Upon completion of the File Review, Freddie Mac will provide its conclusions, including any defects, in writing to the Servicer. Servicers may provide Freddie Mac with a response or appeal to the findings noted in Freddie Mac’s conclusions up to 15 Business Days after the date of Freddie Mac’s written conclusions. If an identified defect was the result of a missing or incorrect document, that document may be submitted with the Servicer’s appeal to support clearing the defect. If the Servicer failed to submit any documents in response to Freddie Mac’s initial File Review request on a Mortgage, and the overall result is “Fail – Missing Docs,” the Servicer may not appeal the defect for that Mortgage. Freddie Mac’s decision on the File Review shall be deemed conclusive and may be considered as a factor in determining a Servicer’s overall performance in accordance with Section 3501.2. Freddie Mac, in its sole and absolute discretion, may choose to rely on such Freddie Mac Single-Family Seller/Servicer Guide Chapter 3501 As of 11/19/25 Page 3501-3 conclusions or upon any other available information in determining whether to pursue any other right or remedy available to Freddie Mac under the Purchase Documents or applicable law. Note: File Reviews are not a substitute for the Servicer’s own internal quality control for default management activities.

Source: Freddie Mac Single-Family Seller/Servicer Guide Section 3403.1 — Servicer's quality control program · source URL · snapshot 5869ee9e606cd4ae