Freddie Mac Single-Family Seller/Servicer Guide §3602.1 — Defined terms (11/19/25)
Freddie Mac Guide §3602.1 (Defined terms). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide §3602.1 — Defined terms (11/19/25) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Freddie Mac Guide 3602.1
As used in this chapter, the following terms have the meanings ascribed to them below: Terms used in this chapter A Appeal Process The first Appeal Process and the second Appeal Process described in Sections 3602.4(b) and 3602.4(c), as applicable. I IDR Document The Independent Dispute Resolution Document available at https://sf.freddiemac.com/docs/pdf/forms/idr_tolling_agreement.p df and https://sf.freddiemac.com/content/_assets/resources/pdf/step-by- step-guides/serv_success_prog.pdf, which sets forth the details regarding the IDR Process and which is by this reference incorporated into the Guide and made a part of the Guide as if set forth in the Guide in full. IDR Eligible Seller/Servicer A Seller/Servicer that has not been suspended, disqualified or terminated by Freddie Mac. The Seller/Servicer’s ability to participate in the IDR Process cannot be assigned. For the avoidance of doubt, any dispute concerning the suspension, disqualification or termination of a Seller/Servicer cannot be subject to the IDR Process. In addition, a Seller/Servicer shall not be an IDR Eligible Seller/Servicer if the Seller/Servicer has: ■ Failed to timely comply with an IDR award related to any Mortgage (or Mortgages) that has/have been resolved through the IDR Process; ■ Failed to timely comply with any Repurchase Demand or Servicing Remedy letter after the time for challenging the Repurchase Demand or Servicing Remedy letter through the Appeal Process, Impasse Process, Management Escalation Process and IDR Process, as applicable, has expired; and/or ■ Any outstanding amount that is owed and past due to any IDR Program Administrator
Freddie Mac Guide 3602.1
602-2 Terms used in this chapter IDR Process The process described in Sections 3602.4(b) and 3602.4(c), as applicable, and in the IDR Document. IDR Program Administrator The entity so named in the IDR Document. Impasse Process The process described in Sections 3602.4(b) and 3602.4(c), as applicable. M Management Escalation Process The process described in Sections 3602.4(b) and 3602.4(c), as applicable. R Repurchase Demand A request issued by Freddie Mac to a Seller/Servicer to provide a specific remedy as provided in Purchase Documents due to an alleged loan-level breach of selling representations and/or warranties. S Servicing Correction Action taken by the Servicer that demonstrates that the identified Servicing Defect either (i) did not, in fact, exist or (ii) has been corrected in the time frame specified by Freddie Mac such that the Servicing Defect is no longer considered by Freddie Mac to be a Servicing Defect. Servicer Counterparty Status Freddie Mac’s assessment of a Seller/Servicer’s financial capacity that could determine whether to offer the Seller/Servicer certain Servicing Repurchase Alternatives for a Servicing Violation. Servicing Defect A loan-level deficiency based on a Servicing Violation resulting from a breach of a requirement, term or condition contained in the Purchase Documents in effect at the time of the Servicing Violation. Servicing Remedy An action to resolve a Servicing Defect elected by Freddie Mac in accordance with the Purchase Documents that may be either a Servicing Repurchase Alternative or a repurchase. Servicing Repurchase Alternative Remedies other than repurchase of the identified Mortgage, including, after foreclosure, the REO property that compensates Freddie Mac for damages, expenses and losses resulting from the identified Servicing Defect. The Servicing Repurchase Alternative offered by Freddie Mac will be based on the individual Servicing Defect, and the costs
Freddie Mac Guide 3602.1
602-3 Terms used in this chapter associated with any Servicing Repurchase Alternative could include, but are not limited to: ■ A daily carrying cost that is not duplicative of any other cost or fee below ■ Property maintenance costs ■ Property taxes ■ Property and mortgage insurance ■ Condominium/homeowners association (HOA) or Cooperative Corporation assessments, Condominium Unit maintenance fees or Cooperative Unit Maintenance Fees and ground rents ■ Appraisal/BPO costs ■ Legal fees and costs ■ Property inspection costs ■ Utility costs ■ Any documented property value decline, where appropriate ■ Costs to repair ■ Outstanding fees/fines/liens Servicing Repurchase Defect A Servicing Defect attributable to a Servicing Violation for which a Repurchase Demand could be issued without first issuing a notice of Servicing Defect or a Servicing Repurchase Alternative demand letter. Servicing Repurchase Defects are limited to Servicing Defects that: ■ Cause Freddie Mac’s lien, security interest or other property interest to be subordinated, be extinguished or become inadequate for the realization of the benefits of the security against the related Mortgaged Premises; ■ Pose a significant reputational risk to Freddie Mac; ■ Result from the Servicer modifying a Mortgage that was sold to Freddie Mac with recourse or full indemnification in violation of Freddie Mac’s modification eligibility requirements; ■ Result in the Mortgage to not be, or no longer be, supported by Freddie Mac’s Servicing systems; or ■ Cause irreparable damage to the physical improvements to the Mortgaged Premises or REO property or render the Mortgaged Premises or REO property uninhabitable
Freddie Mac Guide 3602.1
602-4 Terms used in this chapter Servicing Violation A breach of any Servicer requirement or obligation contained in the Purchase Documents related to Servicing functions, including, but not limited to, processing of payments, delinquency management, communications, loss mitigation, property preservation and ensuring appropriate insurance is on the Mortgage or property.