Freddie Mac Single-Family Seller/Servicer Guide Section 4302.6 — Credit enhancements
Freddie Mac Single-Family Seller/Servicer Guide Section 4302.6 — Credit enhancements.
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide Section 4302.6 — Credit enhancements — 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 Single-Family Seller/Servicer Guide Section 4302.6 — Credit enhancements
4302.6: Credit enhancements (12/04/24) This section contains requirements related to: ■ Mortgages with recourse and indemnification ■ Mortgages with pool insurance or another negotiated credit enhancement (a) Mortgages with recourse and indemnification A Refi Possible® Mortgage that is a refinance of a Mortgage with recourse or indemnification is eligible to be delivered to Freddie Mac if: ■ The Seller of the Refi Possible Mortgage is also the Servicer on the Mortgage being refinanced; ■ The Mortgage is delivered with recourse or indemnification; and ■ The Mortgage meets the requirements in the table below: Freddie Mac Single-Family Seller/Servicer Guide Chapter 4302 As of 04/12/26 Page 4302-10 Requirements when the Mortgage being refinanced has recourse or indemnification If... Then... ■ The Mortgage being refinanced was sold to Freddie Mac with recourse or indemnification for the life of the Mortgage, or ■ The Mortgage was credit enhanced with recourse or indemnification for the life of the Mortgage after it was sold to Freddie Mac The Refi Possible Mortgage must be sold to Freddie Mac with recourse or indemnification, as applicable, for the life of the Mortgage. ■ The Mortgage being refinanced was sold to Freddie Mac with recourse or indemnification for a term that is less than the life of the Mortgage, or ■ The Mortgage was credit enhanced with recourse or indemnification for a term that is less than the life of the Mortgage after it was sold to Freddie Mac The Refi Possible Mortgage must be sold to Freddie Mac with recourse or indemnification, as applicable, with the same remaining term as the credit enhancement on the Mortgage being refinanced. (b) Mortgages with pool insurance or another negotiated credit enhancement If the Mortgage being refinanced has Mortgage pool insurance or another negotiated credit enhancement, it is eligible for refinancing provided the loan-to-value (LTV) ratio of the Refi Possible Mortgage is less than or equal to 80%. Refi Possible Mortgages with LTV ratios greater than 80% that are refinances of Mortgages with pool insurance or another negotiated credit enhancement are eligible to be delivered to Freddie Mac only if they are delivered with the same credit enhancement and the Seller of the Refi Possible Mortgage is the Servicer of the Mortgage being refinanced.