Freddie Mac Single-Family Seller/Servicer Guide 4402.4 — Special requirements for Seller-Owned Modified Mortgages

This section contains information related to: ■ Eligibility requirements ■ Special underwriting requirements ■ Special documentation requirements ■ Property valuation requirements ■ Condominium Unit, Cooperative Interest, leasehold estate and Planned Unit Development (PUD) warranty requirements ■ Mortgage insurance requirements ■ Form 1077, Uniform Underwriting and Transmittal Summary, requirements ■ Title insurance requirements ■ Quality control requirements ■ Special delivery requirements For purposes of this section, for Seller-Owned Modified Mortgages originated as Construction to Permanent Mortgages or Renovation Mortgages, all references to the original Note Date refer to the Effective Date of Permanent Financing. (a) Eligibility requirements (i) Requirements related to the Mortgage prior to modification Prior to modification, the Mortgage must have had the following characteristics: ■ The Mortgage must have been secured by a First Lien on a 1- to 4-unit property ■ The occupancy type of the Mortgaged Premises must not have changed since the original Note Date ■ The Mortgage met all Freddie Mac’s eligibility and underwriting requirements in effect on the original Note Date ■ The loan-to-value (LTV), total LTV (TLTV) and Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratios did not exceed the limits in Section 4203.1(b) in effect on the original Note Date ■ The loan amount of the Mortgage prior to modification did not exceed the maximum loan amount in Section 4203.1(c) or, for super conforming Mortgages, Section 4603.2 in effect on the original Note Date ■ The principal balance of the Mortgage has not increased since the original Note Date ■ The Mortgage was not in default and meets the requirements in Section 4201.6 ■ The Mortgage was a conventional, fully amortizing Mortgage, and the Mortgage term must not have extended beyond 30 years from the date that is one month before the first payment Due Date as described in Section 4201.3 ■ The Mortgage was a Mortgage product acceptable for sale to Freddie Mac prior to modification (e.g., the Mortgage was not an interest-only Mortgage) (ii) Requirements for the Seller-Owned Modified Mortgage A Seller-Owned Modified Mortgage must have the following characteristics: ■ The Mortgage terms must have only been changed to: ❑ Reduce the interest rate, and/or ❑ Reduce the monthly payment amount due to a principal curtailment that resulted in a modification to recalculate the monthly payment amount (a “recast”) No other terms of the Mortgage may have been modified (e.g., change in amortization type from an ARM to fixed-rate Mortgage). ■ The Mortgage meets all Freddie Mac’s eligibility and underwriting requirements in effect on the Delivery Date ■ The current LTV, TLTV and HTLTV ratios do not exceed the limits in Section 4203.1(b) in effect on the Delivery Date. The current ratios are calculated by dividing the UPB of the Mortgage as of the Delivery Date by the value as defined in Section 4203.1(a). ■ The Mortgage must comply with the maximum original loan amounts stated in Section 4203.1(c) or, for super conforming Mortgages, Section 4603.2 in effect on the Settlement Date ■ The Seller must not have assessed a prepayment penalty in connection with the modification of the Mortgage ■ The Borrowers are the same as the Borrowers on the Mortgage prior to modification, except that a Borrower who contributed no qualifying income, assets or reserves may have been removed ■ The Mortgage is a conventional, fully amortizing Mortgage, and the Mortgage term must not extend beyond 30 years from the date that is one month before the first payment Due Date as described in Section 4201.3 A Mortgage meeting the requirements of this chapter that was originated as a Construction to Permanent Mortgage or Renovation Mortgage is a Seller-Owned Modified Mortgage when the terms of the Permanent Financing have been modified after the Effective Date of Permanent Financing. A Mortgage meeting the requirements of this chapter that was originated as a Texas Equity 50(a)(6) Mortgage is a Seller-Owned Modified Mortgage when all the following conditions have been met: ■ The Mortgage was originated and modified in compliance with Section 50(a)(6) of Article XVI and related provisions of the Texas Constitution, as amended, and all other applicable laws (the “applicable laws”) ■ The modification was not an attempt to cure a failure to comply with the applicable laws (iii)Ineligible Mortgages Mortgages with the following characteristics are not eligible for sale to Freddie Mac as Seller-Owned Modified Mortgages: ■ CHOICERenovation® Mortgages ■ Community Land Trust Mortgages ■ Government Mortgages ■ HeritageOne® Mortgages ■ Mortgages secured by properties subject to income-based resale restrictions that terminate upon foreclosure (or expiration of any applicable legally required foreclosure redemption period) or recordation of a deed-in-lieu of foreclosure (iv) Negotiated underwriting provisions Unless specifically made applicable to Seller-Owned Modified Mortgages, negotiated underwriting provisions in the Seller’s Purchase Documents do not apply to SellerOwned Modified Mortgages and cannot be used with Seller-Owned Modified Mortgages. (b) Special underwriting requirements (i) Seller-Owned Modified Mortgages with Settlement Dates no more than six months after the original Note Date

(A) For Seller-Owned Modified Mortgages that are Accept Mortgages with Settlement Dates no more than six months after the original Note Date, the following special underwriting requirements apply: ■ Credit, employment and income documentation must be dated no more than 120 days before the original Note Date Exception: For Seller-Owned Modified Mortgages that were originated as OneTime Close Construction to Permanent Mortgages, this requirement does not apply when the requirements in Section 4602.2(e)(ii) are met for extended age of documentation. ■ The Seller is not required to manually underwrite and requalify each Borrower after the original Note Date ■ Resubmission of the Seller-Owned Modified Mortgage to Loan Product Advisor® is not required after the original Note Date if the original Mortgage was submitted to Loan Product Advisor and received a Risk Class of Accept, and the SellerOwned Modified Mortgage is eligible for representation and warranty relief relating to the assessment of the original Mortgage through Loan Product Advisor Note: The Seller must maintain in the Mortgage file the Last Feedback Certificate returned from the last submission of the original Mortgage to Loan Product Advisor, and the Seller-Owned Modified Mortgage must be delivered with the Key Number from the original Mortgage.

(B) For Seller-Owned Modified Mortgages that are Manually Underwritten Mortgages with Settlement Dates no more than six months after the original Note Date, the following special underwriting requirements apply: ■ The Seller is not required to manually re-underwrite and requalify each Borrower after the original Note Date, provided credit, employment and income documentation is dated no more than 120 days before the original Note Date ■ The Seller-Owned Modified Mortgage is not eligible to be resubmitted to Loan Product Advisor if the original Mortgage was submitted to Loan Product Advisor and received a Risk Class of Caution For purposes of the Guide, except as otherwise provided in Sections 5101.1(b) and 6302.18(b), all references to the modification date refer to the original Note Date for Seller-Owned Modified Mortgages that are Accept Mortgages. (ii) Seller-Owned Modified Mortgages with Settlement Dates greater than six months after the original Note Date The following special underwriting requirements apply to Seller-Owned Modified Mortgages with Settlement Dates greater than six months after the original Note Date: ■ The Seller is required to manually underwrite (or re-underwrite, if applicable) and requalify each Borrower using Freddie Mac’s eligibility and underwriting requirements in accordance with Topics 5100 through 5500 in effect on the Delivery Date ■ The Mortgage is not eligible to be submitted or resubmitted to Loan Product Advisor for assessment ■ The Seller will not receive any representation and warranty relief for the SellerOwned Modified Mortgage relating to the assessment of the original Mortgage through Loan Product Advisor (if applicable) regardless of a prior Accept Risk Class or eligible result (iii)All Seller-Owned Modified Mortgages The following special underwriting requirements apply to all Seller-Owned Modified Mortgages: ■ The Mortgage eligibility and underwriting requirements must be based on the loan purpose as of the original Note Date ■ The Mortgage must comply with the minimum Indicator Score requirements in Exhibit 25, Mortgages with Risk Class and/or Minimum Indicator Score Requirements, for an applicable Mortgage product and must meet the requirements of Topics 5100 through 5500. If no Borrower has a usable Credit Score and, as a result, the Mortgage does not have an Indicator Score, the Mortgage is not eligible for sale to Freddie Mac. In addition to meeting these requirements, Seller-Owned Modified Mortgages must be either Accept Mortgages that meet the special underwriting requirements of Section 4402.4(b)(i)(A) or Manually Underwritten Mortgages that meet the special underwriting requirements of Section 4402.4(b)(i)(B) or Section 4402.4(b)(ii). (c) Special documentation requirements The Seller must maintain all the following in the Mortgage file for Seller-Owned Modified Mortgages: ■ All documentation required as of the original Note Date ■ All documentation associated with the modification of the Mortgage. For Seller-Owned Modified Mortgages that have been modified for the purpose of a reduction in the monthly payment amount due to a principal curtailment and recast, this includes documenting the curtailment amount and the reason for (e.g., Borrower-initiated), or the source of, the curtailment. ■ The payment history of the Mortgage for the 12-month period prior to the Delivery Date (or the full length of the payment history, if less than 12 months) as documented by a new credit report or a Servicer-generated payment history ■ Credit, employment and income documentation required to requalify each Borrower for the Mortgage, including, but not limited to: ❑ New Uniform Residential Loan Application ❑ New credit report meeting the requirements of Section 5203.1 ❑ Verification of income and employment Exception: This requirement does not apply when credit, employment and income documentation is dated no more than 120 days before the original Note Date and the Settlement Date is no more than six months after the original Note Date. (See Sections 4402.4(b)(i)(A) and 4402.4(b)(i)(B), respectively, where the Seller is not required to manually underwrite or re-underwrite and requalify each Borrower after the original Note Date.) ■ Any other documentation required as of the Delivery Date (e.g., the Indicator Score). If Freddie Mac required a minimum Indicator Score for the Mortgage at time of origination, the Seller must document this Indicator Score in addition to the Indicator Score required for delivery under this chapter on Form 1077. The underwriting documentation specified above must be dated no more than 120 days prior to the modification date. (d) Property valuation requirements (i) Seller-Owned Modified Mortgages with Settlement Dates no more than six months after the original Note Date For Seller-Owned Modified Mortgages with Settlement Dates no more than six months after the original Note Date, the following requirements must be met regarding the valuation of the Mortgaged Premises: ■ The original Mortgage met the valuation requirements of Topic 5600 in effect on the original Note Date ■ For Seller-Owned Modified Mortgages with Settlement Dates more than 120 days after the original Note Date, the Seller must warrant that the value of the subject property as of the Settlement Date is no less than: ❑ The original appraised value; or ❑ The estimated value or sales price submitted to Loan Product Advisor if the original Mortgage or the Seller-Owned Modified Mortgage was assessed through Loan Product Advisor and the Seller received an automated collateral evaluation (ACE) offer or ACE+ PDR offer ■ In addition to the special documentation requirements in Section 4402.4(c), the Seller must maintain in the Mortgage file all property valuation documentation ■ The Seller-Owned Modified Mortgage is eligible for collateral representation and warranty relief relating to the assessment of the original Mortgage through Loan Product Advisor (e.g., ACE or ACE+ PDR) or appraised value representation and warranty relief through Loan Collateral Advisor® (ii) Seller-Owned Modified Mortgages with Settlement Dates greater than six months after the original Note Date For Seller-Owned Modified Mortgages with Settlement Dates greater than six months after the original Note Date, the following requirements must be met regarding the valuation of the Mortgaged Premises: ■ The original Mortgage met the valuation requirements of Topic 5600 in effect on the original Note Date ■ The Seller must obtain a new Traditional Appraisal Report meeting the requirements of Topic 5600 with an effective date no more than 120 days prior to the modification date. The new Traditional Appraisal Report must have an appraised value that is no less than: ❑ The original appraised value; or ❑ The estimated value or sales price submitted to Loan Product Advisor if the original Mortgage was assessed through Loan Product Advisor and the Seller received an ACE offer or ACE+ PDR offer ■ If the Mortgage was originated as a Construction to Permanent Mortgage or Renovation Mortgage, a new Traditional Appraisal Report does not need to be obtained, provided the Seller warrants that the value of the subject property has not declined since the effective date of the most recent appraisal report ■ The new Traditional Appraisal Report must not be used to determine the original LTV, TLTV and HTLTV ratios for the Mortgage or the current LTV, TLTV and HTLTV ratios as of the Delivery Date Note: For ULDD Data Point Property Valuation Amount (Sort ID 83), enter the original appraised value or, if the original Mortgage was assessed through Loan Product Advisor and the Seller received an ACE offer or ACE+ PDR offer, the estimated value or sales price submitted to Loan Product Advisor. ■ In addition to the special documentation requirements in Section 4402.4(c), the Seller must maintain in the Mortgage file all property valuation documentation, including the new Traditional Appraisal Report (e) Condominium Unit, Cooperative Interest, leasehold estate and Planned Unit Development (PUD) warranty requirements For Seller-Owned Modified Mortgages secured by Condominium Units, the Seller must have underwritten the Condominium Project and, based on such evaluation, represent and warrant that the Condominium Project complies with the requirements in Chapter 5701. For Seller-Owned Modified Mortgages that are Cooperative Share Loans, provided the Seller is approved to sell Cooperative Share Loans to Freddie Mac, they must have underwritten the Cooperative Project and, based on such evaluation, represent and warrant that the Cooperative Project complies with the requirements in Chapter 5705. Seller-Owned Modified Mortgages secured by leasehold estates must meet the special warranties in Chapter 5704, as applicable. Seller-Owned Modified Mortgages secured by PUDs must meet the special warranties in Chapter 5702, as applicable. (f) Mortgage insurance requirements The following are mortgage insurance requirements for Seller-Owned Modified Mortgages: ■ For a Mortgage that had an LTV ratio greater than 80% on the original Note Date and has a current LTV ratio greater than 80%, the required level of mortgage insurance coverage will be determined by the requirements in Chapter 4701 in effect on the original Note Date ■ The Seller is not required to increase existing mortgage insurance coverage to comply with Section 4701.1 if Freddie Mac’s minimum coverage amounts have increased between the original Note Date and the Delivery Date ■ The Seller/Servicer must warrant that modification has not altered or impaired the coverage under the mortgage insurance policy. If the Seller/Servicer cannot warrant that the insurance policy has not been impaired, the Seller/Servicer must obtain an endorsement that brings the policy into compliance with the requirements of Section 4701.1. ■ Lender-paid mortgage insurance described in Section 4701.2(b), the custom mortgage insurance option described in Section 4701.1 and financed mortgage insurance premiums described in Section 4701.2(a) are permitted. For Mortgages with financed mortgage insurance premiums, the mortgage insurance premiums must have been financed in the original loan amount of the Mortgage. (g) Form 1077 requirements On Form 1077, or on another document in the Mortgage file, the Seller must state that the Mortgage is a Seller-Owned Modified Mortgage. If applicable, the Seller must state that the Mortgage was originated as a Construction to Permanent Mortgage or Renovation Mortgage. (h) Title insurance requirements The Seller-Owned Modified Mortgage must meet the title insurance requirements of Chapter 4702. The Seller/Servicer must warrant that modification has not altered or impaired the coverage under the title insurance policy or attorney’s opinion of title. (i) Quality control requirements If the Seller-Owned Modified Mortgage is selected for Freddie Mac’s post-funding quality control, the Seller/Servicer must provide the original underwriting file and, if applicable, the underwriting file required to requalify the Borrower at the time of modification. (j) Special delivery requirements See Section 6302.27 for special delivery requirements for Seller-Owned Modified Mortgages. For a Seller-Owned Modified Mortgage that is also a fixed-rate Mortgage made pursuant to an employee relocation program meeting the definition of a relocation Mortgage in Section 6202.3(e)(iv), the pooling requirements in Section 6202.3(e)(iv) and the delivery requirements in Section 6302.17 must be met.

This section contains information related to: ■ Eligibility requirements ■ Special underwriting requirements ■ Special documentation requirements ■ Property valuation requirements ■ Condominium Unit, Cooperative Interest, leasehold estate and Planned Unit Development (PUD) warranty requirements ■ Mortgage insurance requirements ■ Form 1077, Uniform Underwriting and Transmittal Summary, requirements ■ Title insurance requirements ■ Quality control requirements ■ Special delivery requirements For purposes of this section, for Seller-Owned Modified Mortgages originated as Construction to Permanent Mortgages or Renovation Mortgages, all references to the original Note Date refer to the Effective Date of Permanent Financing. (a) Eligibility requirements (i) Requirements related to the Mortgage prior to modification Prior to modification, the Mortgage must have had the following characteristics: ■ The Mortgage must have been secured by a First Lien on a 1- to 4-unit property ■ The occupancy type of the Mortgaged Premises must not have changed since the original Note Date ■ The Mortgage met all Freddie Mac’s eligibility and underwriting requirements in effect on the original Note Date ■ The loan-to-value (LTV), total LTV (TLTV) and Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratios did not exceed the limits in Section 4203.1(b) in effect on the original Note Date ■ The loan amount of the Mortgage prior to modification did not exceed the maximum loan amount in Section 4203.1(c) or, for super conforming Mortgages, Section 4603.2 in effect on the original Note Date ■ The principal balance of the Mortgage has not increased since the original Note Date ■ The Mortgage was not in default and meets the requirements in Section 4201.6 ■ The Mortgage was a conventional, fully amortizing Mortgage, and the Mortgage term must not have extended beyond 30 years from the date that is one month before the first payment Due Date as described in Section 4201.3 ■ The Mortgage was a Mortgage product acceptable for sale to Freddie Mac prior to modification (e.g., the Mortgage was not an interest-only Mortgage) (ii) Requirements for the Seller-Owned Modified Mortgage A Seller-Owned Modified Mortgage must have the following characteristics: ■ The Mortgage terms must have only been changed to: ❑ Reduce the interest rate, and/or ❑ Reduce the monthly payment amount due to a principal curtailment that resulted in a modification to recalculate the monthly payment amount (a “recast”) No other terms of the Mortgage may have been modified (e.g., change in amortization type from an ARM to fixed-rate Mortgage). ■ The Mortgage meets all Freddie Mac’s eligibility and underwriting requirements in effect on the Delivery Date ■ The current LTV, TLTV and HTLTV ratios do not exceed the limits in Section 4203.1(b) in effect on the Delivery Date. The current ratios are calculated by dividing the UPB of the Mortgage as of the Delivery Date by the value as defined in Section 4203.1(a). ■ The Mortgage must comply with the maximum original loan amounts stated in Section 4203.1(c) or, for super conforming Mortgages, Section 4603.2 in effect on the Settlement Date ■ The Seller must not have assessed a prepayment penalty in connection with the modification of the Mortgage ■ The Borrowers are the same as the Borrowers on the Mortgage prior to modification, except that a Borrower who contributed no qualifying income, assets or reserves may have been removed ■ The Mortgage is a conventional, fully amortizing Mortgage, and the Mortgage term must not extend beyond 30 years from the date that is one month before the first payment Due Date as described in Section 4201.3 A Mortgage meeting the requirements of this chapter that was originated as a Construction to Permanent Mortgage or Renovation Mortgage is a Seller-Owned Modified Mortgage when the terms of the Permanent Financing have been modified after the Effective Date of Permanent Financing. A Mortgage meeting the requirements of this chapter that was originated as a Texas Equity 50(a)(6) Mortgage is a Seller-Owned Modified Mortgage when all the following conditions have been met: ■ The Mortgage was originated and modified in compliance with Section 50(a)(6) of Article XVI and related provisions of the Texas Constitution, as amended, and all other applicable laws (the “applicable laws”) ■ The modification was not an attempt to cure a failure to comply with the applicable laws (iii)Ineligible Mortgages Mortgages with the following characteristics are not eligible for sale to Freddie Mac as Seller-Owned Modified Mortgages: ■ CHOICERenovation® Mortgages ■ CHOICEReno eXPress® Mortgages ■ Community Land Trust Mortgages ■ Government Mortgages ■ HeritageOne® Mortgages ■ Mortgages secured by properties subject to income-based resale restrictions that terminate upon foreclosure (or expiration of any applicable legally required foreclosure redemption period) or recordation of a deed-in-lieu of foreclosure (iv) Negotiated underwriting provisions Unless specifically made applicable to Seller-Owned Modified Mortgages, negotiated underwriting provisions in the Seller’s Purchase Documents do not apply to SellerOwned Modified Mortgages and cannot be used with Seller-Owned Modified Mortgages. (b) Special underwriting requirements (i) Seller-Owned Modified Mortgages with Settlement Dates no more than six months after the original Note Date

(A) For Seller-Owned Modified Mortgages that are Accept Mortgages with Settlement Dates no more than six months after the original Note Date, the following special underwriting requirements apply: ■ Credit, employment and income documentation must be dated no more than 120 days before the original Note Date Exception: For Seller-Owned Modified Mortgages that were originated as OneTime Close Construction to Permanent Mortgages, this requirement does not apply when the requirements in Section 4602.2(e)(ii) are met for extended age of documentation. ■ The Seller is not required to manually underwrite and requalify each Borrower after the original Note Date ■ Resubmission of the Seller-Owned Modified Mortgage to Loan Product Advisor® is not required after the original Note Date if the original Mortgage was submitted to Loan Product Advisor and received a Risk Class of Accept, and the SellerOwned Modified Mortgage is eligible for representation and warranty relief relating to the assessment of the original Mortgage through Loan Product Advisor Note: The Seller must maintain in the Mortgage file the Last Feedback Certificate returned from the last submission of the original Mortgage to Loan Product Advisor, and the Seller-Owned Modified Mortgage must be delivered with the Key Number from the original Mortgage.

(B) For Seller-Owned Modified Mortgages that are Manually Underwritten Mortgages with Settlement Dates no more than six months after the original Note Date, the following special underwriting requirements apply: ■ The Seller is not required to manually re-underwrite and requalify each Borrower after the original Note Date, provided credit, employment and income documentation is dated no more than 120 days before the original Note Date ■ The Seller-Owned Modified Mortgage is not eligible to be resubmitted to Loan Product Advisor if the original Mortgage was submitted to Loan Product Advisor and received a Risk Class of Caution For purposes of the Guide, except as otherwise provided in Sections 5101.1(b) and 6302.18(b), all references to the modification date refer to the original Note Date for Seller-Owned Modified Mortgages that are Accept Mortgages. (ii) Seller-Owned Modified Mortgages with Settlement Dates greater than six months after the original Note Date The following special underwriting requirements apply to Seller-Owned Modified Mortgages with Settlement Dates greater than six months after the original Note Date: ■ The Seller is required to manually underwrite (or re-underwrite, if applicable) and requalify each Borrower using Freddie Mac’s eligibility and underwriting requirements in accordance with Topics 5100 through 5500 in effect on the Delivery Date ■ The Mortgage is not eligible to be submitted or resubmitted to Loan Product Advisor for assessment ■ The Seller will not receive any representation and warranty relief for the SellerOwned Modified Mortgage relating to the assessment of the original Mortgage through Loan Product Advisor (if applicable) regardless of a prior Accept Risk Class or eligible result (iii)All Seller-Owned Modified Mortgages The following special underwriting requirements apply to all Seller-Owned Modified Mortgages: ■ The Mortgage eligibility and underwriting requirements must be based on the loan purpose as of the original Note Date ■ The Mortgage must comply with the minimum Indicator Score requirements in Exhibit 25, Mortgages with Risk Class and/or Minimum Indicator Score Requirements, for an applicable Mortgage product and must meet the requirements of Topics 5100 through 5500. If no Borrower has a usable Credit Score and, as a result, the Mortgage does not have an Indicator Score, the Mortgage is not eligible for sale to Freddie Mac. In addition to meeting these requirements, Seller-Owned Modified Mortgages must be either Accept Mortgages that meet the special underwriting requirements of Section 4402.4(b)(i)(A) or Manually Underwritten Mortgages that meet the special underwriting requirements of Section 4402.4(b)(i)(B) or Section 4402.4(b)(ii). (c) Special documentation requirements The Seller must maintain all the following in the Mortgage file for Seller-Owned Modified Mortgages: ■ All documentation required as of the original Note Date ■ All documentation associated with the modification of the Mortgage. For Seller-Owned Modified Mortgages that have been modified for the purpose of a reduction in the monthly payment amount due to a principal curtailment and recast, this includes documenting the curtailment amount and the reason for (e.g., Borrower-initiated), or the source of, the curtailment. ■ The payment history of the Mortgage for the 12-month period prior to the Delivery Date (or the full length of the payment history, if less than 12 months) as documented by a new credit report or a Servicer-generated payment history ■ Credit, employment and income documentation required to requalify each Borrower for the Mortgage, including, but not limited to: ❑ New Uniform Residential Loan Application ❑ New credit report meeting the requirements of Section 5203.1 ❑ Verification of income and employment Exception: This requirement does not apply when credit, employment and income documentation is dated no more than 120 days before the original Note Date and the Settlement Date is no more than six months after the original Note Date. (See Sections 4402.4(b)(i)(A) and 4402.4(b)(i)(B), respectively, where the Seller is not required to manually underwrite or re-underwrite and requalify each Borrower after the original Note Date.) ■ Any other documentation required as of the Delivery Date (e.g., the Indicator Score). If Freddie Mac required a minimum Indicator Score for the Mortgage at time of origination, the Seller must document this Indicator Score in addition to the Indicator Score required for delivery under this chapter on Form 1077. The underwriting documentation specified above must be dated no more than 120 days prior to the modification date.. (d) Property valuation requirements (i) Seller-Owned Modified Mortgages with Settlement Dates no more than six months after the original Note Date For Seller-Owned Modified Mortgages with Settlement Dates no more than six months after the original Note Date, the following requirements must be met regarding the valuation of the Mortgaged Premises: ■ The original Mortgage met the valuation requirements of Topic 5600 in effect on the original Note Date ■ The Seller is not required to obtain a new Traditional Appraisal Report after the original Note Date. For Seller-Owned Modified Mortgages with Settlement Dates more than 120 days after the original Note Date, the Seller must warrant that the value of the subject property as of the Settlement Date is no less than: ❑ The original appraised value; or ❑ The estimated value or sales price submitted to Loan Product Advisor if the original Mortgage or the Seller-Owned Modified Mortgage was assessed through Loan Product Advisor and the Seller received an automated collateral evaluation (ACE) offer or ACE+ PDR offer ■ In addition to the special documentation requirements in Section 4402.4(c), the Seller must maintain in the Mortgage file all property valuation documentation (ii) Seller-Owned Modified Mortgages with Settlement Dates greater than six months after the original Note Date For Seller-Owned Modified Mortgages with Settlement Dates greater than six months after the original Note Date, the following requirements must be met regarding the valuation of the Mortgaged Premises: ■ The original Mortgage met the valuation requirements of Topic 5600 in effect on the original Note Date ■ The Seller must obtain a new Traditional Appraisal Report meeting the requirements of Topic 5600 with an effective date no more than 120 days prior to the modification date. The new Traditional Appraisal Report must have an appraised value that is no less than: ❑ The original appraised value; or ❑ The estimated value or sales price submitted to Loan Product Advisor if the original Mortgage was assessed through Loan Product Advisor and the Seller received an ACE offer or ACE+ PDR offer ■ If the Mortgage was originated as a Construction to Permanent Mortgage or Renovation Mortgage, a new Traditional Appraisal Report does not need to be obtained, provided the Seller warrants that the value of the subject property has not declined since the effective date of the most recent appraisal report ■ The new Traditional Appraisal Report must not be used to determine the original LTV, TLTV and HTLTV ratios for the Mortgage or the current LTV, TLTV and HTLTV ratios as of the Delivery Date Note: For ULDD Data Point Property Valuation Amount (Sort ID 83), enter the original appraised value or, if the original Mortgage was assessed through Loan Product Advisor and the Seller received an ACE offer or ACE+ PDR offer, the estimated value or sales price submitted to Loan Product Advisor. ■ In addition to the special documentation requirements in Section 4402.4(c), the Seller must maintain in the Mortgage file all property valuation documentation, including the new Traditional Appraisal Report (e) Condominium Unit, Cooperative Interest, leasehold estate and Planned Unit Development (PUD) warranty requirements For Seller-Owned Modified Mortgages secured by Condominium Units, the Seller must have underwritten the Condominium Project and, based on such evaluation, represent and warrant that the Condominium Project complies with the requirements in Chapter 5701. For Seller-Owned Modified Mortgages that are Cooperative Share Loans, provided the Seller is approved to sell Cooperative Share Loans to Freddie Mac, they must have underwritten the Cooperative Project and, based on such evaluation, represent and warrant that the Cooperative Project complies with the requirements in Chapter 5705. Seller-Owned Modified Mortgages secured by leasehold estates must meet the special warranties in Chapter 5704, as applicable. Seller-Owned Modified Mortgages secured by PUDs must meet the special warranties in Chapter 5702, as applicable. (f) Mortgage insurance requirements The following are mortgage insurance requirements for Seller-Owned Modified Mortgages: ■ For a Mortgage that had an LTV ratio greater than 80% on the original Note Date and has a current LTV ratio greater than 80%, the required level of mortgage insurance coverage will be determined by the requirements in Chapter 4701 in effect on the original Note Date ■ The Seller is not required to increase existing mortgage insurance coverage to comply with Section 4701.1 if Freddie Mac’s minimum coverage amounts have increased between the original Note Date and the Delivery Date ■ The Seller/Servicer must warrant that modification has not altered or impaired the coverage under the mortgage insurance policy. If the Seller/Servicer cannot warrant that the insurance policy has not been impaired, the Seller/Servicer must obtain an endorsement that brings the policy into compliance with the requirements of Section 4701.1. ■ Lender-paid mortgage insurance described in Section 4701.2(b), the custom mortgage insurance option described in Section 4701.1 and financed mortgage insurance premiums described in Section 4701.2(a) are permitted. For Mortgages with financed mortgage insurance premiums, the mortgage insurance premiums must have been financed in the original loan amount of the Mortgage. (g) Form 1077 requirements On Form 1077, or on another document in the Mortgage file, the Seller must state that the Mortgage is a Seller-Owned Modified Mortgage. If applicable, the Seller must state that the Mortgage was originated as a Construction to Permanent Mortgage or Renovation Mortgage. (h) Title insurance requirements The Seller-Owned Modified Mortgage must meet the title insurance requirements of Chapter 4702. The Seller/Servicer must warrant that modification has not altered or impaired the coverage under the title insurance policy or attorney’s opinion of title. (i) Quality control requirements If the Seller-Owned Modified Mortgage is selected for Freddie Mac’s post-funding quality control, the Seller/Servicer must provide the original underwriting file and, if applicable, the underwriting file required to requalify the Borrower at the time of modification. (j) Special delivery requirements See Section 6302.27 for special delivery requirements for Seller-Owned Modified Mortgages. For a Seller-Owned Modified Mortgage that is also a fixed-rate Mortgage made pursuant to an employee relocation program meeting the definition of a relocation Mortgage in Section 6202.3(e)(iv), the pooling requirements in Section 6202.3(e)(iv) and the delivery requirements in Section 6302.17 must be met.