Freddie Mac Single-Family Seller/Servicer Guide 4406.5 — Determining value to calculate the LTV, TLTV and HTLTV ratios on Mortgages secured by properties subject to resale restrictions
Freddie Mac Single-Family Seller/Servicer Guide section 4406.5 — Determining value to calculate the LTV, TLTV and HTLTV ratios on Mortgages secured by properties subject to resale restrictions. Full verbatim section text, substring-verified against snapshot 5869ee9e606cd4ae.
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide 4406.5 — Determining value to calculate the LTV, TLTV and HTLTV ratios on Mortgages secured by properties subject to resale restrictions — 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 4406.5 — Determining value to calculate the LTV, TLTV and HTLTV ratios on Mortgages secured by properties subject to resale restrictions
Effective for Mortgages with Application Received Dates on or after March 3, 2026. This section contains requirements related to: ■ Value when resale restrictions survive foreclosure or recordation of a deed-in-lieu of foreclosure ■ Value when resale restrictions terminate upon foreclosure (or expiration of any applicable legally required foreclosure redemption period) or recordation of a deed-in-lieu of foreclosure (a) Value when resale restrictions survive foreclosure or recordation of a deed-in-lieu of foreclosure For Mortgages secured by properties subject to resale restrictions (including income-based resale restrictions) that survive foreclosure or recordation of a deed-in-lieu of foreclosure, the value used to determine the loan-to-value (LTV)/total LTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratio is as follows: Resale restrictions survive foreclosure or recordation of a deed-in-lieu of foreclosure Transaction type Value Purchase Lesser of: ■ Appraised value1 ■ Purchase price Refinance Appraised value1 1The appraisal report must reflect the impact the resale restrictions have on the subject property’s value in accordance with Section 4406.4(b). Note: Automated collateral evaluation (ACE) or ACE+ PDR may only be accepted when the resale restrictions are age-based. Refer to Sections 5602.3 and 5602.4, as applicable. (b) Value when resale restrictions terminate upon foreclosure (or expiration of any applicable legally required foreclosure redemption period) or recordation of a deed-inlieu of foreclosure For Mortgages secured by properties subject to 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, the value used to determine the LTV/TLTV/HTLTV ratio is as follows: Resale restrictions terminate upon foreclosure (or expiration of any applicable legally required foreclosure redemption period) or recordation of a deed-in-lieu of foreclosure Transaction type Value Resale restrictions that are income-based Resale restrictions that are not income-based Purchase Appraised value1 Lesser of: ■ Appraised value1 ■ Purchase price Refinance Appraised value1 Appraised value1 1The appraisal report must reflect the market value of the property without resale restrictions in accordance with Section 4406.4(c). Note: ACE or ACE+ PDR offer may only be accepted when the resale restrictions are agebased. Refer to Sections 5602.3 and 5602.4, as applicable. Example: For Mortgages secured by properties subject to income-based resale restrictions, the LTV ratio is calculated by dividing the First Lien Mortgage amount by the appraised value of the Mortgaged Premises, as illustrated below: Example of calculating the LTV ratio Income-based resale restrictions terminate upon foreclosure (or expiration of any applicable legally required foreclosure redemption period) or recordation of a deed-in-lieu of foreclosure Appraised value $300,000 Purchase price $225,000 Subsidy amount $75,000 First Lien Mortgage amount $225,000 LTV ratio 75%
Operationalizing Freddie Mac Single-Family Seller/Servicer Guide 4406.5 — Determining value to calculate the LTV, TLTV and HTLTV ratios on Mortgages secured by properties subject to resale restrictions
This is verbatim, source-snapshotted regulator text from the Claude for Compliance open corpus. To turn a rule like this into compliance work product: gap-analyze your policies and procedures (P&Ps) against these requirements to surface stale, conflicting, or missing provisions; operationalize any change with a ready-to-run update kit; and produce audit-ready evidence — every step grounded only in the regulator’s own words, never invented.
To work from the whole rulebook rather than this one page: download the corpus — every register on this site, verbatim, each with its source snapshot and effective date — then follow the methodology. It asks your assistant to answer only from the downloaded text, cite the register id and effective date it used, and tell you when the corpus does not cover something instead of filling the gap from memory. Running it locally also means no one sees which regulations you are looking at.
Source of record: https://claudeforcompliance.com/regs/fhlmc-4406-5/
· register fhlmc-4406-5 · Claude for Compliance. Free to read and download;
see regulatory updates and methodology.