Freddie Mac Single-Family Seller/Servicer Guide 4607.5 — Underwriting CHOICERenovation® Mortgages
Freddie Mac Guide §4607.5 (Underwriting CHOICERenovation® Mortgages). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide 4607.5 — Underwriting CHOICERenovation® Mortgages — 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 4607.5 — Underwriting CHOICERenovation® Mortgages
This section contains requirements related to: ■ Residential loan application ■ Uniform Underwriting and Transmittal Summary ■ Accept Mortgages ■ Temporary rental payments for Mortgages with Settlement Dates before completion of renovations ■ Rental income from the subject property (a) Residential loan application The Seller must code the Purpose of Loan on Form 65, Uniform Residential Loan Application, as either Purchase or Refinance (as applicable) and not as Construction or Construction-Permanent. (b) Uniform Underwriting and Transmittal Summary The Seller must code the Loan Purpose on Form 1077, Uniform Underwriting and Transmittal Summary, as either Purchase or No Cash-Out Refinance (as applicable) and not as Home Improvement. The Seller must indicate in the Underwriter Comments if the Mortgage is a CHOICERenovation® Mortgage. (c) Accept Mortgages All CHOICERenovation Mortgages must be Accept Mortgages. (d) Temporary rental payments for Mortgages with Settlement Dates before completion of renovations For CHOICERenovation In Progress and CHOICEReno eXPress Mortgages secured by Primary Residences, if the Borrower plans to rent another property as their principal domicile during the renovations, the rental lease must be documented in the Mortgage file. The temporary rental payment for the Borrower’s principal domicile must be included in the calculation of the monthly debt payment-to-income ratio if: ■ More than 10 payments remain on the lease term as of the Note Date, or ■ The rental lease has a renewal or extension option (e) Rental income from the subject property For a CHOICERenovation Mortgage secured by a 1- to 4-unit Primary Residence or a 1-unit Investment Property, rental income from the unit(s), including ADU(s), that are included in the renovation project must not be used to qualify the Borrower.
Operationalizing Freddie Mac Single-Family Seller/Servicer Guide 4607.5 — Underwriting CHOICERenovation® Mortgages
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-4607-5/
· register fhlmc-4607-5 · Claude for Compliance. Free to read and download;
see regulatory updates and methodology.