Freddie Mac Single-Family Seller/Servicer Guide 5302.5 — Internal Revenue Service (IRS) Form 4506-C requirements for all income and asset qualification sources
Freddie Mac Single-Family Seller/Servicer Guide section 5302.5 — Internal Revenue Service (IRS) Form 4506-C requirements for all income and asset qualification sources. Full verbatim section text, substring-verified against snapshot 5869ee9e606cd4ae.
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide 5302.5 — Internal Revenue Service (IRS) Form 4506-C requirements for all income and asset qualification sources — 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 5302.5 — Internal Revenue Service (IRS) Form 4506-C requirements for all income and asset qualification sources (part 1 of 2)
Refer to Bulletin 2026-10, which announced updates related to accumulated assets as income. Sellers may implement the new requirements prior to the mandatory February 3, 2027 version of this section. This section contains information related to: ■ General requirements ■ Mortgages that use automated income assessment (a) General requirements All Borrowers whose income is used to qualify or whose assets are used as a basis for repayment of obligations pursuant to Section 5307.1 must sign Internal Revenue Service (IRS) Form 4506-C or an alternate form acceptable to the IRS that authorizes the release of comparable tax information to a third party (e.g., IRS Form 8821). The Form 4506-C must be signed no later than the Note Date and must be retained in the Mortgage file. If submitting the Form 4506-C to the IRS, the IRS must receive the Form 4506-C before its expiration date. The Seller must retain in the Mortgage file the tax documentation received back from the IRS. In addition to the requirements above, for Borrowers with income derived from sources in Puerto Rico, Guam or the U.S. Virgin Islands that are exempt from federal income taxation under the Internal Revenue Code, the following requirements apply: ■ In lieu of a Form 4506-C, Borrowers with income derived from sources in Puerto Rico must sign the most recent version of Commonwealth of Puerto Rico Form 2907 titled “Request For Copy of the Return, Estate or Gift Certificate of Release” (Modelo SC 2907 “Solicitud De Copia De Planilla, Relevo De Herencia Y De Donacion”) for submission to the Puerto Rico Department of the Treasury, Internal Revenue Area ■ Borrowers with income derived from sources in Guam or the U.S. Virgin Islands must sign the Form 4506-C (or an alternate form that authorizes the release of comparable tax information to a third party) for submission to the Guam Department of Taxation and Revenue or Virgin Islands Bureau of Internal Revenue, as applicable (b) Mortgages that use automated income assessment In lieu of requirements in this section, Mortgages that use automated income assessment using employed income data must comply with the requirements in Section 5303.4(f) if the Last Feedback Certificate indicates Seller’s eligibility for representation and warranty relief is “Eligible” or “Partial” as described in Section 5303.4(b). In lieu of requirements in this section, Mortgages that use automated income assessment with Loan Product Advisor using account data must comply with the requirements in Section 5303.5(e) and/or 5305.2(e), as applicable, if the Last Feedback Certificate indicates Seller’s eligibility for representation and warranty relief is “Eligible” or “Partial” as described in Section 5303.5(d)(ii) and/or 5305.2(d)(ii), as applicable.
Freddie Mac Single-Family Seller/Servicer Guide 5302.5 — Internal Revenue Service (IRS) Form 4506-C requirements for all income and asset qualification sources (part 2 of 2)
This section contains information related to: ■ General requirements ■ Mortgages that use automated income assessment (a) General requirements All Borrowers whose income is used to qualify, including accumulated assets as income pursuant to Section 5307.1, must sign Internal Revenue Service (IRS) Form 4506-C or an alternate form acceptable to the IRS that authorizes the release of comparable tax information to a third party (e.g., IRS Form 8821). The Form 4506-C must be signed no later than the Note Date and must be retained in the Mortgage file. If submitting the Form 4506-C to the IRS, the IRS must receive the Form 4506-C before its expiration date. The Seller must retain in the Mortgage file the tax documentation received back from the IRS. In addition to the requirements above, for Borrowers with income derived from sources in Puerto Rico, Guam or the U.S. Virgin Islands that are exempt from federal income taxation under the Internal Revenue Code, the following requirements apply: ■ In lieu of a Form 4506-C, Borrowers with income derived from sources in Puerto Rico must sign the most recent version of Commonwealth of Puerto Rico Form 2907 titled “Request For Copy of the Return, Estate or Gift Certificate of Release” (Modelo SC 2907 “Solicitud De Copia De Planilla, Relevo De Herencia Y De Donacion”) for submission to the Puerto Rico Department of the Treasury, Internal Revenue Area ■ Borrowers with income derived from sources in Guam or the U.S. Virgin Islands must sign the Form 4506-C (or an alternate form that authorizes the release of comparable tax information to a third party) for submission to the Guam Department of Taxation and Revenue or Virgin Islands Bureau of Internal Revenue, as applicable (b) Mortgages that use automated income assessment In lieu of requirements in this section, Mortgages that use automated income assessment using employed income data must comply with the requirements in Section 5303.4(f) if the Last Feedback Certificate indicates Seller’s eligibility for representation and warranty relief is “Eligible” or “Partial” as described in Section 5303.4(b). In lieu of requirements in this section, Mortgages that use automated income assessment with Loan Product Advisor using account data must comply with the requirements in Section 5303.5(e) and/or 5305.2(e), as applicable, if the Last Feedback Certificate indicates Seller’s eligibility for representation and warranty relief is “Eligible” or “Partial” as described in Section 5303.5(d)(ii) and/or 5305.2(d)(ii), as applicable.
Operationalizing Freddie Mac Single-Family Seller/Servicer Guide 5302.5 — Internal Revenue Service (IRS) Form 4506-C requirements for all income and asset qualification sources
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-5302-5/
· register fhlmc-5302-5 · Claude for Compliance. Free to read and download;
see regulatory updates and methodology.