Freddie Mac Single-Family Seller/Servicer Guide 5307.1 — Assets as a basis for repayment of obligations

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: ■ Mortgage eligibility requirements ■ Asset calculation method for establishing the debt payment-to-income (DTI) ratio ■ Asset eligibility and documentation requirements ■ Special delivery requirements Assets that will be used by the Borrower for the repayment of their monthly obligations may be used to qualify the Borrower for the Mortgage, provided that, regardless of the underwriting path of the Mortgage, the requirements of this section and Section 5301.2 are met. Form 65, Uniform Residential Loan Application, should include information pertaining to the Borrower’s employment and income, even if the Borrower qualifies for the Mortgage solely based on assets.

(a) Mortgage eligibility requirements The assets described in this Section 5307.1 may only be used to qualify the Borrower if the Mortgage meets all of the following requirements: ■ The Mortgage is secured by a 1- or 2-unit Primary Residence or a second home ■ The Mortgage is either a purchase transaction Mortgage, “no cash-out” refinance Mortgage or Freddie Mac Enhanced Relief Refinance® Mortgage ■ The Mortgage has a maximum loan-to-value (LTV)/total LTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratio of 80%, unless the Mortgage is a Freddie Mac Enhanced Relief Refinance Mortgage, in which case the maximum ratios in Section 4304.3 apply

(b) Asset calculation method for establishing the DTI ratio To determine the qualifying asset amount used to establish the DTI ratio, the following asset calculation method must be used: Asset calculation method Step Requirement Step 1 Determine the total eligible documented asset amount. Step 2 Subtract all of the following from the total eligible documented assets: ◼ Any funds required to be paid by the Borrower to complete the transaction (e.g., Down Payment and Closing Costs), ◼ Any gift funds and borrowed funds ◼ Any portion of assets pledged as collateral for a loan or otherwise encumbered Net eligible assets: The resulting figure is the “net eligible assets.” Step 3 Divide the “net eligible assets” by 240. Qualifying asset amount: The resulting figure is the “qualifying asset amount” used to establish the DTI ratio.

(c) Asset eligibility and documentation requirements The assets described below may be used to qualify the Borrower for the Mortgage, provided that the assets meet the following requirements: (i) Retirement assets The following table contains eligibility, documentation and calculation requirements for retirement accounts: Retirement assets Topic Stable monthly asset qualification requirements Asset eligibility ■ The retirement assets must be in a retirement account recognized by the Internal Revenue Service (IRS) (e.g., 401(k), IRA) ■ Borrower must be the sole owner ■ The asset must not currently be used as a source of income by the Borrower Retirement assets Topic Stable monthly asset qualification requirements ■ As of the Note Date, the Borrower must have access to withdraw the funds in their entirety, less any portion pledged as collateral for a loan or otherwise encumbered, without being subject to a penalty or an additional early distribution tax ■ The Borrower’s rights to the funds in the account must be fully vested ■ Cryptocurrency may not be considered in the calculation of net eligible assets for establishing the DTI ratio described in Section 5307.1(b) Documentation Streamlined Accept and Standard Documentation: ■ Most recent retirement asset account statement ■ Documentation evidencing asset eligibility requirements are met Calculation Refer to asset calculation method in Section 5307.1(b) above. (ii) Lump-sum distribution funds not deposited into an eligible retirement asset The following table contains eligibility, documentation and calculation requirements for lump-sum distribution funds not deposited into an eligible retirement asset: Lump-sum distribution funds not deposited into an eligible retirement asset Topic Stable monthly asset qualification requirements Asset eligibility If the lump-sum distribution funds have been deposited into an eligible retirement asset, follow the requirements for retirement assets described in the table above. If the lump-sum distribution funds have been deposited into a depository or non-retirement securities account, the requirements in this table apply. ■ Lump-sum distribution funds must be derived from a retirement account recognized by the IRS (e.g., 401(k), IRA) and must be deposited into a depository or nonretirement securities account ■ A Borrower must have been the recipient of the lump-sum distribution funds Lump-sum distribution funds not deposited into an eligible retirement asset Topic Stable monthly asset qualification requirements ■ Parties not obligated on the Mortgage may not have an ownership interest in the account that holds the funds from the lump-sum distribution ■ The proceeds from the lump-sum distribution must be immediately accessible in their entirety ■ The proceeds from the lump-sum distribution must not have been or currently be subject to a penalty or early distribution tax Documentation Streamlined Accept and Standard Documentation: ■ Employer distribution letter(s) and/or check-stub(s) evidencing receipt and type of lump-sum distribution funds; IRS 1099-R (if it has been received) ■ Satisfactorily documented evidence of the following: ❑ Funds verified in the non-retirement account and used for qualification must have been derived from eligible retirement assets ❑ Lump-sum distribution funds must not have been or currently be subject to a penalty or early distribution tax Calculation Refer to the asset calculation method in Section 5307.1(b) above. (iii)Depository accounts and securities (as described in Section 5501.3) The following table contains eligibility, documentation and calculation requirements for depository accounts and securities: Depository accounts and securities (as described in Section 5501.3) Topic Stable monthly asset qualification requirements Asset eligibility ■ The Borrower must solely own assets or, if the asset is owned jointly, each asset owner must be a Borrower on the Mortgage and/or on the title to the subject property ■ Accounts held in the name of a Living Trust are considered to be owned by the Borrower when the Borrower is the Settlor of the Living Trust Depository accounts and securities (as described in Section 5501.3) Topic Stable monthly asset qualification requirements ■ When the Borrower is a Living Trust, the Underwritten Settlor is considered to be the owner of the accounts held in the name of the trust ■ At least one Borrower who is an account owner must be at least 62 years old ■ As of the Note Date, the Borrower must have access to withdraw the funds in their entirety, less any portion pledged as collateral for a loan or otherwise encumbered, without being subject to a penalty ■ Account funds must be located in a U.S.- or Stateregulated financial institution and verified in U.S. dollars ■ Cryptocurrency may not be considered in the calculation of net eligible assets for establishing the DTI ratio described in Section 5307.1(b) Documentation Streamlined Accept Documentation: Provide an account statement covering a one-month period or a direct account verification (i.e., verification of deposit (VOD)) For securities: If the Borrower does not receive a stock/security account statement: ■ Provide evidence the security is owned by the Borrower, and ■ Verify value using stock prices from a financial publication or website Standard Documentation: Provide account statement(s) covering a two-month period or a direct account verification (i.e., VOD) For securities: If the Borrower does not receive a stock/security account statement: ■ Provide evidence the security is owned by the Borrower, and ■ Verify value using stock prices from a financial publication or website In addition to the documentation requirements above, the following requirements apply to all Mortgages: ■ Documentation evidencing asset eligibility requirements are met ■ Sourcing deposits: Depository accounts and securities (as described in Section 5501.3) Topic Stable monthly asset qualification requirements ❑ The Seller must document the source of funds for any deposit exceeding 10% of the Borrower’s total eligible assets in depository accounts and securities and verify the deposit does not include gifts or borrowed funds or reduce the eligible assets used to qualify the Borrower by the amount of the deposit ❑ When the source of funds can be clearly identified from the deposit information on the account statement (e.g., direct payroll deposits) or other documented income or asset source in the Mortgage file, the Seller is not required to obtain additional documentation Calculation Refer to the asset calculation method in Section 5307.1(b) above (iv) Assets from the sale of the Borrower’s business The following table contains eligibility, documentation and calculation requirements for assets from the sale of the Borrower’s business: Assets from the sale of the Borrower’s business Topic Stable monthly asset qualification requirements Asset eligibility ■ The Borrower(s) must be the sole owner(s) of the proceeds from the sale of the business that were deposited to the depository or non-retirement securities account ■ Parties not obligated on the Mortgage may not have an ownership interest in the account that holds the proceeds from the sale of the Borrower’s business ■ The proceeds from the sale of the business must be immediately accessible in their entirety ■ The sale of the business must not have resulted in the following: retention of business assets, existing secured or unsecured debt, ownership interest or seller-held notes to buyer of business Documentation Streamlined Accept and Standard Documentation: Assets from the sale of the Borrower’s business Topic Stable monthly asset qualification requirements ■ Most recent three months’ depository or securities account statements ■ Fully executed closing documents evidencing final sale of business to include sales price and net proceeds ■ Contract for sale of business ■ Most recent business tax return prior to sale of business ■ Satisfactorily documented evidence that the funds verified in the non-retirement account and used for qualification were derived from the sale of the Borrower’s business Calculation Refer to the asset calculation method in Section 5307.1(b) above

(d) Special delivery requirements The Seller must deliver the ULDD Data Point Investor Feature Identifier valid value “H31” for Mortgages using assets as a basis for repayment of obligations. Note: See Section 6302.33 for special delivery requirements.

■ Mortgage eligibility requirements ■ Minimum asset value and calculation method for determining the qualifying amount to be used as Borrower's income ■ Asset eligibility and documentation requirements ■ Special delivery requirements Accumulated assets may be used as Borrower’s qualifying income when the requirements of this section and Section 5301.2 are met.

(a) Mortgage eligibility requirements The assets described in this Section 5307.1 may only be used to qualify the Borrower if the Mortgage meets the following requirements: ■ The Mortgage must be an Accept Mortgage ■ The Mortgage is either a purchase transaction Mortgage or a “no cash-out” refinance Mortgage

(b) Minimum asset value and calculation method for determining the qualifying amount to be used as Borrower’s income (i) Minimum net eligible asset value The net eligible asset amount calculated in accordance with Section 5307.1(b)(ii) below must be at least $30,000. (ii) Calculation method for determining the qualifying amount to be used as Borrower’s income To determine the qualifying amount used as Borrower’s income, the following asset calculation method must be used: Asset calculation method Step Requirement Step 1 Determine the total eligible documented asset amount from retirement assets, depository accounts and securities, as follows: ◼ Refer to Section 5307.1(c)(i) to determine eligible amount from retirement assets ◼ Refer to Section 5307.1(c)(ii) to determine eligible amount from depository accounts ◼ Refer to Section 5307.1(c)(iii) to determine eligible amount from securities Step 2 Subtract all of the following from the total eligible documented assets: ◼ Any funds required to be paid by the Borrower to complete the transaction (e.g., Down Payment, Closing Costs) ◼ Borrower required reserves Asset calculation method Step Requirement ◼ Any gift funds ◼ Any borrowed funds ◼ Any portion of assets pledged as collateral for a loan or otherwise encumbered Net eligible assets: The resulting figure is the “net eligible assets.” “Net eligible assets” must be at least $30,000. Step 3 Divide the “net eligible assets” by 180. Qualifying amount: The resulting figure is the “qualifying amount” used as Borrower’s income.

(c) Asset eligibility and documentation requirements The assets described below may be used to qualify the Borrower for the Mortgage, provided that the assets meet the following requirements. (i) Retirement assets The following table contains eligibility, documentation and calculation requirements for retirement assets: Retirement assets Topic Requirements Asset eligibility ■ The following requirements related to ownership and accessibility must be met: ❑ The retirement assets must be in a retirement account recognized by the Internal Revenue Service (IRS) (e.g., 401(k), Individual Retirement Account (IRA)) ❑ Borrower must be the sole owner ❑ The asset must not currently be used as a source of income by the Borrower ❑ As of the Note Date, the Borrower must have access to withdraw the funds in their entirety, less any portion pledged as collateral for a loan or otherwise encumbered, without being subject to a penalty or an additional early distribution tax Retirement assets Topic Requirements ■ The Borrower’s rights to the funds in the account must be fully vested ■ Cryptocurrency may not be considered in the calculation of net eligible assets for determining the qualifying amount used as Borrower’s income described in Section 5307.1(b) above Documentation Streamlined Accept and Standard Documentation: ■ Most recent retirement asset account statement ■ Documentation evidencing asset eligibility requirements are met Calculation Refer to asset calculation method in Section 5307.1(b)(ii) above. (ii) Depository accounts (as described in Section 5501.3) The following table contains eligibility, documentation, value variation and calculation requirements for depository accounts: Depository accounts (as described in Section 5501.3) Topic Requirements Asset eligibility ■ The following requirements related to ownership and accessibility must be met: ❑ The Borrower must solely own the account or, if the account is owned jointly, each asset owner must be a Borrower on the Mortgage and/or on the title to the subject property ❑ The account must have been owned by the Borrower for at least 12 months prior to the Note Date. Exception: The 12-month ownership requirement does not apply when documentation evidences the account was funded from: ■ A transfer of funds from another depository account meeting the asset eligibility requirements of this row Depository accounts (as described in Section 5501.3) Topic Requirements ■ A transfer from an eligible retirement asset meeting the requirements in Section 5307.1(c)(i) ■ A transfer from eligible securities meeting the requirements in Section 5307.1(c)(iii) ■ A lump-sum distribution meeting the requirements in Section 5307.1(c)(iv)(A) ■ Assets from the sale of Borrower’s business meeting the requirements in Section 5307.1(c)(iv)(B) ■ Assets from the sale of Borrower’s real property meeting the requirements in Section 5307.1(c)(iv)(C) ❑ As of the Note Date, the Borrower must have access to withdraw the funds in their entirety, less any portion pledged as collateral for a loan or otherwise encumbered, without being subject to a penalty ❑ For a Living Trust: ■ Accounts held in the name of a Living Trust are considered to be owned by the Borrower when the Borrower is the Settlor of the Living Trust ■ When the Borrower is a Living Trust, the Underwritten Settlor is considered to be the owner of the accounts held in the name of the trust ■ Account funds must be located in a U.S.- or Stateregulated financial institution and verified in U.S. dollars ■ Cryptocurrency may not be considered in the calculation of net eligible assets for determining the qualifying amount used as Borrower’s income described in Section 5307.1(b)(ii) Documentation Streamlined Accept Documentation: ◼ Current account statement or third-party verification report meeting the requirements of Section 5302.3(a) covering a onemonth period or direct Standard Documentation: ◼ Current account statement(s) or third-party verification report meeting the requirements of Section 5302.3(a) covering a two-month Depository accounts (as described in Section 5501.3) Topic Requirements account verification (i.e., verification of deposit (VOD)) ■ Account statement or third-party verification report meeting the requirements of Section 5302.3(a) or direct account verification (i.e., VOD) documenting the balance of the account 12 months prior ■ Evidence that the account has been owned by the Borrower for at least 12 months prior to the Note Date period or direct account verification (i.e., VOD) ◼ Account statement or third-party verification report meeting the requirements of Section 5302.3(a) or direct account verification (i.e., VOD) documenting the balance of the account 12 months prior ◼ Evidence that the account has been owned by the Borrower for at least 12 months prior to the Note Date Value variation The Seller must compare the current total value of the eligible depository accounts to the total value of those accounts 12 months prior to determine any variation in value. If the variation in value is greater or less than 20%, the following requirements apply to determine the eligible documented asset amount used in Step 1 of the calculation method of Section 5307.1(b)(ii). Increase in value If the current total value is more than 20% higher than the total value 12 months prior, the eligible documented asset amount is limited to 120% of the total value 12 months prior. Exception: The 20% increase limit does not apply when the increase is documented as resulting from the following: ■ A transfer of funds from another depository account meeting the asset eligibility requirements of this section ■ A transfer from an eligible retirement account meeting the requirements in Section 5307.1(c)(i) ■ A transfer from an eligible securities account meeting the requirements in Section 5307.1(c)(iii) Depository accounts (as described in Section 5501.3) Topic Requirements ■ A lump-sum distribution meeting the requirements in Section 5307.1(c)(iv)(A) ■ Assets from the sale of Borrower’s business meeting the requirements in Section 5307.1(c)(iv)(B) ■ Assets from the sale of Borrower’s real property meeting the requirements in Section 5307.1(c)(iv)(C) Decrease in value If the current total value is more than 20% lower than the total value 12 months prior, depository accounts are not eligible to qualify the Borrower. Exception: The 20% decrease limit does not apply if the decrease is documented as resulting from transfer of funds from depository accounts to securities or retirement accounts. Calculation The total eligible documented asset amount from depository accounts used in Step 1 of the calculation method in Section 5307.1(b)(ii) is based on the asset eligibility and value variation requirements above. Refer to the asset calculation method to determine the qualifying amount to be used as Borrower’s income in Section 5307.1(b)(ii) above. (iii)Securities (as described in Section 5501.3) The following table contains eligibility, documentation and calculation requirements for securities: Securities (as described in Section 5501.3) Topic Requirements Asset eligibility ■ Securities must meet the eligibility requirements of Section 5501.3(b)(1) ■ The following requirements related to ownership and accessibility must be met: ❑ The Borrower must solely own assets or, if the asset is owned jointly, each asset owner must be a Borrower on the Mortgage and/or on the title to the subject property Securities (as described in Section 5501.3) Topic Requirements ❑ Account must have been owned by the Borrower for at least 12 months prior to the Note Date. Exception: The 12-month ownership requirement does not apply when documentation evidences the account was funded from: ■ A transfer of funds from another securities account meeting the asset eligibility requirements of this section ■ A transfer from an eligible retirement account meeting the requirements in Section 5307.1(c)(i) ■ A transfer from an eligible depository account meeting the requirements in Section 5307.1(c)(ii) ■ A lump-sum distribution meeting the requirements in Section 5307.1(c)(iv)(A) ■ Assets from the sale of Borrower’s business meeting the requirements in Section 5307.1(c)(iv)(B) ■ Assets from the sale of Borrower’s real property meeting the requirements in Section 5307.1(c)(iv)(C) ❑ As of the Note Date, the Borrower must have access to withdraw the funds in their entirety, less any portion pledged as collateral for a loan or otherwise encumbered, without being subject to a penalty ❑ For a Living Trust: ■ Accounts held in the name of a Living Trust are considered to be owned by the Borrower when the Borrower is the Settlor of the Living Trust ■ When the Borrower is a Living Trust, the Underwritten Settlor is considered to be the owner of the accounts held in the name of the trust ■ Account funds must be located in a U.S.- or Stateregulated financial institution and verified in U.S. dollars ■ Cryptocurrency may not be considered in the calculation of net eligible assets for determining the qualifying amount Securities (as described in Section 5501.3) Topic Requirements used as Borrower’s income described in Section 5307.1(b)(ii) Documentation Streamlined Accept Documentation: ■ Current account statement or third-party verification report meeting the requirements of Section 5302.3(a) covering a onemonth period or direct account verification (i.e., VOD) ■ Account statement or third-party verification report meeting the requirements of Section 5302.3(a) or direct account verification (i.e., VOD) documenting the balance of the account 12 months prior ■ Evidence that the account has been owned by the Borrower at least 12 months prior to the Note Date If the Borrower does not receive a stock/security account statement, the Seller must: ■ Provide evidence the security is owned by the Borrower, and ■ Verify value using stock prices from a financial publication or website Standard Documentation: ■ Current account statement(s) or third-party verification report meeting the requirements of Section 5302.3(a) covering a two-month period or direct account verification (i.e., VOD) ■ Account statement or third-party verification report meeting the requirements of Section 5302.3(a) or direct account verification (i.e., VOD) documenting the balance of the account 12 months prior ■ Evidence that the account has been owned by the Borrower at least 12 months prior to the Note Date If the Borrower does not receive a stock/security account statement, the Seller must: ■ Provide evidence the security is owned by the Borrower, and ■ Verify value using stock prices from a financial publication or website Securities (as described in Section 5501.3) Topic Requirements Calculation The total eligible documented asset amount from securities must be based on the asset eligibility and documentation requirements above. Refer to the asset calculation method to determine the qualifying amount to be used as Borrower’s income in Section 5307.1(b)(ii) above. (iv) Exceptions to account ownership and value variation requirements The 12-month account ownership requirements in Section 5307.1(c)(ii) for depository accounts and Section 5307.1(c)(iii) for securities do not apply when the account(s) is funded from the following sources and the requirements of this Section 5307.1(c)(iv) are met: ■ Lump-sum distribution funds not deposited into an eligible retirement asset ■ Assets from the sale of the Borrower’s business ■ Assets from the sale of the Borrower’s real property The value variation requirement for increases in Section 5307.1(c)(ii) for depository accounts does not apply when the account(s) is funded from the following sources and the requirements of this Section 5307.1(c)(iv) are met: ■ Lump-sum distribution funds not deposited into an eligible retirement asset ■ Assets from the sale of the Borrower’s business ■ Assets from the sale of the Borrower’s real property (A) Lump-sum distribution funds not deposited into an eligible retirement asset The following table contains eligibility, documentation and calculation requirements for lump-sum distribution funds not deposited into an eligible retirement asset: Lump-sum distribution funds not deposited into an eligible retirement asset Topic Requirements Asset eligibility If the lump-sum distribution funds have been deposited into an eligible retirement asset, follow the requirements for retirement assets described in Section 5307.1(c)(i). If the lump-sum distribution funds have been deposited into a depository or securities account, the requirements in this table apply. Additionally, all of the following requirements apply: ■ Lump-sum distribution funds must be derived from a retirement account recognized by the IRS (e.g., 401(k), IRA) and must be deposited into a depository or securities account ■ A Borrower must have been the recipient of the lump-sum distribution funds ■ Parties not obligated on the Mortgage may not have an ownership interest in the account that holds the funds from the lump-sum distribution ■ The proceeds from the lump-sum distribution must be immediately accessible in their entirety ■ The proceeds from the lump-sum distribution must not have been or currently be subject to a penalty or early distribution tax Documentation Streamlined Accept and Standard Documentation: ■ Employer distribution letter(s) and/or check-stub(s) evidencing receipt and type of lump-sum distribution funds; IRS 1099-R (if it has been received) ■ Documented evidence of all of the following: ❑ Funds verified in the depository account or securities and used for qualification must have been derived from eligible retirement assets ❑ Lump-sum distribution funds must not have been or currently be subject to a penalty or early distribution tax (B) Assets from the sale of the Borrower’s business The following table contains eligibility, documentation and calculation requirements for assets from the sale of the Borrower’s business: Assets from the sale of the Borrower’s business Topic Requirements Asset eligibility ■ The Borrower(s) must be the sole owner(s) of the proceeds from the sale of the business ■ The proceeds must have been deposited into a depository or a securities account owned by the Borrower and held continuously for at least 90 days of the current account statement ■ Parties not obligated on the Mortgage may not have an ownership interest in the account that holds the proceeds from the sale of the Borrower’s business ■ The proceeds from the sale of the business must be immediately accessible in their entirety ■ The sale of the business must not have resulted in the following: retention of business assets, existing secured or unsecured debt, ownership interest or seller-held notes to buyer of business Documentation Streamlined Accept and Standard Documentation: ■ Fully executed closing documents evidencing final sale of business to include sales price and net proceeds ■ Contract for sale of business ■ Most recent business tax return prior to sale of business ■ Documented evidence that the funds verified in the depository or securities account and used for qualification were derived from the sale of the Borrower’s business (C) Assets from the sale of the Borrower’s real property The following table contains eligibility, documentation and calculation requirements for assets from the sale of the Borrower’s real property: Assets from the sale of the Borrower’s real property Topic Requirements Asset eligibility ■ The Borrower(s) must have had ownership interest in the real property for 12 months prior to the Note Date ■ The proceeds from the sale of the Borrower’s real property must have been deposited into a depository or securities Assets from the sale of the Borrower’s real property Topic Requirements account owned by the Borrower and held continuously for at least 90 days as of the current account statement ■ Parties not obligated on the Mortgage may not have an ownership interest in the account that holds the proceeds from the sale of the Borrower’s real property Documentation ■ The Settlement/Closing Disclosure Statement or an alternative form required by law verifying the proceeds from the sale of the Borrower’s real property ■ Evidence of Borrower’s ownership of the real property at least 12 months prior to the Note Date ■ Documented evidence that the funds verified into the depository or securities account and used for qualification were derived from the sale of the Borrower’s real property

(d) Special delivery requirements The Seller must deliver the ULDD Data Point Investor Feature Identifier valid value “H31” for Mortgages using accumulated assets as income. Note: See Section 6302.33 for special delivery requirements.