FHLMC Single-Family Seller/Servicer Guide Chapter 5401 — Evaluation of Monthly Obligations

fhlmc-5401

FHLMC Single-Family Guide §5401.1 governs Monthly Housing Expense- to-Income ratio calculation: mandatory file documentation of monthly housing expense; primary-residence components (P&I, hazard insurance, real estate taxes, MI, flood, leasehold, HOA, etc.); new-construction estimated tax based on improvements + land value; tax abatement/exemption 5-year continuance documentation rule; HELOC payment inclusion when outstanding balance exists; 1.5% imputed monthly payment for HELOCs lacking credit-report payment.

Get this register: .xlsx .csv More bundles →

Verbatim regulatory text (5)

Verbatim provisions from FHLMC Single-Family Seller/Servicer Guide Chapter 5401 — Evaluation of Monthly Obligations — 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.

FHLMC Single-Family Guide §5401.1 — Document monthly housing expense in Mortgage file

The monthly housing expense must be documented in the Mortgage file and established as described below.

Source: FHLMC Single-Family Guide §5401.1 — Monthly housing expense-to-income ratio · source URL · snapshot 4c94f67729042dd6

FHLMC Single-Family Guide §5401.1(a) — New construction: tax based on improvements + land value when actual not available

the real estate tax amount included in the monthly housing expense must be based on the value of the improvements and the land

Source: FHLMC Single-Family Guide §5401.1(a) — Establishing the monthly housing expense for Mortgages secured by Primary Residences · source URL · snapshot 4c94f67729042dd6

FHLMC Single-Family Guide §5401.1(a) — Tax abatement requires 5-year continuance evidence

Evidence of continuance for at least five years after the Note Date

Source: FHLMC Single-Family Guide §5401.1(a) — Tax abatements · source URL · snapshot 4c94f67729042dd6

FHLMC Single-Family Guide §5401.1(a) — HELOC payments included when outstanding balance exists

HELOC payments must be included when there is an outstanding balance on the account.

Source: FHLMC Single-Family Guide §5401.1(a) — Payments on secondary financing including HELOC · source URL · snapshot 4c94f67729042dd6

FHLMC Single-Family Guide §5401.1(a) — 1.5% imputed HELOC payment when no credit-report payment

1.5% of the outstanding balance is considered the monthly payment amount.

Source: FHLMC Single-Family Guide §5401.1(a) — HELOC payment computation · source URL · snapshot 4c94f67729042dd6

Operationalizing FHLMC Single-Family Seller/Servicer Guide Chapter 5401 — Evaluation of Monthly Obligations

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-5401/ · register fhlmc-5401 · Claude for Compliance. Free to read and download; see regulatory updates and methodology.