Freddie Mac Single-Family Seller/Servicer Guide 5601.4 — Eligibility of properties with energy-efficient improvements and properties with solar panels

Refer to Bulletin 2025-7, which announced the policy requirements for Uniform Appraisal Dataset (UAD) 3.6. Sellers may submit to the Uniform Collateral Data Portal® appraisal reports that use UAD 3.6 before the mandatory effective November 2, 2026 version of this section. Freddie Mac purchases Mortgages secured by properties with energy-efficient improvements and properties with solar panels as specified below. This section contains requirements related to: ■ Properties with energy-efficient improvements ■ Properties with solar panels

(a) Properties with energy-efficient improvements The appraisal report must: ■ Identify energy-efficient features (e.g., photovoltaic systems, water efficient improvements, energy-efficient windows) or high-performing energy-efficient homes and any impact to market value ■ Assess the contributory value of energy improvements and any premium paid for a highperforming energy-efficient home based on the market reaction, similar to any other property feature ■ Consider appropriate valuation methods (e.g., income approach, cost analysis, discounted cash flows, or market surveys or any other applicable methods) when determining contributory value ■ Justify and support any adjustments in the appraisal report in an addendum or in supplementary documentation, if necessary Appraisers must be familiar with energy reports, energy ratings or other new concepts that may be developed to identify the energy efficiency of a home. If relied upon, any reports must be generally acceptable, and, if available, these reports and information must be included in the appraisers’ analysis. Additional due diligence may be necessary if the high-performing energy-efficient home or energy improvements are new to the market and there are a lack of sales with similar features or a lack of data available from traditional data sources. Note: The Appraisal Institute’s Form 820.05, Residential Green and Energy Efficient Addendum, may be used to collect and report energy efficiency data associated with a property. Resources Seller resources related to energy-efficient properties and the appraisal of properties with energy-efficient features: ■ The Appraisal Institute (including the use of the Residential Green and Energy Efficient Addendum) ■ The Home Energy Rating System (HERS®) Index provided by the Residential Energy Services Network (RESNET®) ■ The Home Energy Score provided by the U.S. Department of Energy’s Better Buildings® initiative ■ EiValue® – Tool used in the valuation of photovoltaic systems and/or the energy related efficiency of a property (income and cost approaches) ■ PV Value® – Tool used in the valuation of photovoltaic systems (income approach)

(b) Properties with solar panels The Seller must take into consideration ownership of the solar panels and any liens upon the property relating to debt or lease payments used to obtain the solar panels. For example, solar panels not owned by the Borrower can be financed via several types of agreements such as lease agreements or a power purchase agreement (PPA). The Seller must also review any UCC-1 Financing Statement or lease agreement associated with the solar panels to determine if liens are against the real estate or against the solar panels. The property must maintain access to electrical utilities consistent with community standards. If solar panels are present on the Mortgaged Premises, the Seller must follow the requirements outlined in the table below: Properties with solar panels PPA Solar panel lease Solar panels financed as personal property Solar panel financed as a fixture to real estate Solar panels owned free and clear Description The Borrower purchases power produced by the solar panels but does not own the solar panels. The Borrower pays monthly lease payments to access the solar panels but does not own them. The Borrower owns the solar panels, having purchased them with a note/security agreement and is entitled to power produced by the panels. Borrower owns the solar panels and has no related debt. Title UCC-1 Financing Statement or lease agreement associated with the solar panels recorded in the applicable land records and claiming an interest in the solar panels but not the real estate; the Seller is not required to obtain a subordination agreement of the UCC-1 Financing Statement. UCC-1 Financing Statement recorded against title to the Mortgaged Premises, creating a lien on the real estate itself (i.e., claiming an interest in both the solar panels and the real estate, not just the solar panels); the Seller must either subordinate or release this lien. There must be no UCC1 Financing Statement or notice recorded against the Mortgage Premises. In the event there is a UCC-1 Financing Statement, it must be released. Appraisal The solar panels must not be included in the appraised value of the property. The appraiser must comment on the marketability of the home with solar The solar panels must not be included in the appraised value Seller must ensure the appraiser has panels present and identify the panels and system features. of the property if the lender may repossess them for default on the financing terms. recognized the existence of the solar panels and considered the solar panels in the appraiser’s opinion of the market value of the property. Debt paymentto-income (DTI) ratio Lease payments for solar panels may be excluded from the monthly DTI ratio if the lease: ■ Provides for delivery of a specific amount of energy for an agreed upon payment during a given period, and ■ Includes a production guarantee under which the Borrower is compensated on a prorated basis when the solar panel energy production falls below the level required by the lease agreement Payments for solar panels subject to a PPA or similar type of agreement may be excluded from the monthly DTI ratio if the payment is calculated based only on the generated energy. Payment to solar company or lender is included in the DTI ratio. Payment to solar company or lender is included in the DTI ratio. N/A – no payment required Total loan-tovalue (TLTV) ratio Not included in the TLTV ratio Included in the TLTV ratio N/A Obtain a copy Damage that occurs as a result of installation, malfunction or N/A of the lease, PPA or note/security agreement the removal of the solar panels is the responsibility of the owner of the equipment. The owner must be obligated to repair the damage and return the improvements to their original or prior condition. In the event of foreclosure, the Seller/Servicer may: ■ Terminate the lease agreement or PPA and require the owner of the equipment to remove the panels and supporting equipment ■ Become the beneficiary of the Borrower’s lease agreement or PPA without incurring a transfer fee; or ■ Enter into a new lease agreement or PPA with the owner of the equipment under terms no less favorable than the existing agreement ■ The Mortgage file must contain a copy of the lease agreement, PPA or similar type of agreement, as applicable Homeowner’s insurance The owner of the solar panels agrees to not be a loss payee (or named insured) on the homeowner’s insurance policy covering the property. N/A Any title insurance policy exceptions due to the existence of the lease agreement, PPA or similar type of agreement must comply with the acceptable exceptions found in Section 4702.4.

(Future effective date 11/02/26) Freddie Mac purchases Mortgages secured by properties with energy-efficient improvements and properties with solar panels as specified below. This section contains requirements related to: ■ Properties with energy-efficient improvements ■ Properties with solar panels

(a) Properties with energy-efficient improvements The appraiser must: ■ Identify energy-efficient features (e.g., photovoltaic systems, water efficient improvements, energy-efficient windows) or high-performing energy-efficient homes and identify any impact to value or marketability ■ Assess the contributory value of energy improvements and any premium paid for a highperforming energy-efficient home based on the market reaction, similar to any other property feature ■ Consider appropriate valuation methods (e.g., income approach, cost analysis, discounted cash flows, or market surveys or any other applicable methods) when determining contributory value ■ Justify and support any adjustments in the appraisal report by including commentary or exhibits ■ Include photos of energy-efficient or green features ■ Identify whether the property has an efficiency rating; if the property has an efficiency rating, the rating organization, rating and score must be identified Appraisers must be familiar with energy reports, energy ratings or other concepts that may be developed to identify the energy efficiency of a home. If relied upon, any reports must be generally acceptable, and, if available, these reports and information must be included in the appraisers’ analysis and included in the appraisal report as an exhibit. Additional due diligence may be necessary if the high-performing energy-efficient home or energy improvements are new to the market and there are a lack of sales with similar features or a lack of data available from traditional data sources. Note: The Appraisal Institute’s Form 820.05, Residential Green and Energy Efficient Addendum, may be used to collect and report energy efficiency data associated with a property. If Form 820.05 is used, it must be included as an exhibit in the appraisal report. Resources Seller resources related to energy-efficient properties and the appraisal of properties with energy-efficient features: ■ The Appraisal Institute (including the use of the Residential Green and Energy Efficient Addendum) ■ The Home Energy Rating System (HERS®) Index provided by the Residential Energy Services Network (RESNET®) ■ The Home Energy Score provided by the U.S. Department of Energy’s Better Buildings® initiative ■ EiValue® – Tool used in the valuation of photovoltaic systems and/or the energy related efficiency of a property (income and cost approaches) ■ PV Value® – Tool used in the valuation of photovoltaic systems (income approach)

(b) Properties with solar panels The Seller must take into consideration ownership of the solar panels and any liens upon the property relating to debt or lease payments used to obtain the solar panels. For example, solar panels not owned by the Borrower can be financed via several types of agreements such as lease agreements or a power purchase agreement (PPA). The Seller must also review any UCC-1 Financing Statement or lease agreement associated with the solar panels to determine if liens are against the real estate or against the solar panels. The property must maintain access to electrical utilities consistent with community standards. If solar panels are present on the Mortgaged Premises, the Seller must follow the requirements outlined in the table below: Properties with solar panels PPA Solar panel lease Solar panels financed as personal property Solar panel financed as a fixture to real estate Solar panels owned free and clear Description The Borrower purchases power produced by the solar panels but does not own the solar panels. The Borrower pays monthly lease payments to access the solar panels but does not own them. The Borrower owns the solar panels, having purchased them with a note/security agreement and is entitled to power produced by the panels. Borrower owns the solar panels and has no related debt. Title UCC-1 Financing Statement or lease agreement associated with the solar panels recorded in the applicable land records and claiming an interest in the solar panels but not the real estate; the UCC-1 Financing Statement recorded against title to There must be no UCC-1 Financing Statement or notice Seller is not required to obtain a subordination agreement of the UCC-1 Financing Statement. the Mortgaged Premises, creating a lien on the real estate itself (i.e., claiming an interest in both the solar panels and the real estate, not just the solar panels); the Seller must either subordinate or release this lien. recorded against the Mortgage Premises. In the event there is a UCC-1 Financing Statement, it must be released. Appraisal The solar panels must not be included in the appraised value of the property. The appraisal report must include comments on the marketability of the home with solar panels present and identify the panels and system features. The solar panels must not be included in the appraised value of the property if the lender may repossess them for default on the financing terms. Seller must ensure the appraiser has recognized the existence of the solar panels and considered the solar panels and reported any impact to value and marketability. Debt payment-toincome (DTI) ratio Lease payments for solar panels may be excluded from the monthly DTI ratio if the lease: ■ Provides for delivery of a specific amount of energy for an agreed upon payment during a given period, and ■ Includes a production guarantee under which the Borrower is compensated on a prorated basis when Payment to solar company or lender is included in the DTI ratio. Payment to solar company or lender is included in the DTI ratio. N/A – no payment required the solar panel energy production falls below the level required by the lease agreement Payments for solar panels subject to a PPA or similar type of agreement may be excluded from the monthly DTI ratio if the payment is calculated based only on the generated energy. Total loan-tovalue (TLTV) ratio Not included in the TLTV ratio Included in the TLTV ratio N/A Obtain a copy of the lease, PPA or note/security agreement Damage that occurs as a result of installation, malfunction or the removal of the solar panels is the responsibility of the owner of the equipment. The owner must be obligated to repair the damage and return the improvements to their original or prior condition. In the event of foreclosure, the Seller/Servicer may: ■ Terminate the lease agreement or PPA and require the owner of the equipment to remove the panels and supporting equipment ■ Become the beneficiary of the Borrower’s lease agreement or PPA without incurring a transfer fee; or ■ Enter into a new lease agreement or PPA with the owner of the equipment under terms no less favorable than the existing agreement ■ The Mortgage file must contain a copy of the lease agreement, PPA or similar type of agreement, as applicable N/A Homeowner’s insurance The owner of the solar panels agrees to not be a loss payee (or named insured) on the homeowner’s insurance policy covering the property. N/A Any title insurance policy exceptions due to the existence of the lease agreement, PPA or similar type of agreement must comply with the acceptable exceptions found in Section 4702.4.