Freddie Mac Single-Family Seller/Servicer Guide 5602.2 — Loan Collateral Advisor®
Freddie Mac Single-Family Seller/Servicer Guide Section 5602.2 — Loan Collateral Advisor®.
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide 5602.2 — Loan Collateral Advisor® — 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 5602.2 — Loan Collateral Advisor® (part 1 of 2)
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. This section contains requirements related to: ■ Loan Collateral Advisor® overview ■ Eligible Mortgages ■ Ineligible Mortgages ■ Exemptions to appraisal underwriting ■ Exceptions to Loan Collateral Advisor appraised value representation and warranty relief (a) Loan Collateral Advisor overview For Mortgages with appraisals submitted to the Uniform Collateral Data Portal® (UCDP®) and assessed through Loan Collateral Advisor, Freddie Mac will not exercise its remedies, including the issuance of repurchase requests, in connection with a breach of the Seller’s selling representations and warranties related to the appraised value of the Mortgaged Premises, provided the requirements below are met. (b) Eligible Mortgages The following requirements must be met for Mortgages to be eligible for appraised value representation and warranty relief: ■ The Mortgage must have a loan-to-value (LTV)/total TLTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratio less than or equal to 95% ■ The Mortgage must be secured by a 1-unit dwelling (including units in a Condominium Project or a Planned Unit Development (PUD)) ■ The Borrower must be an individual or a Living Trust ■ The UCDP feedback message FRE4000 must be returned, indicating “This appraisal is eligible for representation and warranty relief for property value, pending an assessment of the loan”. Note: For Sellers using Loan Collateral Advisor, representation and warranty relief eligibility corresponds to an appraisal with a risk score of 2.5 or lower. Loan Collateral Advisor will also display an “eligible” indicator. Upon submission to Loan Product Advisor® and/or Loan Quality Advisor®, a corresponding representation and warranty relief message will also be provided in the Feedback Certificate. ■ The final submission to Loan Selling Advisor® must indicate the representation and warranty relief status is “Y” or “Yes” (c) Ineligible Mortgages The following Mortgages are ineligible for appraised value representation and warranty relief: ■ Mortgages secured by Manufactured Homes ■ Mortgages secured by leasehold estates ■ Mortgages secured by Mortgaged Premises subject to resale restrictions, excluding those subject to age-based resale restrictions ■ Freddie Mac Enhanced Relief Refinance® Mortgages ■ Community Land Trust Mortgages ■ Cooperative Share Loans (d) Exemptions to appraisal underwriting For Mortgages that are eligible for appraised value representation and warranty relief as described above, the Seller/Servicer is not responsible for underwriting the appraisal to ensure compliance with the following requirements: ■ Justification and support for the appraiser’s opinion of market value and how the final value conclusion was determined. (See applicable language in Section 5605.7.) ■ The validity of the appraiser’s adjustments in the analysis of comparable sales. (See applicable language in Section 5605.6.) ■ Whether the opinion of market value of the subject property is credible and adequately supported. (See applicable language in Section 5605.1.) (e) Exceptions to Loan Collateral Advisor appraised value representation and warranty relief Even if a Mortgage meets the eligibility requirements above, the Seller/Servicer remains responsible for compliance with the following requirements. Freddie Mac may still enforce remedies if these requirements are not met, even if such matters are related to appraised value: ■ The Mortgaged Premises must meet Freddie Mac’s property eligibility requirements (e.g., not vacant, or undeveloped land, not primarily used for agricultural or farming purposes or for a commercial enterprise, etc.). (See Sections 5601.1 and 5701.2 for additional details regarding property eligibility.) ■ The Mortgaged Premises must not be subject to a pending legal proceeding for condemnation in whole or in part (see Section 5601.1) ■ When applicable, Form 442, Appraisal Update and/or Completion Report, or Form 400, Warranty of Completion of Construction or Repairs/Alterations, must be obtained to verify that any outstanding conditions of the appraisal have been satisfied. (See Section 5605.8 for additional requirements on these forms.) ■ The Seller must ensure the appraiser’s description of the subject property must be complete and accurate (e.g., accuracy of quality and condition ratings, photographs that support the quality and condition of the property, etc.). (See applicable language for appraisal requirements in Chapter 5605.)
Freddie Mac Single-Family Seller/Servicer Guide 5602.2 — Loan Collateral Advisor® (part 2 of 2)
11/02/26) This section contains requirements related to: ■ Loan Collateral Advisor® overview ■ Eligible Mortgages ■ Ineligible Mortgages ■ Exemptions to appraisal underwriting ■ Exceptions to Loan Collateral Advisor appraised value representation and warranty relief (a) Loan Collateral Advisor overview For Mortgages with appraisal reports submitted to the Uniform Collateral Data Portal® (UCDP®) and assessed through Loan Collateral Advisor, Freddie Mac will not exercise its remedies, including the issuance of repurchase requests, in connection with a breach of the Seller’s selling representations and warranties related to the appraised value of the Mortgaged Premises, provided the requirements below are met. (b) Eligible Mortgages The following requirements must be met for Mortgages to be eligible for appraised value representation and warranty relief: ■ The Mortgage must have a loan-to-value (LTV)/total TLTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratio less than or equal to 95% ■ The Mortgage must be secured by a 1-unit dwelling (including units in a Condominium Project or a Planned Unit Development (PUD)) ■ The Borrower must be an individual or a Living Trust ■ The UCDP feedback message FRE4000 must be returned, indicating “This appraisal is eligible for representation and warranty relief for property value, pending an assessment of the loan”. Note: For Sellers using Loan Collateral Advisor, representation and warranty relief eligibility corresponds to an appraisal with a risk score of 2.5 or lower. Loan Collateral Advisor will also display an “eligible” indicator. Upon submission to Loan Product Advisor® and/or Loan Quality Advisor®, a corresponding representation and warranty relief message will also be provided in the Feedback Certificate. ■ The final submission to Loan Selling Advisor® must indicate the representation and warranty relief status is “Y” or “Yes” (c) Ineligible Mortgages The following Mortgages are ineligible for appraised value representation and warranty relief: ■ Mortgages secured by Manufactured Homes ■ Mortgages secured by leasehold estates ■ Mortgages secured by Mortgaged Premises subject to resale restrictions, excluding those subject to age-based resale restrictions ■ Freddie Mac Enhanced Relief Refinance® Mortgages ■ Community Land Trust Mortgages ■ Cooperative Share Loans (d) Exemptions to appraisal underwriting For Mortgages that are eligible for appraised value representation and warranty relief as described above, the Seller/Servicer is not responsible for underwriting the appraisal to ensure compliance with the following requirements: ■ Justification and support for the appraiser’s opinion of market value and how the final value conclusion was determined. (See applicable language in Section 5605.8.) ■ The validity of the appraiser’s adjustments in the analysis of comparable sales. (See applicable language in Section 5605.7.) ■ Whether the opinion of market value of the subject property is credible and adequately supported. (See applicable language in Section 5605.1.) (e) Exceptions to Loan Collateral Advisor appraised value representation and warranty relief Even if a Mortgage meets the eligibility requirements above, the Seller/Servicer remains responsible for compliance with the following requirements. Freddie Mac may still enforce remedies if these requirements are not met, even if such matters are related to appraised value: ■ The Mortgaged Premises must meet Freddie Mac’s property eligibility requirements (e.g., not vacant, or undeveloped land, not primarily used for agricultural or farming purposes or for a commercial enterprise, etc.). (See Sections 5601.1 and 5701.2 for additional details regarding property eligibility.) ■ The Mortgaged Premises must not be subject to a pending legal proceeding for condemnation in whole or in part (see Section 5601.1) ■ When applicable, a UAD Completion Report or Form 400, Warranty of Completion of Construction or Repairs/Alterations, must be obtained to verify that any outstanding conditions of the appraisal have been satisfied. (See Section 5605.9 for additional requirements related to the use of these reports.) ■ The Seller must ensure the appraiser’s description of the subject property must be complete and accurate (e.g., accuracy of quality and condition ratings, photographs that support the quality and condition of the property, etc.). (See applicable language for appraisal requirements in Chapter 5605.)
Operationalizing Freddie Mac Single-Family Seller/Servicer Guide 5602.2 — Loan Collateral Advisor®
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-5602-2/
· register fhlmc-5602-2 · Claude for Compliance. Free to read and download;
see regulatory updates and methodology.