Freddie Mac Single-Family Seller/Servicer Guide 5701.9 — Reciprocal project reviews
Freddie Mac Guide §5701.9 (Reciprocal project reviews). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide 5701.9 — Reciprocal project reviews — 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 5701.9 — Reciprocal project reviews
Effective for Mortgages with Application Received Dates on or after August 3, 2026. This section contains requirements related to: ■ Fannie Mae-approved and certified projects ■ FHA-Approved Project review for condominiums Condominium Unit Mortgages secured by Condominium Units located in Condominium Projects approved by other secondary market participants are eligible for sale to Freddie Mac if the Condominium Unit Mortgages comply with the following requirements: (a) Fannie Mae-approved and certified projects Freddie Mac will purchase Mortgages secured by 1-unit residential dwellings in Condominium Projects that either: ■ Have an “Approved by Fannie Mae” status designation in Fannie Mae’s Condo Project ManagerTM (CPMTM); or ■ The Seller approved as a Fannie Mae “Full Review,” ensured all data entered into CPM were correct and received a “Certified by Lender” status designation in Fannie Mae’s legacy or updated CPM platform Note: Condo Project Manager and CPM are trademarks of Fannie Mae. (i) Requirements as of the Settlement Date As of the Settlement Date: 1. The project complies with all applicable Fannie Mae eligibility requirements and lender warranties 2. The approval or certification and any terms and conditions set forth in the approval or certification have not expired 3. The Mortgage complies with any stated CPM delivery restrictions (e.g., occupancy type restriction, maximum loan-to-value (LTV) ratios, etc.) 4. The Seller complies with Fannie Mae’s additional obligations for projects approved or certified through CPM. Pursuant to these obligations, if the Seller notified Fannie Mae’s CPM Management team of any new information that may impact a project’s eligibility (e.g., significant deferred maintenance, litigation, etc.), prior to selling the Mortgage to Freddie Mac, the Seller must confirm that the project retained its approved status. 5. The Mortgage file contains documentation of Fannie Mae’s approval as evidenced by: ■ An “Approved by Fannie Mae” status designation (e.g., a copy of the appropriate CPM screen showing that the Condominium Project has an “Approved by Fannie Mae” status designation); or ■ Documentation of the Seller’s project approval as a Fannie Mae “Full Review” with a “Certified by Lender” status designation from Fannie Mae’s legacy CPM (certification exported from Fannie Mae Connect) or Fannie Mae’s updated CPM platform (certification printed from the updated CPM platform) 6. The Condominium Project complies with the general project eligibility requirements in Section 5701.2(b) As required in Section 5701.2(b)(6), the Seller must retain, and provide upon request, documentation to support its analysis that the Condominium Project meets Fannie Mae’s “Full Review” requirements when the Seller received a “Certified by Lender” status designation in Fannie Mae’s legacy or updated CPM platform. (ii) Condominium Projects comprised of Manufactured Homes Mortgages secured by Condominium Units in Condominium Projects comprised of Manufactured Homes are only eligible for sale to Freddie Mac if: ■ The project has an “Approved by Fannie Mae” status designation in CPM; or ■ When they comply with the requirements in Section 5701.5(e) (a) FHA-Approved Project review for condominiums Freddie Mac will purchase Condominium Unit Mortgages secured by 1-unit residential dwellings in Condominium Projects that have an FHA-Approved Project review if all of the following requirements are met. (i) Approval process and requirements 1. The Condominium Project must appear on the list of projects approved by the FHA, either by the FHA HUD Review and Approval Process (HRAP) or the FHA Direct Endorsement Lender Review and Approval Process (DELRAP), provided that the Mortgage is an FHA Mortgage, VA Mortgage, Section 502 GRH Mortgage, or HUDGuaranteed Section 184 Native American Mortgage that complies with the applicable requirements of the Guide, or 2. The Condominium Project must appear on the list of projects approved by FHA through the FHA HRAP, provided that the Mortgage is a conventional Mortgage and: ■ The Condominium Project meets the definition of an Established Condominium Project ■ The Condominium Project is not an ineligible project (Section 5701.3) ■ All general project eligibility requirements in Section 5701.2(b) must be met, and ■ The Mortgage must comply with all other applicable requirements of the Guide (ii) Seller warranties When the Seller sells Freddie Mac a Mortgage secured by a unit in a project that meets the requirements for FHA-Approved Projects above, the Seller warrants all of the following as of the Settlement Date: 1. The project is in the “approved” status 2. The project complies with any FHA-approval conditions noted on the FHA website 3. The approval has not yet expired and has not been rescinded or modified in any way 4. The Mortgage file contains documentation of FHA’s approved status (for example, a copy of the appropriate webpage showing that the project is approved and that the approval is current) 5. The Seller is not aware of any circumstances that would make the project ineligible for approval Note: If the requirements for reciprocal project reviews in this Section 5701.9 are met, then the Seller is not required to comply with the requirements for any of the other project review types in Sections 5701.5 (Established Condominium Project reviews), 5701.6 (New Condominium Project reviews) and 5701.7 (Exempt from review).
Operationalizing Freddie Mac Single-Family Seller/Servicer Guide 5701.9 — Reciprocal project reviews
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Source of record: https://claudeforcompliance.com/regs/fhlmc-5701-9/
· register fhlmc-5701-9 · Claude for Compliance. Free to read and download;
see regulatory updates and methodology.