Freddie Mac Single-Family Seller/Servicer Guide 6201.2 — Guarantor and MultiLender Swap Contracts

This section contains requirements related to: ■ Review of Mortgages for compliance with Seller’s Maximum Annual Mortgage Purchase Amount ■ Seller’s election to sell with or without recourse under the Guarantor and MultiLender Swap programs ■ Buyup and buydown programs under the fixed-rate Guarantor and MultiLender Swap programs

(a) Review of Mortgages for compliance with Seller’s Maximum Annual Mortgage Purchase Amount If Freddie Mac has established a Maximum Annual Mortgage Purchase Amount with respect to the Seller, Freddie Mac will, after the commitment has been made, review the aggregate amount of Mortgages purchased from the Seller to date in the current calendar year. Freddie Mac, in its sole and absolute discretion, may purchase Mortgages from the Seller in an amount that exceeds the Seller’s Maximum Annual Mortgage Purchase Amount or may rescind, in whole or in part, its acceptance of the Seller’s offer to sell any Mortgages that will result in the Seller’s exceeding its Maximum Annual Mortgage Purchase Amount. Any such rescission shall be made without the payment by Freddie Mac of any Seller claims. Freddie Mac reserves the right to charge a fee on the entire amount of any Purchase Contract that causes the Seller to exceed its Maximum Annual Mortgage Purchase Amount.

(b) Seller’s election to sell with or without recourse under the Guarantor and MultiLender Swap programs Mortgages may be sold to Freddie Mac with or without recourse, as elected by the Seller and as set forth in the Purchase Documents. (i) Mortgages with recourse A Seller who elects to sell Mortgages to Freddie Mac with recourse bears all risks and costs of a Borrower default, including the costs of foreclosure. Under a recourse obligation: ■ The Seller must repurchase the Mortgage, plus accrued interest, upon completion of the foreclosure sale (or upon delivery of a deed-in-lieu of foreclosure), whether or not the Borrower retains an equity of redemption ■ The Seller may, at its option, repurchase: ❑ Any Mortgage that is 90 days delinquent in accordance with the requirements in Sections 3602.2(c), 3602.3(a) and 3602.3(b) ❑ Any Mortgage for which foreclosure has been initiated If the Seller elects to sell Mortgages to Freddie Mac with recourse, the Seller’s financial ability to fulfill the required recourse obligation will be reviewed. If Freddie Mac determines that the Seller’s financial condition is not sufficient to support a recourse obligation, the Seller may be required to meet additional requirements. There may be instances in which additional recourse sales from the Seller will not be allowed because of the Seller’s financial condition. In addition, if the Seller elects to sell Mortgages to Freddie Mac with recourse, Freddie Mac will monitor the Seller’s continuing ability to fulfill its recourse obligations and may: ■ Require that the Seller submit specific financial information relating to the Seller’s ability to fulfill its recourse obligations ■ Require that the Seller provide Freddie Mac with additional assurances, including guaranties or pledges of collateral, to support recourse obligations ■ Treat the Seller’s failure to provide Freddie Mac with requested additional assurances as a failure to fulfill an obligation under the Purchase Documents The Seller who elects to sell Mortgages with recourse represents and warrants to Freddie Mac that on the Date of Seller’s Offer, the Seller’s aggregate recourse obligations comply with all applicable federal and State regulations. The Seller should be aware that in the event of a Transfer of Servicing, the Transferee Servicer must be approved by Freddie Mac and may be subject to the same recourse obligations as the Seller of the related Mortgages. For Mortgages sold to Freddie Mac with recourse, the Note must bear the proper endorsement for sales with recourse, as set forth in Section 6301.2(a). (ii) Mortgages without recourse If the Seller elects to sell Mortgages without recourse, Freddie Mac assumes the risk of loss from Borrower defaults, subject to the terms and conditions of the Purchase Documents.

(c) Buyup and buydown programs under the fixed-rate Guarantor and MultiLender Swap programs (i) Adjustments to Credit Fees in Yield When taking out a Fixed-Rate Guarantor Contract or MultiLender Swap Contract, the Seller may request an adjustment to the Credit Fee in Yield by selecting one of the following buyup and buydown programs: ■ Note-level, or ■ Loan-level (if permitted under the Seller’s Pricing Identifier Terms under which the Seller is taking out the Purchase Contract) The adjustment will be based on the Note Rate, the Coupon, and the Minimum Contract Servicing Spread: ■ For the note-level program, the Credit Fee in Yield will be adjusted in the same manner for all Mortgages with that Note Rate and remaining maturity ■ For the loan-level program, the Seller may select the specific Mortgages for which the Credit Fee in Yield is to be adjusted For purposes of this section, Credit Fee in Yield means the total Credit Fee in Yield, which consists of the Credit Fee in Yield stated on the Seller’s Rate Sheet plus all applicable Credit Fee in Yield Add-Ons and negotiated Credit Fee in Yield adjustments. (ii) Selection of applicable option For the note-level program, at the time the Seller takes out a Purchase Contract, the Seller must select one of the following options: ■ Buyup and buydown ■ Buydown only ■ Buyup only, or ■ Neither buyup nor buydown For the loan-level program, the Seller will select the applicable option for each Mortgage at the time the Seller delivers the Mortgage. See Section 6302.35 for delivery requirements for such Mortgages. If the Seller fails to deliver the required loan-level buyup and buydown ULDD Data Points for a Mortgage, the Mortgage will not be allocated to the Seller’s Purchase Contract. For both the note-level and loan-level programs, the Seller may update the specified buyup or buydown amount, as applicable, until the Purchase Contract for which the buyup or buydown amount applies is in settlement locked status. (iii) Buyup and buydown fees In exchange for an increase to the Credit Fee in Yield (buyup) for certain Mortgages, Freddie Mac will make a cash payment to the Seller. In exchange for a decrease in the Credit Fee in Yield (buydown) for certain Mortgages, the Seller will make a cash payment to Freddie Mac. Buyup payments to be made to the Seller will be netted against buydown fees to be paid by the Seller and the result will be paid in accordance with the provisions relating to fees in Section 6303.2(a). (iv) Calculation of buyup proceeds and buydown fees Freddie Mac will determine the amount of the increase or decrease in the Credit Fee in Yield for each Mortgage delivered based on the following information specified when taking out a Purchase Contract: ■ Coupon for which the Mortgage is delivered ■ Minimum Contract Servicing Spread ■ Note Rate ■ Credit Fee in Yield ■ Buyup maximum amount In determining the amount of any increase or decrease in the Credit Fee in Yield, Freddie Mac will use the following formula: Note Rate - Minimum Contract Servicing Spread - Total Credit Fee in Yield - Coupon = Amount of increase or decrease in Credit Fee in Yield * * Expressed in basis points If the result is a positive number: The Credit Fee in Yield will be increased by the amount of that positive number, subject to the maximum buyup limit prevailing at the time the Purchase Contract is taken out. Any Mortgage with a positive number greater than the maximum buyup limit will retain a Servicing Spread greater than the Minimum Contract Servicing Spread specified at the time the Purchase Contract is taken out. If the result is a negative number: The Credit Fee in Yield will be decreased by the amount of that negative number, subject to the maximum buydown limit prevailing at the time the Purchase Contract is taken out but will not be decreased to less than zero. A Note Rate must equal or exceed the Coupon plus the Credit Fee in Yield (as adjusted for the amount of the buyup or buydown) plus the Minimum Contract Servicing Spread to be accepted for purchase for the Coupon specified. (v) Calculation of buyup and buydown fees Buyup and buydown fees will be calculated in accordance with the following requirements. For each basis point (0.010%) by which the Credit Fee in Yield for a Mortgage must be increased or decreased as determined by the preceding formula, a payment will be required in an amount equal to a fixed percent (expressed in basis points) of the UPB of the Mortgage. The number of basis points determined by Freddie Mac will depend on: ■ The Note Rate, ■ The Mortgage product, and ■ Whether a buyup or buydown is required (vi) Application of buyup maximum amount for Note Rate program Mortgages are subject to the buyup maximum amount applicable for Mortgage products as stated in the Seller’s Purchase Documents. The Seller may enter a lower buyup maximum amount to be applied to the Fixed-Rate Guarantor Contract or MultiLender Swap Contract. If the Seller does not enter a value into the buyup maximum field for a Purchase Contract, Loan Selling Advisor® will apply the applicable buyup maximum amount as stated in the Seller’s Purchase Documents. (vii) Buyup and buydown options under WAC ARM Guarantor program The buyup and buydown options are not permitted under WAC ARM Guarantor program. (viii) Payment of buyup proceeds and buydown fees All buyup proceeds and buydown fees will be paid in accordance with Section 6303.2(a). Note: For general billing information, call Customer Service at 800-FREDDIE.