Freddie Mac Single-Family Seller/Servicer Guide Section 6305.1 — Warehouse financing arrangements

Freddie Mac Single-Family Seller/Servicer Guide Section 6305.1 — Warehouse financing arrangements

6305.1: Warehouse financing arrangements (12/17/25) This chapter addresses arrangements in which the Seller has entered into a Warehouse Agreement with a Warehouse Lender and has granted that Warehouse Lender a security interest in or conveyed to that Warehouse Lender an ownership interest in, certain Mortgages that are subsequently offered for sale to Freddie Mac. In these situations, the Warehouse Lender also holds the Note and, at times, ancillary documents for those Mortgages and delivers the Note (and, at times, ancillary documents) to Freddie Mac pursuant to the Seller’s Purchase Contract with Freddie Mac. Subject to certain conditions, the Document Custodian will hold the Note and any ancillary documents relating to the Pledged Mortgages pending their purchase by Freddie Mac. This chapter sets forth and explains the relationships among the Seller, the Warehouse Lender and Freddie Mac. Note: For additional requirements related to Pledged eMortgages, see Sections 1402.3(d) and 1402.6. 6305.2: Delivery and general procedures for Pledged Mortgages (12/03/25) This section contains requirements related to: ■ Delivery and acceptance of Pledged Mortgages ■ Delivery procedures for Pledged Mortgages ■ Rejection of Pledged Mortgages (a) Delivery and acceptance of Pledged Mortgages If the requirements of this chapter have been met, and until Freddie Mac purchases a Pledged Mortgage, the Document Custodian will hold the Note and any ancillary documents for that Pledged Mortgage subject to the interest of the Warehouse Lender created under the Warehouse Agreement unless Freddie Mac specifically agrees otherwise in writing. Freddie Mac does not recognize any other statements or conditions regarding its receipt of these documents, including: Freddie Mac Single-Family Seller/Servicer Guide Chapter 6305 As of 04/08/26 Page 6305-2 ■ Trust receipts, ■ Bailee letters, or ■ Other purported statement of a continuing security or other interest (b) Delivery procedures for Pledged Mortgages For delivery under a Purchase Contract, the Seller must submit Form 996E, Warehouse Provider Release and Transfer, which includes an Appendix I showing the following: ■ Each Mortgage in the delivery, ■ The Freddie Mac contract number, ■ Freddie Mac loan number, ■ UPB, ■ Borrower’s name, and ■ The address of the Mortgaged Premises Freddie Mac may, in its sole discretion, require the Seller, Warehouse Lender and, in certain circumstances, Document Custodian to enter into an addendum to the Form 996E (such addendum sometimes referred to as a “Quad Party Agreement”). (c) Rejection of Pledged Mortgages If Freddie Mac decides not to purchase a Pledged Mortgage, the Seller will be notified of such decision, and the Note for that Pledged Mortgage will be delivered to the Warehouse Lender indicated on Form 996E or to that Warehouse Lender’s document custodian. 6305.3: Wire transfer and settlement instructions for Pledged Mortgages (12/17/25) This section contains requirements related to: ■ Wire transfer instructions for Pledged Mortgages sold for cash ■ UMBS®, MBS and WAC ARM PC delivery instructions for Pledged Mortgages (a) Wire transfer instructions for Pledged Mortgages sold for cash Freddie Mac Single-Family Seller/Servicer Guide Chapter 6305 As of 04/08/26 Page 6305-3 (i) Submission of wire transfer authorization and warehouse provider release and transfer With each delivery of Pledged Mortgages to be sold to Freddie Mac for cash through Loan Selling Advisor®, the Seller must: 1. Submit a completed, executed and duly authorized Form 987E, Wire Transfer Authorization for a Warehouse Delivery. This form is a general wire transfer authorization for all contracts under which Pledged Mortgages are offered for sale to Freddie Mac using Loan Selling Advisor. A separate Form 987E is not required for each contract, but the Seller must: ■ Execute a Form 987E for each of the Seller’s Warehouse Lenders, ■ Provide Freddie Mac with a new Form 987E for any change to the wire transfer instructions, and ■ Deliver Form 987E to Freddie Mac as an Electronic Record (as defined in Section 1401.1(b)), using a Portable Document Format (PDF) (or other Electronic Record format commonly used in the mortgage industry), that has been completed and contains the copy or representation of the pen and ink signature of the Authorized Employee (such copy or representation of the Authorized Employee’s signature shall be such Authorized Employee’s adopted Electronic Signature as defined in Section 1401.1(b)) and either: ❑ An attachment to an e-mail sent to [email protected], or ❑ An upload through the Freddie Mac eBill system 2. Complete Form 996E, Warehouse Provider Release and Transfer, available only through Loan Selling Advisor, for the Warehouse Lender to submit to Freddie Mac in Loan Selling Advisor by no later than 12:30 p.m. Eastern time on the Business Day immediately preceding the Funding Date. (ii) Delivery of Electronic records and signatures Freddie Mac and the Seller agree that delivery of Electronic Records with Electronic Signatures are eligible Electronic Transactions, as defined in Section 1401.1(b), and are governed by the applicable provisions of Chapter 1401. If Freddie Mac does not receive wire transfer instructions on Form 987E or the Warehouse Lender’s release or transfer of its interest in the Pledged Mortgages on Form 996E in sufficient time to process payments, Freddie Mac may, in its sole discretion, postpone the Funding Date. Freddie Mac Single-Family Seller/Servicer Guide Chapter 6305 As of 04/08/26 Page 6305-4 If Freddie Mac does not receive the Warehouse Lender’s Form 990SF, Agreement and Certificate of Incumbency: Warehouse Lender, in sufficient time to process it and to assign User Roles for the Warehouse Lender’s access to Loan Selling Advisor or believes that the Certificate of Incumbency cannot be relied upon, or that its information is not reliable, Freddie Mac may, in its sole discretion, postpone the Funding Date. (b) UMBS, MBS and WAC ARM PC delivery instructions for Pledged Mortgages (i) Completing wire transfer information For Pledged Mortgages allocated to a Guarantor or MultiLender Swap Contract, the Seller must complete: ■ All requested wire transfer information and instructions in the applicable screens in Loan Selling Advisor ■ Form 996E, which the Warehouse Lender must submit to Freddie Mac as described in Section 6305.4(b) (ii) Authorization requirements for employees The employee authorized to perform the Setup Manager role (to approve wire transfer information and instructions in the applicable Loan Selling Advisor screens on the Seller’s behalf) must be an “Authorized Employee” on the Seller’s Certificate(s) of Incumbency (See Section 2201.1 for additional information.) If the person performing the Setup Manager role is not an Authorized Employee, Freddie Mac may postpone the Settlement Date. See Section 2403.2(b) regarding designating Authorized Employees. See Sections 6203.3(c), 6204.3(c) and 6205.3(c) for additional instructions for delivering Certificates of Incumbency and submitting Form 996E for fixed-rate Guarantor, WAC ARM Guarantor and MultiLender Swap Contracts, respectively. (iii)Submission of Warehouse Provider release and transfer The person who submits Form 996E for the Warehouse Lender must be authorized on Form 990SF to provide Freddie Mac with instructions (or to modify instructions) to transfer funds on behalf of the Warehouse Lender. (See Section 6305.4(c) for additional information.) Freddie Mac may, in its sole discretion, postpone the Settlement Date if: ■ The person submitting Form 996E is not an Authorized Employee, ■ Freddie Mac does not receive Form 990SF in sufficient time to process it, or Freddie Mac Single-Family Seller/Servicer Guide Chapter 6305 As of 04/08/26 Page 6305-5 ■ Freddie Mac believes that the Certificate of Incumbency cannot be relied upon or that the information on the Certificate of Incumbency is unreliable 6305.3: Wire transfer and settlement instructions for Pledged Mortgages (Future effective date 07/01/26) This section contains requirements related to: ■ Wire transfer instructions for Pledged Mortgages sold for cash ■ UMBS®, MBS and WAC ARM PC delivery instructions for Pledged Mortgages (a) Wire transfer instructions for Pledged Mortgages sold for cash (i) Submission of wire transfer authorization and warehouse provider release and transfer With each delivery of Pledged Mortgages to be sold to Freddie Mac for cash through Loan Selling Advisor®, the Seller must: 1. Submit a completed, executed and duly authorized Form 987E, Wire Transfer Authorization for a Warehouse Delivery. This form is a general wire transfer authorization for all contracts under which Pledged Mortgages are offered for sale to Freddie Mac using Loan Selling Advisor. A separate Form 987E is not required for each contract, but the Seller must: ■ Execute a Form 987E for each of the Seller’s Warehouse Lenders, ■ Provide Freddie Mac with a new Form 987E for any change to the wire transfer instructions, and ■ Deliver Form 987E to Freddie Mac as an Electronic Record (as defined in Section 1401.1(b)), using a Portable Document Format (PDF) (or other Electronic Record format commonly used in the mortgage industry), that has been completed and contains the copy or representation of the pen and ink signature of the Authorized Employee (such copy or representation of the Authorized Employee’s signature shall be such Authorized Employee’s adopted Electronic Signature as defined in Section 1401.1(b)) and either: ❑ An attachment to an e-mail sent to [email protected], or ❑ An upload through the Freddie Mac eBilling system Freddie Mac Single-Family Seller/Servicer Guide Chapter 6305 As of 04/08/26 Page 6305-6 2. Complete Form 996E, Warehouse Provider Release and Transfer, available only through Loan Selling Advisor, for the Warehouse Lender to submit to Freddie Mac in Loan Selling Advisor by no later than 12:30 p.m. Eastern time on the Business Day immediately preceding the Funding Date. (ii) Delivery of Electronic records and signatures Freddie Mac and the Seller agree that delivery of Electronic Records with Electronic Signatures are eligible Electronic Transactions, as defined in Section 1401.1(b), and are governed by the applicable provisions of Chapter 1401. If Freddie Mac does not receive wire transfer instructions on Form 987E or the Warehouse Lender’s release or transfer of its interest in the Pledged Mortgages on Form 996E in sufficient time to process payments, Freddie Mac may, in its sole discretion, postpone the Funding Date. If Freddie Mac does not receive the Warehouse Lender’s Form 990SF, Agreement and Certificate of Incumbency: Warehouse Lender, in sufficient time to process it and to assign User Roles for the Warehouse Lender’s access to Loan Selling Advisor or believes that the Certificate of Incumbency cannot be relied upon, or that its information is not reliable, Freddie Mac may, in its sole discretion, postpone the Funding Date. (b) UMBS, MBS and WAC ARM PC delivery instructions for Pledged Mortgages (i) Completing wire transfer information For Pledged Mortgages allocated to a Guarantor or MultiLender Swap Contract, the Seller must complete: ■ All requested wire transfer information and instructions in the applicable screens in Loan Selling Advisor ■ Form 996E, which the Warehouse Lender must submit to Freddie Mac as described in Section 6305.4(b) (ii) Authorization requirements for employees The employee authorized to perform the Setup Manager role (to approve wire transfer information and instructions in the applicable Loan Selling Advisor screens on the Seller’s behalf) must be an “Authorized Employee” on the Seller’s Certificate(s) of Incumbency (See Section 2201.1 for additional information.) If the person performing the Setup Manager role is not an Authorized Employee, Freddie Mac may postpone the Settlement Date. Freddie Mac Single-Family Seller/Servicer Guide Chapter 6305 As of 04/08/26 Page 6305-7 See Section 2403.2(b) regarding designating Authorized Employees. See Sections 6203.3(c), 6204.3(c) and 6205.3(c) for additional instructions for delivering Certificates of Incumbency and submitting Form 996E for fixed-rate Guarantor, WAC ARM Guarantor and MultiLender Swap Contracts, respectively. (iii)Submission of Warehouse Provider release and transfer The person who submits Form 996E for the Warehouse Lender must be authorized on Form 990SF to provide Freddie Mac with instructions (or to modify instructions) to transfer funds on behalf of the Warehouse Lender. (See Section 6305.4(c) for additional information.) Freddie Mac may, in its sole discretion, postpone the Settlement Date if: ■ The person submitting Form 996E is not an Authorized Employee, ■ Freddie Mac does not receive Form 990SF in sufficient time to process it, or ■ Freddie Mac believes that the Certificate of Incumbency cannot be relied upon or that the information on the Certificate of Incumbency is unreliable 6305.4: Warehouse Lender and Seller responsibilities (12/17/25) This section contains requirements related to: ■ Warehouse Lender’s interest ■ Seller representations and warranties for Pledged Mortgages ■ Special Warehouse Lender acknowledgments and agreements (a) Warehouse Lender’s interest (i) Conditions for assignments No Pledged Mortgage will be accepted for purchase by Freddie Mac if the Seller has assigned the Mortgage to a Warehouse Lender unless one of the following applies: ■ The assignment of the Pledged Mortgage has been recorded in the public records, and the Seller obtains an assignment of the Mortgage in favor of the Seller that is executed by the Warehouse Lender, in recordable form, to be effective on or before the Settlement Date of the Pledged Mortgage. Such assignment must be promptly Freddie Mac Single-Family Seller/Servicer Guide Chapter 6305 As of 04/08/26 Page 6305-8 recorded in the public records of the appropriate jurisdiction by the Seller after the Settlement Date. ■ The assignment of the Mortgage to the Warehouse Lender was not recorded, and the Warehouse Lender returns that unrecorded assignment to the Seller prior to the Settlement Date (ii) Conditions for financing statements No Pledged Mortgage will be accepted for purchase by Freddie Mac if the Warehouse Lender has filed a financing statement relating to the Pledged Mortgage in the public records of any jurisdiction unless: ■ The Seller obtains an executed termination statement from the Warehouse Lender to be filed promptly in the public records of the appropriate jurisdiction by the Seller after the Settlement Date, or ■ The security interest in the Pledged Mortgage by its express terms will be released automatically upon Freddie Mac’s purchase of the Pledged Mortgage (b) Seller representations and warranties for Pledged Mortgages The Seller represents and warrants to, and covenants with, Freddie Mac that: ■ As of the Settlement Date, each Pledged Mortgage is free and clear of any and all security interests, claims and encumbrances of any third party, including, without limitation, the Warehouse Lender and any party claiming through the Warehouse Lender, ■ Seller will take or will cause the Warehouse Lender to take all such further action, including, without limitation, preparing, executing and filing additional documents and instruments to assure and confirm to Freddie Mac that each Pledged Mortgage is free and clear of any and all security interests, claims and encumbrances and that absolute and unencumbered title to the Pledged Mortgage is conveyed to Freddie Mac as of the Settlement Date, and ■ The wire transfer or UMBS®, MBS or WAC ARM PC delivery instructions delivered to Freddie Mac are in accordance with the Seller’s Warehouse Agreement and that the person providing the wire transfer or UMBS, MBS or WAC ARM PC delivery instructions is an “Authorized Employee” on the Certificate of Incumbency. (See Section 2201.1 for additional information.) (c) Special Warehouse Lender acknowledgments and agreements (i) Form 990SF, Agreement and Certificate of Incumbency: Warehouse Lender (A) Submission of Form 990SF Freddie Mac Single-Family Seller/Servicer Guide Chapter 6305 As of 04/08/26 Page 6305-9 Each Warehouse Lender must provide Freddie Mac with an agreement and certificate of incumbency (“Certificate of Incumbency”) on Form 990SF with Exhibit A, which is a copy of resolution by the Warehouse Lender’s board of directors or other governing body (the “Resolution”) in the form provided by Freddie Mac (unless applicable law or other circumstances require another form). The Resolution must empower and authorize (a) employees identified by title or by name and title on the Form 990SF (each, an “Authorized Employee”) to provide instructions, or modifications of instructions, to Freddie Mac in conjunction with a Seller’s sale of Pledged Mortgages to Freddie Mac through Loan Selling Advisor® and (b) authorize Administrators to grant access to Authorized Employees with the External WHL Approver and External WHL Reviewer role. A new Warehouse Lender will not be given access to Loan Selling Advisor until Freddie Mac has accepted the Warehouse Lender’s Form 990SF. Any person identified on Form 990SF as performing the External WHL Approver and External WHL Reviewer roles (to submit Form 996E, Warehouse Provider Release and Transfer, through Loan Selling Advisor) must be designated as an Authorized Employee authorized to provide Freddie Mac with wire transfer instructions on the Warehouse Lender’s Form 990SF. (B) Electronic record requirements and legal obligations The Certificate of Incumbency must contain either the pen and ink signature or an Electronic copy or representation of the pen and ink signature of each Authorized Employee. The Certificate of Incumbency, Resolution and any other required documents or forms, signed by the Warehouse Lender’s Secretary, Assistant Secretary or legal counsel must be delivered to Freddie Mac as an Electronic Record, as defined in Section 1401.1(b), in Portable Document Format (PDF) and contain an Electronic Signature, as defined in Section 1401.1(b). The Electronic Signature must meet the requirements contained in Form 990SF itself and, at a minimum, be a copy or representation of the pen and ink signature of the Warehouse Lender’s signatory attached thereto or logically associated therewith. Although Freddie Mac reserves the right to verify or authenticate any Seller/Servicer request for a change, the Seller/Servicer may not consider Freddie Mac’s failure to do so an act of negligence. By executing the complete Certificate of Incumbency and delivering it to Freddie Mac, the Warehouse Lender makes the same representations and warranties to, and covenants with, Freddie Mac as Sellers make to Freddie Mac in Section 2201.1. Freddie Mac Single-Family Seller/Servicer Guide Chapter 6305 As of 04/08/26 Page 6305-10 Freddie Mac may, periodically and at its sole discretion, require the Warehouse Lender to submit a new Form 990SF and/or Resolution. The Warehouse Lender must renew its Form 990SF every two years and its Resolution every four years and determine if such renewal requires new or modified Wire Transfer Instructions. Freddie Mac will notify the Warehouse Lender approximately 120 days before the renewal due date. If a Warehouse Lender fails timely to deliver a replacement Certificate of Incumbency, Freddie Mac may, in its sole discretion, cancel or postpone purchasing any Pledged Mortgages financed by that Warehouse Lender until a renewal Certificate of Incumbency has been accepted by Freddie Mac and any other requirements have been met. The Warehouse Lender shall indemnify and hold Freddie Mac, its directors, officers, employees, successors, assigns and fiscal and transfer agents harmless from and against the consequences of any such cancelation or postponement. (ii) Form 996E In connection with Freddie Mac’s purchase of Pledged Mortgages, the Warehouse Lender must submit Form 996E to Freddie Mac through Loan Selling Advisor. Freddie Mac will not accept a “bailee letter” or equivalent documentation with respect to any Pledged Mortgage. If a Warehouse Lender or any other party delivers such a document to Freddie Mac, Freddie Mac has the right, in its sole discretion, to cancel or postpone the Settlement Date for the related Pledged Mortgage(s).

Source: Freddie Mac Single-Family Seller/Servicer Guide Section 6305.1 — Warehouse financing arrangements · source URL · snapshot 5869ee9e606cd4ae