Freddie Mac Single-Family Seller/Servicer Guide 8105.1 — Compensation for Servicing Mortgages

This section contains requirements related to: ■ Compensation for Servicing Mortgages ■ Servicing compensation for a new Servicer pursuant to a Transfer of Servicing initiated by Freddie Mac ■ Servicing obligations related to foreclosure and bankruptcy to be performed for the Servicing compensation

(a) Compensation for Servicing Mortgages The compensation Freddie Mac pays to the Servicer for the performance of its duties and obligations under the Servicing Contract for each Mortgage purchased by Freddie Mac is the amount by which the Note Rate exceeds the Accounting Net Yield (ANY), with a Minimum Servicing Spread to provide adequate compensation. Each Servicer agrees that it does not retain any rights or legal ownership interest in such compensation or any portion of the interest or other amounts due or received from the Borrower under the terms of the Mortgage. Further, under no circumstance does a Servicer retain any legal ownership of the Servicing Contract or any related Servicing Contract Rights. Freddie Mac acknowledges that a Servicer may recognize Servicing Contract Rights as assets on its balance sheet in the form of “mortgage servicing rights” in accordance with generally accepted accounting principles (GAAP); however, such recognition under GAAP does not confer any legal ownership interest in any Servicing Contract Rights. The Minimum Servicing Spread is 0.250% (25 basis points) for all Home Mortgages unless the Purchase Documents provide otherwise. Note: For fixed-rate Home Mortgages with Settlement Dates on or after June 3, 2019, the maximum Servicing Spread is 0.500%. For Mortgages with single-premium lender-paid mortgage insurance, the Minimum Contract Servicing Spread must be no less than the Minimum Servicing Spread. For Mortgages with annual- or monthly-premium lender-paid mortgage insurance, the Minimum Contract Servicing Spread must meet the requirements of Section 4701.2(b)(i). Refer to the following Guide provisions for additional information related to the Servicing Spread topic: Guide provisions related to Servicing Spread requirements Topic Guide location Minimum contract Servicing Spread Section 6101.4(c) Servicing Spreads Section 6102.4(b)(ii) Purchase requirements for Mortgages sold under Guarantor and MultiLender Swap programs Sections 6201.3(b)

(b) Servicing compensation for a new Servicer pursuant to a Transfer of Servicing initiated by Freddie Mac (i) Voluntary Partial Cancellation (VPC) of Servicing or termination of the Servicing Contract If Freddie Mac terminates a Servicer’s Servicing Contract and related Servicing Contract Rights, with or without cause, in whole or in part, pursuant to the terms and conditions of the Purchase Documents, Freddie Mac reserves the right, at Freddie Mac’s discretion, to negotiate a new Servicing fee with the subsequent Servicer of the Mortgages related to the VPC Transfer of Servicing. (ii) Transfers of Servicing Below are key requirements regarding the Servicing compensation for Freddie Mac Mortgages following a Transfer of Servicing: ■ For any Mortgages purchased by Freddie Mac, the Servicing compensation will be calculated on the entire interest-bearing UPB of the Mortgage ■ If the Note Rate minus the ANY is not sufficient to pay a Transferee Servicer the required Servicing compensation plus any applicable mortgage insurance premium, the Transferor Servicer agrees to pay the balance of the required Servicing compensation to the Transferee Servicer ■ The Transferor Servicer acknowledges that its payment of Servicing compensation to the Transferee Servicer is necessary for adequate Servicing of the Mortgage in accordance with the Guide and applicable Purchase Documents ■ The Transferor Servicer also agrees that the Transferee Servicer and Freddie Mac have a right of offset against principal repayments payable to the Transferor Servicer in order to pay the required Servicing compensation if not otherwise done

(c) Servicing obligations related to be performed for the Servicing compensation In consideration for the Servicing Spread, a Servicer is responsible for the performance of all of its Servicing obligations described in the Guide and other Purchase Documents for each of the Mortgages purchased by Freddie Mac. The Servicer’s Servicing obligations compensated by the Servicing Spread include, among other things, undertaking all activities required to protect Freddie Mac’s interest in the Mortgage in the event of a foreclosure of the property or a bankruptcy of the Borrower, such as: ■ Preparing and delivering foreclosure and bankruptcy referrals to attorneys ■ Providing all documents and information necessary for the attorneys to prosecute foreclosure or bankruptcy cases (including, but not limited to, missing documents such as Notes, title insurance policies and Intervening Assignments) ■ When necessary, paying for the preparation and recordation of missing documents, such as Intervening Assignments, necessary for the prosecution of foreclosure or bankruptcy cases ■ Resolving any title issues that are the result of the Seller’s or Servicer’s action or inaction ■ Managing attorneys, including but not limited to: ❑ Collecting, receiving, processing, reviewing and paying attorneys’ invoices ❑ Supervising and providing necessary assistance to attorneys in the foreclosure and bankruptcy proceedings ❑ Making available any monitoring, management, reporting, information and document delivery processes or systems and paying the fees and costs for such processes or systems. (Refer to Section 9501.5(a) for information on connectivity and invoice processing systems.) ■ Continuing to work with the Borrower to resolve the Delinquency through loss mitigation activities ■ Handling the bankruptcy management activities specified in Chapter 9401 Nothing in the Guide is intended to prohibit a foreclosure or bankruptcy attorney from assisting a Servicer by working with a Borrower to facilitate a reinstatement of the Mortgage or loss mitigation activity.