Freddie Mac Single-Family Seller/Servicer Guide 8107.2 — Document Custodian’s functions and requirements

This section contains information related: ■ Document Custodian’s general duties ■ Requests for release of notes and assignments to Servicers ■ Document delivery requirements ■ Form imaging and retention requirements ■ Lost Notes and LNAs

(a) Document custodian’s general duties Each Document Custodian must maintain custody of the Notes and assignments (collectively, as appropriate, “Notes,” see the definition in the Glossary), in trust, for the benefit of Freddie Mac by: ■ Storing the Notes in secure, fire-resistant facilities as required by Section 2202.1(b)(ii). When a Servicer delivers supplemental or trailing documents, such as original modifying instruments, the Document Custodian must place them with the related Note. ■ Affixing the Freddie Mac loan number to the Note, if advised that Freddie Mac requires it, and, if the Note contains the Freddie Mac loan number, changing the Freddie Mac loan number on a Note if advised by the Servicer that Freddie Mac has changed the Freddie Mac loan number for that Mortgage ■ Complying with the requirements of this Section 8107.2 and all Tri-Party Agreements

(b) Requests for Release of Notes and assignments to Servicers Servicers may require physical or constructive possession of Notes in conjunction with a Legal Action or for the payoff, foreclosure, repurchase, substitution, conversion, modification or assumption of a Mortgage. Servicers must complete, sign and submit a Form 1036, Request for Possession or Control of Documents, or its equivalent, such as the Web Release Request described in Section 8107.1(b) (“Form 1036” regardless of its format) to the Document Custodian. Absent manifest error, Document Custodians may rely on information received from Servicers on Form 1036. Alternative versions of Form 1036 must contain all information required by the Form 1036, regardless of their format. A single form may be used to request multiple Notes if each Note is separately listed and identified. A Form 1036 is considered to be Electronic, using the definition in Section 1402.1(b), if it is transmitted in any format other than paper, including Portable Document Formats (PDFs) of paper documents delivered as attachments to e-mails. Before using an Electronic Form 1036, Freddie Mac requires that the Servicer and Document Custodian have in place a written agreement that: ■ Defines Electronic Signature and the type(s) of electronic transmission(s) permitted ■ States the Document Custodian’s requirements for accepting an Electronic Signature ■ States the Servicer’s requirements for maintaining and controlling access to Electronic Signature information ■ Clearly assigns liability when the terms of the agreement are violated Document Custodian must retain for each Servicer a list of individuals authorized to request the release of documents electronically. The list must be dated and signed by an officer of the Servicer and contain sample signatures of the authorized individuals. The Document Custodian should review and retain documentation of such review for each Note file to verify its completeness and that the Note is original before releasing it to the Servicer. This enables the Document Custodian to verify that the Servicer returns all the documents, including the original documents, that were released to it.

(c) Document delivery requirements (i) Delivery and return of physical possession Servicers may require physical possession of Notes to service Mortgages for a Legal Action or otherwise. Servicers must complete and sign Form 1036 and submit it to the Document Custodian. See Section 8107.1(b) for information related to requests for release of documents. Upon receipt of Servicer’s signed Form 1036, the Document Custodian shall transfer and deliver physical possession of the Note as directed by the Servicer. Notes may be transported only by a nationally recognized commercial or bonded carrier or courier service and must be covered by in transit insurance. Note: See Sections 2202.1(b) and 2202.3(b) for information related to Document Custodians and document custody. When a Note is no longer needed for the reason cited on Form 1036 or when the Legal Action is concluded, the Servicer must promptly (and in any event within 90 days) return the Note to the Document Custodian. Upon receiving the Note, the Document Custodian shall immediately resume its physical custody, in trust, for the benefit of Freddie Mac, as set forth in the Tri-Party Agreement, verify that all documents that were released have been returned and update its tracking system to reflect their receipt. See Section 8107.2(e) below for instances in which the Document Custodian released an original Note and the Servicer returns an LNA in lieu of the original Note. (ii) Delivery and return of constructive possession The Servicer must complete, sign and submit Form 1036 to request constructive possession from the Document Custodian. The constructive possession will commence on the earlier of the date on which the Document Custodian receives the Servicer’s request for constructive possession and the Servicer commences the Legal Action. The Document Custodian maintains physical custody of the Note for the benefit of the Servicer while the Servicer has constructive possession. For the duration of the Legal Action, the Servicer shall be: ■ In constructive possession of the Note ■ The holder of the Note ■ Entitled to enforce the Note, and ■ Authorized by Freddie Mac to take Legal Action to service the related Mortgage Upon notice from the Servicer that the Legal Action is concluded, the Document Custodian shall automatically and immediately update its document tracking system and cease maintaining physical custody of the Note, in trust, for the benefit of the Servicer and resume maintaining physical custody of the Note, in trust, for the benefit of Freddie Mac.

(d) Form imaging and retention requirements The Document Custodian must retain Form 1036 for three months after the date the Mortgage is paid off, but they need not retain Form 1034E, Custodial Certification Schedule, or the Note Delivery Cover Sheet after the related Mortgages have been certified. Documents and forms may be retained as Electronic Records on the terms and conditions for maintaining such Records set forth in Chapter 1401. In disposing of documents, the Document Custodian must have in place and follow procedures and use destruction methods that ensure the confidentiality of Borrowers’ private personal information.

(e) Lost Notes and LNAs The Document Custodian may receive, either as a return of released documents or in a Transfer of Servicing or transfer of custody, an LNA rather than the original Note. The Document Custodian may accept an LNA only if the Servicer delivers evidence of Freddie Mac’s approval of the use of an LNA for that Mortgage. Acceptable evidence of such approval includes a copy of a single loan exception or the text of an e-mail from Freddie Mac, and the approval must include specific reference to the related Mortgage, which may appear on a list. If the Servicer does not include such evidence, the Document Custodian must contact Freddie Mac immediately at [email protected] and await further instruction. The Document Custodian must verify that each LNA: ■ Is an original, signed in ink by an officer of the Seller/Servicer that created the LNA and notarized ■ Includes the name of each Borrower on the Note, the original principal amount of the Note, the Note Date and recordation information for the related Security Instrument ■ Has attached to it a complete copy of the entire missing Note, including all required signatures and endorsements to the Servicer that created the LNA If the LNA meets these requirements, the Document Custodian must verify the loan data from the Note copy attached to the LNA and maintain the LNA on the same basis as it would if the LNA were an original Note. This includes observing all requirements relating to requests for release. If at any time an original Note is recovered as described in Section 8107.1(d)(v), the Servicer will deliver it to the Document Custodian, and the Document Custodian will follow the process set forth in the Document Custody Procedures Handbook for “found Notes.” Document Custodians may contact Freddie Mac (see Directory 9) for instructions and further information on verifying and managing LNAs.