Freddie Mac Single-Family Seller/Servicer Guide 8601.1 — Servicing responsibilities, Borrower interactions and key terms

The brown font text used throughout this chapter denotes the special requirements for Servicing Senior Subordinate Mortgages. Text in black or green font denotes general Servicing requirements that also apply elsewhere in the Guide. This section contains requirements related to: ■ Key terms and definitions used in this chapter ■ Servicing Senior Subordinate Mortgages ■ Freddie Mac’s rights and Servicer rights, duties and obligations ■ Servicer use of Servicing Tools ■ Borrower inquiries

(a) Key terms and definitions used in this chapter A Servicer that receives a notice that it services a Senior Subordinate Mortgage should be familiar with the following terms. Servicing Senior Subordinate definitions F Freddie Mac Guaranteed Mortgage Any Mortgage purchased by Freddie Mac that is then deposited into or transferred to a securitization trust for which Freddie Mac is a guarantor of some or all of the payments owed to holders of the securities issued by that trust. Freddie Mac-Owned Mortgage Any Mortgage purchased by Freddie Mac that is owned by Freddie Mac, in whole or in part, and which currently is not owned by a securitization trust or deposited into a pool backing participation certificates. S Senior Subordinate Mortgage A Senior Subordinate Mortgage is a Mortgage previously owned by Freddie Mac that Freddie Mac has transferred to a Senior Subordinate Trust. Senior Subordinate Trust A securitization trust formed by Freddie Mac into which Freddie Mac transfers ownership of certain Freddie Mac-Owned Mortgages, which become Senior Subordinate Mortgages upon transfer; Freddie Mac may serve as trustee, master servicer, master custodian and, with respect to certain securities issued by the Trust, guarantor of payments owed on those securities.

(b) Servicing Senior Subordinate Mortgages Servicers of Senior Subordinate Mortgages must follow specific guidelines to ensure compliance with Freddie Mac’s Servicing requirements. The following key points outline these obligations: ■ Servicers of Senior Subordinate Mortgages must comply with all Servicing requirements of the Guide, including the additional Servicing requirements specified in this chapter that are applicable only to Senior Subordinate Mortgages ■ Freddie Mac will provide prior written notice to the Servicer of the date on which a Freddie Mac-Owned Mortgage becomes a Senior Subordinate Mortgage subject to the requirements set forth in this chapter ■ In any Guide section that requires a Servicer to act in Freddie Mac’s best interests, Servicers of a Senior Subordinate Mortgage must continue to do so on behalf of Freddie Mac in its capacity as trustee and/or master servicer of a Senior Subordinate Trust ■ Except as set forth in Section 8601.4(a), unless a Servicer receives notification from Freddie Mac that it services a Senior Subordinate Mortgage, the Servicer must not apply any of the requirements set forth in this chapter but rather should continue Servicing in accordance with all other Servicing requirements of the Guide and applicable Purchase Documents ■ If any Servicing requirement in this Chapter 8601 is inconsistent with a Servicing requirement set forth elsewhere in the Guide, the Servicer must comply with the Servicing requirement set forth in this Chapter 8601 with respect to any Senior Subordinate Mortgage or Senior Subordinate Trust

(c) Freddie Mac’s rights and Servicer rights, duties and obligations Freddie Mac retains all rights and remedies set forth in the Guide, including, but not limited to, Section 8101.1(d), except as modified below with respect to the rights set forth in Sections 9204.1(c), 7101.1(b)(iv), 9301.8(g) and 9301.9(a). Unless otherwise specified in this chapter, a Servicer of a Senior Subordinate Mortgage shall continue to have the same rights, duties and obligations with respect to Freddie Mac as it does as a Servicer of any other Freddie Mac-Owned or Guaranteed Mortgage. Consistent with Section 8101.1(c), the Servicer shall remain an independent contractor of Freddie Mac. The Servicer may enter into a contract with a Senior Subordinate Trust provided it first obtains written approval from Freddie Mac. Except as specified in a contract between the Servicer and Senior Subordinate Trust, a Servicer of Senior Subordinate Mortgages will not owe any duties or obligations to a Senior Subordinate Trust nor will it have any rights against the Senior Subordinate Trust. (i) Freddie Mac’s rights Consistent with Section 9204.1(c), Freddie Mac’s approval or settlement of a workout does not limit its right to review the Mortgage file and invoke its remedies under the Guide. If Freddie Mac determines as a result of its review of the Mortgage file or otherwise discovers any failure by a Servicer to comply with Servicing requirements of the Guide or any other Purchase Documents, Freddie Mac has the right to require the Servicer to: 1. Compensate Freddie Mac and hold it harmless for any loss, damage or expense (including court costs, attorney fees and incentive payments) incurred by Freddie Mac, and/or 2. Repurchase a Mortgage that Freddie Mac repurchased from a Senior Subordinate Trust at any time under any of the circumstances outlined in Section 3602.2(b) (ii) Unauthorized Transfer of Servicing With respect to the rights set forth in Section 7101.1(b)(iv) regarding a Servicer’s transfer of its Servicing portfolio (in whole or in part) without Freddie Mac’s prior written approval will result in the assessment of a compensatory fee as determined by Freddie Mac not to exceed 1% of the Senior Subordinate Trust’s share of the UPB of the Mortgages that are being transferred.

(d) Servicer use of Servicing Tools Any license, user agreement, term of use or similar document or requirement set forth in the Guide or other Purchase Document applicable to a Servicer’s electronic communications with Freddie Mac or the Servicer’s use of any Servicing Tools in connection with the Servicing of Mortgages under the Guide shall govern, and the same terms, conditions, and obligations and requirements shall apply to, a Servicer’s electronic communications or use of any Servicing Tools in connection with the Servicing of any Senior Subordinate Mortgage or REO owned by a Senior Subordinate Trust. If the license, user agreement, terms of use or similar document in the Purchase Document does not expressly permit the Servicer to use such Servicing Tools in connection with the Servicing of any Senior Subordinate Mortgage or REO owned by a Senior Subordinate Trust, such use is hereby deemed permitted but subject to and conditioned on all other terms, conditions, obligations and limitations applicable to the Servicer’s use of the such Servicing Tools contained in the applicable license, user agreement, terms of use or similar document in the Guide or applicable Purchase Document (including, but not limited to, all “as is” language, all liability limitations and any restrictions governing use by third parties).

(e) Borrower inquiries This subsection has been adapted from Section 8101.4(a) to reflect special Servicing requirements for Senior Subordinate Mortgages. The Servicer must respond promptly to any Borrower inquiries about the ownership or assignee of a Senior Subordinate Mortgage. When responding to such inquiries, the Servicer may, after verifying the Borrower’s identity, inform the Borrower that: ■ The Mortgage is owned by the Senior Subordinate Trust designated in the Freddie Mac notice informing the Servicer that the Mortgage became a Senior Subordinate Mortgage ■ Freddie Mac is master servicer and trustee to the Senior Subordinate Trust; and ■ The Servicer services the Mortgage in accordance with Freddie Mac’s Servicing requirements, as required by the Senior Subordinate Trust If the Servicer is unable, for instance in a telephone conversation, to verify that it is the Borrower who is requesting the information, the Borrower must request the information in writing. If requested, in addition to the information in the preceding bullets, the Servicer must also provide the Borrower with Freddie Mac’s address, Freddie Mac’s telephone number and the Freddie Mac loan number associated with the Borrower’s Mortgage. The address and telephone number that the Servicer must provide to the Borrower are: [Insert legal name of Senior Subordinate Trust] c/o FREDDIE MAC, Trustee 8200 JONES BRANCH DRIVE MCLEAN, VA 22102 (800) FREDDIE If the Servicer provides the Borrower with the requested information by telephone, the Servicer must provide the same information to the Borrower in writing. See Sections 7101.6(b), 7101.7(a), 7101.7(c) and 8101.4(d) for additional Servicing obligations related to Borrower inquiries.