Freddie Mac Single-Family Seller/Servicer Guide 8901.1 — Servicing HeritageOne® Mortgages

This section contains requirements related to: ■ Definitions used in this Chapter 8901 ■ Servicer approval/eligibility ■ Tracking HeritageOne® Mortgages ■ Additional Servicing requirements applicable to HeritageOne Mortgages ■ HeritageOne leasehold Mortgages ■ Resale restrictions ■ General notice and disclosure requirements ■ Occupancy attestation ■ Subsequent Transfers of Servicing with respect to HeritageOne Mortgages

(a) Definitions used in this Chapter 8901 Key terms and definitions used in this Chapter 8901 can be found below and in Section 4504.2(c). Servicers of a HeritageOne Mortgage should be familiar with these key terms and definitions: Key terms and definitions B BIA U.S. Department of the Interior Bureau of Indian Affairs N Native American Any person recognized as being Native American, American Indian or Alaska Native by a Native American Tribe, the federal government or any State Native American Tribe A federally recognized Indian tribe of the United States that is included in the BIA’s most recent publication of the notice titled “Indian Entities Recognized by and Eligible To Receive Services From the United States Bureau of Indian Affairs”. “Native American Tribe” includes any housing authority, utility, corporation, partnership or other entity that is partially or wholly owned by the Native American Tribe. T Tribal Area A census tract, or any portion thereof, that is designated as both a HUD Indian Housing Block Grant (IHBG) Area and a rural area under FHFA’s Duty to Serve Regulation and is identified as an “Indian area” in the current version of FHFA’s Indian Areas File Note: Refer to Chapter 4504 for specific requirements for selling a HeritageOne Mortgage to Freddie Mac.

(b) Servicer approval/eligibility This Chapter 8901 is not a general offering due to the necessary expertise and additional requirements to service HeritageOne Mortgages. The Servicer must obtain explicit approval from Freddie Mac to service HeritageOne Mortgages.

(c) Tracking HeritageOne Mortgages Servicers of HeritageOne Mortgages must implement policies, procedures and systems to identify and track HeritageOne Mortgages to ensure that such Mortgages are serviced in accordance with the Servicing requirements of the Guide and this chapter.

(d) Additional Servicing requirements applicable to HeritageOne Mortgages For each HeritageOne Mortgage being serviced for Freddie Mac, the Servicer must: ■ Be approved to service loans on the Native American Tribe’s Tribal Area in which the property resides, in accordance with applicable law; and ■ Service HeritageOne Mortgages in accordance with the Servicing requirements of the Guide, this chapter and applicable law The Servicing requirements of this chapter are applicable only to the Servicing of HeritageOne Mortgages. If any Servicing requirement in this chapter is inconsistent with a Servicing requirement set forth elsewhere in the Guide (except for requirements to comply with applicable law, which supersede any other Servicing requirement in the Guide), the Servicer must comply with the Servicing requirement set forth in this chapter with respect to any HeritageOne Mortgage. Servicers must not apply any of the requirements set forth in this chapter to a Mortgage that is not designated a HeritageOne Mortgage; rather, the Servicer should continue Servicing such Mortgages in accordance with all other Servicing requirements of the Guide and other applicable Purchase Documents.

(e) HeritageOne leasehold Mortgages Unless inconsistent with a Servicing requirement set forth in this Chapter 8901, all Servicing requirements of the Guide governing Mortgages secured by leasehold estates (leasehold Mortgages) apply to HeritageOne leasehold Mortgages. Additional leasehold Mortgage requirements Topic Guide location Requirements related to Servicing leasehold Mortgages if termination of the lease will jeopardize Freddie Mac’s lien position or interest in the property Sections 9301.6(d), 9401.1(c) and 9701.2(e)(iii) Requirements for negotiating the extension of the current term of a lease (or applicable renewal options) in the event the current term of a lease (or applicable renewal options) terminates earlier than five years after the maturity date of the proposed modification of a leasehold Mortgage. As noted in Section 4504.8(b), this may include obtaining approval from the U.S. Secretary of the Interior or the BIA, as applicable. Section 9206.1(c)(ii) Requirements for HeritageOne leasehold Mortgages Section 4504.8

(f) Resale restrictions As described in Section 4504.5(h), HeritageOne Mortgages may be subject to resale restrictions. Unless inconsistent with a Servicing requirement set forth in this Chapter 8901, Servicers should refer to Chapter 4406. Additional resale restriction requirements Topic Guide location Requirements regarding resale restrictions on HeritageOne Mortgages Section 4504.5(h) Freddie Mac Standard Short Sale (“short sale”) evaluation requirements for Mortgages secured by properties subject to resale restrictions, unless inconsistent with a Servicing requirement set forth in this Chapter 8901 Sections 9208.1(b)(iii) and 9208.2(a) Foreclosure sale bidding requirements on properties subject to resale restrictions Sections 9301.8(a), 9301.8(b) and 9301.8(d)

(g) General notice and disclosure requirements The Servicer must provide all notices and disclosures to the Borrower obligated under a HeritageOne Mortgage and, as applicable, the Native American Tribe, the BIA and/or the Secretary of the Interior as required by applicable law, the Mortgage documents and any applicable Freddie Mac HeritageOne memorandum of understanding, as outlined in this chapter. All notices and disclosures must include any required response requirements and/or time frames.

(h) Occupancy attestation The Servicer is highly encouraged, but not required, to have the Borrower obligated under a HeritageOne Mortgage complete an annual attestation in which the Borrower attests to the current occupancy status of the property. Upon completion, the Servicer is encouraged to add the attestation to the Mortgage file.

(i) Subsequent Transfers of Servicing with respect to HeritageOne Mortgages HeritageOne Mortgages must not be included in any Subsequent Transfers of Servicing unless the transfer is expressly approved by Freddie Mac.