Freddie Mac Single-Family Seller/Servicer Guide 1302.7 — Information security and other requirements for Related Third Parties

Freddie Mac Single-Family Seller/Servicer Guide 1302.7 — Information security and other requirements for Related Third Parties

Effective 2025-03-11 · Freddie Mac's stamp for this section

Seller/Servicers must: ■ Require any Related Third Party to: ❑ Comply with requirements substantially similar to those imposed on the Seller/Servicer under Chapter 1302 ❑ Refrain from interfering with or impairing any obligations of the Seller/Servicer to Freddie Mac, under a Purchase Document or elsewhere, of which any member of the Related Third Party’s Senior Management has actual knowledge ■ Designate Freddie Mac as an express, intended third-party beneficiary of each agreement with a Related Third Party, a breach of which may have a Material Adverse Effect and include in the agreement the obligations referenced above. Notwithstanding the foregoing, the third-party designation requirement shall not apply to agreements with any of the Seller/Servicer’s counterparties that have direct relationship(s) with Freddie Mac relative to the same subject matter and Freddie Mac has direct standing to enforce the terms of the subject agreement. (MIs, credit bureaus or Warehouse Lenders, for example, may qualify as such counterparties.) In determining whether the third-party designation requirement applies to a specific counterparty, the Seller/Servicer shall seek clarification from Freddie Mac. ■ Indemnify Freddie Mac and its directors, officers, employees, agents, successors and assigns and hold each harmless from and against any and all liabilities, losses, claims, actions, damages, including, but not limited to, indirect, incidental, special or consequential damages, whether foreseeable or not, judgments, costs and expenses, including reasonable attorneys’ fees, arising directly or indirectly out of or relating to any breach of a Seller/Servicer representation, warranty, covenant and/or obligation under Chapter 1302, whether such breach arises out of its own action or inaction or the action or inaction of a Related Third Party or of any Seller/Servicer or Related Third Party director, officer, employee, subcontractor, partner, principal, agent, successor or assign. Freddie Mac shall provide the Seller/Servicer with notice of any such claim after it comes to Freddie Mac’s attention.

Source: Freddie Mac Single-Family Seller/Servicer Guide 1302.7 — Information security and other requirements for Related Third Parties · source URL · snapshot 4c94f67729042dd6