Freddie Mac Single-Family Seller/Servicer Guide Section 3401.2 — Documentation and instruments

Freddie Mac Single-Family Seller/Servicer Guide Section 3401.2 — Documentation and instruments

3401.2: Documentation and instruments (02/04/26) Refer to Bulletin 2025-7, which announced the policy requirements for Uniform Appraisal Dataset (UAD) 3.6. Sellers may submit to the Uniform Collateral Data Portal® appraisal reports that use UAD 3.6 before the mandatory effective November 2, 2026 version of this section. This section contains requirements related to: ■ Note ■ Modifying instrument or assumption of indebtedness agreement ■ Underwriting summary ■ Title insurance ■ Residential loan application ■ Underwriting explanation ■ Property valuation documentation ■ Appraisal form rental information ■ Leasehold Mortgage ■ Buydown agreement ■ Mortgage insurance certificate ■ Documentation of flood zone determination ■ Evidence of flood insurance ■ Secondary financing ■ Electronic Records and Electronic Signatures Freddie Mac Single-Family Seller/Servicer Guide Chapter 3401 As of 03/04/26 Page 3401-12 ■ Other documentation (a) Note A legible copy of the Note, with all required accompanying documents (see the definition of “Note” in the Glossary) and showing all endorsements, must be maintained in the Mortgage file. The endorsement from the Seller, as required in Section 6301.2(a), does not need to appear on the copy of the Note submitted for postfunding quality control review. For Mortgages secured by property in New York State that are documented using a New York Consolidation, Extension and Modification Agreement (NY CEMA), the Mortgage files must contain legible copies of the following documents: ■ Consolidated Note showing all endorsements ■ Original Old Money Note and, if applicable, Original New Money (Gap) Note ■ Current Form 3172 as specified in Section 4101.11(b) (b) Modifying instrument or assumption of indebtedness agreement The following documents must be included in the Mortgage file: ■ The modification or conversion agreement, or the ownership transfer instrument and assumption of indebtedness agreement, if the Mortgage has been modified or converted from an ARM to a fixed-rate Mortgage or if the ownership of the Mortgaged Premises has been transferred in any way. Note: The Seller/Servicer does not need to submit for postfunding quality control review a copy of any modifying instrument that by its terms ceases to be effective upon purchase of the Mortgage by Freddie Mac. ■ The Construction to Permanent Modification Agreement for Construction to Permanent Mortgages and Renovation Mortgages; and ■ The Mortgage application, credit report, employment and income verifications for the current Borrowers if the Mortgaged Premises is currently owned by anyone other than the original Borrowers. A certification of the terms of the sale of the Mortgaged Premises (e.g., a copy of the purchase agreement signed by the seller and purchaser) must also be included. Freddie Mac Single-Family Seller/Servicer Guide Chapter 3401 As of 03/04/26 Page 3401-13 (c) Underwriting summary A completed Form 1077, Uniform Underwriting and Transmittal Summary, or equivalent form (e.g., a Feedback Certificate), must be included in the Mortgage file. (d) Title insurance Except as stated below, the Mortgage file must contain a copy of a title commitment for title insurance on an American Land Title Association form (or its equivalent if a certificate of title or attorney opinion of title is being delivered), including all schedules and proposed endorsements. The Mortgage file must also contain a copy of the final title insurance policy unless it has not been received prior to the delivery of the loan to Freddie Mac. The final policy, once issued, must be maintained in the Mortgage file and must include all required endorsements. For Cooperative Share Loans recognized as personal property and HeritageOne® Mortgages that are leasehold Mortgages, the Mortgage file is not required to contain a copy of the title commitment or final title insurance policy. Note: See Sections 4702.6 and 4702.7 for title insurance requirements for Cooperative Share Loans and HeritageOne Mortgages, respectively. (e) Residential loan application The Mortgage file must include the following: ■ A Record (as that term is defined in Section 1401.1(b)) of the initial Form 65, Uniform Residential Loan Application ■ The final signed application, and ■ A Record of Form 1103, Supplemental Consumer Information Form The final signed application must match the file documentation. If there are any discrepancies between the information on the application and the information in the credit, income and assets verifications, a written explanation of such discrepancies must also be included in the Mortgage file. (f) Underwriting explanation When either the total monthly housing expense-to-income ratio guideline of 28% or the monthly debt payment-to-income ratio guideline of 36% is exceeded on Manually Freddie Mac Single-Family Seller/Servicer Guide Chapter 3401 As of 03/04/26 Page 3401-14 Underwritten Mortgages, a written explanation fully supporting the Seller’s underwriting decision must be retained in the Mortgage file. (g) Property valuation documentation Except for Loan Product Advisor® Mortgages for which the Seller is offered and accepts automated collateral evaluation (ACE), or ACE+ PDR, in accordance with Section 5602.3 or 5602.4, the Mortgage file must include all documentation used to determine that the Mortgaged Premises is acceptable, including, but not limited to, an appraisal report and any completion report for appraisals subject to conditions. (h) Appraisal form rental information Rental information on completed appraisal forms (i.e., Form 1000, Single Family Comparable Rent Schedule, or Form 72, Small Residential Income Property Appraisal Report, as applicable), in accordance with the requirements of Chapter 5306, must be included in the Mortgage file. (i) Leasehold Mortgage If the Mortgaged Premises is on a leasehold estate, a copy of the lease with recordation information must be retained in the Mortgage file. (j) Buydown agreement For Mortgages with a temporary subsidy buydown plan, the Mortgage file must contain a copy of the executed buydown agreement. (k) Mortgage insurance certificate If mortgage insurance is required, a copy of the mortgage insurance certificate or electronic evidence of mortgage insurance coverage, as well as all documents and information relating to any change in mortgage insurance from that provided at delivery—including, but not limited to, notices of cancelation, rescission or termination of mortgage insurance and denials of claims—must be included in the Mortgage file. (l) Documentation of flood zone determination The flood zone determination must be documented in the Mortgage file. (m)Evidence of flood insurance If flood insurance is required, the Mortgage file must include acceptable final evidence of flood insurance. Freddie Mac Single-Family Seller/Servicer Guide Chapter 3401 As of 03/04/26 Page 3401-15 If final evidence of flood insurance is not available at the time of the quality control review, one of the following documents is acceptable: ■ Completed and executed National Flood Insurance Program (NFIP) Flood Insurance Application plus a copy of the Borrower’s premium check or agent’s paid receipt or ■ Completed and executed NFIP Flood Insurance Application plus the final Settlement/Closing Disclosure Statement reflecting the flood insurance premium collected at closing or ■ Completed and executed NFIP General Change Endorsement Form showing the assignment of the current flood insurance policy by the property seller to the Borrower If the flood insurer is not the NFIP, the insurer’s equivalent of the applicable NFIP form is acceptable. If the flood zone determination documentation shows the insurable improvements are in a Special Flood Hazard Area but flood insurance was waived, the Mortgage file must include the documentation which served as the basis for the waiver. (n) Secondary financing For each Mortgage that is concurrently originated with a subordinate lien (i.e., the Mortgage and subordinate lien are originated on the same day), the Seller must include in the Mortgage file a copy of the following documentation for the subordinate lien: ■ Note or other evidence of subordinate lien terms ■ The Settlement/Closing Disclosure Statement or an alternative form required by law that evidences the fees and costs paid by the Borrower at closing in connection with the secondary financing ■ For Home Equity Lines of Credit (HELOCs), the HELOC agreement indicating all fees and costs paid by the Borrower at closing and the maximum permitted credit advance. For refinance Mortgages, the Mortgage file must include evidence of subordination of outstanding secondary financing. (o) Electronic Records and Electronic Signatures If a Mortgage is originated using any Electronic Records (as defined in Section 1401.1(b)) expressly permitted by Freddie Mac in the Guide or in a Seller/Servicer’s other Purchase Freddie Mac Single-Family Seller/Servicer Guide Chapter 3401 As of 03/04/26 Page 3401-16 Documents, the Seller/Servicer’s Mortgage file may contain a combination of paper documents and Electronic Records and must contain: ■ The clear and conspicuous statement of certain information required by E-Sign (see Title I, Section 101(c)(1)(B)(i)-(iv) and (C)(i) of E-Sign) and satisfactory evidence that the Borrower received the information before consenting to Electronic Records ■ The “Consent to Electronic Records” required by E-Sign (see Title I, Section 101(c)(1)(A) and (C)(i)-(ii) of E-Sign) and satisfactory evidence that “reasonably demonstrates” that the Borrower was able to access the information required by E-Sign (see preceding bullet) before electronically consenting or confirming consent to Electronic Records ■ Federal or State disclosures that were electronically presented to and accessed by the Borrower electronically, with satisfactory evidence of when and how the electronic disclosures were received and, if required, signed by the Borrower using an Electronic Signature (as defined in Section 1401.1(b)) ■ Any other paper documents and/or Electronic Records required by the Seller/Servicer’s Purchase Documents, with satisfactory evidence of when and how the paper documents and/or Electronic Records were received and, if required, signed by the Borrower either in writing or using an Electronic Signature, as applicable In all cases, the paper documents and/or Electronic Records (including Electronic Signatures) in the Mortgage file must be sufficient to permit Freddie Mac to perform a postfunding quality control review and, among other things, obtain a reverification of the Borrower’s employment and income from employers and/or other third parties. If the Seller/Servicer’s Mortgage files contain a combination of paper documents and Electronic Records, the Seller/Servicer must maintain a computerized tracking system that cross-references the locations of both paper documents and Electronic Records for each Mortgage. Such computerized information must be made available to Freddie Mac promptly upon request. (p) Other documentation The Seller/Servicer agrees to maintain in the Mortgage file and submit to Freddie Mac: ■ The most recent Feedback Certificate and responses, including Risk Class results and underwriting requirements ■ All documents necessary to evidence compliance with all applicable anti-predatory lending laws and regulations, including, for example, any required reasonable tangible net benefit analysis, Borrower disclosures or disclosures relating to affiliated business or service providers Freddie Mac Single-Family Seller/Servicer Guide Chapter 3401 As of 03/04/26 Page 3401-17 ■ All other documents required under the Guide or other Purchase Documents, requested by Freddie Mac or otherwise commonly maintained in files of private institutional Mortgage investors or servicers Freddie Mac may require that the requested documents be delivered to Freddie Mac, an agent of Freddie Mac, or to a Document Custodian. 3401.2: Documentation and instruments (Future effective date 11/02/26) This section contains requirements related to: ■ Note ■ Modifying instrument or assumption of indebtedness agreement ■ Underwriting summary ■ Title insurance ■ Residential loan application ■ Underwriting explanation ■ Property valuation documentation ■ Appraisal form rental information ■ Leasehold Mortgage ■ Buydown agreement ■ Mortgage insurance certificate ■ Documentation of flood zone determination ■ Evidence of flood insurance ■ Secondary financing ■ Electronic Records and Electronic Signatures ■ Other documentation Freddie Mac Single-Family Seller/Servicer Guide Chapter 3401 As of 03/04/26 Page 3401-18 (a) Note A legible copy of the Note, with all required accompanying documents (see the definition of “Note” in the Glossary) and showing all endorsements, must be maintained in the Mortgage file. The endorsement from the Seller, as required in Section 6301.2(a), does not need to appear on the copy of the Note submitted for postfunding quality control review. For Mortgages secured by property in New York State that are documented using a New York Consolidation, Extension and Modification Agreement (NY CEMA), the Mortgage files must contain legible copies of the following documents: ■ Consolidated Note showing all endorsements ■ Original Old Money Note and, if applicable, Original New Money (Gap) Note ■ Current Form 3172 as specified in Section 4101.11(b) (b) Modifying instrument or assumption of indebtedness agreement The following documents must be included in the Mortgage file: ■ The modification or conversion agreement, or the ownership transfer instrument and assumption of indebtedness agreement, if the Mortgage has been modified or converted from an ARM to a fixed-rate Mortgage or if the ownership of the Mortgaged Premises has been transferred in any way. Note: The Seller/Servicer does not need to submit for postfunding quality control review a copy of any modifying instrument that by its terms ceases to be effective upon purchase of the Mortgage by Freddie Mac. ■ The Construction to Permanent Modification Agreement for Construction to Permanent Mortgages and Renovation Mortgages; and ■ The Mortgage application, credit report, employment and income verifications for the current Borrowers if the Mortgaged Premises is currently owned by anyone other than the original Borrowers. A certification of the terms of the sale of the Mortgaged Premises (e.g., a copy of the purchase agreement signed by the seller and purchaser) must also be included. Freddie Mac Single-Family Seller/Servicer Guide Chapter 3401 As of 03/04/26 Page 3401-19 (c) Underwriting summary A completed Form 1077, Uniform Underwriting and Transmittal Summary, or equivalent form (e.g., a Feedback Certificate), must be included in the Mortgage file. (d) Title insurance Except as stated below, the Mortgage file must contain a copy of a title commitment for title insurance on an American Land Title Association form (or its equivalent if a certificate of title or attorney opinion of title is being delivered), including all schedules and proposed endorsements. The Mortgage file must also contain a copy of the final title insurance policy unless it has not been received prior to the delivery of the loan to Freddie Mac. The final policy, once issued, must be maintained in the Mortgage file and must include all required endorsements. For Cooperative Share Loans recognized as personal property and HeritageOne® Mortgages that are leasehold Mortgages, the Mortgage file is not required to contain a copy of the title commitment or final title insurance policy. Note: See Sections 4702.6 and 4702.7 for title insurance requirements for Cooperative Share Loans and HeritageOne Mortgages, respectively. (e) Residential loan application The Mortgage file must include the following: ■ A Record (as that term is defined in Section 1401.1(b)) of the initial Form 65, Uniform Residential Loan Application ■ The final signed application, and ■ A Record of Form 1103, Supplemental Consumer Information Form The final signed application must match the file documentation. If there are any discrepancies between the information on the application and the information in the credit, income and assets verifications, a written explanation of such discrepancies must also be included in the Mortgage file. (f) Underwriting explanation When either the total monthly housing expense-to-income ratio guideline of 28% or the monthly debt payment-to-income ratio guideline of 36% is exceeded on Manually Freddie Mac Single-Family Seller/Servicer Guide Chapter 3401 As of 03/04/26 Page 3401-20 Underwritten Mortgages, a written explanation fully supporting the Seller’s underwriting decision must be retained in the Mortgage file. (g) Property valuation documentation Except for Loan Product Advisor® Mortgages for which the Seller is offered and accepts automated collateral evaluation (ACE), or ACE+ PDR, in accordance with Section 5602.3 or 5602.4, the Mortgage file must include all documentation used to determine that the Mortgaged Premises is acceptable, including, but not limited to, an appraisal report and any completion report for appraisals subject to conditions. (h) Appraisal form rental information Rental information must be completed on the appraisal report in accordance with the requirements of Chapter 5306, as applicable, and the appraisal report must be included in the Mortgage file. (i) Leasehold Mortgage If the Mortgaged Premises is on a leasehold estate, a copy of the lease with recordation information must be retained in the Mortgage file. (j) Buydown agreement For Mortgages with a temporary subsidy buydown plan, the Mortgage file must contain a copy of the executed buydown agreement. (k) Mortgage insurance certificate If mortgage insurance is required, a copy of the mortgage insurance certificate or electronic evidence of mortgage insurance coverage, as well as all documents and information relating to any change in mortgage insurance from that provided at delivery—including, but not limited to, notices of cancelation, rescission or termination of mortgage insurance and denials of claims—must be included in the Mortgage file. (l) Documentation of flood zone determination The flood zone determination must be documented in the Mortgage file. (m)Evidence of flood insurance If flood insurance is required, the Mortgage file must include acceptable final evidence of flood insurance. If final evidence of flood insurance is not available at the time of the quality control review, one of the following documents is acceptable: Freddie Mac Single-Family Seller/Servicer Guide Chapter 3401 As of 03/04/26 Page 3401-21 ■ Completed and executed National Flood Insurance Program (NFIP) Flood Insurance Application plus a copy of the Borrower’s premium check or agent’s paid receipt or ■ Completed and executed NFIP Flood Insurance Application plus the final Settlement/Closing Disclosure Statement reflecting the flood insurance premium collected at closing or ■ Completed and executed NFIP General Change Endorsement Form showing the assignment of the current flood insurance policy by the property seller to the Borrower If the flood insurer is not the NFIP, the insurer’s equivalent of the applicable NFIP form is acceptable. If the flood zone determination documentation shows the insurable improvements are in a Special Flood Hazard Area but flood insurance was waived, the Mortgage file must include the documentation which served as the basis for the waiver. (n) Secondary financing For each Mortgage that is concurrently originated with a subordinate lien (i.e., the Mortgage and subordinate lien are originated on the same day), the Seller must include in the Mortgage file a copy of the following documentation for the subordinate lien: ■ Note or other evidence of subordinate lien terms ■ The Settlement/Closing Disclosure Statement or an alternative form required by law that evidences the fees and costs paid by the Borrower at closing in connection with the secondary financing ■ For Home Equity Lines of Credit (HELOCs), the HELOC agreement indicating all fees and costs paid by the Borrower at closing, and the maximum permitted credit advance. For refinance Mortgages, the Mortgage file must include evidence of subordination of outstanding secondary financing. (o) Electronic Records and Electronic Signatures If a Mortgage is originated using any Electronic Records (as defined in Section 1401.1(b)) expressly permitted by Freddie Mac in the Guide or in a Seller/Servicer’s other Purchase Documents, the Seller/Servicer’s Mortgage file may contain a combination of paper documents and Electronic Records and must contain: Freddie Mac Single-Family Seller/Servicer Guide Chapter 3401 As of 03/04/26 Page 3401-22 ■ The clear and conspicuous statement of certain information required by E-Sign (see Title I, Section 101(c)(1)(B)(i)-(iv) and (C)(i) of E-Sign) and satisfactory evidence that the Borrower received the information before consenting to Electronic Records ■ The “Consent to Electronic Records” required by E-Sign (see Title I, Section 101(c)(1)(A) and (C)(i)-(ii) of E-Sign) and satisfactory evidence that “reasonably demonstrates” that the Borrower was able to access the information required by E-Sign (see preceding bullet) before electronically consenting or confirming consent to Electronic Records ■ Federal or State disclosures that were electronically presented to and accessed by the Borrower electronically, with satisfactory evidence of when and how the electronic disclosures were received and, if required, signed by the Borrower using an Electronic Signature (as defined in Section 1401.1(b)) ■ Any other paper documents and/or Electronic Records required by the Seller/Servicer’s Purchase Documents, with satisfactory evidence of when and how the paper documents and/or Electronic Records were received and, if required, signed by the Borrower either in writing or using an Electronic Signature, as applicable In all cases, the paper documents and/or Electronic Records (including Electronic Signatures) in the Mortgage file must be sufficient to permit Freddie Mac to perform a postfunding quality control review and, among other things, obtain a reverification of the Borrower’s employment and income from employers and/or other third parties. If the Seller/Servicer’s Mortgage files contain a combination of paper documents and Electronic Records, the Seller/Servicer must maintain a computerized tracking system that cross-references the locations of both paper documents and Electronic Records for each Mortgage. Such computerized information must be made available to Freddie Mac promptly upon request. (p) Other documentation The Seller/Servicer agrees to maintain in the Mortgage file and submit to Freddie Mac: ■ The most recent Feedback Certificate and responses, including Risk Class results and underwriting requirements ■ All documents necessary to evidence compliance with all applicable anti-predatory lending laws and regulations, including, for example, any required reasonable tangible net benefit analysis, Borrower disclosures or disclosures relating to affiliated business or service providers ■ All other documents required under the Guide or other Purchase Documents, requested by Freddie Mac or otherwise commonly maintained in files of private institutional Mortgage investors or servicers Freddie Mac Single-Family Seller/Servicer Guide Chapter 3401 As of 03/04/26 Page 3401-23 Freddie Mac may require that the requested documents be delivered to Freddie Mac, an agent of Freddie Mac, or to a Document Custodian

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