Freddie Mac Single-Family Seller/Servicer Guide Section 3402.3 — Documenting and reporting

Freddie Mac Single-Family Seller/Servicer Guide Section 3402.3 — Documenting and reporting

3402.3: Documenting and reporting (05/06/26) This section contains information related to: ■ Documenting reviews ■ Reporting requirements ■ Retention of Seller’s quality control records (a) Documenting reviews The Seller must: ■ Maintain complete records for each Mortgage file selected for a preclosing or a post- closing quality control review ■ Document and explain discrepancies or inconsistencies found in the Mortgage file that affect the eligibility of the Mortgage based on the requirements of the Seller, the MI or Freddie Mac Freddie Mac Single-Family Seller/Servicer Guide Chapter 3402 As of 05/06/26 Page 3402-21 (b) Reporting requirements The Seller’s quality control program must provide that all preclosing and post-closing quality control activities be fully documented in writing and reviewed by management on a regular basis. (i) Reporting results Quality control review results must be reported in writing to the Seller’s Senior Management within 90 days of selection of the Mortgage files for review. The Seller must thoroughly analyze findings affecting the acceptability or eligibility of Mortgages and initiate any necessary corrective actions. (ii) Notification to Freddie Mac The Seller must notify Freddie Mac within 30 days of the date the quality control results are reported in writing to the Seller’s Senior Management when a finding affects the eligibility of a Mortgage sold to Freddie Mac or if the finding is related to fraud or possible fraud. The Seller must notify Freddie Mac Quality Control via the Tip Referral Tool, accessible via Freddie Mac Gateway®, of findings that relate to any of the following: ■ Misrepresentations, misstatements or omissions identified in Section 3201.2(a), to the extent they are associated with the origination of a Mortgage, whether discovered through a post-closing quality control review or by any other means. All other findings related to fraud, suspected fraud or other Suspicious Activity must be reported in accordance with Section 3201.2. ■ The underwriting of the Borrower’s creditworthiness and capacity (e.g., Borrower’s income, credit/liabilities, assets) or Borrower eligibility and qualification (e.g., Area Median Income, First-Time Homebuyer, lawful presence in the United States) ■ The underwriting criteria related to property or project eligibility (e.g., residential use, condominium eligibility), the appraisal report or the physical condition of the Mortgaged Premises ■ Mortgage or program terms and criteria (e.g., program that may require special Seller/Servicer approval as a prerequisite for delivery and the criteria described in the Purchase Documents, such as loan-to-value ratio, occupancy, Credit Score, Mortgage purpose and Mortgage Product, terms such as ineligible transaction types and limitations on cash out to the Borrower that determines the type of refinance) or any terms and criteria set forth in any negotiated provision ■ A life-of-loan representation and warranty (as described in Section 1301.6) regarding Freddie Mac Single-Family Seller/Servicer Guide Chapter 3402 As of 05/06/26 Page 3402-22 the following: ❑ Charter matters ❑ Misstatements, misrepresentations and omissions ❑ Data inaccuracies ❑ Clear title/First Lien priority ❑ Compliance with laws ❑ Unacceptable Mortgage products ■ Requirements applicable at the time the Mortgage was sold to Freddie Mac (e.g., no defaults, all taxes and insurances have been paid or escrows have been established, no modification, encumbrance, subordination or release of the Mortgage) ■ The existence, sufficiency or enforceability of any required insurance or guaranty ■ The form and/or execution of Freddie Mac required Mortgage documents, without which the Mortgage would be ineligible for sale to Freddie Mac or the enforceability of the required Mortgage terms would be limited (e.g., Form 65, power of attorney, Texas Equity Section 50(a)(6) Mortgage documents, nonstandard or special purpose documents such as Living Trusts) Note: Freddie Mac reserves the right to increase the sampling or to impose other requirements on a case-by-case basis. (c) Retention of Seller’s quality control records For at least three years from the date of the preclosing or post-closing quality control review, the Seller must retain all records of its quality control findings, along with documentation of any corrective action taken. These records must be made available to Freddie Mac and upon request to the new Servicer if a Transfer of Servicing occurs. Upon request by Freddie Mac, the Seller must provide records that clearly indicate: ■ The Freddie Mac loan number, ■ The Seller’s final determination (from its quality control department) of whether the Mortgage is an Investment Quality Mortgage, and ■ Other loan-level information that is requested by Freddie Mac Freddie Mac Single-Family Seller/Servicer Guide Chapter 3403 As of 02/11/26 Page 3403-1 Chapter 3403: Servicer’s Quality Control Program

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