Freddie Mac Single-Family Seller/Servicer Guide Section 4201.8 — Wholesale Home Mortgages

Freddie Mac Single-Family Seller/Servicer Guide Section 4201.8 — Wholesale Home Mortgages

4201.8: Wholesale Home Mortgages (04/02/25) Wholesale Home Mortgages are eligible for sale to Freddie Mac in accordance with the requirements of this section. This section contains requirements related to: ■ Representations and warranties ■ Delivery instructions For Wholesale Home Mortgages, the Correspondent or Mortgage Broker (or their authorized third parties) may perform all or some of the origination, processing, underwriting, packaging, funding and/or closing functions described in the Purchase Documents as obligations or requirements of the Seller. Although these functions may not be performed directly by the Seller, the Seller is responsible for compliance with requirements of all Purchase Documents. Freddie Mac Single-Family Seller/Servicer Guide Chapter 4201 As of 03/04/26 Page 4201-6 (a) Representations and warranties The Seller must represent and warrant with respect to each Wholesale Home Mortgage it sells to Freddie Mac that the Seller has management controls in place that: ■ Ensure the Mortgage complies with the terms of the Purchase Documents ■ Correspond to the scope and types of risks associated with its wholesale business. Factors to be considered include, but are not limited to, the: ❑ Number of Correspondents and Mortgage Brokers the Seller uses ❑ Length of time the business relationship has been established ❑ Types of services provided by the Correspondent or Mortgage Broker (b) Delivery instructions The Seller is required to deliver one of the following ULDD Data Points, as applicable, for each Wholesale Home Mortgage: ■ Loan Originator Type of “Correspondent,” or ■ Loan Originator Type of “Broker” 4201.9: General property insurance requirements (04/02/25) The requirements of Chapters 4703 and 8202 for property and casualty insurance must be met at the time a Mortgage is sold to Freddie Mac and continually thereafter for as long as Freddie Mac owns an interest in the Mortgage. 4201.10: No circumstances adversely affecting value of Mortgage (04/02/25) No proceeding may be pending for condemnation of all or any part of the Mortgaged Premises. There may be no circumstances or conditions of which the Seller is aware involving the Mortgage, the Mortgaged Premises or the creditworthiness of the Borrower that would adversely affect the value or marketability of the Mortgage. Freddie Mac Single-Family Seller/Servicer Guide Chapter 4201 As of 03/04/26 Page 4201-7 4201.11: Mortgages secured by Primary Residences (10/01/25) This section contains information related to: ■ Occupancy requirements ■ Rental income from a Primary Residence ■ Other Guide provisions ■ Delivery requirements for rental income from all subject 2- to 4-unit Primary Residences (a) Occupancy requirements A Mortgage is considered to be secured by a Primary Residence when at least one of the Borrowers occupies all or part of the Mortgaged Premises as a Primary Residence as of the Delivery Date. For Manually Underwritten Mortgages with a loan-to-value ratio greater than 90%, each Borrower whose income or financial strength was used for qualification purposes must occupy all or part of the Mortgaged Premises as a Primary Residence as of the Delivery Date. Exceptions: ■ A Mortgage is considered to be secured by a Primary Residence when made to an active- duty military Borrower who is unable to occupy the Primary Residence prior to the Delivery Date due to military service when the following requirements are met: ❑ The Mortgage file must contain the Borrower’s military orders verifying the Borrower is temporarily unable to occupy the Primary Residence due to the military assignment ❑ The Seller must deliver ULDD Data Point Investor Feature Identifier valid value “D76”. See Section 6302.8(a) for more information. ■ A Mortgage is considered to be secured by a Primary Residence when the Mortgaged Premises is occupied as a Primary Residence by an individual(s) who is the Borrower’s parent(s) ■ A Mortgage is considered to be secured by a Primary Residence when the Mortgaged Premises is occupied as a Primary Residence by an individual(s) who has a disability and the Borrower is their parent or legal guardian Freddie Mac Single-Family Seller/Servicer Guide Chapter 4201 As of 03/04/26 Page 4201-8 (b) Rental income from a Primary Residence Rental income generated from a Mortgage secured by a Primary Residence is not permitted to qualify the Borrower, except as stated in Section 4501.6 for Home Possible® Mortgages and Section 5306.1 for rental income from a live-in aide or rental income generated from an ADU. (c) Other Guide provisions Refer to the following Guide provisions for additional information related to Mortgages secured by Primary Residences: Other Guide provisions related to Mortgages secured by Primary Residences Guide provision Guide location Mortgages with a non-occupying Borrower Section 5103.1 Special occupancy requirement for Mortgages made pursuant to employee relocation programs Section 4408.1(c) Special occupancy requirement for CHOICERenovation® In Progress Mortgages Section 4607.3(b) (d) Delivery requirements for rental income from all subject 2- to 4-unit Primary Residences Regardless of whether rental income from the subject 2- to 4-unit Primary Residence is being used to qualify the Borrower, the Seller must deliver the ULDD Data Point Property Dwelling Unit Eligible Rent Amount for each non-owner occupied unit in a subject 2- to 4- unit Primary Residence. Note: See Section 6302.8 for delivery requirements for rental income.

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