Freddie Mac Single-Family Seller/Servicer Guide §4407.1 — Eligibility of properties impacted by a disaster (01/26/26)
Freddie Mac Guide §4407.1 (Eligibility of properties impacted by a disaster). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide §4407.1 — Eligibility of properties impacted by a disaster (01/26/26) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Freddie Mac Guide 4407.1
(01/26/26) 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: ■ Property eligibility ■ Condition of the Mortgaged Premises (a) Property eligibility The Seller represents and warrants that each property securing a Mortgage sold to Freddie Mac meets the property eligibility requirements in the Purchase Documents, including, but not limited to, the collateral representation and warranty requirements regarding the value, condition and marketability of the Mortgaged Premises in Section 5602.1. The Seller must have policies and procedures in place to assess whether there has been any adverse effect on the Mortgaged Premises that needs to be addressed before the Mortgage is eligible for delivery to Freddie Mac. If the Mortgage is a Condominium Unit Mortgage, the Seller’s assessment should include damage to Condominium Project Common Elements, separate from any specific Condominium Unit damage. (b) Condition of the Mortgaged Premises For a Mortgage secured by a property impacted by a disaster to be eligible for sale to Freddie Mac: ■ The property damage must not have impacted the safety, soundness or structural integrity of the Mortgaged Premises ■ The Seller must ensure all damage is documented and is covered by insurance as required in Chapter 4703 If the property securing the Mortgage has been damaged such that the damage impacts the safety, soundness or structural integrity of the Mortgaged Premises, the property is not acceptable as security for the Mortgage, and the Mortgage is not eligible for sale to Freddie Mac until all repairs to the property are documented and completed.
Freddie Mac Guide 4407.1
Eligibility of properties impacted by a disaster (Future effective date 11/02/26) This section contains requirements related to: ■ Property eligibility ■ Condition of the Mortgaged Premises (a) Property eligibility The Seller represents and warrants that each property securing a Mortgage sold to Freddie Mac meets the property eligibility requirements in the Purchase Documents, including, but not limited to, the collateral representation and warranty requirements regarding the value, condition and marketability of the Mortgaged Premises in Section 5602.1. The Seller must have policies and procedures in place to assess whether there has been any adverse effect on the Mortgaged Premises that needs to be addressed before the Mortgage is eligible for delivery to Freddie Mac. If the Mortgage is a Condominium Unit Mortgage, the Seller’s assessment should include damage to Condominium Project Common Elements, separate from any specific Condominium Unit damage. (b) Condition of the Mortgaged Premises For a Mortgage secured by a property impacted by a disaster to be eligible for sale to Freddie Mac: ■ The property damage must not have impacted the soundness or structural integrity of the Mortgaged Premises ■ The Seller must ensure all damage is documented and is covered by insurance as required in Chapter 4703 If the property securing the Mortgage has been damaged such that the damage impacts the soundness or structural integrity of the Mortgaged Premises, the property is not acceptable as security for the Mortgage, and the Mortgage is not eligible for sale to Freddie Mac until all repairs to the property are documented and completed.
Freddie Mac Guide 4407.1
Representation and warranty relief for automated collateral evaluation (ACE) or ACE+ PDR offers and Loan Collateral Advisor® (02/04/26) For Mortgages secured by property in an Eligible Disaster Area, Freddie Mac:
Freddie Mac Guide 4407.1
407-3 ■ May systematically suspend automated collateral evaluation (ACE) and/or ACE+ PDR eligibility and appraised value representation and warranty relief eligibility on new Loan Product Advisor® or Loan Collateral Advisor® submissions ■ Will notify Sellers in a Guide Bulletin of the occurrence of any disaster that requires a systematic suspension Freddie Mac will monitor market developments within impacted areas and reinstate eligibility at its discretion. Note: See Chapter 5602 for eligibility requirements for ACE, ACE+ PDR and Loan Collateral Advisor appraised value representation and warranty relief.
Freddie Mac Guide 4407.1
Age of documentation and Loan Product Advisor® submission requirements in Eligible Disaster Areas (02/04/26) This section contains: ■ Collateral valuation in an Eligible Disaster Area ■ Special age of credit documentation requirements ■ Special delivery requirements (a) Collateral valuation in an Eligible Disaster Area The following flexibilities apply to Mortgages secured by properties in Eligible Disaster Areas and will continue to apply for six months after the disaster declaration date announced by the Federal Emergency Management Agency (FEMA): ■ For a Mortgage secured by property in an Eligible Disaster Area, although Section 5604.3(a)(i) provides otherwise, the effective date of the appraisal report must not be more than 180 days before the: ❑ Note Date ❑ Effective Date of Permanent Financing, for Construction to Permanent Mortgages or Renovation Mortgages ❑ Modification date, for Seller-Owned Modified Mortgages ❑ Conversion Date, for Seller-Owned Converted Mortgages
Freddie Mac Guide 4407.1
407-4 ❑Assumption agreement date, if applicable ■ For a Mortgage secured by property in an Eligible Disaster Area, although Section 5602.3(f) provides otherwise, the Feedback Certificate message that offers the Seller automated collateral evaluation (ACE) is valid for 180 days, if the Seller does not make any loan data changes that invalidate the ACE offer. If the ACE offer on the Feedback Certificate is more than 180 days old as of the Note Date, the Seller must resubmit the Mortgage to Loan Product Advisor® to determine whether the Mortgage is still eligible for ACE. See Section 5602.3 for maintaining ACE eligibility. ■ For a Mortgage secured by property in an Eligible Disaster Area, although Section 5602.4(f) provides otherwise, the Feedback Certificate message that offers the Seller ACE+ PDR is valid for 180 days, if the Seller does not make any loan data changes that invalidate the ACE+ PDR offer. If the ACE+ PDR offer on the Feedback Certificate is more than 180 days old as of the Note Date, the Seller must resubmit the Mortgage to Loan Product Advisor to determine whether the Mortgage is still eligible for ACE+ PDR. See Section 5602.4 for maintaining ACE+ PDR eligibility. ■ For a Freddie Mac Enhanced Relief Refinance® Mortgage secured by property in an Eligible Disaster Area, if an HVE® value estimate is systematically suspended for the Mortgaged Premises on resubmission to Loan Product Advisor, the Seller may use the HVE value from the original submission (b) Special age of credit documentation requirements The following flexibilities apply to Mortgages secured by properties in Eligible Disaster Areas and will continue to apply for six months after the disaster declaration date announced by FEMA. For a Mortgage secured by property in an Eligible Disaster Area, although Sections 5102.4(a) and 5203.1(d) provide otherwise: ■ Any required credit and capacity underwriting documentation (including, but not limited to, credit reports, verifications of income, employment and sources of funds) must be dated no more than 180 days before the: ❑ Note Date
Freddie Mac Guide 4407.1
407-5 ❑ Effective Date of Permanent Financing, for Construction to Permanent Mortgages and Renovation Mortgages ❑ Modification date, for Seller-Owned Modified Mortgages ❑ Conversion Date, for Seller-Owned Converted Mortgages ❑ Assumption agreement date, if applicable ■ For Loan Product Advisor Mortgages secured by property in an Eligible Disaster Area, although Section 5101.1(c) provides otherwise, the Mortgage must be submitted to Loan Product Advisor no more than 180 days before, and no later than, the Note Date or, for Construction to Permanent Mortgages and Renovation Mortgages, the Effective Date of Permanent Financing. Note: Loan Product Advisor will automatically pull a new credit report for submissions or resubmissions more than 120 days after the date of the credit report used in the previous Loan Product Advisor assessment. ■ The requirements for the 10-day pre-closing verification of employment in Section 5302.2 and the verification of the current existence of the self-employed Borrower’s business in Section 5304.1(m) continue to apply (c) Special delivery requirements The Seller must deliver ULDD Data Point Investor Feature Identifier valid value “H37” when delivering a Mortgage using the flexibilities in this Section 4407.3. See Section 6302.44 for special delivery requirements.
Freddie Mac Guide 4407.1
408-1 Chapter 4408: Mortgages Made Pursuant to Employee Relocation Programs
Freddie Mac Guide 4407.1
Mortgages made pursuant to employee relocation programs (02/04/26) The provisions of this chapter apply to Mortgages made pursuant to an employee relocation program. This section contains: ■ Eligibility requirements ■ Ineligible Mortgages ■ Special occupancy requirements ■ Special underwriting requirements ■ Additional documentation requirements ■ Special pooling and delivery requirements (a) Eligibility requirements These Mortgages must be made to a newly hired or transferred employee to finance the purchase of a 1- to 4-unit Primary Residence at a new job location pursuant to an employee relocation program that: ■ Establishes the terms and conditions under which the employer relocates employees, and ■ Is administered by the employer or its agent (b) Ineligible Mortgages The following are ineligible Mortgages: ■ Caution Mortgages ■ Community Land Trust Mortgages ■ Government Mortgages ■ Mortgages with capitalized balances as described in Chapter 4403
Freddie Mac Guide 4407.1
408-2 ■ Seller-Owned Converted Mortgages ■ Seller-Owned Modified Mortgages (c) Special occupancy requirements A Mortgage is considered to be secured by a Primary Residence when the Borrower occupies all or part of the Mortgaged Premises as a Primary Residence no later than 180 days after the Note Date or the Effective Date of Permanent Financing for Construction to Permanent Mortgages and Renovation Mortgages. If the occupancy of the Mortgaged Premises is delayed more than 90 days, the Seller must maintain in the Mortgage file a signed statement from the Borrower confirming their intent to occupy the property within 180 days of the Note Date or the Effective Date of Permanent Financing for Construction to Permanent Mortgages and Renovation Mortgages. (d) Special underwriting requirements (i) Underwriting methods The Mortgage must be one of the following: ■ An Accept Mortgage ■ A Manually Underwritten Mortgage, if the Mortgage was: ❑ Never submitted to Loan Product Advisor® or ❑ Submitted to Loan Product Advisor and did not receive a Risk Class (ii) Establishing Borrower credit reputation with foreign credit references for Manually Underwritten Mortgages For Manually Underwritten Mortgages, when the Borrower does not have the minimum required number of payment references established in the United States as required in Section 5202.1(a)(i), or when the Borrower does not have a usable Credit Score, the Seller may determine that the Borrower has established an acceptable credit reputation in a foreign country if all of the following apply: ■ The determination is based on a minimum of three Tradelines. (Noncredit Payment References established outside of the United States are not eligible.) ■ The Mortgage file contains a credit report meeting the requirements of Section 5203.1 and confirming that the Borrower does not have a sufficient number of payment references established in the United States (iii)Current Primary Residence pending sale