Freddie Mac Single-Family Seller/Servicer Guide Section 5102.1 — Underwriting a Mortgage
Freddie Mac Single-Family Seller/Servicer Guide Section 5102.1 — Underwriting a Mortgage.
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide Section 5102.1 — Underwriting a Mortgage — 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 Single-Family Seller/Servicer Guide Section 5102.1 — Underwriting a Mortgage
5102.1: Underwriting a Mortgage (02/04/26) The section contains information related to: ■ Overview of credit reputation, capacity and collateral ■ Documentation requirements for creditworthiness ■ Number of Borrowers (a) Overview of credit reputation, capacity and collateral When underwriting a Mortgage, the Seller must determine, in compliance with the requirements in the Guide and Purchase Documents, that the Borrower is creditworthy (i.e., acceptable credit reputation and capacity) and the Mortgaged Premises (i.e., collateral) is adequate for the transaction. Credit reputation, capacity and collateral are often called the “three Cs” of underwriting. When one of these components does not comply with the Guide requirements or if there is excessive layering of risk across components, the Mortgage is not eligible for sale to Freddie Mac. (b) Documentation requirements for creditworthiness All information used to evaluate the creditworthiness of the Borrower must be supported by documentation in the Mortgage file. The documentation must be obtained before, as applicable, the Note Date or: ■ For Construction to Permanent Mortgages and Renovation Mortgages, the Effective Date of Permanent Financing ■ For Seller-Owned Modified Mortgages, the modification date ■ For Seller-Owned Converted Mortgages, the Conversion Date ■ The date of the applicable assumption agreement Freddie Mac Single-Family Seller/Servicer Guide Chapter 5102 As of 03/01/26 Page 5102-2 (c) Number of Borrowers Freddie Mac does not limit the number of Borrowers on the Mortgage or require they be related. The overall creditworthiness of each Borrower, and all Borrowers collectively, must be evaluated. The presence of more than one Borrower helps to reduce risk.