FHLMC Single-Family Seller/Servicer Guide Chapter 5401 — Evaluation of Monthly Obligations
FHLMC Single-Family Guide §5401.1 governs Monthly Housing Expense- to-Income ratio calculation: mandatory file documentation of monthly housing expense; primary-residence components (P&I, hazard insurance, real estate taxes, MI, flood, leasehold, HOA, etc.); new-construction estimated tax based on improvements + land value; tax abatement/exemption 5-year continuance documentation rule; HELOC payment inclusion when outstanding balance exists; 1.5% imputed monthly payment for HELOCs lacking credit-report payment.
Verbatim regulatory text
Verbatim provisions from FHLMC Single-Family Seller/Servicer Guide Chapter 5401 — Evaluation of Monthly Obligations — 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.
FHLMC Single-Family Guide §5401.1 — Document monthly housing expense in Mortgage file
The monthly housing expense must be documented in the Mortgage file and established as described below.
FHLMC Single-Family Guide §5401.1(a) — New construction: tax based on improvements + land value when actual not available
the real estate tax amount included in the monthly housing expense must be based on the value of the improvements and the land
FHLMC Single-Family Guide §5401.1(a) — Tax abatement requires 5-year continuance evidence
Evidence of continuance for at least five years after the Note Date
FHLMC Single-Family Guide §5401.1(a) — HELOC payments included when outstanding balance exists
HELOC payments must be included when there is an outstanding balance on the account.
FHLMC Single-Family Guide §5401.1(a) — 1.5% imputed HELOC payment when no credit-report payment
1.5% of the outstanding balance is considered the monthly payment amount.
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Source of record: https://claudeforcompliance.com/regs/fhlmc-5401/
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