Freddie Mac Single-Family Seller/Servicer Guide Section 5501.2 — Reserves
Freddie Mac Single-Family Seller/Servicer Guide Section 5501.2 — Reserves.
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide Section 5501.2 — Reserves — 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 5501.2 — Reserves
5501.2: Reserves (03/04/26) Reserves are Borrower’s assets remaining after the Mortgage closing. The source of funds used for reserves, when needed to qualify the Borrower, must meet the eligibility and documentation requirements in Sections 5501.3 and 5501.4. This section contains requirements related to: ■ Calculation of reserves ■ Minimum required reserves (a) Calculation of reserves Reserves are measured by the number of months of the monthly payment amount for the property. The monthly payment amount is the sum of the following monthly charges: ■ Principal and interest payments on the Mortgage ■ Property hazard insurance premiums ■ Real estate taxes ■ When applicable: ❑ Mortgage insurance premiums ❑ Leasehold payments ❑ Homeowners association dues (excluding unit utility charges) ❑ Payments on secondary financing Freddie Mac Single-Family Seller/Servicer Guide Chapter 5501 As of 03/04/26 Page 5501-7 When calculating reserves for the subject property, the principal and interest payment of the monthly payment amount must be based, at a minimum, on the Note Rate. When calculating reserves for other properties, the monthly payment amount for the property must be no less than the current monthly payment amount. (b) Minimum required reserves The minimum reserves requirements, as described below, must be met. (i) For Loan Product Advisor® Mortgages The Seller must verify all reserves required by Loan Product Advisor, as stated on the Feedback Certificate. (ii) For Manually Underwritten Mortgages The verified reserves must equal or exceed the following reserves requirements: Required reserves for Manually Underwritten Mortgages Subject property Required reserves Primary Residence – 1-unit None Primary Residence – 2- to 4-unit Six months for the subject property Note: See Section 4501.7 for minimum reserves requirements for Home Possible® Mortgages and Section 4504.7(b) for minimum reserves requirements for HeritageOne® Mortgages. (iii)Multiple Mortgage applications for the same Borrower When the Seller is processing multiple Mortgage applications for the same Borrower, the same assets may be used to meet the reserve requirements for each Mortgage transaction.