Freddie Mac Single-Family Seller/Servicer Guide 5701.7 — Exempt From Review

Freddie Mac Single-Family Seller/Servicer Guide 5701.7 — Exempt From Review

Effective 2026-08-03 · Freddie Mac's stamp for this section

Effective for Mortgages with Application Received Dates on or after August 3, 2026. This section contains: ■ Eligible Mortgages ■ Condominium Project eligibility ■ General project eligibility requirements ■ Additional requirements To be eligible under Exempt From Review, the requirements below must be met. (a) Eligible Mortgages The Mortgage must be one of the following: ■ Secured by a Condominium Unit in a 2- to 4-Unit Condominium Project ■ Secured by a Condominium Unit in a 5- to 10-Unit Condominium Project that is not part of a Master Association ■ Secured by a Detached Condominium Unit ■ A Freddie Mac-owned “no cash-out” refinance Condominium Unit Mortgage; or ■ A Refi Possible® Mortgage (b) Condominium Project eligibility The Condominium Project must not: ■ Be a Condominium Hotel or similar type of transient housing, a houseboat project, a timeshare project or a project with segmented ownership (all as described in Section 5701.3) ■ Include Manufactured Homes, unless the Condominium Unit Mortgage is a Refi Possible Mortgage ■ Be the subject of any action that would cause the Condominium Project to cease to exist or be the subject of an insolvency proceeding. (See Section 5701.3(p) for details.) ■ Be in need of Critical Repairs or have an evacuation order if the Mortgage is secured by an attached Condominium Unit in a Condominium Project with 11 or more units and is either a Freddie Mac-owned “no cash-out” refinance Condominium Unit Mortgage or a Refi Possible Mortgage. (See Sections 5701.3(n) and 5701.3(o) for details.) (c) General project eligibility requirements The general project eligibility requirements in Section 5701.2(b) must be met. Additionally, attached and semi detached units within projects containing Detached Condominium Units may not be delivered as Exempt From Review unless: ■ They are within a 2- to 4-Unit Condominium Project ■ They are within a 5- to 10-Unit Condominium Project that is not part of a Master Association; or ■ They meet the requirements for Freddie Mac-owned “no cash-out” refinance Condominium Unit Mortgages or Refi Possible Mortgages (d) Additional requirements The following table outlines additional requirements that must be met based on the type of Condominium Project or Condominium Unit Mortgage: Additional requirements by Condominium Project or Condominium Unit Mortgage type Project/Mortgage type Requirements 2- to 4-Unit Condominium Projects The Condominium Project must meet the Glossary definition of a 2- to 4-Unit Condominium Project. Note: The Glossary definitions of Established Condominium Project and New Condominium Project are not applicable. 5- to 10-Unit Condominium Projects The Condominium Project must meet the Glossary definition of a 5- to 10-Unit Condominium Project. Note: The Glossary definitions of Established Condominium Project and New Condominium Project are not applicable. Detached Condominium Units The Condominium Unit securing the Condominium Unit Mortgage must meet the Glossary definition of a Detached Condominium Unit. Freddie Mac-owned “no cashout” refinance Condominium Unit Mortgages If the Condominium Unit Mortgage being refinanced is currently owned by Freddie Mac in whole or in part or securitized by Freddie Mac, then the Mortgage is exempt Additional requirements by Condominium Project or Condominium Unit Mortgage type Project/Mortgage type Requirements from project review provided the following requirements are met: ■ The maximum loan-to-value (LTV)/total LTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratio is 80% ■ If available, proof of the ULDD Data Point Related Investor Loan Identifier of the existing Condominium Unit Mortgage is provided in the Mortgage file ■ The delivery requirements in Section 6302.16(b)(ii) are met Refi Possible Mortgages If the Condominium Unit Mortgage being refinanced is currently owned by Freddie Mac in whole or in part or securitized by Freddie Mac and the Mortgage is being refinanced under the Refi Possible offering, then the Mortgage is exempt from project review provided that: ■ The Mortgage meets all applicable requirements for Refi Possible Mortgages in Chapter 4302 ■ The delivery requirements in Section 6302.46 are met Note: If the requirements for Exempt from review in this Section 5701.7 are met, then the Seller is not required to comply with the requirements for any of the other project review types in Sections 5701.5 (Established Condominium Project reviews), 5701.6 (New Condominium Project reviews) and 5701.9 (Reciprocal project reviews).

Source: Freddie Mac Single-Family Seller/Servicer Guide 5701.7 — Exempt From Review · source URL · snapshot 4c94f67729042dd6