Freddie Mac Single-Family Seller/Servicer Guide §6401.2 — Penalty for nondelivery (09/03/25)
Freddie Mac Guide §6401.2 (Penalty for nondelivery). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide §6401.2 — Penalty for nondelivery (09/03/25) — 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 6401.2
In addition to any other remedies it may have under law or in equity, Freddie Mac reserves the right, in its sole discretion, to take any appropriate action to protect its interest and enforce its
Freddie Mac Guide 6401.2
401-3 rights in the event of nondelivery under a mandatory obligation to deliver Mortgages under the Cash, Guarantor or MultiLender Swap programs, including, but not limited to, disqualification or suspension of the Seller from eligibility to sell Mortgages to Freddie Mac under Chapter 2301. The Seller can fulfill mandatory obligations to deliver Mortgages under a mandatory Purchase Contract by initiating a pairoff (see Section 6401.1).
Freddie Mac Guide 6401.2
101-1 Chapter 7101: Transfers of Servicing and Intra- Servicer Portfolio Moves
Freddie Mac Guide 6401.2
Requests for Transfers of Servicing and Intra- Servicer Portfolio Moves (12/17/25) This section contains requirements related to: ■ Transfer of Servicing overview ■ Submitting requests for Transfers of Servicing and Intra-Servicer Portfolio Moves (a) Transfer of Servicing overview Subject to obtaining Freddie Mac’s written approval, a Transfer of Servicing can result from either: ■ A negotiation between the Transferor Servicer and the Transferee Servicer; or ■ Certain changes in ownership of a Seller/Servicer that result in a conveyance or other transfer, in effect, of the Servicing Contract Rights. The Seller/Servicer is responsible for: ❑ Determining when a Transfer of Servicing will occur due to an organizational change ❑ Submitting the appropriate request specified in this section ❑ Complying with other requirements in the Guide, as applicable Note: See also Section 8105.1(b) regarding Servicing compensation to a new Servicer pursuant to a Transfer of Servicing initiated by Freddie Mac. See Section 1402.5(e) for Transfer of Servicing requirements involving eMortgages. Transferors and Transferees should review and consider adopting the Servicing Transfer Management Checklist that includes links to the MISMO® Servicing Transfer Catalog, which includes industry standard best practices, checklists and templates for Servicing Transfer instructions, portfolio characteristics (i.e., product, programs, loan types and other characteristics applicable to the transfer), image transfer schedules, required reporting, reconciliation and more. (b) Submitting requests for Transfers of Servicing and Intra-Servicer Portfolio Moves The Transferor Servicer and Transferee Servicer must obtain Freddie Mac’s written approval of each Transfer of Servicing request before the transfer takes place. In the event the
Freddie Mac Guide 6401.2
101-2 Transferee Servicer is going to establish a subservicing arrangement with a new Servicing Agent, the Transferee Servicer and its proposed Servicing Agent must comply with the general Freddie Mac Servicing requirements of Chapter 8101, including submitting a complete and fully executed Form 479A, Single-Family Servicing Agent Certification and Agreement. Freddie Mac’s prior written approval is required, regardless of whether the Transfer of Servicing is initiated or requested by a Servicer or any other party, such as a conservator, receiver or liquidator of the Servicer. On or before the Effective Date of Transfer, the Transferor Servicer must provide to the Transferee Servicer copies of: ■ All of the Transferor Servicer’s Purchase Documents applicable to the Transfer of Servicing (excluding any Credit Fees in Yield and other Credit Fees); and ■ All of the Purchase Documents of any preceding Transferor Servicer that are applicable to the Transfer of Servicing (excluding any Credit Fees in Yield and other Credit Fees) For Transfers of Servicing with an Effective Date of Transfer prior to April 11, 2018, Transferor Servicers must provide such Purchase Documents to a Transferee Servicer upon such Servicer’s written request. (i) Concurrent Transfers of Servicing Before entering into one or more Concurrent Transfer(s) of Servicing with a specific Transferee Servicer, the Seller as Transferor Servicer must obtain Freddie Mac’s written approval to engage in such Transfer(s) of Servicing before entering into Pricing Identifier Terms or other Purchase Documents to sell the Mortgages to Freddie Mac and designate that particular Transferee Servicer as the Servicer of the Mortgages. Freddie Mac will monitor the financial condition and performance of the Transferor Servicer (Seller) and the Transferee Servicer and may, in its discretion, rescind or suspend approval of the Concurrent Transfer of Servicing. Prior to Effective Date of Transfer for any Concurrent Transfer of Servicing, the Seller as Transferor Servicer must provide to the Transferee Servicer any and all data related to each Mortgage. Specifically, the Seller as Transferor Servicer must inform the Transferee Servicer with respect to each Mortgage related to the Transfer of Servicing, specifying by Freddie Mac loan number whether the Mortgage: ■ Has lender-purchased mortgage insurance and the terms of such insurance ■ Is subject to a credit enhancement and the type of such enhancement, if any
Freddie Mac Guide 6401.2
101-3 ■ Has any of the following characteristics, in which case the Seller as Transferor Servicer must provide the data related to such characteristic: ❑ The Mortgage was originated pursuant to an affordable housing initiative ❑ The Mortgage is secured by a Manufactured Home ❑ Transfer of Servicing is restricted under a negotiated term of business ❑ The Mortgage is a Payoff Draft Date 18 Mortgage as defined in Section 8303.1 ■ Has a Note that is an eNote and/or or has an eModification Agreement and, in this case, names the repository holding such eNote and eModification Agreement as applicable ■ Has other unique Servicing requirements, if applicable Freddie Mac will provide to both the Seller as Transferor Servicer a funding detail report, which it may share with the Transferee Servicer to aid the Transferee Servicing in its preparation of Servicing and accounting reports. (A) Concurrent Transfer of Servicing without bifurcation The Transferor Servicer and Transferee Servicer are required to complete Form 960, Agreement for Concurrent Transfer of Servicing of Single-Family Mortgages. A separate Form 960 is required for each Transferee Servicer. The fully executed Form 960 must be submitted to Freddie Mac (see Directory 3). Freddie Mac will indicate its approval, if appropriate, by executing and returning a copy of Form 960 to the Transferor Servicer and Transferee Servicer. The approval becomes effective for Mortgages delivered by Transferor Servicer as a Seller on or after the date Freddie Mac executes Form 960. The Form 960 remains valid until the expiration date the Transferor Servicer enters on Form 960. If no expiration date is provided, the Form 960 will remain in effect until terminated by Freddie Mac, the Transferor Servicer or the Transferee Servicer. To terminate the Form 960, the Transferor Servicer or Transferee Servicer must first notify the other party and then provide written notice to Freddie Mac (see Directory 3) at least five Business Days prior to the requested termination date. If the Transferor Servicer submits multiple Concurrent Transfer of Servicing requests, Freddie Mac’s approval does not constitute approval to exceed the amount of the Transferor Servicer’s applicable Commitment Amount. For a given Purchase Contract in Loan Selling Advisor®, the Seller/Transferor Servicer may designate only one Transferee Servicer and its applicable
Freddie Mac Guide 6401.2
101-4 Seller/Servicer number and must select the execution path “CTOS” on the “Take Out Contract” screen in Loan Selling Advisor. Seller/Transferor Servicer and Transferee Servicer each agree that, by their respective execution of, and agreement to, the terms of Form 960, Seller’s subsequent sale of Mortgages pursuant to the execution path “CTOS” in Loan Selling Advisor and its selection of the applicable Seller/Servicer number of the Transferee Servicer binds Seller/Transferor Servicer and Transferee Servicer to the terms of fully executed and Freddie Mac-approved Form 960 for such Mortgages. Transferee Servicer must provide its applicable Seller/Servicer number to the Seller for loans to be sold under this program, as outlined in their bilateral Servicing Transfer Agreement. (B) Concurrent Transfers of Servicing with complete/full bifurcation – Cash- Released XChange® The requirements for a Concurrent Transfer of Servicing of Mortgages sold to Freddie Mac through Cash-Released XChange are contained in Exhibit 28A, Loan Servicing Purchase and Sale Agreement for Cash-Released XChange®. By executing and agreeing to the terms of Exhibit 28A, both Seller/Transferor Servicer and Transferee Servicer are bound by its terms for such Mortgages. Additionally, the Seller/Transferor Servicer must select the “Servicing Released” execution path on the “Take Out Contract” screen in Loan Selling Advisor. The Transferee Servicer must provide its applicable Seller/Servicer number for loans sold under this program in its bilateral Servicing Transfer Agreement. (C) Concurrent Transfers of Servicing with complete/full bifurcation – Co-Issue XChange® The requirements for a Concurrent Transfer of Servicing of Mortgages sold to Freddie Mac through Co-Issue XChange are contained in Exhibit 26, Agreement for Concurrent Transfer of Single-Family Mortgage Servicing Contract Rights With Complete/Full Bifurcation. Seller/Transferor Servicer agrees, by its selection of the execution path “CTOS” on the “Take Out Contract” screen in Loan Selling Advisor and selection of the Freddie Mac-approved Transferee Servicer and its applicable Seller/Servicer number in Loan Selling Advisor, that it is bound by the terms of Exhibit 26 for the Mortgages sold by Seller via the Co-Issue XChange execution path in Loan Selling Advisor. Transferee Servicers must enter into a separate agreement with Freddie Mac and provide their applicable Seller/Servicer number to both Freddie Mac and Sellers with whom they have entered into Exhibit 26. Transferee Servicer agrees that when a particular Seller sells Mortgages via the “CTOS” execution path on the “Take Out Contract” screen in Loan Selling Advisor and selects Transferee Servicer and its applicable Seller/Servicer number in Loan Selling Advisor as the Servicer, Transferee Servicer is bound by the terms of Exhibit 26 for such Mortgages. Transferee Servicer
Freddie Mac Guide 6401.2
101-5 must provide to Seller the Transferee Servicer’s applicable Seller/Servicer number for loans to be sold under this program in their bilateral Servicing Transfer Agreement. A model template of such an agreement is available as Exhibit 27, Loan Sale and Servicing Transfer Agreement for Co-Issue XChange® with Complete/Full Bifurcation. (ii) Subsequent Transfers of Servicing (A) Process At least 45 days but not more than 60 days before the requested Effective Date of Transfer for a Subsequent Transfer of Servicing, the Transferor Servicer must: ■ Access the Servicing Transfer Manager tool available via Freddie Mac Gateway® (see Exhibit 88, Servicing Tools) ■ Under the “Manage Portfolio” tab, select “Create a new STOS” request ■ Complete all required fields and respond to the questions designated for the Transferor Servicer, including selecting the Transferee Servicer ■ Submit the list of the Mortgages that are related to the Transfer of Servicing (the “Proposed Mortgage List”) through Servicing Transfer Manager Freddie Mac will notify the prospective Transferee Servicer of the requested Transfer of Servicing by e-mail using the e-mail address supplied by the Transferor Servicer in Servicing Transfer Manager. The Transferee Servicer must: ■ Log into Servicing Transfer Manager, go to the “Manage Portfolio” tab and select the Transfer of Servicing transaction that was proposed by the Transferor Servicer ■ Complete all fields designated to be completed by the Transferee Servicer for the proposed Transfer of Servicing Freddie Mac will provide both the Transferor Servicer and Transferee Servicer with additional data related to the Proposed Mortgage List and populate the responses to certain questions based on data in Freddie Mac systems that was previously supplied to Freddie Mac (e.g., by the Seller, prior Servicer or the Transferor Servicer). The Transferor Servicer must validate the accuracy and completeness of all data, the responses to all the questions and the content of the Proposed Mortgage List. Once both the Transferor Servicer and the Transferee Servicer have completed all fields and the Proposed Mortgage List is submitted, Servicing Transfer Manager will provide the Transferor Servicer and Transferee Servicer the opportunity to review an Electronic Agreement for Subsequent Transfer of Servicing of Single-Family Mortgages (“STOS Agreement”), which must be electronically signed by both
Freddie Mac Guide 6401.2
101-6 Servicers, at least 45 days but not more than 60 days before the requested Effective Date of Transfer. The Transferor Servicer will have the capability to add or remove Mortgages from the Proposed Mortgage List and revalidate the responses to the various questions to ensure they remain accurate in light of the added or removed Mortgages up to eight days prior to the Effective Date of Transfer. In addition, Freddie Mac may require the Transferor Servicer to make changes to the Proposed Mortgage List. The Transferor Servicer and Transferee Servicer must agree on the final list of Mortgages related to the Transfer of Servicing prior to the Effective Date of Transfer (“Final Mortgage List”) and, in the event there were changes to the Proposed Mortgage List, the Servicers must electronically execute a new STOS Agreement related to the Final Mortgage List no later than eight days prior to the Effective Date of Transfer. If there are no changes to the Proposed Mortgage List, then such list is the Final Mortgage List, and the Servicers are not required to electronically execute a new STOS Agreement. The Servicing Contract Rights related to any Mortgage with any of the following characteristics as of the day prior to the Effective Date of Transfer are not subject to any Transfer of Servicing, notwithstanding the inclusion of such Mortgage’s loan number on the Final Mortgage List: ■ Any Mortgage that has been paid off ■ Any Mortgage that is a guaranteed or insured by the FHA or VA and has a scheduled foreclosure sale date ■ Any Mortgage that is 90 days or more delinquent; or ■ Any Mortgage that has been previously modified Servicers that wish to transfer the Servicing Contract Rights related to Mortgages that are delinquent for 90 days or more or have been previously modified must do so in accordance with the Voluntary Partial Cancellation process outlined in Chapter 7102. Refer to Section 1101.3 for information about costs and claims that may become due and payable automatically upon the execution and submission of one or more STOS requests, as defined in the Glossary definition of “Claims Event,” or the execution and submission of one or more STOS Agreements, Voluntary Partial Cancellation Agreements, or Voluntary Full Cancellation Agreements that contemplate a Transfer of Servicing that will result in the transfer of all or, in Freddie Mac’s sole determination, substantially all of the Servicing Contract Rights of the Seller/Servicer or Seller/Servicer’s Freddie Mac Servicing portfolio, either in a single transaction or a series of transactions over a 180-day period. If triggered, the Transferor Servicer must pay the outstanding costs and FRE Claims as a condition of Freddie Mac’s approval
Freddie Mac Guide 6401.2
101-7 of the Transfer of Servicing or obtain a written waiver of such condition from Freddie Mac. (B) Approval and execution Upon Freddie Mac’s approval of the Transfer of Servicing, Freddie Mac will notify the Transferor Servicer and Transferee Servicer of Freddie Mac’s approval in writing, and the Servicing Transfer Manager status for the proposed Transfer of Servicing will change to an “approved” status. Freddie Mac reserves the right to withdraw its approval of the Transfer of Servicing at any time prior to the Effective Date of Transfer in the event the Servicer makes any changes to the Proposed Mortgage List, other than removal of Mortgages, or there is an intervening event that impacts the continuing eligibility of either Servicer to engage in the Transfer of Servicing (e.g., bankruptcy, regulatory prohibition). Provided Freddie Mac does not withdraw its approval on or before the Effective Date of Transfer, Freddie Mac will electronically sign the STOS Agreement acknowledging its earlier approval for the Servicers to proceed with the Transfer of Servicing on the Effective Date of Transfer. The Effective Date of Transfer must be the first day of the month. Prior to its Electronic execution of the STOS Agreement, the Transferor Servicer must provide to the Transferee Servicer any and all data related to each Mortgage set forth in the Final Mortgage List, including the underlying data related to each such Mortgage for those questions that the Transferor Servicer answered and/or validated “yes” as the appropriate response in Servicing Transfer Manager. Specifically, the Transferor Servicer must inform the Transferee Servicer of each REO related to the Transfer of Servicing and, with respect to each Mortgage related to the Transfer of Servicing, specify by Freddie Mac loan number whether the Mortgage: 1. Has lender-purchased mortgage insurance and the terms of such insurance 2. Is subject to a credit enhancement and the type of such enhancement, if any 3. Is subject to a Trial Period Plan or mortgage modification and type of program for each (e.g., Home Affordable Modification ProgramSM, Freddie Mac Standard Modification, Freddie Mac Streamlined Modification, Freddie Mac Flex Modification®) 4. Is subject to a Payment Deferral 5. Is or may become a Senior Subordinate Mortgage and in this instance, advise the Transferee Servicer of the Servicing requirements set forth in Chapter 8601 6. Has any of the following characteristics and provide the data related to such characteristic: