Freddie Mac Single-Family Seller/Servicer Guide 9202.2 — Mortgage and property risk analysis

Freddie Mac Single-Family Seller/Servicer Guide 9202.2 — Mortgage and property risk analysis

Effective 2025-09-10 · Freddie Mac's stamp for this section

This section contains requirements related to: ■ Service reconciliation of inconsistencies, fraud detection and document authenticity ■ Risk of Property Ownership ■ Tenant-occupied properties built before 1978 (a) Service reconciliation of inconsistencies, fraud detection and document authenticity (i) Reconciling income and/or hardship information inconsistencies If, based on the Servicer’s good business judgment, the Borrower’s income and/or the hardship information disclosed by the Borrower is inconsistent with the income and/or hardship documentation provided by the Borrower, the Servicer must attempt to reconcile such inconsistencies. The Servicer must also document such material differences in its servicing system. (ii) Fraud detection The Servicer must not offer the Borrower a relief or workout option if there is reasonable evidence indicating the Borrower submitted false or misleading information or otherwise engaged in fraud in connection with the request for payment relief. A Servicer must use good business judgment in determining whether the evidence is reasonably indicative of a Borrower’s intentional misrepresentation or submission of false or misleading information. Refer to Section 3201.2 for reporting requirements related to the discovery of fraud or possible fraud on a Mortgage. (iii)Document authenticity A Servicer must use good business judgment when determining whether verification documents are authentic and accurate, and allow the Servicer to underwrite the Borrower in accordance with the requirements of this Guide. A Servicer may elect to accept documentation with imperfections (blank fields, erasures, use of correction tape, inaccurate dates, etc.) if the Servicer determines that the imperfections are immaterial to the eligibility decision, are not indicative of fraud and do not impact the Servicer’s ability to verify the completeness and accuracy of the Borrower’s financial representations. (b) Risk of Property Ownership Risk of Property Ownership exists when there is a risk of liability to Freddie Mac if Freddie Mac becomes the owner of the property. For example, there is Risk of Property Ownership if the condition of the Mortgaged Premises, or its immediate surroundings, pose a threat to the health or safety of a property owner (e.g., condemnation), or there is otherwise a situation or presence that is exigent or atypical that would cause a potential property owner to incur extraordinary risk of liability if it becomes the owner of the property. The Servicer must review the property inspection reports that the Servicer receives to determine if a Risk of Property Ownership exists. Refer to Sections 8403.1(a) and 8403.1(b) for the requirements for managing a property securing a Mortgage identified as posing a Risk of Property Ownership. (c) Tenant-occupied properties built before 1978 Before considering a deed-in-lieu of foreclosure on a tenant-occupied property built before 1978, if the Servicer is aware of, or becomes aware of, any outstanding lead-based paint or health code citations or violations against the property or property owner, it must notify Freddie Mac (see Directory 5), and include a copy of the citation or violation and any other pertinent information. After reviewing the documentation, Freddie Mac will provide the Servicer with instructions on the course of the action to take.

Source: Freddie Mac Single-Family Seller/Servicer Guide 9202.2 — Mortgage and property risk analysis · source URL · snapshot 4c94f67729042dd6