source:
  type: regulation
  id: fhlmc-4301.7
  authority: Freddie Mac Single-Family Seller/Servicer Guide §4301.7 — Texas Equity Section 50(a)(6) Mortgages (11/19/25)
  description: "Freddie Mac Guide §4301.7 (Texas Equity Section 50(a)(6) Mortgages). Gap-fill (verbatim, ID-diff).\
    \ \n"
obligations:
- id: fhlmc-4301.7-0
  canonical_id: fhlmc-4301.7-0
  section: Freddie Mac Guide 4301.7
  description: '4301.7 Texas Equity Section 50(a)(6) Mortgages: (11/19/25) This section contains requirements related
    to: ■ General requirements for Texas Equity Section 50(a)(6) ■ Eligible Mortgages ■ Refinances of Texas Equity
    Section 50(a)(6) Mortgages ■ Mortgaged Premises; appraisal; fair market value ■ Loan-to-value (LTV) and total
    LTV (…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4301.7 — Texas Equity Section 50(a)(6) Mortgages
      (11/19/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '(11/19/25) This section contains requirements related to: ■ General requirements for Texas
      Equity Section 50(a)(6) ■ Eligible Mortgages ■ Refinances of Texas Equity Section 50(a)(6) Mortgages ■ Mortgaged
      Premises; appraisal; fair market value ■ Loan-to-value (LTV) and total LTV (TLTV) ratios ■ Eligibility to
      sell and service Texas Equity Section 50(a)(6) Mortgages ■ Texas Equity Uniform Instruments and other documents
      ■ Special representations and warranties ■ Specific remedies ■ Related provisions (a) General requirements
      for Texas Equity Section 50(a)(6) The generally accepted commercial terms used to describe Mortgages originated
      under Article XVI of the Texas Constitution (“cash-out refinance”, “rate-term refinance”) may not correspond
      to the meaning given the same or comparable terms when used in Chapter 4301. Sellers must understand the distinctions
      between Freddie Mac’s refinance definitions in Chapter 4301 and the provisions of Section 50(a)(6) and are
      responsible for determining: ■ When Section 50(a)(6) applies, regardless of the definitions of cash-out and
      “no cash out” refinance transactions used in Chapter 4301 ■ Whether the proposed refinance of a Mortgage secured
      by the Borrower’s homestead in the State of Texas is a Mortgage that must be originated pursuant to Section
      50(a)(6) of Article XVI of the Texas Constitution (b) Eligible Mortgages A Texas Equity Section 50(a)(6) Mortgage
      must be:'
    drafter_attestation: Verbatim from Freddie Guide §4301.7 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4301.7-1
  canonical_id: fhlmc-4301.7-1
  section: Freddie Mac Guide 4301.7
  description: '4301.7 Texas Equity Section 50(a)(6) Mortgages: 301-14 ■ A conventional First Lien Mortgage that
    is a: ❑ Fixed-rate Mortgage, or ❑ 3/6-Month, 5/6-Month, 7/6-Month or 10/6-Month ARM ■ A cash-out refinance Mortgage
    as described in Section 4301.5 or a “no cash-out” refinance Mortgage as described in Section 4301.4, depending
    on t…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4301.7 — Texas Equity Section 50(a)(6) Mortgages
      (11/19/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '301-14 ■ A conventional First Lien Mortgage that is a: ❑ Fixed-rate Mortgage, or ❑ 3/6-Month,
      5/6-Month, 7/6-Month or 10/6-Month ARM ■ A cash-out refinance Mortgage as described in Section 4301.5 or a
      “no cash-out” refinance Mortgage as described in Section 4301.4, depending on the applicable facts A Texas
      Equity Section 50(a)(6) Mortgage may not be a special purpose cash-out refinance Mortgage. (c) Refinances
      of Texas Equity Section 50(a)(6) Mortgages Sellers may refinance a Texas Equity Section 50(a)(6) Mortgage
      into: ■ Another Texas Equity Section 50(a)(6) Mortgage, or ■ A refinance Mortgage permitted by Section 50(a)(4)
      of Article XVI of the Texas Constitution (a “Section 50(a)(4) Mortgage”) Note: Section 50(a)(4) Mortgages
      used to pay off a Texas Equity Section 50(a)(6) Mortgage and meeting all applicable Texas Constitutional requirements
      are not subject to the requirements of this section and are eligible for sale to Freddie Mac as “no cash-out”
      refinance Mortgages, provided all requirements of Section 4301.4 are met. (d) Mortgaged Premises; appraisal;
      fair market value Each Mortgage must be secured by a Mortgaged Premises that is: ■ A 1-unit Primary Residence,
      ■ Located in the State of Texas, and ■ The Borrower’s homestead A Living Trust that meets the eligibility
      requirements of Section 5103.5 may be a Borrower for a Texas Equity Section 50(a)(6) Mortgage if the Living
      Trust also meets the requirements for a “qualifying trust” under Texas law for purposes of owning residential
      property that qualifies for the homestead exemption. The Seller must provide an appraisal that: ■ Meets Freddie
      Mac requirements, and'
    drafter_attestation: Verbatim from Freddie Guide §4301.7 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4301.7-2
  canonical_id: fhlmc-4301.7-2
  section: Freddie Mac Guide 4301.7
  description: '4301.7 Texas Equity Section 50(a)(6) Mortgages: 301-15 ■ Complies with Section 50(a)(6)(Q)(ix) and
    Section 50(h) of Article XVI of the Texas Constitution To meet the requirements for acknowledgment of fair market
    value, the Seller must: ■ Along with the owner of the homestead, execute a written acknowledgment of the “fair
    mark…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4301.7 — Texas Equity Section 50(a)(6) Mortgages
      (11/19/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '301-15 ■ Complies with Section 50(a)(6)(Q)(ix) and Section 50(h) of Article XVI of the Texas
      Constitution To meet the requirements for acknowledgment of fair market value, the Seller must: ■ Along with
      the owner of the homestead, execute a written acknowledgment of the “fair market value” of the homestead property
      as of the date the extension of credit is made ■ Attach the appraisal report to the acknowledgment (e) LTV
      and TLTV ratios The maximum LTV and TLTV ratios for Texas Equity Section 50(a)(6) Mortgages must not exceed
      80% and must be lower if necessary to comply with the LTV/TLTV ratio requirements of Sections 4203.1(b) and
      4301.4 for “no cash out” and cash out refinances, as applicable. (f) Eligibility to sell and service Texas
      Equity Section 50(a)(6) Mortgages Unless otherwise notified in writing, Sellers are eligible to deliver Texas
      Equity Section 50(a)(6) Mortgages. The Servicer must be eligible to service Texas Equity Section 50(a)(6)
      Mortgages in accordance with Section 8104.1(a) and related Servicing provisions. (g) Texas Equity Uniform
      Instruments and other documents Texas Equity Section 50(a)(6) Mortgages must be originated using the most
      recent version of the following special Fannie Mae/Freddie Mac Texas Home Equity Uniform Instruments: Texas
      Equity Uniform Instruments and other required forms Instrument type Required forms Note ■ Texas Home Equity
      Note (Fixed Rate - First Lien) - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3244.1 ■ Texas Home Equity
      Fixed/Adjustable Rate Note – 30-day Average SOFR (First Lien) Form 3442.44 Security Instrument Texas Home
      Equity Security Instrument (First Lien) - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3044.1 Rider Texas
      Home Equity Fixed/Adjustable Rate Rider – 30-day Average SOFR (First Lien) Form 3142.44'
    drafter_attestation: Verbatim from Freddie Guide §4301.7 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4301.7-3
  canonical_id: fhlmc-4301.7-3
  section: Freddie Mac Guide 4301.7
  description: '4301.7 Texas Equity Section 50(a)(6) Mortgages: 301-16 Seller may access the Fannie Mae/Freddie
    Mac Texas Home Equity Uniform Instruments at https://sf.freddiemac.com/tools-learning/uniform-instruments/overview.
    The Seller must prepare, obtain and/or provide any and all other documentation that the Seller determines is
    necessa…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4301.7 — Texas Equity Section 50(a)(6) Mortgages
      (11/19/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '301-16 Seller may access the Fannie Mae/Freddie Mac Texas Home Equity Uniform Instruments
      at https://sf.freddiemac.com/tools-learning/uniform-instruments/overview. The Seller must prepare, obtain
      and/or provide any and all other documentation that the Seller determines is necessary to originate Texas
      Equity Section 50(a)(6) Mortgages in compliance with all applicable laws. (h) Special representations and
      warranties Seller represents and warrants that: 1. Neither the Seller nor its Correspondents or Mortgage Brokers
      have been found by any federal regulatory agency to have engaged in the practice of refusing to make loans
      because the applicants for the loans reside in a certain area or the property proposed to secure the loans
      is located in a certain area 2. All refinance Mortgages that fall within the provisions of Section 50(a)(6)
      of the Article XVI of the Texas Constitution have been originated as Texas Equity Section 50(a)(6) Mortgages
      and comply with Section 50(a)(6) of Article XVI and related provisions of the Texas Constitution, as amended,
      and all other applicable laws. Note: Freddie Mac recommends that the Seller obtain advice from Texas legal
      counsel that confirms that the Seller’s lending and servicing policies, procedures and practices are in compliance
      with Section 50(a)(6) of Article XVI of the Texas Constitution, all other applicable Texas Constitutional
      provisions, statutes, court decisions, regulations and rules and applicable State and federal law. 3. The
      estate or interest in the Mortgaged Premises is vested in the Borrower. There is no defect in the Borrower’s
      title to the Mortgaged Premises. 4. The Mortgage is a valid and enforceable First Lien on the Mortgaged Premises
      Borrower Affidavit Texas Home Equity Affidavit and Agreement (First Lien) - Fannie Mae/Freddie Mac UNIFORM
      INSTRUMENT Form 3185. The affidavit must be recorded together with the Security Instrument and any applicable
      riders. Condominium Rider Texas Home Equity Condominium Rider - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT
      Form 3140.44, if the property is a Condominium Unit Planned Unit Development (PUD) Rider Texas Home Equity
      Planned Unit Development Rider - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3150.44, if the property is
      in a PUD'
    drafter_attestation: Verbatim from Freddie Guide §4301.7 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4301.7-4
  canonical_id: fhlmc-4301.7-4
  section: Freddie Mac Guide 4301.7
  description: '4301.7 Texas Equity Section 50(a)(6) Mortgages: 301-17 (i) Specific remedies Any action taken, or
    not taken, in connection with the origination of a Texas Equity Section 50(a)(6) Mortgage that results in any
    of the following (even if such action is a result of lender’s effort to cure a failure to comply with the provision
    of t…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4301.7 — Texas Equity Section 50(a)(6) Mortgages
      (11/19/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '301-17 (i) Specific remedies Any action taken, or not taken, in connection with the origination
      of a Texas Equity Section 50(a)(6) Mortgage that results in any of the following (even if such action is a
      result of lender’s effort to cure a failure to comply with the provision of the Section 50(a)(6)) is a breach
      of the representations and warranties in this Section 4301.7, and Freddie Mac shall be entitled to any of
      the remedies stated in Section 3601.1, including the right to require the Seller to repurchase the Mortgage
      immediately upon Freddie Mac’s request, at a price determined in accordance with Section 3602.2(c): ■ A forfeiture
      of any principal or interest due under the Mortgage ■ The invalidation of the Mortgage as a First Lien ■ The
      abatement of accrual of interest and the Borrower’s obligations under the Mortgage ■ A reduction in the principal
      amount of the Mortgage ■ Any modification of the amount, interest rate, term or other provision of the Mortgage
      (j) Related provisions In addition to the requirements in this section, other requirements related to Texas
      Equity Section 50(a)(6) Mortgages are described in the following Guide provisions: Additional requirements
      related to Texas Equity Section 50(a)(6) Mortgages Topic Guide provisions Refinance Mortgages Chapter 4301
      Title insurance Sections 4702.1, 4702.3 and 4702.5 Delivery requirements Section 6302.16 Special Servicing
      Sections 8104.1(a), 8201.1 and 9206.2(d)'
    drafter_attestation: Verbatim from Freddie Guide §4301.7 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4301.7-5
  canonical_id: fhlmc-4301.7-5
  section: Freddie Mac Guide 4301.7
  description: '4301.7 Texas Equity Section 50(a)(6) Mortgages: Refinance of Mortgages secured by properties subject
    to an energy retrofit loan (09/04/24) For the purposes of the Guide, a Property Assessed Clean Energy (PACE)
    or PACE-like obligation (either referred to as a “PACE obligation”) refers to any energy retrofit loan that
    is: ■ Used…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4301.7 — Texas Equity Section 50(a)(6) Mortgages
      (11/19/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 'Refinance of Mortgages secured by properties subject to an energy retrofit loan (09/04/24)
      For the purposes of the Guide, a Property Assessed Clean Energy (PACE) or PACE-like obligation (either referred
      to as a “PACE obligation”) refers to any energy retrofit loan that is: ■ Used to finance energy efficiency
      improvements, and'
    drafter_attestation: Verbatim from Freddie Guide §4301.7 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4301.7-6
  canonical_id: fhlmc-4301.7-6
  section: Freddie Mac Guide 4301.7
  description: '4301.7 Texas Equity Section 50(a)(6) Mortgages: 301-18 ■ Repaid through a property tax assessment
    For the “no cash-out” refinance of Mortgages secured by properties subject to PACE obligations that result in
    or provide for First Lien priority and where the PACE obligations are paid off with the Mortgage proceeds, the
    following…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4301.7 — Texas Equity Section 50(a)(6) Mortgages
      (11/19/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '301-18 ■ Repaid through a property tax assessment For the “no cash-out” refinance of Mortgages
      secured by properties subject to PACE obligations that result in or provide for First Lien priority and where
      the PACE obligations are paid off with the Mortgage proceeds, the following requirements apply: ■ The new
      refinance Mortgage must be originated in accordance with the requirements of Section 4301.4 for “no cash-out”
      refinance Mortgages ■ The Mortgage being refinanced must be owned in whole or in part or securitized by Freddie
      Mac ■ The PACE obligation must be paid in full ■ The Mortgage file must include evidence that the obligation
      being paid off is a PACE obligation that results in or provides for First Lien priority ■ The Seller must
      deliver ULDD Data Point Investor Feature Identifier valid value “H61” when delivering a Freddie Mac-owned
      “no cash-out” refinance Mortgage used to pay a PACE obligation. See Section 6302.16(b)(ii) for more information.
      For the cash-out refinance of Mortgages secured by properties subject to PACE obligations and where the PACE
      obligations are paid off with the Mortgage proceeds, the following requirements apply: ■ The new refinance
      Mortgage must be originated in accordance with the requirements of Section 4301.5 for cash-out refinance Mortgages
      ■ If the PACE obligation results in or provides First Lien priority, the PACE obligation must be paid in full
      with the Mortgage proceeds Mortgages secured by properties that are energy efficient and are also subject
      to PACE obligations may be eligible for purchase under the provisions of Chapter 4606 for GreenCHOICE Mortgages®.'
    drafter_attestation: Verbatim from Freddie Guide §4301.7 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
