source:
  type: guide
  id: fhlmc-2203.1
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 2203.1 — MERS®
    membership
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 2203.1 — MERS®
    membership.
  coverage_tier: operative
obligations:
- id: fhlmc-2203.1-full
  canonical_id: fhlmc-2203.1-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 2203.1 — MERS®
    membership
  type: do
  tags:
  - regulator-direct
  - fhlmc
  - freddie-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide Section 2203.1 — MERS®
      membership
    source_class: fhlmc-guide
    source_url: https://guide.freddiemac.com/ci-guide
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-05-23T00:27:40Z'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '2203.1: MERS® membership (12/17/25) This section contains requirements
      related to: ■ MERS® membership ■ Termination of MERS membership (a) MERS membership
      A Seller/Servicer must comply with the requirements of the MERS Governing Documents
      if the Seller/Servicer is a MERS Member and sells to and/or services on behalf
      of Freddie Mac, as applicable, Mortgages registered on the MERS System. If any
      requirements of the MERS Governing Documents conflict with the requirements
      of the Guide, the Seller/Servicer must comply with the requirements of the Guide.
      (b) Termination of MERS membership If a Seller/Servicer’s membership in MERS
      is terminated for any reason, the Seller/Servicer must promptly notify Freddie
      Mac by e-mailing MERS@FreddieMac.com with the subject line “MERS Membership
      Termination.” For each Mortgage registered on the MERS System that will be sold
      to or is being serviced for Freddie Mac, the Seller/Servicer must, upon such
      termination and as applicable: ■ If retaining Servicing: ❑ Prepare an assignment
      of the Mortgage from MERS to itself, ❑ Have the assignment executed, and ❑ Where
      required by law, record the executed assignment in the applicable public land
      records ■ If transferring Servicing to a Transferee Servicer, follow the Concurrent
      Transfer of Servicing obligations under Section 6301.2(d)(iv). The requirements
      will depend on whether the Transferee Servicer is a MERS Member. Freddie Mac
      Single-Family Seller/Servicer Guide Chapter 2301 As of 12/17/25 Page 2301-1
      Chapter 2301: Disqualification or Suspension of a Seller/Servicer 2301.1: Disqualification
      or suspension of Seller’s eligibility to sell (12/17/25) This section contains
      requirements related to: ■ Disqualification or suspension of Seller’s eligibility
      to sell ■ Disqualification or suspension of the Seller or the Servicer ■ Notice
      of intent to disqualify or suspend the Seller or the Servicer (a) Disqualification
      or suspension of Seller’s eligibility to sell Freddie Mac, in its discretion,
      may disqualify or suspend a Seller from eligibility to sell Mortgages to Freddie
      Mac. The Seller will be ineligible to obtain new purchase commitments during
      a period of disqualification or suspension. During the period of Seller disqualification
      or suspension, Freddie Mac may, in its discretion, determine whether outstanding
      commitments held by the Seller must be honored or the outstanding balance of
      the commitment fulfilled by using the pairoff procedure (see Section 6401.1).
      Freddie Mac will determine the length of any suspension period and may prescribe
      the terms and conditions for reinstatement. The notice of disqualification or
      suspension and the opportunity of a Seller to respond to and appeal the action
      are governed by the procedures in this chapter. For information regarding outstanding
      purchase commitments when Freddie Mac terminates the Servicing Contract and
      related Servicing Contract Rights with or without cause, see Section 3602.2(b).
      (b) Disqualification or suspension of the Seller or the Servicer (i) Disqualification
      or suspension with cause Without limiting Freddie Mac’s right to take whatever
      other action it deems appropriate to protect its interests and enforce its rights
      (including disqualification or suspension for reasons not listed below), Freddie
      Mac may disqualify or suspend a Seller or a Servicer for any of the following
      reasons: Freddie Mac Single-Family Seller/Servicer Guide Chapter 2301 As of
      12/17/25 Page 2301-2 1. Impending or actual insolvency of the Seller/Servicer,
      its parent, an affiliate or a subsidiary 2. Filing of a voluntary petition by
      the Seller/Servicer, its parent, or an affiliate or subsidiary under federal
      bankruptcy or State insolvency laws 3. Filing of an answer by the Seller/Servicer,
      its parent, an affiliate or a subsidiary in an involuntary proceeding admitting
      insolvency or inability to pay debts 4. Adjudication of the Seller/Servicer,
      its parent, an affiliate or a subsidiary as bankrupt 5. Appointment of a trustee
      or receiver for the Seller/Servicer or its property or for its parent, an affiliate
      or a subsidiary or for the property of such entities 6. Execution by the Seller/Servicer,
      its parent, an affiliate or a subsidiary of an assignment for the benefit of
      creditors 7. Failure of the Seller/Servicer, its parent, or affiliate or a subsidiary
      to obtain a vacation or stay of involuntary proceedings brought for its reorganization,
      dissolution or liquidation 8. Failure of the Seller/Servicer to maintain qualified
      loan origination or Servicing staff and/or adequate facilities to assure (i)
      the investment quality of the Mortgages sold to Freddie Mac, or (ii) the adequacy
      of the Servicing of Mortgages purchased by Freddie Mac 9. Any weakness or notable
      change in the financial or organizational status or management of the Seller/Servicer,
      its parent, an affiliate or a subsidiary, including any adverse change in profitability
      or liquidity, that, in the opinion of Freddie Mac, could adversely affect Freddie
      Mac 10. Failure of the Seller/Servicer to meet any requirement as may be prescribed
      by Freddie Mac for eligibility as a Seller or a Servicer, including, but not
      limited to, a Seller/Servicer’s failure to maintain a minimum Tangible Net Worth
      and/or failure to meet any other financial requirements related to the Seller/Servicer’s
      eligibility required by Freddie Mac (see Section 2101.2) 11. Placement of the
      Seller/Servicer, its parent, an affiliate or a subsidiary on probation or restriction
      of its activities or the activities of its parent, an affiliate or a subsidiary
      of the Seller/Servicer, in any manner by a federal or State government agency
      12. Any judgment, order, finding or regulatory action to which the Seller/Servicer
      (or its management), its parent, an affiliate or a subsidiary is subject that
      would adversely affect the Seller/Servicer’s ability to comply with the terms
      and conditions of the Purchase Documents Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 2301 As of 12/17/25 Page 2301-3 13. Freddie Mac’s determination
      that the Seller/Servicer’s warranty obligations are disproportionate to its
      capital and/or assets 14. Failure of the Seller to deliver any documents under
      a Freddie Mac mandatory delivery purchase program 15. Failure of the Seller/Servicer
      to observe or comply with any term or provision of the Purchase Documents 16.
      Misstatement, misrepresentation or omission of any material fact on any application,
      certification or other document submitted, or in any oral representation made,
      by the Seller/Servicer to Freddie Mac 17. Assignment or attempt to assign its
      interests, rights or obligations under the Purchase Documents by the Seller/Servicer
      without Freddie Mac’s written consent 18. Failure or inability to account properly
      for the disposition of all moneys required to be safeguarded in Custodial Accounts
      or buydown accounts by the Servicer 19. Default or failure of the Seller/Servicer
      to perform under any contract with Freddie Mac, including, but not limited to,
      contracts not directly related to the sale or Servicing of Mortgages and contracts
      relating to Mortgages purchased or serviced other than pursuant to this Guide
      20. Having a 30-, 60- or 90+-day Delinquency rate or an REO rate more than 50%
      higher than the average 30-, 60- or 90+-day Delinquency rate or REO rate for
      any or all Mortgages owned or guaranteed by Freddie Mac nationally or in the
      same geographical area (which may include Standard Metropolitan Statistical
      Area, county or State) in which the Mortgaged Premises that secure the Mortgages
      either sold by the Seller or serviced by the Servicer are located and with similar
      Mortgage and Borrower characteristics, such as origination year, loan-to-value
      ratio and documentation type (e.g., full documentation, reduced documentation)
      21. Failure of the Seller/Servicer to submit a complete and accurate Annual
      Certification Report within the time frame prescribed by Section 2101.11 22.
      Failure of the Seller/Servicer that is a mortgage banker to submit a complete
      and accurate Form 1055, Mortgage Bankers’ Financial Reporting Form, within the
      time frame prescribed by Section 2101.5 23. Failure of the Seller/Servicer to
      comply with the provisions of Section 3101.1 regarding the Freddie Mac Exclusionary
      List 24. Placement on the Exclusionary List of the Seller/Servicer, its parent,
      an affiliate or a subsidiary Freddie Mac Single-Family Seller/Servicer Guide
      Chapter 2301 As of 12/17/25 Page 2301-4 25. Failure of the Seller/Servicer to
      submit a complete and accurate Change and Activity Report within the time frame
      required in Section 2101.12 or 2101.13 26. Freddie Mac’s determination that
      the Servicer’s overall performance is unacceptable pursuant to Section 3501.2.
      Freddie Mac considers the Servicer Success Scorecard results (see Section 3501.2),
      together with other factors (including, but not limited to, Servicer Success
      File Reviews, trends in performance, adequacy of staffing, audit results and/or
      compliance with all requirements of the Purchase Documents) in evaluating whether
      the Servicer’s overall performance is unacceptable 27. Failure of the Seller
      to deliver a minimum volume of Mortgages (measured by dollar amount or number
      of Mortgages) within the time frame specified by Freddie Mac 28. Failure of
      the Seller/Servicer to maintain the confidentiality of the Exclusionary List
      or information contained on the Exclusionary List 29. Failure of the Seller/Servicer
      to fulfill any obligation to Freddie Mac when due, including, but not limited
      to, the failure to repurchase a Mortgage, pay fees or other moneys and remit
      custodial or buydown funds 30. Failure of the Seller/Servicer to provide audited
      or reviewed financial statements for its parent, subsidiaries and affiliates
      upon Freddie Mac request When the Seller is also a Servicer, suspension or disqualification
      as a Seller is sufficient cause for suspension or disqualification as a Servicer
      or termination of all or a portion of the Servicing Contract and related Servicing
      Contract Rights with cause. When the Servicer is also a Seller, suspension or
      disqualification as a Servicer or termination of all or a portion of the Servicing
      Contract and related Servicing Contract Rights with cause under Chapter 3603
      is sufficient cause for suspension or disqualification as a Seller. Whether
      or not Freddie Mac terminates the Servicing Contract and related Servicing Contract
      Rights, any of the above events is cause for revocation of the power of attorney
      granted to the Servicer in accordance with Section 8101.1(b). (ii) Disqualification
      or suspension without cause Freddie Mac may disqualify or suspend a Seller or
      a Servicer without cause. Disqualification or suspension of a Seller or a Servicer
      without cause will be effective immediately upon notice of the disqualification
      or suspension, unless the notice specifies a later date. During the period of
      Seller disqualification or suspension, Freddie Mac may, at its discretion, determine
      whether outstanding commitments held by the Seller must be Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 2301 As of 12/17/25 Page 2301-5 honored or the
      outstanding balance of the commitment fulfilled by using the pairoff procedure
      (see Section 6401.1). A Seller will not be entitled to a termination fee or
      any other compensation from Freddie Mac for any reason or cause relating to
      any consequential, incidental or indirect damages arising out of, or in connection
      with, its disqualification or suspension without cause. Notwithstanding Sections
      2301.1(c) through 2301.3, Freddie Mac’s decision to suspend or disqualify a
      Seller without cause or to terminate Servicing without cause is conclusive.
      (c) Notice of intent to disqualify or suspend the Seller or the Servicer Freddie
      Mac will not provide the Seller or the Servicer with prior written notice of
      an intent to disqualify or suspend the Seller or the Servicer, unless Freddie
      Mac determines, in its discretion, that the giving of prior notice will in no
      way adversely affect Freddie Mac’s interests. In such cases, 30 days’ prior
      written notice will be given. Certain violations of this Guide (such as the
      commission of fraudulent acts or the failure to deliver under a mandatory delivery
      purchase program) are viewed with particular seriousness by Freddie Mac. In
      such cases, Freddie Mac will tend to act without prior written notice to disqualify
      or suspend the Seller. If prior written notice is not provided, disqualification
      or suspension will become effective upon oral notice from Freddie Mac to the
      Seller. Written confirmation of that oral notice will follow. Any prior written
      notice or written confirmation of oral notice will contain a brief statement
      of the basis for the disqualification or suspension and may advise the Seller
      or the Servicer of its right to obtain a review of Freddie Mac’s action or proposed
      action if permitted in accordance with the procedures in Section 2301.3(a).
      Before giving notice of disqualification or suspension, Freddie Mac may, in
      its discretion, notify a Seller or a Servicer that it has violated, is violating
      or may be about to violate provisions of this Guide or other Purchase Documents
      and that, unless corrective action is taken within a specified time period,
      disqualification or suspension may result. Freddie Mac may give the notification
      as part of an audit report or as a result of any other review or investigation
      of the Seller or the Servicer by Freddie Mac. Any such notification may be issued
      by means determined by Freddie Mac, including, but not limited to, electronic
      mail to the Seller’s or Servicer’s e-mail address provided to Freddie Mac by
      the Seller or Servicer in accordance with Freddie Mac’s requirements. Freddie
      Mac Single-Family Seller/Servicer Guide Chapter 2301 As of 12/17/25 Page 2301-6
      2301.2: Request for voluntary termination of status as a Freddie Mac Seller
      or Servicer (12/17/25) This section contains requirements related to: ■ Submission
      and receipt of request ■ Approval and conditions of termination A Seller/Servicer
      may ask for a voluntary termination of its status as a Freddie Mac-approved
      Seller and/or Servicer by submitting a request to Freddie Mac. The request may
      be submitted in writing or submitted or transmitted in the form of a Record
      or Electronic Record, as those terms are defined in Section 1401.1(b), by the
      Seller/Servicer’s authorized employee or representative. If the request is Electronic,
      it must be signed using the Seller/Servicer’s Electronic Signature and will
      be subject to Chapter 1401. (a) Submission and receipt of request The request
      will be deemed to have been duly given to and received by Freddie Mac on the
      date such request is: ■ Received in writing by Freddie Mac (see Directory 1)
      via first class mail ■ Received in electronic form (e-mail) as an Electronic
      Record by Freddie Mac’s computer information processing system via the internet
      at its internet e-mail address (see Directory 1) ■ Received as a Record or Electronic
      Record in electronic form (facsimile) by Freddie Mac’s electronic facsimile
      machine or system at Freddie Mac (see Directory 1) Other addresses may be substituted
      for the above upon notice of the substitution. The Seller/Servicer may also
      request the termination of its status as a Freddie Mac-approved Seller and/or
      Servicer by submitting a Change and Activity Report as described in Section
      2101.12. (b) Approval and conditions of termination The Seller/Servicer’s voluntary
      termination shall not be effective until an authorized representative of Freddie
      Mac has approved the request in writing or in a Record or Electronic Record.
      Freddie Mac may condition its approval of a voluntary termination on requirements
      such as full satisfaction of: ■ FRE Claims, Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 2301 As of 12/17/25 Page 2301-7 ■ The transfer of any portfolio,
      and/or ■ Compensation to Freddie Mac for a negatively valued portfolio In the
      event of a portfolio transfer, the Servicer is responsible for all transfer-related
      expenses and remains responsible and liable to Freddie Mac for all representations
      and warranties arising prior to the transfer.'
  judgment: false
