source:
  type: guide
  id: fhlmc-5705.9
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 5705.9 — Combined
    Cooperative Units
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 5705.9 — Combined
    Cooperative Units.
  coverage_tier: operative
obligations:
- id: fhlmc-5705.9-full
  canonical_id: fhlmc-5705.9-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 5705.9 — Combined
    Cooperative Units
  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 5705.9 — Combined
      Cooperative Units
    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: '5705.9: Combined Cooperative Units (03/05/25) This section contains
      requirements related to: ■ Minimum number of units after Cooperative Units are
      combined ■ Requirements to combine Cooperative Units ■ Loan purpose for combined
      Cooperative Units ■ Appraisal requirements for combined Cooperative Units ■
      Closing requirements for combined Cooperative Units Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 5705 As of 01/26/26 Page 5705-38 ■ Servicing/foreclosure
      requirements for combined Cooperative Units Cooperative Units that have been
      physically and legally combined to create a single Cooperative Unit must meet
      the following requirements. (a) Minimum number of units after Cooperative Units
      are combined The Cooperative Project must be composed of at least two Cooperative
      Units after the combination of any units. (b) Requirements to combine Cooperative
      Units Prior to sale of the Cooperative Share Loan to Freddie Mac, the following
      must occur: 1. The Cooperative Corporation must approve the combination of two
      or more adjoining Cooperative Units into a single Cooperative Unit 2. The construction
      to combine the Cooperative Units into a single Cooperative Unit must be complete
      3. The Cooperative Corporation must: ■ Assign a single unit designation (i.e.,
      a mailing address) to the combined single Cooperative Unit ■ Designate the number
      of Cooperative Shares applicable to the combined single Cooperative Unit ■ Adjust
      the Maintenance Fees based on the total number of Cooperative Shares assigned
      to the combined single Cooperative Unit (c) Loan purpose for combined Cooperative
      Units The Cooperative Share Loan may be either: ■ A purchase transaction for
      the two or more adjoining Cooperative Units on the Note Date; or ■ A refinance
      transaction, if a Shareholder owns one Cooperative Unit and is purchasing one
      or more additional adjoining Cooperative Units. The proceeds from the refinance
      Cooperative Share Loan may only be used to: ❑ Purchase the additional adjoining
      units Freddie Mac Single-Family Seller/Servicer Guide Chapter 5705 As of 01/26/26
      Page 5705-39 ❑ Pay off the current Cooperative Share Loan on the Cooperative
      Unit in which the Shareholder has a Cooperative Interest ❑ Pay the costs of
      construction to combine the Cooperative Units into a single unit ❑ Pay any related
      Closing Costs, financing costs and Prepaid/Escrows up to 2.5% of the UPB of
      the refinance loan amount; and ❑ Disburse cash to the Shareholder up to 1% of
      the UPB of the refinance Cooperative Share Loan or $2,000 whichever is less,
      provided that the cash disbursed does not exceed 5% of the amount of the Cooperative
      Share Loan (d) Appraisal requirements for combined Cooperative Units The Cooperative
      Units must be appraised as a combined single unit. (e) Closing requirements
      for combined Cooperative Units In connection with the closing of the Cooperative
      Share Loan secured by the combined single Cooperative Unit, the following requirements
      must be met: ■ All loan documents must use the single unit designation assigned
      by the Cooperative Corporation ■ The Cooperative Share Loan must be secured
      by a first lien on the Cooperative Interest (i.e., rights of ownership and occupancy
      rights) to the Cooperative Units that were combined into the single unit (f)
      Servicing/foreclosure requirements for combined Cooperative Units The Cooperative
      Share Loan must be serviced as a 1-unit dwelling. In the event of a foreclosure,
      the Cooperative Share Loan secured by a pledge or trust of the Cooperative Shares
      must be foreclosed as a combined single 1-unit dwelling. Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 5705 As of 01/26/26 Page 5705-40'
  judgment: false
