source:
  type: guide
  id: fhlmc-5203.2
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 5203.2 — Credit
    Scores
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 5203.2 — Credit
    Scores.
  coverage_tier: operative
obligations:
- id: fhlmc-5203.2-full
  canonical_id: fhlmc-5203.2-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 5203.2 — Credit
    Scores
  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 5203.2 — Credit
      Scores
    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: '5203.2: Credit Scores (04/22/26) This section contains information
      related to: ■ Glossary terms used in this section ■ Minimum number of Credit
      Scores ■ Required Credit Score versions ■ Credit Score requirements ■ Assessment
      of Credit Fees for Mortgages with certain Indicator Scores (a) Glossary terms
      used in this section The Seller should be familiar with the Glossary definitions
      of the following terms: Glossary terms C Credit Score A number summarizing an
      individual’s credit profile that indicates the likelihood that a Borrower will
      repay future obligations. I Indicator Score The one Underwriting Score identified
      to represent the eligibility of the Mortgage for the product offering. The related
      ULDD Data Point names are Loan Level Credit Score Selection Method Type and
      Loan Level Credit Score Value. U Underwriting Score The one Credit Score selected
      from all usable Credit Scores obtained for an individual Borrower that quantifies
      the credit reputation risk for that individual Borrower. The related ULDD Data
      Point name is Credit Score Value. Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 5203 As of 04/22/26 Page 5203-13 (b) Minimum number of Credit
      Scores The Seller must request Credit Scores and accompanying reason codes for
      each Borrower from at least two of the consumer reporting agencies (CRAs). Credit
      Scores can be obtained by requesting a credit reporting company (CRC) to provide
      them as part of the credit report. It is unusual for a Borrower who reports
      credit obligations on the application not to have a Credit Score. If no Credit
      Score is received for such a Borrower, the Seller must re-check the information
      provided when ordering the Credit Scores and resubmit a request if an error
      is identified. (c) Required Credit Score versions Freddie Mac is transitioning
      toward a modernized and more competitive Credit Score framework for Mortgage
      underwriting. In support of this transition, the U.S. Federal Housing (FHFA)
      has approved the use of Classic FICO®, VantageScore® 4.0 and FICO Score 10T
      models. Each of the three major U.S. CRAs uses a different name to refer to
      Classic FICO scores; however, all FICO scores are based on the same underlying
      FICO scoring model developed by Fair Isaac Corporation. The following Credit
      Score versions generated by each CRA are used to determine the Underwriting
      Score and Indicator Score for Mortgages delivered to Freddie Mac: ■ Equifax®
      FICO Classic v5 ■ Experian®/Fair Isaac Risk Model v2 ■ TransUnion® FICO Risk
      Score 04 The following versions of VantageScore 4.0 are also eligible for use
      by approved Sellers: VantageScore 4.0 versions ■ Equifax VantageScore 4.0 ■
      Experian VantageScore 4.0 ■ TransUnion VantageScore 4.0 Sellers that wish to
      participate in the delivery of Mortgages assessed using VantageScore 4.0 should
      contact their Freddie Mac representative or Customer Service at 800-FREDDIE
      for information regarding program availability, eligibility requirements and
      applicable delivery instructions. FICO 10T versions Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 5203 As of 04/22/26 Page 5203-14 ■ FICO Score
      10T (Equifax, Experian, TransUnion) Mortgages delivered with FICO Score 10T
      are currently not eligible; however, as further progress is made on the updated
      credit score framework, Freddie Mac plans to purchase Mortgages delivered using
      FICO Score 10T. (d) Credit Score requirements (i) Credit Score requirements
      for Loan Product Advisor Mortgages A minimum Indicator Score is not required
      for Accept Mortgages because Loan Product Advisor has made the determination
      that the Borrower’s credit reputation and the Mortgage product are acceptable.
      Credit Scores, including Indicator Scores, are obtained by Loan Product Advisor,
      provided with the merged credit report(s) and reflected on the Feedback Certificate.
      Freddie Mac will use the Indicator Score reflected on the Last Feedback Certificate.
      For Mortgages sold through Cash-Released XChange®, the Seller must deliver the
      Indicator Score from the Last Feedback Certificate as ULDD Data Point Loan Level
      Credit Score Value. (ii) Credit Score requirements for Manually Underwritten
      Mortgages and Non-Loan Product Advisor Mortgages Manually Underwritten Mortgages
      must comply with the requirements in Section 5202.1 for: ■ Determining if the
      Credit Scores are usable or not usable ■ Identifying the Underwriting Score
      for each Borrower ■ Identifying the Indicator Score for the Mortgage ■ Documenting
      and delivering Underwriting Scores and Indicator Scores (e) Assessment of Credit
      Fees for Mortgages with certain Indicator Scores The Seller must refer to Exhibit
      19, Credit Fees, for information related to Credit Scores. Credit Fees are paid
      in accordance with the Credit Fee provisions in Chapter 6303. The Base Grid
      Credit Fees in Price, by Loan Purpose Type, in Exhibit 19 assume the middle/lower
      then lowest method was used to identify the Indicator Score. Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 5203 As of 04/22/26 Page 5203-15 The Alt FICO
      Credit Fee in Price in Exhibit 19 will be assessed when all the following conditions
      are met: ■ The Base Grid Credit Fee in Price, by Loan Purpose Type, is applicable;
      ■ The credit fee rate is greater than 0%; and ■ A method other than the middle/lower
      then lowest method was used to identify the Indicator Score Unless the Mortgage
      is sold through Cash-Released XChange, for Base Grid Credit Fees in Price, by
      Loan Purpose Type, in Exhibit 19, applicable to Loan Product Advisor Mortgages,
      the applicable Credit Fee in Price will be assessed using the loan-to-value
      (LTV) ratio calculated by Freddie Mac using data delivered by the Seller and
      the Indicator Score on the Last Feedback Certificate. For Mortgages sold through
      Cash-Released XChange, the Mortgage will be assessed a Base Grid Credit Fee
      in Price, by Loan Purpose Type, in Exhibit 19, based on ULDD Data Point Loan
      Level Credit Score Value. If the Seller does not deliver an Indicator Score
      or, in lieu of an Indicator Score, the Key Number, the Mortgage may be assessed
      the < 640 Base Grid Credit Fee in Price, by Loan Purpose Type, in Exhibit 19.
      For Mortgages delivered with no usable Credit Score due to insufficient information
      or inaccurate information in accordance with Section 5202.1(f), Freddie Mac
      will not assess the Base Grid Credit Fee in Price, by Loan Purpose Type, in
      Exhibit 19. Freddie Mac Single-Family Seller/Servicer Guide Chapter 5301 As
      of 03/04/26 Page 5301-1 Chapter 5301: General Requirements for All Stable Monthly
      Income and Asset Qualification Sources 5301.1: General requirements for all
      stable monthly income (03/04/26) This section contains information and guidance
      related to: ■ Overview of stable monthly income ■ General requirements for all
      stable monthly income ■ Income stability and history requirements ■ Income continuance
      requirements ■ Alimony payments (a) Overview of stable monthly income Topic
      5300 provides requirements and guidance for the determination of stable monthly
      income. The Seller must determine when additional analysis and documentation
      is needed to support the determination of stable and consistent monthly income.
      (b) General requirements for all stable monthly income Stable monthly income:
      Stable monthly income is the Borrower’s verified gross monthly income from all
      acceptable and verifiable sources that can reasonably be expected to continue
      for at least the next three years. For each income source used to qualify the
      Borrower, the Seller must determine that both the source and the amount of the
      income are stable, with a consistent level of earnings. The income used to qualify
      the Borrower (whether or not specifically addressed as an income source or type
      in Topic 5300) and the documentation in the Mortgage file must be evaluated
      for stable monthly income qualification requirements and must meet the requirements
      of Topic 5300. Income that does not meet these requirements or is not calculated
      correctly may invalidate the Loan Product Advisor® Risk Class on the Feedback
      Certificate. Freddie Mac Single-Family Seller/Servicer Guide Chapter 5301 As
      of 03/04/26 Page 5301-2 Cryptocurrency: Income that is paid to the Borrower
      in cryptocurrency may not be used for qualification. Mortgage file documentation:
      All documentation used to establish stable monthly income must be retained in
      the Mortgage file. (c) Income stability and history requirements The Seller
      must consider the length of history of the income and whether the earnings have
      been consistent. When evaluating stability of income based upon historical receipt,
      additional layering of risk may be present depending upon the degree of income
      fluctuation. As a result, the Seller must determine when additional documentation
      (e.g., an additional year of earnings history) is necessary to support income
      stability. In most instances, a two-year history of receiving a consistent level
      of income is required for the income to be considered stable and used for qualifying.
      While the source of income may vary, the Borrower must have a consistent level
      of income despite changes in the sources of income. (d) Income continuance requirements
      For all income used to qualify the Borrower, the Seller must determine whether
      the income is reasonably expected to continue. This determination must focus
      on the Borrower’s past employment/self-employment history, history of receipt
      of other income and the probability of continued consistent receipt of the income
      used to qualify the Borrower. At a minimum, the Seller must base the determination
      on the requirements of Topic 5300 and any other documentation contained in the
      Mortgage file. Additional documentation may be required, as described in Section
      5302.1. The Seller must not consider income for qualifying the Borrower if the
      Seller has knowledge, information or documentation that contradicts a reasonable
      expectation of continuance or probability of consistent receipt over at least
      the next three years. Income continuance categories and tables Continuance of
      income is categorized as follows: ■ Income and earnings types typically without
      documentable continuance (likely to continue) (Table A) ■ Income types with
      documentable continuance (Table B) ■ Income types that may or may not have documentable
      continuance, depending upon the source (e.g., government program, private insurer)
      and terms of the specific income type (e.g., retirement, long-term disability)
      (Table C) Freddie Mac Single-Family Seller/Servicer Guide Chapter 5301 As of
      03/04/26 Page 5301-3 (i) Income and earnings types typically without documentable
      continuance (likely to continue) Table A: Income and earnings types typically
      without documentable continuance Earnings types and income types Continuance
      requirements Employed income ■ Base employment earnings ■ Military earnings
      (base, entitlements, Reserve, National Guard) ■ Bonus, commission, overtime
      and tip earnings ■ Restricted stock (RS) and restricted stock units (RSU) subject
      to performance-based vesting provisions ■ Recurring RS and RSU awards subject
      to time- based vesting provisions ■ Automobile allowance ■ Unemployment (associated
      with seasonal employment) Income must be likely to continue for at least the
      next three years. The Seller is not required to obtain documentation to verify
      income continuance, absent any knowledge, information or documentation that
      the income is no longer being received or is likely to cease. When the Seller
      has knowledge or information that the income may not be reasonably expected
      to continue, the Seller must conduct additional evaluation and/or obtain documentation
      in order to determine if the income can be used. Example (Seller knowledge):
      If a Borrower has been receiving overtime or bonuses, but the Seller has information
      or documentation evidencing that the income is already discontinued or will
      be discontinued due to the completion of a project or termination of a bonus
      program, the “likely to continue” requirement would not be met, and the income
      cannot be used for qualification purposes. Rental income Self-employment income
      Freddie Mac Single-Family Seller/Servicer Guide Chapter 5301 As of 03/04/26
      Page 5301-4 Table A: Income and earnings types typically without documentable
      continuance Other income ■ Foster-care income ■ Housing or parsonage allowance
      ■ Mortgage Credit Certificate ■ Royalty payments (two- year history) ■ Tax-exempt
      income (ii) Income types with documentable continuance For income types with
      documentable continuance, the documentation requirements for each individual
      income type listed within Topic 5300 provide the minimum documentation required
      in order for the Seller to verify income continuance for at least three years.
      Table B: Income types with documentable continuance Income types Continuance
      requirement highlights1 Mortgage differential Document duration of payments
      (Refer to Sections 5303.1 and 5305.1) Notes receivable Royalty payments (one-year
      history) Nonrecurring RS and RSU awards subject to time-based vesting provisions
      Trust income (fixed payment) Alimony, child support and/or separate maintenance
      Document duration of obligation (Refer to Section 5305.1) Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 5301 As of 03/04/26 Page 5301-5 Table B: Income
      types with documentable continuance Homeownership Voucher Program (HOV) Document
      duration of HOV term limit for assistance (Refer to Section 5305.1) Capital
      gains Document sufficient assets (Refer to Section 5305.1) Dividend and interest
      Retirement account distributions as income Trust income (fluctuating payments)
      1 Highlights of the requirements from the individual income types are provided
      for illustrative purposes only. Refer to the sections shown above for complete
      requirements. (iii) Income types that may or may not have documentable continuance
      Table C: Income types that may or may not have documentable continuance Certain
      income types are associated with multiple income sources, each of which may
      have specific requirements with respect to continuance, whether defined or undefined.
      For this reason, this grouping of income types may or may not have documentable
      continuance. Example: ■ If the source of retirement income is Social Security
      retirement benefits, no additional documentation of continuance is required
      ■ If the source is a retirement annuity from an insurance company, there will
      generally be a defined term in which case continuance must be documented Freddie
      Mac Single-Family Seller/Servicer Guide Chapter 5301 As of 03/04/26 Page 5301-6
      Table C: Income types that may or may not have documentable continuance Income
      types Continuance requirement highlights1 Retirement income (e.g., social security,
      defined benefit pension, annuity, other similar benefits) Sellers must be knowledgeable
      about the source of the specific income type in order to determine whether or
      not documentable continuance is applicable. This includes, but is not limited
      to, knowledge of factors with respect to whether the payments are received pursuant
      to a written agreement, government program, law and/or regulation, as well as
      the applicable eligibility criteria governing the continued receipt of the income.
      Refer to Section 5305.1 for requirements for these income types. For long-term
      disability and SSI income types: Pending or current re-evaluation of medical
      eligibility for insurance and/or benefit payments is not considered an indication
      that the insurance and/or benefit payment will not continue. Survivor and dependent
      benefits (e.g., Social Security Survivor Benefits, Survivors’ VA benefits, other
      similar benefits) Long-term disability income (e.g., Social Security disability
      benefits, VA disability compensation, worker’s compensation, private disability
      insurance) Social Security Supplemental Security Income (SSI) Public assistance
      income (e.g., Temporary Assistance for Needy Families) 1 Highlights of the requirements
      from the individual income types are provided for illustrative purposes only.
      Refer to the sections shown above for complete requirements. (e) Alimony payments
      The amount of the monthly alimony payment must be deducted from the stable monthly
      income if both of the following apply: 1. The Borrower is obligated to pay alimony
      2. There are more than 10 months of payments remaining Note: See Section 5401.2(b)(3)
      for additional information. Freddie Mac Single-Family Seller/Servicer Guide
      Chapter 5301 As of 03/04/26 Page 5301-7 5301.2: General requirements for all
      stable monthly asset qualification sources (03/04/26) Asset qualification sources
      that meet the requirements of Topic 5300, including Chapter 5307, may also be
      used to qualify the Borrower for the Mortgage. For each asset qualification
      source, the Seller must determine that both the source of the asset and the
      amount of the asset source used to qualify the Borrower are reasonable and stable.
      The asset qualification sources used to qualify the Borrower and the documentation
      in the Mortgage file must be evaluated for stable monthly asset qualification
      requirements. Asset qualification sources that do not meet these requirements
      or are not calculated correctly may invalidate the Loan Product Advisor® Risk
      Class on the Feedback Certificate. Mortgage file documentation: All documentation
      used to establish stable monthly asset qualification must be retained in the
      Mortgage file.'
  judgment: false
