source:
  type: regulation
  id: fhlmc-5501.1
  authority: Freddie Mac Single-Family Seller/Servicer Guide §5501.1 — Funds required for the Mortgage transaction
    (08/06/25)
  description: "Freddie Mac Guide §5501.1 (Funds required for the Mortgage transaction). Gap-fill (verbatim, ID-diff).\
    \ \n"
obligations:
- id: fhlmc-5501.1-0
  canonical_id: fhlmc-5501.1-0
  section: Freddie Mac Guide 5501.1
  description: '5501.1 Funds required for the Mortgage transaction: (08/06/25) This section contains requirements
    related to: ■ Verification of Borrower funds for a purchase transaction ■ Verification of Borrower funds for
    a refinance transaction ■ Eligible sources of funds ■ Prorated real estate tax credits ■ General documentation
    requirements ■…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5501.1 — Funds required for the Mortgage transaction
      (08/06/25)
    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: '(08/06/25) This section contains requirements related to: ■ Verification of Borrower funds
      for a purchase transaction ■ Verification of Borrower funds for a refinance transaction ■ Eligible sources
      of funds ■ Prorated real estate tax credits ■ General documentation requirements ■ Evaluation of deposits
      in the Borrower’s accounts (a) Verification of Borrower funds for a purchase transaction For purchase transaction
      Mortgages, the Seller must verify that the Borrower has sufficient funds to qualify for the Mortgage, which
      includes any funds required to be paid by the Borrower and Borrower reserves. Funds required to be paid by
      the Borrower include, but are not limited to, funds needed for Down Payment, for Closing Costs and to pay
      off or pay down debt. (b) Verification of Borrower funds for a refinance transaction For refinance Mortgages,
      the Seller must verify that the Borrower has sufficient funds to qualify for the Mortgage, which includes
      any funds required to be paid by the Borrower (e.g., funds needed for Closing Costs and to pay off or pay
      down debt) and Borrower reserves when any of the following apply: ■ The funds required to be paid by the Borrower
      are more than $500 ■ Reserves are required for the transaction (i.e., as specified in Section 5501.2 or required
      by the Feedback Certificate) ■ The Mortgage is a Manually Underwritten Mortgage'
    drafter_attestation: Verbatim from Freddie Guide §5501.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5501.1-1
  canonical_id: fhlmc-5501.1-1
  section: Freddie Mac Guide 5501.1
  description: '5501.1 Funds required for the Mortgage transaction: 501-2 (c) Eligible sources of funds All funds
    required to be verified must come from the eligible sources described in Sections 5501.3 and 5501.4. Refer to
    Section 5501.6 for interested party contributions requirements and Section 5501.7(a) for lender credit requirements.
    (d) Pro…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5501.1 — Funds required for the Mortgage transaction
      (08/06/25)
    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: '501-2 (c) Eligible sources of funds All funds required to be verified must come from the eligible
      sources described in Sections 5501.3 and 5501.4. Refer to Section 5501.6 for interested party contributions
      requirements and Section 5501.7(a) for lender credit requirements. (d) Prorated real estate tax credits Prorated
      real estate tax credits contributed by the property seller in areas where real estate taxes are paid in arrears
      may be considered when determining the funds required to be verified for the Mortgage transaction only when
      the Settlement/Closing Disclosure Statement indicates that an Escrow account is established and includes the
      portion of real estate taxes owed by the property seller for the period they owned the property. In such cases,
      the prorated tax credit from the property seller offsets that portion of the charge for the establishment
      of the Escrow account. (e) General documentation requirements (i) Documentation Level For Loan Product Advisor®
      Mortgages, the Documentation Level shown on the Feedback Certificate indicates the minimum level of documentation
      acceptable for a Loan Product Advisor Mortgage. The Seller must provide the documentation required in this
      chapter for the Documentation Level returned. All Manually Underwritten Mortgages must at a minimum be documented
      according to Standard Documentation requirements. (ii) Documentation requirements for Borrower’s accounts
      Assets held in an account at a financial institution may be verified using account statements, direct account
      verifications or third-party asset verifications. The following table contains the requirements for these
      types of verifications: Documentation requirements for assets held in an account at a financial institution
      Documentation type Documentation requirements Asset account statements Asset account statements must: ■ Identify
      the financial institution'
    drafter_attestation: Verbatim from Freddie Guide §5501.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5501.1-2
  canonical_id: fhlmc-5501.1-2
  section: Freddie Mac Guide 5501.1
  description: '5501.1 Funds required for the Mortgage transaction: 501-3 Documentation requirements for assets
    held in an account at a financial institution Documentation type Documentation requirements ■ Identify the account
    owner(s) ■ Identify the account number, which at a minimum must include the last four digits) ■ Show all transactions
    ■ S…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5501.1 — Funds required for the Mortgage transaction
      (08/06/25)
    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: '501-3 Documentation requirements for assets held in an account at a financial institution
      Documentation type Documentation requirements ■ Identify the account owner(s) ■ Identify the account number,
      which at a minimum must include the last four digits) ■ Show all transactions ■ Show the period covered ■
      Show the ending balance ■ Show any outstanding loans secured by the asset A computer-generated transaction
      history that is downloaded by the Borrower from the internet or by a financial institution representative
      from the institution’s system is acceptable. The transaction history must identify the name of the institution
      and the source and include the information required above for asset account statements, unless: ■ It is used
      in combination with other asset verifications containing the missing information, and ■ It can clearly establish
      that the transaction history pertains to the same account Direct account verifications (i.e., verification
      of deposit form (VOD)) Direct account verifications must: ■ Identify the financial institution ■ Identify
      the account owner(s) ■ Identify the account number, which at a minimum must include the last four digits ■
      Identify the type of account ■ Identify account open date ■ Identify the current account balance ■ Identify
      the average balance for the previous two months ■ Identify any outstanding loans secured by the asset ■ Include
      the title, signature and phone number of the depository representative who completed the verification, unless
      the direct account verification is generated electronically by the financial institution'
    drafter_attestation: Verbatim from Freddie Guide §5501.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5501.1-3
  canonical_id: fhlmc-5501.1-3
  section: Freddie Mac Guide 5501.1
  description: '5501.1 Funds required for the Mortgage transaction: 501-4 Documentation requirements for assets
    held in an account at a financial institution Documentation type Documentation requirements For purchase transaction
    Mortgages: the Seller must include documentation of the source of funds when an account is opened within 90
    days of ver…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5501.1 — Funds required for the Mortgage transaction
      (08/06/25)
    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: '501-4 Documentation requirements for assets held in an account at a financial institution
      Documentation type Documentation requirements For purchase transaction Mortgages: the Seller must include
      documentation of the source of funds when an account is opened within 90 days of verification and/or when
      the current balance in an account exceeds the average balance by more than 50% of the sum of: ■ The total
      monthly qualifying income for the Mortgage, and ■ The amount derived from the asset calculation for establishing
      the debt payment-to-income (DTI) ratio in accordance with the requirements of Section 5307.1 when assets are
      used as a basis for repayment of obligations Third-party asset verifications Asset verifications obtained
      through third-party verification service providers must: ■ Be received by the originator directly from the
      third-party verification service provider; and ■ Contain the same information as required for direct account
      verifications or asset account statements above. Exception: Verifications that are generated electronically
      and are not completed or provided by a representative of the employer or the depository institution, as applicable:
      ❑ Are not required to contain the representative’s information, and ❑ May identify the account with a minimum
      of the last two digits of the account number If any required information is missing, the Seller must obtain
      additional documentation to supplement the third-party verification. The Seller is responsible for ensuring
      the accuracy and integrity of the information provided by the third-party verification services. In lieu of
      the requirements above for third-party asset verifications, refer to Section 5501.8 for requirements for Mortgages
      using automated asset assessment with Loan Product Advisor using account data that receive a result of “Eligible
      for Asset Representation and Warranty Relief” or “Eligible for Partial Asset Representation and Warranty Relief”
      on the Last Feedback Certificate.'
    drafter_attestation: Verbatim from Freddie Guide §5501.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5501.1-4
  canonical_id: fhlmc-5501.1-4
  section: Freddie Mac Guide 5501.1
  description: '5501.1 Funds required for the Mortgage transaction: 501-5 (f) Evaluation of deposits in the Borrower’s
    accounts Except as stated below, the Seller is not required to document the sources of unverified deposits for
    purchase or refinance transactions. However, the Seller must consider any liabilities resulting from all borrowed
    fund…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5501.1 — Funds required for the Mortgage transaction
      (08/06/25)
    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: '501-5 (f) Evaluation of deposits in the Borrower’s accounts Except as stated below, the Seller
      is not required to document the sources of unverified deposits for purchase or refinance transactions. However,
      the Seller must consider any liabilities resulting from all borrowed funds. When the source of funds can be
      clearly identified from the deposit information on the account statement (e.g., direct payroll deposits) or
      other documented income or asset source in the Mortgage file (e.g., tax refund amounts appearing on the tax
      returns in the file), the Seller is not required to obtain additional documentation. (i) Deposits requiring
      verification for all transactions When an unverified deposit is used to pay off or pay down an existing debt
      in order to qualify for the Mortgage, the source of funds must be documented. (ii) “Large deposits” requiring
      verification for purchase transactions For purchase transaction Mortgages, the Seller must document the source
      of funds for any “large deposit” that is needed to qualify the Borrower. A “large deposit” is any single deposit
      exceeding 50% of the sum of: ■ The total monthly qualifying income for the Mortgage, and ■ The amount derived
      from the asset calculation for establishing the DTI ratio in accordance with the requirements of Section 5307.1
      when assets are used as a basis for repayment of obligations When a single deposit consists of both verified
      and unverified portions, the Seller may use just the unverified amount when determining whether the deposit
      is a “large deposit.” When a “large deposit” is not verified and is not needed to qualify the Borrower, the
      Seller must reduce the funds used for qualification by the amount of the unverified deposit. For Loan Product
      Advisor Mortgages, refer to Section 5101.3 to determine when resubmission to Loan Product Advisor is required.
      (iii)Acceptable sources of deposit When a deposit requires verification as stated above, the Seller must determine
      all of the following: ■ Whether the source of the deposit is acceptable, as described below ■ That the funds
      belong to the Borrower'
    drafter_attestation: Verbatim from Freddie Guide §5501.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5501.1-5
  canonical_id: fhlmc-5501.1-5
  section: Freddie Mac Guide 5501.1
  description: '5501.1 Funds required for the Mortgage transaction: 501-6 ■ That the funds are eligible for the
    transaction The only acceptable sources of deposit are the following: ■ The Borrower’s income ■ Funds awarded
    to the Borrower (e.g., disaster relief funds, lottery winnings, court- awarded settlement) provided the source
    is not an inter…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5501.1 — Funds required for the Mortgage transaction
      (08/06/25)
    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: '501-6 ■ That the funds are eligible for the transaction The only acceptable sources of deposit
      are the following: ■ The Borrower’s income ■ Funds awarded to the Borrower (e.g., disaster relief funds, lottery
      winnings, court- awarded settlement) provided the source is not an interested party to the real estate or
      Mortgage transaction ■ Funds derived from eligible asset types stated in Sections 5501.3 and 5501.4'
    drafter_attestation: Verbatim from Freddie Guide §5501.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
