source:
  type: guide
  id: fhlmc-3403.1
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 3403.1 — Servicer's
    quality control program
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 3403.1 — Servicer's
    quality control program.
  coverage_tier: operative
obligations:
- id: fhlmc-3403.1-full
  canonical_id: fhlmc-3403.1-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 3403.1 — Servicer's
    quality control program
  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 3403.1 — Servicer's
      quality control program
    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: '3403.1: Servicer’s quality control program (02/11/26) The Servicer
      must implement a quality control program with respect to its Servicing of Mortgages
      for Freddie Mac, and, in implementing this program, it may leverage its existing
      processes. Freddie Mac may review and require changes to a Servicer’s quality
      control program. Servicers must: ■ Have written policies and procedures documenting
      its quality control program’s requirements ■ Consistently monitor compliance
      with these policies and procedures as part of a prudent risk management framework
      ■ Regularly review and assess the adequacy of its internal controls, procedures
      and systems used in connection with the Servicing of Freddie Mac Mortgages to
      ensure compliance with the Guide and other Purchase Documents The Servicer must
      take remedial steps, as appropriate, to address any deficiencies identified
      regardless of whether such deficiencies are: ■ Discovered by the Servicer, ■
      Identified and communicated by Freddie Mac, ■ Identified by a Borrower and confirmed
      by the Servicer, or ■ Identified by a third party (e.g., external auditor, law
      firm, regulatory agency) and confirmed by the Servicer The Servicer must formally
      document the results of its reviews and assessments and make the results, including
      any remediation plan or completed remediation, available to Freddie Mac upon
      request. A Servicer must provide evidence of its quality control program upon
      Freddie Mac’s request. At a minimum, the program must: 1. Comply with the fraud
      prevention and detection requirements of Section 3201.1(c), as well as other
      applicable fraud prevention, detection and reporting requirements of Chapter
      3201 Freddie Mac Single-Family Seller/Servicer Guide Chapter 3403 As of 02/11/26
      Page 3403-2 2. Evaluate whether the Servicer is maintaining accurate and complete
      records as required by Chapter 3302 and the document retention and Document
      Custodian requirements set forth in Sections 9206.4(b), 9205.1(b) and 9205.3
      3. Establish control and identification features for all Mortgage files, in
      accordance with Section 3302.1(c) 4. Provide for periodic reviews of the Servicer’s
      cash accounting, investor reporting and remitting, escrow management and notifications
      to Borrowers, portfolio reconciliation and custodial accounts management processes
      and controls, using a Mortgage sample size that reflects a meaningful representation
      of the UPB of the Mortgages the Servicer services for Freddie Mac 5. Assess
      ARM adjustment accuracy and notifications to Borrowers 6. Periodically perform
      quality control reviews or audits on any authorized Outsourced Vendor’s use
      of any Servicing Tool to ensure compliance with the Guide and other Purchase
      Documents 7. Evaluate whether its operations personnel and, if applicable, Outsourced
      Vendors are complying with and accurately conducting the preforeclosure referral
      Mortgage file review requirements of Sections 9101.1(e), 9102.4(b) and 9301.2(a)
      and preforeclosure sale account review requirements of Section 9301.7(b) 8.
      Periodically review notices of default, notices of acceleration, right to cure
      notices and, where applicable, right to appeal a loan modification denial notice
      to ensure that they are properly dated, timely sent and otherwise provide Borrowers
      with all rights required by applicable law and assess whether all condition
      precedents to proceeding with foreclosure are met 9. Periodically review compliance
      with Freddie Mac’s loss mitigation requirements, which includes compliance with
      Freddie Mac’s modification program requirements and short sales 10. Maintain
      policies and procedures that are reasonably designed to ensure that the Servicer
      investigates, responds to and makes corrections in response to complaints or
      errors asserted by Borrowers Freddie Mac Single-Family Seller/Servicer Guide
      Chapter 3501 As of 11/19/25 Page 3501-1 Chapter 3501: Freddie Mac Servicer Success
      File Reviews and Performance Criteria 3501.1: Freddie Mac Servicer Success File
      Reviews (11/19/25) This section contains requirements related to: ■ Types of
      File Reviews ■ File Review requests ■ Review conclusions and appeal As part
      of the Servicing Success Program, as described at https://sf.freddiemac.com/content/_assets/resources/pdf/step-by-step-
      guides/serv_success_prog.pdf, Freddie Mac will be conducting reviews of delinquent
      Mortgage files from time to time as discussed below. These file reviews (“Servicer
      Success File Reviews” or “File Reviews”) are in addition to any audit of Mortgage
      files specified in Section 8101.4(c). (a) Types of File Reviews Freddie Mac
      will notify a Servicer in writing that certain Mortgages have been selected
      for a Servicer Success File Review. Freddie Mac may conduct the following types
      of File Reviews: ■ Prudent Servicing Review: An assessment of the Servicer’s
      collection activities, loss mitigation activities, timeline management and property
      preservation processes ■ Short Sale Compliance Review: An assessment of the
      Servicer’s compliance with the requirements of the Guide and other Purchase
      Documents, as applicable, regarding completed short sales ■ Loan Modification
      Compliance Review: An assessment of the Servicer’s compliance with the requirements
      of the Guide and other Purchase Documents, as applicable, regarding completed
      modifications Freddie Mac may modify or expand the types of File Reviews from
      time to time. (b) File Review requests Freddie Mac will notify a Servicer in
      writing that certain Mortgages have been selected for a File Review. Freddie
      Mac Single-Family Seller/Servicer Guide Chapter 3501 As of 11/19/25 Page 3501-2
      Servicers must comply with the instructions and any requirements set forth in
      a File Review request from Freddie Mac, which will: ■ Include the Freddie Mac
      loan numbers associated with the Mortgage files being requested, ■ Specify the
      documentation that must be included with each type of file (e.g., short sale
      under Chapter 9204 or modification under Chapter 9204 or 9205), ■ Provide detailed
      instructions on the manner in which the documents are to be submitted to Freddie
      Mac, and ■ State that Freddie Mac must receive the requested file documentation
      within 30 calendar days from the date of the letter requesting the documentation
      or such other time frame Freddie Mac specifies in the request All documentation
      sent to Freddie Mac may be used in the File Review, even if the Servicer includes
      documentation that is not required. Freddie Mac may request additional Mortgage
      files and/or additional documents during the File Review. The Servicer must
      submit the requested documentation in the manner specified by Freddie Mac, or
      Freddie Mac may refuse to accept the documentation. A Servicer’s failure to
      submit requested documentation will be considered a violation of the Purchase
      Documents, and Freddie Mac will pursue all rights and remedies available under
      the Purchase Documents and applicable law. Additionally, failure to submit the
      documentation is considered a file defect and may be considered in determining
      a Servicer’s overall performance in accordance with Section 3501.2. (c) Review
      conclusions and appeal Upon completion of the File Review, Freddie Mac will
      provide its conclusions, including any defects, in writing to the Servicer.
      Servicers may provide Freddie Mac with a response or appeal to the findings
      noted in Freddie Mac’s conclusions up to 15 Business Days after the date of
      Freddie Mac’s written conclusions. If an identified defect was the result of
      a missing or incorrect document, that document may be submitted with the Servicer’s
      appeal to support clearing the defect. If the Servicer failed to submit any
      documents in response to Freddie Mac’s initial File Review request on a Mortgage,
      and the overall result is “Fail – Missing Docs,” the Servicer may not appeal
      the defect for that Mortgage. Freddie Mac’s decision on the File Review shall
      be deemed conclusive and may be considered as a factor in determining a Servicer’s
      overall performance in accordance with Section 3501.2. Freddie Mac, in its sole
      and absolute discretion, may choose to rely on such Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 3501 As of 11/19/25 Page 3501-3 conclusions or
      upon any other available information in determining whether to pursue any other
      right or remedy available to Freddie Mac under the Purchase Documents or applicable
      law. Note: File Reviews are not a substitute for the Servicer’s own internal
      quality control for default management activities.'
  judgment: false
