source:
  type: guide
  id: fhlmc-4701.1
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 4701.1 — Mortgage
    insurance
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 4701.1 — Mortgage
    insurance.
  coverage_tier: operative
obligations:
- id: fhlmc-4701.1-full
  canonical_id: fhlmc-4701.1-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 4701.1 — Mortgage
    insurance
  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 4701.1 — Mortgage
      insurance
    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: '4701.1: Mortgage insurance (02/04/26) This section contains
      requirements related to: ■ Mortgage insurance coverage options ■ Custom mortgage
      insurance options ■ Mortgaged Premises located in the State of New York ■ MI
      master policy and approved insurers ■ Credit Fees Mortgage insurance is required
      for each conventional Mortgage Freddie Mac purchases that has a loan-to-value
      (LTV) ratio of more than 80%. The LTV ratio is obtained by dividing the original
      loan amount by the value, as defined in Section 4203.1(a). (a) Freddie Mac’s
      mortgage insurance coverage options Freddie Mac offers two mortgage insurance
      coverage options: ■ Standard mortgage insurance ■ Custom mortgage insurance
      The standard and custom coverage levels apply as stated in the table below.
      Standard and custom mortgage insurance coverage levels Transaction type Mortgage
      insurance coverage LTV ratio > 80% and ≤ 85% > 85% and ≤ 90% > 90% and ≤ 95%
      > 95% and ≤ 97% Fixed rate, term ≤ 20 years Standard 6% 12% 25% 35% Custom*
      N/A N/A 16% 18% Standard 12% 25% 30% 35% Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 4701 As of 02/04/26 Page 4701-2 Standard and custom mortgage insurance
      coverage levels Transaction type Mortgage insurance coverage LTV ratio > 80%
      and ≤ 85% > 85% and ≤ 90% > 90% and ≤ 95% > 95% and ≤ 97% ■ Fixed rate, term
      > 20 years ■ ARMs1; and ■ Manufactured Homes1 Custom* 6% 12% 16% 18% Home Possible®
      Mortgages, fixed rate, term ≤ 20 years Standard 6% 12% 25% 25% Custom* N/A N/A
      16% 18% Home Possible Mortgages: ■ Fixed rate, term > 20 years ■ ARMs1; and
      ■ Manufactured Homes1 Standard 12% 25% 25% 25% Custom* 6% 12% 16% 18% 1Except
      for Mortgages secured by a CHOICEHome® as described in Section 5703.12, Manufactured
      Homes and ARMs are limited to a maximum LTV ratio of 95%. *If custom mortgage
      insurance is chosen, in addition to all other applicable Credit Fees, the custom
      mortgage insurance Credit Fee in Price in Exhibit 19, Credit Fees, applies,
      including on Home Possible Mortgages. (b) Custom mortgage insurance options
      The custom mortgage insurance option provides an alternative to standard mortgage
      insurance coverage. Custom mortgage insurance is available only for Accept Mortgages.
      Custom mortgage insurance may not be financed as part of the principal amount
      of the Mortgage. (c) Mortgaged Premises located in the State of New York For
      Mortgaged Premises located in the State of New York, the “value” is the appraised
      value of the Mortgaged Premises on the Note Date of the Mortgage and is used
      solely for the purpose of determining whether mortgage insurance is required
      or should be canceled. This Freddie Mac Single-Family Seller/Servicer Guide
      Chapter 4701 As of 02/04/26 Page 4701-3 definition of the “value” of Mortgaged
      Premises located in the State of New York applies only to the above-stated mortgage
      insurance requirements and is not applicable for any other purposes under the
      terms of the Purchase Documents. After determining that mortgage insurance is
      required, the definition of “value” from Section 4203.1(a) should be used for
      the purposes of selecting the appropriate mortgage insurance coverage level.
      Note: For special requirements related to Cooperative Share Loans when the Cooperative
      Unit is located in the state of New York, see Section 4701.5. (d) MI master
      policy and approved insurers The Mortgage must be insured by an approved private
      MI or State housing finance agency that is approved to insure Mortgages as of
      the Delivery Date of the Mortgage (see Exhibit 10, Freddie Mac-Approved Mortgage
      Insurers). The Mortgage must be insured under an approved master policy or loan
      loss reserve agreement in accordance with Exhibit 10. Mortgage insurance coverage
      must continue to be carried with the MI that insured the Mortgage, except as
      provided for transfers of mortgage insurance coverage in Section 8203.5(b).
      The required mortgage insurance must be in full force and effect as of the Delivery
      Date and remain in force until canceled in accordance with the requirements
      of Sections 8203.2 through 8203.4(c) or pursuant to applicable law. Mortgage
      insurance coverage must not be subject to any exclusion besides those exclusions
      stated in the relevant master policy or loan loss reserve agreement. Coverage
      must run to the benefit of Freddie Mac for a whole loan or a participation loan
      insured under a participation policy or to the Seller for any other insured
      participation loan. No action may have been taken, or no action may have failed
      to be taken, that would impair the rights of Freddie Mac or the Seller. Participation
      policies with provisions inconsistent with this section or that impose premium
      payment or reporting requirements on Freddie Mac are not acceptable. The Seller
      warrants that the Borrower has been given all disclosures required by law, including,
      but not limited to, the Homeowners Protection Act of 1998 (HPA), as amended,
      relating to the terms on which Borrower-paid mortgage insurance may be canceled.
      This includes all disclosures required by the HPA at loan origination to describe
      the Borrower’s mortgage insurance cancelation rights under the HPA. (e) Credit
      Fees Mortgages sold to Freddie Mac with mortgage insurance coverage lower than
      the standard levels shown in Section 4701.1(b) will be assessed the Custom Mortgage
      Insurance Option Credit Fee in Price, as described in Exhibit 19.'
  judgment: false
