source:
  type: guide
  id: fhlmc-4301.3
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 4301.3 — Refinance
    practices
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 4301.3 — Refinance
    practices.
  coverage_tier: operative
obligations:
- id: fhlmc-4301.3-full
  canonical_id: fhlmc-4301.3-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 4301.3 — Refinance
    practices
  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 4301.3 — Refinance
      practices
    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: '4301.3: Refinance practices (12/03/25) This section contains
      requirements related to: ■ Allowable refinance practices ■ Unacceptable refinance
      practices and remedies ■ Prepayment speed monitoring and reporting (a) Allowable
      refinance practices A Seller/Servicer may: ■ Present refinance or payoff information
      to any Borrower who requests such information ■ Conduct broad-based refinance
      advertising, telephone or other campaigns directed at broad categories of Borrowers,
      such as those with Mortgages in their Servicing portfolio, Borrowers with Mortgage
      coupons above a certain level, certain Mortgage products (e.g., conventional
      fixed-rate Mortgages or ARMs) or Mortgages secured by Mortgaged Premises in
      particular geographic areas (b) Unacceptable refinance practices and remedies
      A Seller/Servicer may not: ■ Deliver any Mortgage to Freddie Mac obtained from
      a Mortgage Broker or Correspondent if the Seller has knowledge or reason to
      believe that the Mortgage Broker Freddie Mac Single-Family Seller/Servicer Guide
      Chapter 4301 As of 02/04/26 Page 4301-3 or Correspondent has received an application
      to refinance or has agreed to refinance the Mortgage (even if the agreement
      is not in writing) ■ Sell or deliver a Mortgage to Freddie Mac if the Seller
      has knowledge or reason to believe that the Borrower has entered into, or has
      agreed to enter into, a refinancing arrangement (even if the agreement is not
      in writing) ■ Sell or deliver a Mortgage to Freddie Mac without full and accurate
      disclosure of all material information about the Mortgage (see Sections 4201.1,
      4201.10, 6201.6(a) and 8101.4(d)). Any information related to refinancing or
      proclivity for refinancing is considered material information to Freddie Mac.
      ■ Originate a cash-out refinance Mortgage or a purchase transaction Mortgage
      with the intention of refinancing that Mortgage as a “no cash-out” refinance
      Mortgage prior to sale to Freddie Mac. The “no cash-out” refinance Mortgage
      is ineligible for sale to Freddie Mac. See Section 4301.4 for requirements related
      to the required age of the Mortgage being refinanced when the subject transaction
      is a “no cash-out” refinance Mortgage. Except as stated in Section 4302.2 for
      Refi Possible® Mortgages, in advertising or implementing refinance terms, a
      Seller/Servicer may not: ■ Intentionally target Freddie Mac-owned Mortgages
      ■ Segregate Mortgages in its own portfolio from those sold to Freddie Mac for
      different treatment in terms of refinance advertising, offers or practices A
      Seller/Servicer must incorporate adequate controls in its origination and refinancing
      procedures to prevent unacceptable refinance practices by the Seller/Servicer
      or any of its Mortgage Brokers and Correspondents. A Seller/Servicer that (i)
      engages in unacceptable refinance practices, (ii) knowingly sells or delivers
      Mortgages to Freddie Mac from Mortgage Brokers or Correspondents it knew, or
      should have known, were engaging in unacceptable refinance practices, or (iii)
      fails to maintain proper controls for such Mortgages being sold or delivered
      to Freddie Mac will be subject to any or all of the remedies available to Freddie
      Mac at law or in equity and pursuant to this Guide and relevant Purchase Documents.
      Those remedies include, but are not limited to: ■ Disqualification, ■ Suspension,
      and/or ■ Requiring the Seller/Servicer to make Freddie Mac whole for losses,
      including losses associated with repurchases at par for Mortgages purchased
      at premium prices and/or Freddie Mac Single-Family Seller/Servicer Guide Chapter
      4301 As of 02/04/26 Page 4301-4 losses associated with claims made by security
      investors. With respect to claims by such investors, the disposition of such
      claims is solely within the discretion of Freddie Mac. A Seller/Servicer that
      has any questions about compliance with Freddie Mac requirements should contact
      its Freddie Mac account manager (or other designated Freddie Mac personnel)
      to ensure compliance with Freddie Mac’s requirements and to facilitate full
      and accurate disclosure of all pertinent information. (c) Prepayment speed monitoring
      and reporting Freddie Mac expects the Seller/Servicer to monitor the prepayment
      levels of its Mortgages, particularly refinance Mortgages. If the Seller/Servicer
      becomes aware of circumstances likely to result in unusually high prepayment
      rates on Mortgages purchased from it by Freddie Mac, it must notify its Freddie
      Mac account manager immediately. If requested to do so by Freddie Mac, the Seller/Servicer
      is obligated to cooperate fully and promptly with Freddie Mac personnel and
      to provide adequate information in trying to determine the reason and a solution
      for any such high prepayment rates. Freddie Mac reserves the right to initiate
      on its own an investigation of high prepayment rates of a particular Seller/Servicer.'
  judgment: false
