source:
  type: guide
  id: fhlmc-5701.7
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 5701.7 — Exempt
    From Review
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 5701.7 — Exempt
    From Review.
  coverage_tier: operative
obligations:
- id: fhlmc-5701.7-full
  canonical_id: fhlmc-5701.7-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 5701.7 — Exempt
    From Review
  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 5701.7 — Exempt
      From Review
    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: '5701.7: Exempt From Review (05/06/26) This section contains:
      ■ Eligible Mortgages ■ Condominium Project eligibility ■ General project eligibility
      requirements ■ Additional requirements To be eligible under Exempt From Review,
      the requirements below must be met. (a) Eligible Mortgages The Mortgage must
      be one of the following: ■ Secured by a Condominium Unit in a 2- to 4-Unit Condominium
      Project ■ Secured by a Condominium Unit in a 5- to 10-Unit Condominium Project
      that is not part of a Master Association ■ Secured by a Detached Condominium
      Unit ■ A Freddie Mac-owned “no cash-out” refinance Condominium Unit Mortgage;
      or ■ A Refi Possible® Mortgage (b) Condominium Project eligibility The Condominium
      Project must meet the following: ■ Not be a Condominium Hotel or similar type
      of transient housing, a houseboat project, a timeshare project, or a project
      with segmented ownership (all as described in Section 5701.3) ■ Not include
      Manufactured Homes, unless the Condominium Unit Mortgage is a Refi Possible
      Mortgage ■ For Freddie Mac-owned “no cash-out” refinance Condominium Unit Mortgages
      and Refi Possible Mortgages, the Condominium Project is not in need of Critical
      Repairs and does not have an evacuation order. (See Sections 5701.3(n) and 5701.3(o)
      for details.) Freddie Mac Single-Family Seller/Servicer Guide Chapter 5701 As
      of 05/06/26 Page 5701-56 ■ Not be the subject of any action that would cause
      the Condominium Project to cease to exist and not be the subject of an insolvency
      proceeding. (See Section 5701.3(p) for details.) (c) General project eligibility
      requirements The general project eligibility requirements in Section 5701.2(b)
      must be met. Additionally, attached and semi detached units within projects
      containing Detached Condominium Units may not be delivered as Exempt From Review
      unless: ■ They are within a 2- to 4-Unit Condominium Project ■ They are within
      a 5- to 10-Unit Condominium Project that is not part of a Master Association;
      or ■ They meet the requirements for Freddie Mac-owned “no cash-out” refinance
      Condominium Unit Mortgages or Refi Possible Mortgages (d) Additional requirements
      The following table outlines additional requirements that must be met based
      on the type of Condominium Project or Condominium Unit Mortgage: Additional
      requirements by Condominium Project or Condominium Unit Mortgage type Project/Mortgage
      type Requirements 2- to 4-Unit Condominium Projects The Condominium Project
      must meet the Glossary definition of a 2- to 4-Unit Condominium Project. Note:
      The Glossary definitions of Established Condominium Project and New Condominium
      Project are not applicable. 5- to 10-Unit Condominium Projects The Condominium
      Project must meet the Glossary definition of a 5- to 10-Unit Condominium Project.
      Note: The Glossary definitions of Established Condominium Project and New Condominium
      Project are not applicable. Detached Condominium Units The Condominium Unit
      securing the Condominium Unit Mortgage must meet the Glossary definition of
      a Detached Condominium Unit. Freddie Mac Single-Family Seller/Servicer Guide
      Chapter 5701 As of 05/06/26 Page 5701-57 Additional requirements by Condominium
      Project or Condominium Unit Mortgage type Project/Mortgage type Requirements
      Freddie Mac-owned “no cash- out” refinance Condominium Unit Mortgages If the
      Condominium Unit Mortgage being refinanced is currently owned by Freddie Mac
      in whole or in part or securitized by Freddie Mac, then the Mortgage is exempt
      from project review provided the following requirements are met: ■ The maximum
      loan-to-value (LTV)/total LTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV
      (HTLTV) ratio is 80% ■ If available, proof of the ULDD Data Point Related Investor
      Loan Identifier of the existing Condominium Unit Mortgage is provided in the
      Mortgage file ■ The delivery requirements in Section 6302.16(b)(ii) are met
      Refi Possible Mortgages If the Condominium Unit Mortgage being refinanced is
      currently owned by Freddie Mac in whole or in part or securitized by Freddie
      Mac and the Mortgage is being refinanced under the Refi Possible offering, then
      the Mortgage is exempt from project review provided that: ■ The Mortgage meets
      all applicable requirements for Refi Possible Mortgages in Chapter 4302 ■ The
      delivery requirements in Section 6302.46 are met Note: If the requirements for
      Exempt from review in this Section 5701.7 are met, then the Seller is not required
      to comply with the requirements for any of the other project review types in
      Sections 5701.4 (Streamlined review), 5701.5 (Established Condominium Project
      reviews), 5701.6 (New Condominium Project reviews) and 5701.9 (Reciprocal project
      reviews). 5701.7: Exempt From Review (Future effective date 08/03/26) Effective
      for Mortgages with Application Received Dates on or after August 3, 2026. This
      section contains: ■ Eligible Mortgages Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 5701 As of 05/06/26 Page 5701-58 ■ Condominium Project eligibility
      ■ General project eligibility requirements ■ Additional requirements To be eligible
      under Exempt From Review, the requirements below must be met. (a) Eligible Mortgages
      The Mortgage must be one of the following: ■ Secured by a Condominium Unit in
      a 2- to 4-Unit Condominium Project ■ Secured by a Condominium Unit in a 5- to
      10-Unit Condominium Project that is not part of a Master Association ■ Secured
      by a Detached Condominium Unit ■ A Freddie Mac-owned “no cash-out” refinance
      Condominium Unit Mortgage; or ■ A Refi Possible® Mortgage (b) Condominium Project
      eligibility The Condominium Project must meet the following: ■ Not be a Condominium
      Hotel or similar type of transient housing, a houseboat project, a timeshare
      project, or a project with segmented ownership (all as described in Section
      5701.3) ■ Not include Manufactured Homes, unless the Condominium Unit Mortgage
      is a Refi Possible Mortgage ■ For Freddie Mac-owned “no cash-out” refinance
      Condominium Unit Mortgages and Refi Possible Mortgages, the Condominium Project
      is not in need of Critical Repairs and does not have an evacuation order. (See
      Sections 5701.3(n) and 5701.3(o) for details.) ■ Not be the subject of any action
      that would cause the Condominium Project to cease to exist and not be the subject
      of an insolvency proceeding. (See Section 5701.3(p) for details.) (c) General
      project eligibility requirements The general project eligibility requirements
      in Section 5701.2(b) must be met. Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 5701 As of 05/06/26 Page 5701-59 Additionally, attached and semi
      detached units within projects containing Detached Condominium Units may not
      be delivered as Exempt From Review unless: ■ They are within a 2- to 4-Unit
      Condominium Project ■ They are within a 5- to 10-Unit Condominium Project that
      is not part of a Master Association; or ■ They meet the requirements for Freddie
      Mac-owned “no cash-out” refinance Condominium Unit Mortgages or Refi Possible
      Mortgages (d) Additional requirements The following table outlines additional
      requirements that must be met based on the type of Condominium Project or Condominium
      Unit Mortgage: Additional requirements by Condominium Project or Condominium
      Unit Mortgage type Project/Mortgage type Requirements 2- to 4-Unit Condominium
      Projects The Condominium Project must meet the Glossary definition of a 2- to
      4-Unit Condominium Project. Note: The Glossary definitions of Established Condominium
      Project and New Condominium Project are not applicable. 5- to 10-Unit Condominium
      Projects The Condominium Project must meet the Glossary definition of a 5- to
      10-Unit Condominium Project. Note: The Glossary definitions of Established Condominium
      Project and New Condominium Project are not applicable. Detached Condominium
      Units The Condominium Unit securing the Condominium Unit Mortgage must meet
      the Glossary definition of a Detached Condominium Unit. Freddie Mac-owned “no
      cash- out” refinance Condominium Unit Mortgages If the Condominium Unit Mortgage
      being refinanced is currently owned by Freddie Mac in whole or in part or securitized
      by Freddie Mac, then the Mortgage is exempt from project review provided the
      following requirements are met: Freddie Mac Single-Family Seller/Servicer Guide
      Chapter 5701 As of 05/06/26 Page 5701-60 Additional requirements by Condominium
      Project or Condominium Unit Mortgage type Project/Mortgage type Requirements
      ■ The maximum loan-to-value (LTV)/total LTV (TLTV)/Home Equity Line of Credit
      (HELOC) TLTV (HTLTV) ratio is 80% ■ If available, proof of the ULDD Data Point
      Related Investor Loan Identifier of the existing Condominium Unit Mortgage is
      provided in the Mortgage file ■ The delivery requirements in Section 6302.16(b)(ii)
      are met Refi Possible Mortgages If the Condominium Unit Mortgage being refinanced
      is currently owned by Freddie Mac in whole or in part or securitized by Freddie
      Mac and the Mortgage is being refinanced under the Refi Possible offering, then
      the Mortgage is exempt from project review provided that: ■ The Mortgage meets
      all applicable requirements for Refi Possible Mortgages in Chapter 4302 ■ The
      delivery requirements in Section 6302.46 are met Note: If the requirements for
      Exempt from review in this Section 5701.7 are met, then the Seller is not required
      to comply with the requirements for any of the other project review types in
      Sections 5701.5 (Established Condominium Project reviews), 5701.6 (New Condominium
      Project reviews) and 5701.9 (Reciprocal project reviews). 5701.8: Condominium
      appraisal and underwriting requirements (01/26/26) Refer to Bulletin 2025-7,
      which announced the policy requirements for Uniform Appraisal Dataset (UAD)
      3.6. Sellers may submit to the Uniform Collateral Data Portal® appraisal Freddie
      Mac Single-Family Seller/Servicer Guide Chapter 5701 As of 05/06/26 Page 5701-61
      reports that use UAD 3.6 before the mandatory effective November 2, 2026 version
      of this section. This section contains: ■ Appraisal requirements for Condominium
      Units ■ Underwriting considerations for Condominium Projects with mixed uses
      and Condominium Projects with live-work Condominium Units ■ Underwriting considerations
      for Common Elements and Amenities ■ Financing of Limited Common Elements (a)
      Appraisal requirements for Condominium Units (i) General appraisal requirements
      The appraiser must report: ■ The project name ■ The assessments, including special
      assessments; and ■ The property rights for each comparable sale and compare
      them to the subject project The appraiser must also identify the Common Elements
      including the Amenities available to the unit owners, comment on their condition
      and analyze how they compare to the Common Elements and Amenities of competing
      projects. Comparable sales must be from similar Condominium Projects in the
      same market and compete for the same purchasers. (ii) Comparable sales selection
      Refer to Section 5605.6(g) for specific requirements applicable to units in
      Established Condominium Projects or in recently converted or New Condominium
      Projects. (iii) Additional appraisal requirements for Detached Condominium Units
      The appraiser should use similar Detached Condominium Unit comparable sales
      from the same project or from the same Market Area. The appraiser may use other
      types of 1-unit detached comparable sales that are not located in a Condominium
      Project if the appraiser supports the use of such sales in the Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 5701 As of 05/06/26 Page 5701-62 appraisal report
      and reflects any effect that the condominium form of ownership has on the market
      value and marketability of the subject property. Each appraisal report must
      comply with the appraisal requirements in Sections 5604.1 and 5604.2 and Chapter
      5605. (b) Underwriting considerations for Condominium Projects with mixed uses
      and Condominium Projects with live-work Condominium Units (i) Condominium Projects
      with mixed uses Freddie Mac will purchase eligible Condominium Mortgages in
      Condominium Projects with a combination of residential, commercial, industrial,
      office and/or institutional uses provided that the Condominium Mortgages comply
      with all applicable Freddie Mac requirements, including the Condominium Project
      review and general Condominium Project eligibility requirements of Section 5701.2
      and the project with excessive commercial or non-residential space requirements
      in Section 5701.3(d). (ii) Live-work Condominium Units Freddie Mac will purchase
      eligible Condominium Mortgages in Condominium Projects with live-work Condominium
      Units provided that: ■ The Condominium Mortgage complies with all applicable
      Freddie Mac requirements, including the Condominium Project review and general
      Condominium Project eligibility requirements of Section 5701.2; and ■ The primary
      use of the live-work Condominium Unit is residential and the non- residential
      use of such Condominium Unit is secondary (c) Underwriting considerations for
      Common Elements and Amenities The project’s Common Elements, including Amenities
      and Limited Common Elements, must be consistent with the nature of the project
      and similar to those found in competing Condominium Projects within the Market
      Area. (d) Financing of Limited Common Elements Limited Common Elements are portions
      of Common Elements reserved for use by one or more unit owners but not all unit
      owners. They are defined in the Project Documents and may include, but are not
      limited to, balconies or patios serving a single unit, assigned parking spaces
      or storage bins. Limited Common Elements that are purchased as part of the Condominium
      Unit may be financed as part of the Mortgage, and the cost of such Limited Common
      Elements may be included when determining the sale price and loan-to-value (LTV)
      ratio. Freddie Mac Single-Family Seller/Servicer Guide Chapter 5701 As of 05/06/26
      Page 5701-63 Only Limited Common Elements may be financed along with the Condominium
      Unit. Facilities serving the Condominium Unit which are made available to the
      Condominium Unit by a permit, license or lease (other than in a leasehold condominium),
      must not be financed as part of a Mortgage, and the cost of the use of such
      facilities may not be included when determining the sale price and LTV ratio.
      5701.8: Condominium appraisal report and underwriting requirements (Future effective
      date 11/02/26) This section contains: ■ Appraisal report requirements for Condominium
      Units ■ Underwriting considerations for Condominium Projects with mixed uses
      and Condominium Projects with live-work Condominium Units ■ Underwriting considerations
      for Common Elements and Amenities ■ Financing of Limited Common Elements (a)
      Appraisal report requirements for Condominium Units (i) General appraisal report
      requirements The appraisal report must identify the project information for
      the subject property including, but not limited to: ■ The project name ■ The
      monthly fee ■ The common Amenities/services The appraisal report must include
      a comparison of the subject property’s project information to the comparable
      projects and include any project-related adjustments. (ii) Comparable sales
      selection Refer to Section 5605.7(f) for specific requirements applicable to
      units in Established Condominium Projects or in recently converted or New Condominium
      Projects. (iii) Additional appraisal report requirements for Detached Condominium
      Units Freddie Mac Single-Family Seller/Servicer Guide Chapter 5701 As of 05/06/26
      Page 5701-64 The appraisal report should include similar Detached Condominium
      Unit comparable sales from the same project or from the same Market Area. The
      appraiser may use other types of 1-unit detached comparable sales that are not
      located in a Condominium Project if the appraiser supports the use of such sales
      in the appraisal report and reflects any effect that the condominium form of
      ownership has on the market value and marketability of the subject property.
      Each appraisal report must comply with the appraisal requirements in Sections
      5604.1 and 5604.2 and Chapter 5605. (b) Underwriting considerations for Condominium
      Projects with mixed uses and Condominium Projects with live-work Condominium
      Units (i) Condominium Projects with mixed uses Freddie Mac will purchase eligible
      Condominium Mortgages in Condominium Projects with a combination of residential,
      commercial, industrial, office and/or institutional uses provided that the Condominium
      Mortgages comply with all applicable Freddie Mac requirements, including the
      Condominium Project review and general Condominium Project eligibility requirements
      of Section 5701.2 and the project with excessive commercial or non-residential
      space requirements in Section 5701.3(d). (ii) Live-work Condominium Units Freddie
      Mac will purchase eligible Condominium Mortgages in Condominium Projects with
      live-work Condominium Units provided that: ■ The Condominium Mortgage complies
      with all applicable Freddie Mac requirements, including the Condominium Project
      review and general Condominium Project eligibility requirements of Section 5701.2;
      and ■ The primary use of the live-work Condominium Unit is residential and the
      non- residential use of such Condominium Unit is secondary (c) Underwriting
      considerations for Common Elements and Amenities The project’s Common Elements,
      including Amenities and Limited Common Elements, must be consistent with the
      nature of the project and similar to those found in competing Condominium Projects
      within the Market Area. (d) Financing of Limited Common Elements Limited Common
      Elements are portions of Common Elements reserved for use by one or more unit
      owners but not all unit owners. They are defined in the Project Documents and
      Freddie Mac Single-Family Seller/Servicer Guide Chapter 5701 As of 05/06/26
      Page 5701-65 may include, but are not limited to, balconies or patios serving
      a single unit, assigned parking spaces or storage bins. Limited Common Elements
      that are purchased as part of the Condominium Unit may be financed as part of
      the Mortgage, and the cost of such Limited Common Elements may be included when
      determining the sale price and loan-to-value (LTV) ratio. Only Limited Common
      Elements may be financed along with the Condominium Unit. Facilities serving
      the Condominium Unit which are made available to the Condominium Unit by a permit,
      license or lease (other than in a leasehold condominium), must not be financed
      as part of a Mortgage, and the cost of the use of such facilities may not be
      included when determining the sale price and LTV ratio.'
  judgment: false
