source:
  type: regulation
  id: fhlmc-8304.4
  authority: Freddie Mac Single-Family Seller/Servicer Guide §8304.4 — Reconciling Custodial Accounts (09/10/25)
  description: "Freddie Mac Guide §8304.4 (Reconciling Custodial Accounts). Gap-fill (verbatim, ID-diff). \n"
obligations:
- id: fhlmc-8304.4-0
  canonical_id: fhlmc-8304.4-0
  section: Freddie Mac Guide 8304.4
  description: '8304.4 Reconciling Custodial Accounts: This section contains requirements related to: ■ Reconciling
    custodial accounts ■ Reconciling the Principal and Interest Custodial Account ■ Freddie Mac’s Principal and
    Interest Custodial Account review ■ Reconciling deposits to the Principal and Interest Custodial Account ■ Reco…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8304.4 — Reconciling Custodial Accounts (09/10/25)
    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: 'This section contains requirements related to: ■ Reconciling custodial accounts ■ Reconciling
      the Principal and Interest Custodial Account ■ Freddie Mac’s Principal and Interest Custodial Account review
      ■ Reconciling deposits to the Principal and Interest Custodial Account ■ Reconciling withdrawals from the
      Principal and Interest Custodial Account ■ Reconciling the Escrow Custodial Account ■ Freddie Mac’s Escrow
      Custodial Account review ■ Reconciling deposits to the Escrow Custodial Account ■ Reconciling withdrawals
      from the Escrow Custodial Account ■ Reconciling an optional Custodial Account (a) Reconciling custodial accounts
      The Servicer must reconcile all Custodial Accounts within 45 days of the end of each Accounting Cycle. The
      purpose of the Custodial Account reconciliation is to enable the Servicer to: ■ Identify, at the loan level,
      variances between the Servicer’s receipts, cash disbursements and liabilities due to third parties and Freddie
      Mac’s records ■ Identify and correct the root cause of the items causing the variance'
    drafter_attestation: Verbatim from Freddie Guide §8304.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8304.4-1
  canonical_id: fhlmc-8304.4-1
  section: Freddie Mac Guide 8304.4
  description: '8304.4 Reconciling Custodial Accounts: 304-8 ■ Notify Freddie Mac of errors in Freddie Mac’s records
    ■ Fund shortages and clear all variances no later than 90 days from the end of each Accounting Cycle even if
    the Servicer has not identified the root cause. However, Freddie Mac reserves the right to request that fundi…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8304.4 — Reconciling Custodial Accounts (09/10/25)
    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: '304-8 ■ Notify Freddie Mac of errors in Freddie Mac’s records ■ Fund shortages and clear all
      variances no later than 90 days from the end of each Accounting Cycle even if the Servicer has not identified
      the root cause. However, Freddie Mac reserves the right to request that funding occur immediately. (b) Reconciling
      the Principal and Interest Custodial Account The Servicer must not consolidate multiple Seller/Servicer numbers
      into a single reconciliation. In reconciling the Principal and Interest Custodial Account, the Servicer must:
      1. Reconcile the Principal and Interest Custodial Account within 45 days from the end of each Accounting Cycle
      2. Establish a separate Custodial Account and reconciliation for each Seller/Servicer number 3. Use the ending
      balance of the Monthly Account Statement that corresponds to the Accounting Cycle 4. Consolidate all Principal
      and Interest Custodial Accounts for a specific Seller/Servicer number into a single reconciliation, if the
      Servicer has multiple Principal and Interest Custodial Accounts for a specific Seller/Servicer number 5. Properly
      document and account for any prepaid and delinquent interest in order to accurately determine the Custodial
      Account adjusted liability 6. Identify, at the loan level, variances between the Servicer’s receipts, cash
      disbursements and liabilities due to third parties and Freddie Mac’s records 7. Fund shortages and clear all
      variances within 90 days from the end of the Accounting Cycle, even if the Servicer has not identified the
      root cause of the issue. However, Freddie Mac reserves the right to request that funding occur immediately.
      8. Use the Form 59, Principal and Interest Custodial Account Reconciliation - Monthly Account Statement (MAS),
      to reconcile the account and identify variances. The Servicer may use either the online version of Form 59
      or a copy that is an exact replica of the form, to complete the reconciliation. The Servicer must document
      every line item on Form 59 of the custodial account reconciliation as follows: ■ Bank statements with a running
      daily balance that cover the Accounting Cycle ■ Bank statements that show deposits in transit, outstanding
      debits and funding of shortage variances'
    drafter_attestation: Verbatim from Freddie Guide §8304.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8304.4-2
  canonical_id: fhlmc-8304.4-2
  section: Freddie Mac Guide 8304.4
  description: '8304.4 Reconciling Custodial Accounts: 304-9 ■ The final version of the MAS ■ Delinquent and prepaid
    interest trial balances ■ Supporting documentation for other billings ■ Cumulative variance logs ■ Any additional
    documentation requested by Freddie Mac If the Servicer disagrees with the ending balance or any adjustme…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8304.4 — Reconciling Custodial Accounts (09/10/25)
    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: '304-9 ■ The final version of the MAS ■ Delinquent and prepaid interest trial balances ■ Supporting
      documentation for other billings ■ Cumulative variance logs ■ Any additional documentation requested by Freddie
      Mac If the Servicer disagrees with the ending balance or any adjustments listed on the Draft Report with the
      exception of short sale charge-offs applied to the MAS (see Section 9208.3(a)), the Servicer must notify Freddie
      Mac (see Directory 7) within 90 days of the end of the Accounting Cycle represented by the MAS. Freddie Mac
      reserves the right to deny the Servicer’s request for a refund or interest on a refund if the Servicer does
      not notify Freddie Mac within the required time frame. Note: Refer to Section 8304.4(c) for information on
      Freddie Mac’s review of this reconciliation. (c) Freddie Mac’s Principal and Interest Custodial Account review
      Freddie Mac conducts periodic examinations of the Principal and Interest Custodial Account Reconciliation.
      At any time, Freddie Mac may request, and the Servicer must provide, Freddie Mac with a complete reconciliation
      no later than the requested due date. The reconciliation package must include: ■ A completed and fully executed
      Form 59, Principal and Interest Custodial Account Reconciliation Worksheet — Monthly Account Statement, along
      with supporting documentation for every line item on Form 59 ■ Bank statements, including any that show evidence
      of deposits of shortage variances ■ Trial balance of delinquent and prepaid interest ■ Variance logs and any
      supplemental information to explain the nature and age of the variance displaying the Freddie Mac loan number
      ■ Any additional documentation requested by the Freddie Mac examiner (d) Reconciling deposits to the Principal
      and Interest Custodial Account In reconciling a Principal and Interest Custodial Account, the Servicer must,
      as of the end of each Accounting Cycle, account for all payments received as well as advances and other billings
      due to Freddie Mac. Section 8302.1(f) specifies the time frames the Servicer must meet for the deposit of
      the funds listed below. The required deposits to the Principal and Interest Custodial Account by source are
      as follows:'
    drafter_attestation: Verbatim from Freddie Guide §8304.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8304.4-3
  canonical_id: fhlmc-8304.4-3
  section: Freddie Mac Guide 8304.4
  description: '8304.4 Reconciling Custodial Accounts: 304-10 (i) Freddie Mac’s share of payments received: ■ Principal
    and interest collected on all Freddie Mac Mortgages, whether received from, or on behalf of, the Borrower or
    applied from a buydown account ■ Principal curtailments ■ Payoffs, including short sales and third-party f…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8304.4 — Reconciling Custodial Accounts (09/10/25)
    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: '304-10 (i) Freddie Mac’s share of payments received: ■ Principal and interest collected on
      all Freddie Mac Mortgages, whether received from, or on behalf of, the Borrower or applied from a buydown
      account ■ Principal curtailments ■ Payoffs, including short sales and third-party foreclosure sale proceeds
      ■ Prepayment penalties, if applicable If the Servicer chooses, it may also deposit and later withdraw the
      Servicing fees that it earns. If the Servicer does not withdraw these funds by the end of the Accounting Cycle,
      it must account for them in its reconciliation. (ii) Advances and other billings due from the Servicer: ■
      Advances for remittance shortages ■ Interest due for newly funded Mortgages ■ Repurchase proceeds (e) Reconciling
      withdrawals from the Principal and Interest Custodial Account In reconciling the Principal and Interest Custodial
      Account, the Servicer must, as of the end of the Accounting Cycle, account for all withdrawals from the account,
      including the following: ■ Principal and interest and payoffs to Freddie Mac ■ Earned Service fees and amounts
      in excess of the Minimum Gross Yield originally deposited with a full Principal and Interest Payment ■ Participant’s
      share of Principal and Interest Payments ■ Recovery of advances for delinquent Mortgages ■ Deposit errors
      and other reconciling items ■ Transfers to a Principal and Interest Disbursement Clearing Custodial Account.
      Refer to Section 8304.4(j) for reconciliation requirements regarding this optional Custodial Account (f) Reconciling
      the Escrow Custodial Account'
    drafter_attestation: Verbatim from Freddie Guide §8304.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8304.4-4
  canonical_id: fhlmc-8304.4-4
  section: Freddie Mac Guide 8304.4
  description: '8304.4 Reconciling Custodial Accounts: 304-11 The Servicer must not consolidate multiple Seller/Servicer
    numbers into a single reconciliation. In reconciling the Escrow Custodial Account, the Servicer must: 1. Reconcile
    the Escrow Custodial Account within 45 days from the end of the Accounting Cycle 2. Establish a sep…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8304.4 — Reconciling Custodial Accounts (09/10/25)
    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: '304-11 The Servicer must not consolidate multiple Seller/Servicer numbers into a single reconciliation.
      In reconciling the Escrow Custodial Account, the Servicer must: 1. Reconcile the Escrow Custodial Account
      within 45 days from the end of the Accounting Cycle 2. Establish a separate bank account and reconciliation
      for each Seller/Servicer number 3. Complete a consolidated reconciliation if the Servicer has more than one
      Escrow Custodial Account under a specific Seller/Servicer number, and a consolidated reconciliation for its
      Escrow liabilities 4. Use the positive Escrow balance that corresponds to the end of the Accounting Cycle
      5. Properly document and account for all Escrow balances in order to accurately determine the Escrow Custodial
      Account adjusted liability 6. Identify, at the loan level, variances between the Servicer’s receipts, cash
      disbursements and liabilities due to third parties and Freddie Mac’s records 7. Fund shortages and clear all
      variances within 90 days from the end of the Accounting Cycle 8. Include any buydown balances in the Servicer''s
      Escrow Custodial Account reconciliation, if any buydown funds are deposited into the Escrow Custodial Account.
      The Servicer may complete a separate reconciliation for buydown subsidies if the Servicer chooses to set up
      an optional buydown Custodial Account. Refer to Section 8304.4(j) for requirements for reconciling a separate
      buydown Custodial Account. 9. Reconcile to the positive Escrow balance as of the end of the Accounting Cycle
      using Form 59E, Escrow Custodial Account Reconciliation Worksheet. The Servicer may use either the online
      version of Form 59E or a copy that is an exact replica of the form, to complete the reconciliation. The Servicer
      must document every line item on Form 59E of the Escrow Custodial Account reconciliation as follows: ■ Bank
      statement(s) with a running daily balance that cover the Accounting Cycle ■ Bank statements that show deposits
      in transit, outstanding debits, and funding of shortage variances ■ Loan level trial balance displaying the
      Escrow balances ■ If the Servicer’s trial balance nets the escrow liability, and add the negative escrow balance'
    drafter_attestation: Verbatim from Freddie Guide §8304.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8304.4-5
  canonical_id: fhlmc-8304.4-5
  section: Freddie Mac Guide 8304.4
  description: '8304.4 Reconciling Custodial Accounts: 304-12 ■ Cumulative variance logs that display the Freddie
    Mac loan number Note: Refer to Section 8304.4(g) for information on Freddie Mac’s review of this reconciliation.
    (g) Freddie Mac’s Escrow Custodial Account review Freddie Mac conducts periodic examinations of the Escrow C…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8304.4 — Reconciling Custodial Accounts (09/10/25)
    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: '304-12 ■ Cumulative variance logs that display the Freddie Mac loan number Note: Refer to
      Section 8304.4(g) for information on Freddie Mac’s review of this reconciliation. (g) Freddie Mac’s Escrow
      Custodial Account review Freddie Mac conducts periodic examinations of the Escrow Custodial Account Reconciliation.
      At any time, Freddie Mac may request, and the Servicer must provide Freddie Mac with, a complete reconciliation
      no later than the requested due date. The reconciliation package must include: ■ A completed and fully executed
      Form 59E, Escrow Custodial Account Reconciliation Worksheet, along with supporting documentation for every
      line item on Form 59E ■ Bank statements, including any that show evidence of deposits of shortage variances
      ■ Trial balance displaying all Escrow liabilities ■ Variance logs and any supplemental information to explain
      the nature and age of the variance displaying the Freddie Mac loan number ■ Any additional documentation requested
      by the Freddie Mac examiner If the Servicer’s trial balance reflects a net Escrow balance, the Servicer must
      add the negative Escrow to determine the liability. The Servicer may use either the online version of Form
      59E, or a copy that is an exact replication of the form, to complete the reconciliation. Upon Freddie Mac’s
      request, the Servicer must be able to provide Freddie Mac with a paper copy of the completed Form 59E, together
      with any supporting documentation, for up to one year from the date of the related reconciliation worksheet.
      All documentation must be received by Freddie Mac no later than the requested Due Date. Refer to the instructions
      section of Form 59E for information on supporting documentation. (h) Reconciling deposits to the Escrow Custodial
      Account In reconciling the Escrow Custodial Account, the Servicer must, as of the end of the Accounting Cycle,
      account for all Escrow Funds received, as well as advances or interest paid on Escrow. The Servicer is required
      to maintain an active Escrow Custodial Account even if no Escrow amounts are collected from the Borrower(s).
      The Escrow Custodial Account may also be used for: ■ Deposit partial payments ■ Suspense amounts where the
      Borrower has not established clear intent for the payment, and'
    drafter_attestation: Verbatim from Freddie Guide §8304.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8304.4-6
  canonical_id: fhlmc-8304.4-6
  section: Freddie Mac Guide 8304.4
  description: '8304.4 Reconciling Custodial Accounts: 304-13 ■ Insurance payment proceeds Note: Section 8302.1(f)
    specifies the time frames the Servicer must meet for the deposit of funds to Custodial Accounts. The following
    details the deposits to include in the reconciliation: (i) Payments received: ■ Escrow Funds paid by the Borr…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8304.4 — Reconciling Custodial Accounts (09/10/25)
    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: '304-13 ■ Insurance payment proceeds Note: Section 8302.1(f) specifies the time frames the
      Servicer must meet for the deposit of funds to Custodial Accounts. The following details the deposits to include
      in the reconciliation: (i) Payments received: ■ Escrow Funds paid by the Borrower or deposited on the Borrower’s
      behalf, such as insurance loss claim proceeds ■ Payments held in unapplied or suspense pending proper distribution
      such as, partial payments and biweekly payments from plans that allow for biweekly collection of payments
      on monthly amortizing Mortgages ■ Buydown funds, if applicable. Refer to Section 8304.4(j) for reconciliation
      requirements regarding an optional buydown Custodial Account (ii) Funds due from the Servicer: ■ Advances
      as specified in Section 8304.2(c) ■ Interest on Escrow, if paid and deposited to the Borrower’s Escrow account
      (i) Reconciling withdrawals from the Escrow Custodial Account In reconciling the Escrow Custodial Account,
      the Servicer must, as of the end of the Accounting Cycle, account for all withdrawals made from the account.
      The following lists the withdrawals to include in the reconciliation: 1. Disbursements of Escrow Funds, including
      insurance proceeds resulting from a loss claim 2. Partial payments applied, including biweekly payment plan
      funds on monthly amortizing Mortgages 3. Buydown funds applied to the Borrower’s Mortgage 4. Recovery of the
      Servicer’s advances when the Servicer receives a subsequent Escrow payment for the Mortgage for which the
      Servicer made the advance 5. Refunds of surplus Escrow Funds resulting from an Escrow analysis or Mortgage
      payoff 6. Deposit errors and other reconciling items'
    drafter_attestation: Verbatim from Freddie Guide §8304.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8304.4-7
  canonical_id: fhlmc-8304.4-7
  section: Freddie Mac Guide 8304.4
  description: '8304.4 Reconciling Custodial Accounts: 304-14 (j) Reconciling an optional Custodial Account If a
    Servicer chooses to open an optional Custodial Account, as referenced in Sections 8302.1(a) and 8302.2(a), as
    of the end of the Accounting Cycle, the Servicer must complete the following consolidated reconciliations: (i)
    P…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8304.4 — Reconciling Custodial Accounts (09/10/25)
    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: '304-14 (j) Reconciling an optional Custodial Account If a Servicer chooses to open an optional
      Custodial Account, as referenced in Sections 8302.1(a) and 8302.2(a), as of the end of the Accounting Cycle,
      the Servicer must complete the following consolidated reconciliations: (i) Principal and Interest Disbursement
      Clearing Custodial Account The balance of this type of Custodial Account must equal zero or the amount of
      a Principal and Interest Payment or payoff amount due to Freddie Mac. The Servicer must only make deposits
      to this type of Custodial Account immediately prior to the applicable draft date. The Servicer must consolidate
      the Principal and Interest Disbursement Clearing Custodial Account reconciliation with the Servicer’s Principal
      and Interest Custodial Account reconciliation. Refer to Sections 8304.4(a) through 8304.4(e) for requirements
      on reconciling the Principal and Interest Custodial Account. (ii) Buydown Custodial Account The balance of
      this type of Custodial Account must equal the total of buydown funds deposited at the time Freddie Mac purchased
      a Mortgage, minus the monthly buydown amount times the number of payments applied since Freddie Mac’s purchase.
      The balance in this Custodial Account may represent the buydown balance of more than one Mortgage. Refer to
      Section 8304.4(a) for requirements on reconciling this account.'
    drafter_attestation: Verbatim from Freddie Guide §8304.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8304.4-8
  canonical_id: fhlmc-8304.4-8
  section: Freddie Mac Guide 8304.4
  description: '8304.4 Reconciling Custodial Accounts: Release, easement and condominium conversion requirements
    (07/09/25) This section contains requirements related to: ■ Partial releases, easements and acquisitions ■ Prohibition
    of conversion of the Mortgaged Premises ■ Condemnation and eminent domain ■ Modification, waiver or rel…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8304.4 — Reconciling Custodial Accounts (09/10/25)
    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: 'Release, easement and condominium conversion requirements (07/09/25) This section contains
      requirements related to: ■ Partial releases, easements and acquisitions ■ Prohibition of conversion of the
      Mortgaged Premises ■ Condemnation and eminent domain ■ Modification, waiver or release of terms (a) Partial
      releases, easements and acquisitions (i) Processing requests for partial releases and granting of easements
      A Servicer may receive a request to release part of the Mortgaged Premises as security for the Mortgage (a
      partial release) or a request to approve the granting of an easement on a portion of the Mortgaged Premises.
      A partial release may be initiated at the Borrower’s request or as a result of some other action such as a
      condemnation or a taking of the property by eminent domain. Except as noted below, the Servicer must obtain
      an appraisal report with an interior and exterior inspection that meets the requirements of Topic 5600 when
      considering such requests in order to determine the value of the Mortgaged Premises immediately before the
      release and the estimated value after the release. The Servicer, under its delegated authority, may approve
      a partial release or grant an easement provided the following conditions are met: ■ The Borrower’s monthly
      Mortgage payment is current at the time of the request and there is no change in the expectation that the
      Borrower can continue to make the monthly payment ■ The Servicer has received written approval of the FHA,
      VA, RHS or MI and all superior lienholders, if applicable ■ At least 12 months have passed since the Origination
      Date, and'
    drafter_attestation: Verbatim from Freddie Guide §8304.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8304.4-9
  canonical_id: fhlmc-8304.4-9
  section: Freddie Mac Guide 8304.4
  description: '8304.4 Reconciling Custodial Accounts: 401-2 ■ If either of the situations and the corresponding
    actions in the table below are met: Partial release and easement requirements Situation Action If: ■ The current
    loan-to- value (LTV) ratio of the Mortgage based on the value obtained at origination (as described in Sectio…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8304.4 — Reconciling Custodial Accounts (09/10/25)
    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: '401-2 ■ If either of the situations and the corresponding actions in the table below are met:
      Partial release and easement requirements Situation Action If: ■ The current loan-to- value (LTV) ratio of
      the Mortgage based on the value obtained at origination (as described in Section 4203.1) is less than 60%,
      and ■ The consideration the Borrower receives for the partial release or easement is not greater than 5% of
      the original value (including situations in which the Borrower receives no consideration), and ■ The transaction
      is arm’s-length Then: ■ An appraisal is not required ■ The Borrower is not required to apply the consideration
      received for the partial release or easement to reduce the UPB of the Mortgage If: ■ The current LTV ratio
      of the Mortgage based on original value is equal to or greater than 60%, or ■ The consideration the Borrower
      receives for the partial release or Then: Before the easement or partial release is granted, the Servicer
      must order a new appraisal with interior and exterior inspection that provides current and estimated after
      release values, and: ■ If based on the estimated value pre-release the LTV is greater than 60%, the Borrower
      must reduce the UPB of the Mortgage in an amount sufficient to create a post-release/easement LTV ratio, as
      determined by the appraisal, that is the higher of current LTV ratio or 60%, or'
    drafter_attestation: Verbatim from Freddie Guide §8304.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
