source:
  type: regulation
  id: fhlmc-8104
  authority: Freddie Mac Single-Family Seller/Servicer Guide Chapter 8104 — Special Servicing
  description: 'Chapter 8104 of the Freddie Mac Single-Family Seller/Servicer Guide

    sets Special Servicing requirements: Texas Equity Section 50(a)(6)

    Mortgages, biweekly payment plans, FHA/VA/RHS/MI requirements,

    incomplete improvements, properties subject to resale restrictions,

    and right of first refusal. NOTE: actual title is "Special Servicing".

    '
obligations:
- id: fhlmc-8104-full
  canonical_id: fhlmc-8104-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Chapter 8104
  description: "8104.1: Special Servicing requirements (09/10/25) \n \n■ Servicing Texas Equity Section\
    \ 50(a)(6) Mortgages \n \n■ Biweekly payment plans \n \n■ FHA, VA, RHS and MI Servicing requirements\
    \ \n \n■ Incomplete improvements \n \n■ Servicing Mortgages secured by properties subject to resale\
    \ restrictions \n \n \n(a) Ser…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - fhlmc-guide
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide Section 8104.1(a)
    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: "8104.1: Special Servicing requirements (09/10/25) \n \n■ Servicing Texas Equity\
      \ Section 50(a)(6) Mortgages \n \n■ Biweekly payment plans \n \n■ FHA, VA, RHS and MI Servicing\
      \ requirements \n \n■ Incomplete improvements \n \n■ Servicing Mortgages secured by properties subject\
      \ to resale restrictions \n \n \n(a) Servicing Texas Equity Section 50(a)(6) Mortgages \n \nThe\
      \ Servicer must have adequate procedures in place to promptly receive and respond to \nBorrower\
      \ inquiries, claims of defects and other complaints (whether or not the Borrower \nspecifically\
      \ references Article XVI Section 50(a)(6) of the Texas Constitution) received in \nconnection with\
      \ a Texas Equity Section 50(a)(6) Mortgage. \n \nIf the Servicer receives a Borrower notification\
      \ of the lender’s failure to comply, or \notherwise discovers that the lender or Servicer has failed\
      \ to comply, with the provisions of \nArticle XVI of the Texas Constitution with respect to a Texas\
      \ Equity Section 50(a)(6) \nMortgage, it must notify Freddie Mac within seven Business Days of receipt\
      \ (see Directory \n5) of the notification or discovery and provide Freddie Mac with a copy of the\
      \ notification \nand/or related information. \n \nThe Servicer must cure all curable defects related\
      \ to the origination of the Mortgage or, for \nBorrowers in a Trial Period Plan, the terms of the\
      \ Trial Period Plan, in accordance with the \nprovisions of Section 50(a)(6) of Article XVI of the\
      \ Texas Constitution within the time \nperiod specified in Section 50(a)(6). Refer to Section 9206.2(d)\
      \ for additional notification \nand other requirements with respect to a complaint or objection\
      \ to a mortgage modification. \n \n(b) Biweekly payment plans \n \nA Borrower may choose to enter\
      \ into a biweekly payment plan to accelerate the reduction in \nprincipal on a Mortgage by applying\
      \ the equivalent of one or more extra monthly payments \neach year, thereby reducing total interest\
      \ costs. \n \n\n \n \n \nPage 8104-2 \nBiweekly payment plans do not change the conditions and terms\
      \ of the Note regarding the \namount of monthly payments, when monthly payments are due, the application\
      \ of payments, \nthe assessment of late charges and the calculation of Delinquencies, nor do they\
      \ change the \nway payments are reported or remitted to Freddie Mac or the way Delinquencies are\
      \ reported \n \nIf the Borrower asks about using a third party’s biweekly payment plan and this\
      \ third party is \nnot a vendor who administers the plan for the Servicer, then the Servicer should\
      \ advise the \nBorrower that the: \n \n■ Conditions and terms of the Mortgage still apply and will\
      \ be enforced \n \n■ Borrower can make the extra payments directly to the Servicer without a formal\
      \ plan and \nwithout the cost and potential risks of using a third party to administer such a plan\
      \ (or the \nServicer may offer such a plan to the Borrower if the Servicer has such a plan available)\
      \ \n \n■ Borrower will be responsible for any late charges or payment shortages if the third party\
      \ \nfails to make timely and sufficient payments to the Servicer \n \n■ Borrower should check the\
      \ type of safeguards that will be in place to protect the \nBorrower’s money from misuse by the\
      \ third party before it is transferred to the Servicer \n \n■ Mortgage could be subject to foreclosure\
      \ action if the third party fails to remit the \nBorrower’s payment to the Servicer and the Mortgage\
      \ becomes delinquent, even if the \nBorrower has taken legal action to recover any payments made\
      \ to the third party that \nwere not remitted to the Servicer \n \nIf the Servicer chooses to enter\
      \ into a biweekly payment plan with a Borrower after the \nMortgage has been sold to Freddie Mac,\
      \ the Servicer must ensure that the following \nrequirements for the administration of the plan\
      \ are met: \n \n1. A Servicer may offer or advertise the availability of a biweekly payment plan\
      \ for \nMortgages in the Servicer’s portfolio, so long as the Servicer does not specifically target\
      \ \nthe offer or advertisement to Mortgages that are serviced for Freddie Mac \n \n2. The Servicer\
      \ must establish the biweekly payment plan pursuant to a separate agreement \nbetween the Borrower\
      \ and the Servicer. The agreement must allow for cancelation by \neither the Borrower or the Servicer\
      \ at any time, at which point the monthly payment \nschedule would be reinstated. The Borrower cannot\
      \ be charged a fee for canceling the \n \n3. Any fee that is charged to the Borrower for this service\
      \ must be allowable under \napplicable law and be reasonable compared to other providers’ fees in\
      \ the market \n \n4. The Servicer may administer the plan or contract with a third-party vendor\
      \ to administer \nthe plan \n\n \n \n \nPage 8104-3 \n \n5. The plan must provide that two biweekly\
      \ payments equate to one monthly payment due \nunder the terms of the Note and that payments collected\
      \ in a given month are applied as a \nmonthly payment on the first day of the month following the\
      \ month in which the \npayments were received. In any month in which a third payment is received,\
      \ that payment \nis applied as a principal curtailment in the month following the month in which\
      \ the \npayment was received. \n \n6. All biweekly principal and interest payments received from\
      \ the Borrower must be placed \nin an Escrow Custodial Account that meets the requirements of Chapter\
      \ 8302. If the \nServicer administers the plan, then the payments must be placed into the Escrow\
      \ \nCustodial Account no later than the first Business Day after their receipt by the Servicer.\
      \ \nIf the Servicer administers the plan through a third party, then the payments must be \nplaced\
      \ into the Escrow Custodial Account no later than the second Business Day after the \ndate on which\
      \ the third party deposits the payments into the Servicer’s payment clearing \n \nOn the payment\
      \ due date, sufficient funds to equate to one monthly payment must be \nposted to the Mortgage record\
      \ and the funds transferred into the Principal and Interest \nCustodial Account. The Servicer may\
      \ use the Escrow Custodial Account that is \nestablished for Escrow items such as property taxes\
      \ and property and mortgage insurance \npremiums so long as the biweekly payment funds can be identified\
      \ and accounted for \nseparately for each Borrower using the plan, or the Servicer may set up a\
      \ separate Escrow \nCustodial Account that meets the requirements of Chapter 8302. \n \n7. If the\
      \ Borrower does not pay the third biweekly payment in a month when a third \npayment is due under\
      \ the plan, the Borrower may not be charged a late charge or reported \nas delinquent \n \n8. The\
      \ Servicer must be able to identify which Mortgages have biweekly payment plans and \nprovide this\
      \ information to Freddie Mac if asked to do so \n \n(c) FHA, VA, RHS and MI Servicing requirements\
      \ \n \nThe Servicer must comply with and use its best efforts to obtain compliance by the original\
      \ \nBorrower and any transferee of the Borrower with all requirements of the FHA, VA, RHS or \n\
      MI for Mortgages serviced for Freddie Mac. References to FHA, VA, RHS and MI \nrequirements are\
      \ made elsewhere in this Guide, and some guidance is given as to the nature \nof these requirements.\
      \ The Servicer must ensure that all applicable FHA, VA, RHS and MI \nrequirements are satisfied,\
      \ so that Freddie Mac receives full benefit of the FHA insurance, \nRHS guaranty, VA guaranty or\
      \ mortgage insurance. \n \n(d) Incomplete improvements \n \nIn addition to all other Servicing requirements\
      \ of the Servicing Contract, Servicers that \nservice any Mortgage that was permitted to be delivered\
      \ to Freddie Mac prior to completion \n\n \n \n \nPage 8104-4 \nof repairs and/or improvements (e.g.,\
      \ pursuant to GreenCHOICE Mortgages® in Chapter \n4606 or Mortgages with Settlement Dates before\
      \ completion of renovations in Sections \n4607.1(b) and CHOICEReno eXPress® Mortgages in 4607.1(c)\
      \ or eligibility of a property \nwith incomplete improvements in 5601.3) must comply with the Servicing\
      \ requirements \nrelated to completion of such repairs and/or improvements. This includes, but is\
      \ not limited \n \n■ Processing, management and performance of draw inspections and/or maintenance\
      \ and \nmanagement of disbursements of the completion escrow account (and application of any \n\
      remaining funds) \n \n■ Retention of certain documentation in the Mortgage file, such as the costs\
      \ of the repairs \nand/or improvements, appraisal(s) and a certification of completion \n \n■ Receipt\
      \ of a completion report, including photographs of the completed items and, as \napplicable, evidence\
      \ that the Mortgage remains a valid First Lien on the Mortgaged \nPremises in accordance with Section\
      \ 4201.2, and \n \n■ Meeting the requirements for CHOICERenovation® Mortgages delivered pursuant\
      \ to \nMortgages with Settlement Dates before completion of renovations (as described in \nSection\
      \ 4607.1(b)), maintaining the Renovation Funds in their respective Custodial \nAccount for Renovation\
      \ Funds (as described in Section 4607.12), managing the \ncontingency reserve requirements (as described\
      \ in Section 4607.11(b)) and requesting \nremoval of recourse (as described in Section 4607.14)\
      \ \n \nFor specific Servicing requirements related to post-delivery completion of repairs and/or\
      \ \nimprovements, see GreenCHOICE Mortgages in Chapters 4606 and CHOICERenovation \nMortgages in\
      \ 4607 and eligibility of a property with incomplete improvements in Section \n5601.3, as applicable.\
      \ \n \nNote: These Servicing requirements, which may be fulfilled by the Seller in its capacity\
      \ as \nSeller/Servicer, are considered selling obligations. \n \n(e) Servicing Mortgages secured\
      \ by properties subject to resale restrictions \n \n(i) Properties subject to resale restrictions\
      \ \n \nFreddie Mac purchases Mortgages secured by properties subject to resale restrictions, \n\
      including, but not limited to, income-based resale restrictions. Such resale restrictions \n \n\
      ■ Survive conveyance of the subject property following foreclosure or recordation of a \ndeed-in-lieu\
      \ of foreclosure; or \n \n■ Terminate upon foreclosure (or expiration of any applicable legally\
      \ required \nforeclosure redemption period) or recordation of a deed-in-lieu of foreclosure \n\n\
      \ \n \n \nPage 8104-5 \n \nRefer to the following Guide provisions for additional information related\
      \ to Servicing \nMortgages secured by properties subject to resale restrictions: \n \nOther Guide\
      \ provisions related to Servicing Mortgages secured by properties \nsubject to resale restrictions\
      \ \nResale restrictions included in the Community Land Trust \nGround Lease (as described in Chapter\
      \ 4502) \nSection 8701.1(f) \nProperty values and Mortgages secured by properties subject to \n\
      Sections 9202.4(a) \nand 9202.4(b) \nrequirements for Mortgages secured by properties subject to\
      \ \nSections \n9208.1(b)(iii) and \n9208.2(a) \nSections 9301.8(a), \n9301.8(b) and \n9301.8(d)\
      \ \n \n(ii) Income-based resale restrictions \n \nPursuant to requirements related to excess proceeds\
      \ for Mortgages secured by properties \nsubject to income-based resale restrictions in Section 4406.9,\
      \ the subsidy provider may \nbe entitled to any applicable excess proceeds when there is a transfer\
      \ of title on a property \nsubject to income-based resale restrictions that occurs as a result of\
      \ such property being \nsold by: \n \n■ The Borrower for an amount exceeding the resale-restricted\
      \ price; or \n \n■ Freddie Mac after acquiring title through a completed foreclosure sale or deed-in-lieu\
      \ \n \nExcess proceeds on properties subject to income-based resale restrictions are those \nproceeds\
      \ that are over and above the amount that is required to satisfy the total \nindebtedness, including\
      \ any additional liens, claims or encumbrances, in addition to any \namount(s) incurred during an\
      \ REO holding period if title was acquired by Freddie Mac \nvia a completed foreclosure sale or\
      \ deed-in-lieu of foreclosure. \n \nUpon satisfaction of the total indebtedness as outlined above,\
      \ any excess proceeds should \nbe distributed as outlined below: \n \n\n \n \n \nPage 8104-6 \n\
      ■ For properties that are sold by the Borrower for an amount exceeding the resalerestricted price\
      \ agreed upon in the resale-restricted covenants: \n \n❑ First to the Borrower and subsidy provider\
      \ for equity due as agreed upon in the \nresale-restricted covenants, and \n \n❑ All remaining excess\
      \ proceeds to the subsidy provider when the resale-restricted \ncovenants include terms for excess\
      \ proceeds to be distributed to the subsidy \nprovider \n \n \n \n❑ All remaining excess proceeds\
      \ to the subsidy provider when the resale-restricted \ncovenants include terms for excess proceeds\
      \ to be distributed to the subsidy \nprovider \n \n \n(f) Right of first refusal \n \nIn certain\
      \ circumstances, the Servicer may be required to provide notice to the required \nparties allowing\
      \ the timely exercise of certain rights available to a holder (or its designee) \nand its successors\
      \ or assigns (the “option holder”) of any right of first refusal (e.g., right to \nprovide a substitute\
      \ purchaser, right to have the first option to purchase a property or the \nright to approve a purchaser)\
      \ if the right of first refusal has been retained by the option \nholder. \n \nNote that, pursuant\
      \ to requirements for acceptable exceptions to the title insurance policy or \nto the attorney’s\
      \ opinion of title letter in Section 4702.4(d) regarding acceptable exceptions \nto the title insurance\
      \ policy or to the attorney’s opinion of title covering each Mortgage \npurchased by Freddie Mac,\
      \ exceptions for restrictive agreements or restrictive covenants of \nrecord related to a right\
      \ of first refusal are acceptable, provided that certain conditions are \nmet. This includes that\
      \ such restrictive agreements or restrictive covenants do not create or \nprovide for any lien that\
      \ would be prior to the lien of the Home Mortgage nor provide for the \nelimination of the lien\
      \ of the Home Mortgage. \n \nRefer to the following Guide provisions for additional information\
      \ related to right of first \nrefusal: \n \n\n \n \n \nPage 8104-7 \nOther Guide provisions related\
      \ to right of first refusal \nRight of first refusal for Mortgages secured by properties subject\
      \ to \n“The right of first refusal” included in the Community Land Trust \nGround Lease \nSection\
      \ 4502.7 \nRight of first refusal for Mortgages secured by Condominium Units \nin New Condominium\
      \ Projects \nSection 5701.6(f) \nRight of first refusal for a Cooperative Share Loan secured by\
      \ a First \nLien on the Cooperative Interest to a Cooperative Unit \nSection 5705.6(b) \n \n\n \n\
      \ \n \nPage 8105-1 \n \nChapter 8105: Servicing Compensation \n8105.1: Compensation for Servicing\
      \ Mortgages \n \n■ Compensation for Servicing Mortgages \n \n■ Servicing compensation for a new\
      \ Servicer pursuant to a Transfer of Servicing initiated by \n \n■ Servicing obligations related\
      \ to foreclosure and bankruptcy to be performed for the Servicing \ncompensation \n \n(a) Compensation\
      \ for Servicing Mortgages \n \nThe compensation Freddie Mac pays to the Servicer for the performance\
      \ of its duties and \nobligations under the Servicing Contract for each Mortgage purchased by Freddie\
      \ Mac is the \namount by which the Note Rate exceeds the Accounting Net Yield (ANY), with a Minimum\
      \ \nServicing Spread to provide adequate compensation. \n \nEach Servicer agrees that it does not\
      \ retain any rights or legal ownership interest in such \ncompensation or any portion of the interest\
      \ or other amounts due or received from the \nBorrower under the terms of the Mortgage. Further,\
      \ under no circumstance does a Servicer \nretain any legal ownership of the Servicing Contract or\
      \ any related Servicing Contract \nRights. Freddie Mac acknowledges that a Servicer may recognize\
      \ Servicing Contract Rights \nas assets on its balance sheet in the form of “mortgage servicing\
      \ rights” in accordance with \ngenerally accepted accounting principles (GAAP); however, such recognition\
      \ under GAAP \ndoes not confer any legal ownership interest in any Servicing Contract Rights. \n\
      \ \nThe Minimum Servicing Spread is 0.250% (25 basis points) for all Home Mortgages unless \nthe\
      \ Purchase Documents provide otherwise. \n \nNote: For fixed-rate Home Mortgages with Settlement\
      \ Dates on or after June 3, 2019, the \nmaximum Servicing Spread is 0.500%. \n \nFor Mortgages with\
      \ single-premium lender-paid mortgage insurance, the Minimum Contract \nServicing Spread must be\
      \ no less than the Minimum Servicing Spread. \n \nFor Mortgages with annual- or monthly-premium\
      \ lender-paid mortgage insurance, the \nMinimum Contract Servicing Spread must meet the requirements\
      \ of Section 4701.2(b)(i). \n \n\n \n \n \nPage 8105-2 \n \nRefer to the following Guide provisions\
      \ for additional information related to the Servicing \nSpread topic: \n \nGuide provisions related\
      \ to Servicing Spread requirements \nMinimum contract Servicing Spread \nSection 6101.4(c) \nServicing\
      \ Spreads \nSection 6102.4(b)(ii) \nPurchase requirements for Mortgages sold under Guarantor \n\
      and MultiLender Swap programs \nSections 6201.3(b) \n \n(b) Servicing compensation for a new Servicer\
      \ pursuant to a Transfer of Servicing initiated \n \n(i) Voluntary Partial Cancellation (VPC) of\
      \ Servicing or termination of the Servicing \n \nIf Freddie Mac terminates a Servicer’s Servicing\
      \ Contract and related Servicing Contract \nRights, with or without cause, in whole or in part,\
      \ pursuant to the terms and conditions of \nthe Purchase Documents, Freddie Mac reserves the right,\
      \ at Freddie Mac’s discretion, to \nnegotiate a new Servicing fee with the subsequent Servicer of\
      \ the Mortgages related to \nthe VPC Transfer of Servicing. \n \n(ii) Transfers of Servicing \n\
      \ \nBelow are key requirements regarding the Servicing compensation for Freddie Mac \nMortgages\
      \ following a Transfer of Servicing: \n \n■ For any Mortgages purchased by Freddie Mac, the Servicing\
      \ compensation will be \ncalculated on the entire interest-bearing UPB of the Mortgage \n \n■ If\
      \ the Note Rate minus the ANY is not sufficient to pay a Transferee Servicer the \nrequired Servicing\
      \ compensation plus any applicable mortgage insurance premium, \nthe Transferor Servicer agrees\
      \ to pay the balance of the required Servicing \ncompensation to the Transferee Servicer \n \n■\
      \ The Transferor Servicer acknowledges that its payment of Servicing compensation to \nthe Transferee\
      \ Servicer is necessary for adequate Servicing of the Mortgage in \naccordance with the Guide and\
      \ applicable Purchase Documents \n \n■ The Transferor Servicer also agrees that the Transferee Servicer\
      \ and Freddie Mac \nhave a right of offset against principal repayments payable to the Transferor\
      \ Servicer \nin order to pay the required Servicing compensation if not otherwise done \n\n \n \n\
      \ \nPage 8105-3 \n \n \n(c) Servicing obligations related to be performed for the Servicing compensation\
      \ \n \nIn consideration for the Servicing Spread, a Servicer is responsible for the performance\
      \ of all \nof its Servicing obligations described in the Guide and other Purchase Documents for\
      \ each of \nthe Mortgages purchased by Freddie Mac. The Servicer’s Servicing obligations compensated\
      \ \nby the Servicing Spread include, among other things, undertaking all activities required to\
      \ \nprotect Freddie Mac’s interest in the Mortgage in the event of a foreclosure of the property\
      \ or \na bankruptcy of the Borrower, such as: \n \n■ Preparing and delivering foreclosure and bankruptcy\
      \ referrals to attorneys \n \n■ Providing all documents and information necessary for the attorneys\
      \ to prosecute \nforeclosure or bankruptcy cases (including, but not limited to, missing documents\
      \ such as \nNotes, title insurance policies and Intervening Assignments) \n \n■ When necessary,\
      \ paying for the preparation and recordation of missing documents, such \nas Intervening Assignments,\
      \ necessary for the prosecution of foreclosure or bankruptcy \ncases \n \n■ Resolving any title\
      \ issues that are the result of the Seller’s or Servicer’s action or inaction \n \n■ Managing attorneys,\
      \ including but not limited to: \n \n❑ Collecting, receiving, processing, reviewing and paying attorneys’\
      \ invoices \n \n❑ Supervising and providing necessary assistance to attorneys in the foreclosure\
      \ and \nbankruptcy proceedings \n \n❑ Making available any monitoring, management, reporting, information\
      \ and document \ndelivery processes or systems and paying the fees and costs for such processes\
      \ or \nsystems. (Refer to Section 9501.5(a) for information on connectivity and invoice \nprocessing\
      \ systems.) \n \n■ Continuing to work with the Borrower to resolve the Delinquency through loss\
      \ mitigation \nactivities \n \n■ Handling the bankruptcy management activities specified in Chapter\
      \ 9401 \n \nNothing in the Guide is intended to prohibit a foreclosure or bankruptcy attorney from\
      \ \nassisting a Servicer by working with a Borrower to facilitate a reinstatement of the Mortgage\
      \ \nor loss mitigation activity. \n\n \n \n \nPage 8106-1 \n \nChapter 8106: Servicing Reports to\
      \ Freddie Mac, \nOther Third Parties and the Borrower \n8106.1: General requirements for Servicing-related\
      \ \nreports to Freddie Mac, third parties and the Borrower \n \n■ Computer facsimiles \n \n■ Submission\
      \ of additional reports to Freddie Mac \n \n■ Noncompliance fees \n \n■ Reports to credit repositories\
      \ \n \nA Servicer must report regularly to Freddie Mac on Servicing activities for Freddie Mac-owned\
      \ \nMortgages. Servicers are also required to report certain information to third parties as well\
      \ as the \n \nEach report and all correspondence to Freddie Mac for a particular Mortgage must reference\
      \ the \nFreddie Mac Seller/Servicer number and the Freddie Mac loan number. \n \n(a) Computer facsimiles\
      \ \n \nFreddie Mac will accept computer-generated facsimiles for: \n \n■ Form 1013, 1-4 Unit Property\
      \ Inspection Report \n \n■ Form 105, Multipurpose Loan Servicing Transmittal \n \nAny computer-generated\
      \ facsimiles of these forms must: \n \n■ Reflect the most current version of the comparable Freddie\
      \ Mac form \n \n■ Be in the same format as the comparable Freddie Mac form with no alterations to\
      \ the \nplacement of the data fields and no deletions of data fields \n \n■ Provide at least two\
      \ lines of space between detail lines \n \n(b) Submission of additional reports to Freddie Mac \n\
      \ \n\n \n \n \nPage 8106-2 \n \nThe Servicer must submit such other reports as Freddie Mac may require\
      \ from time to time. \n \n(c) Noncompliance fees \n \nFailure to provide timely, complete and accurate\
      \ reports (regardless of the mode of \nsubmission or transmission) subjects the Servicer to the\
      \ Servicing reporting noncompliance \ncompensatory fees. \n \nInvestor Accounting reporting and\
      \ Servicing reporting noncompliance compensatory fees are \nmonitored and assessed separately. \n\
      \ \nFreddie Mac reserves the right to change all fees and other remedies at any time and at its\
      \ \nsole discretion. \n \n(d) Reports to credit repositories \n \n(i) Reporting payment status of\
      \ the Mortgage to the credit repositories \n \nFor each Mortgage serviced for Freddie Mac under\
      \ the Home Mortgage program, a \nServicer must report on a monthly basis the payment status of the\
      \ Mortgage to the credit \nrepositories listed in Exhibit 51, Credit Repositories and Information\
      \ to Report. \n \nFreddie Mac does not specify a particular day of the month by which the Servicer\
      \ must \nperform the full-file reporting. Freddie Mac requires only that the reporting be performed\
      \ \non a monthly basis for all Mortgages regardless of the Mortgage status. The Servicer may \n\
      report after each month end to allow time for payment corrections, returned checks and \nother adjustments\
      \ to be processed. Freddie Mac will audit Servicers for compliance with \nthe full-file credit reporting\
      \ requirements. \n \n(ii) Full-file reporting requirements \n \nFull-file reporting includes Mortgages\
      \ recently originated, current and delinquent \nMortgages, Mortgages liquidated through workout\
      \ options or foreclosure and chargeoffs. Each credit repository will provide the Servicer with the\
      \ applicable codes to use to \nreport each Mortgage status type. \n \nFreddie Mac will not require\
      \ reporting to a repository that does not serve the jurisdiction \nfor which a report must be filed.\
      \ Written advice from a repository that it cannot accept a \nServicer’s report for a given jurisdiction\
      \ because it does not serve that jurisdiction will be \nsufficient evidence to Freddie Mac that\
      \ the Servicer is in compliance with Freddie Mac’s \nrequirements for that jurisdiction. \n \nBorrowers\
      \ or their representatives are permitted under the Federal Fair Credit Reporting \nAct (FCRA) to\
      \ inquire about or dispute the accuracy of information in their credit \nrepository files. This\
      \ right to inquire about or dispute the accuracy of information applies \nto any Mortgage that the\
      \ Servicer services for Freddie Mac, just as it does to any other \n\n \n \n \nPage 8106-3 \n \n\
      indebtedness of a Borrower. A Borrower may send an inquiry or a notice of dispute \nconcerning the\
      \ accuracy of reported information about the Borrower’s Mortgage directly \nto the Servicer or to\
      \ any of the credit repositories listed in Exhibit 51. Whenever the \nServicer receives such an\
      \ inquiry or notice of dispute from a Borrower or receives a letter \nfrom a credit repository requesting\
      \ verification or correction of Mortgage-related \ninformation, the Servicer must respond in accordance\
      \ with the requirements of the \nFCRA. \n8106.2: Internal Revenue Service (IRS) Forms 1098, \n1099-A,\
      \ 1099-C and 1099-MISC (09/10/25) \n \n■ IRS Form 1098, Mortgage Interest Statement \n \n■ IRS Form\
      \ 1099-A, Acquisition or Abandonment of Secured Property \n \n■ IRS Form 1099-C, Cancellation of\
      \ Debt \n \n■ IRS Form 1099-MISC, Miscellaneous Income \n \n(a) IRS Form 1098, Mortgage Interest\
      \ Statement \n \nThe Servicer must provide Internal Revenue Service (IRS) Form 1098 to the IRS and\
      \ the \nBorrower as required under Section 6050H of the Internal Revenue Code. This reporting \n\
      must be done for each Mortgage owned in whole or in part by Freddie Mac. The following \nmust be\
      \ provided: \n \n■ The Servicer’s name, address and federal identification number must be reported\
      \ for \n“Recipient” \n \n■ The Borrower’s name, address and Social Security number must be reported\
      \ for “Payer” \n \nThe Servicer must maintain copies of all statements and reports that Freddie\
      \ Mac requires the \nServicer to provide directly to the Borrowers and the IRS in compliance with\
      \ the above \nsection of the Internal Revenue Code and make such copies available for examination\
      \ by \nFreddie Mac upon request. The Servicer is responsible for any penalty levied by the IRS for\
      \ \nnonreporting or reporting of inaccurate information, as applicable, with respect to those \n\
      statements and reports which Freddie Mac requires the Servicer to provide directly to the \nBorrowers\
      \ and the IRS. \n \n(b) IRS Form 1099-A, Acquisition or Abandonment of Secured Property \n \n\n\
      \ \n \n \nPage 8106-4 \n \nThe Servicer must provide IRS Form 1099-A to the IRS and the Borrower\
      \ as required under \nSection 6050J of the Internal Revenue Code. This reporting must be done whenever\
      \ Freddie \nMac or a third party acquires an interest in a property in full or partial satisfaction\
      \ of Freddie \nMac’s secured debt or when Freddie Mac or the Servicer knows or has reason to know\
      \ that a \nproperty has been abandoned. \n \nFor the purposes of filing these reports, the following\
      \ definitions apply: \n \n■ Freddie Mac acquires an interest in Mortgaged Premises either: \n \n\
      ❑ On the date of the foreclosure sale or the date the Borrower’s right of redemption, if \nany,\
      \ expires, whichever occurs later, or \n \n❑ At the time a deed-in-lieu of foreclosure is recorded\
      \ \n \n■ A third party acquires an interest at the time of the foreclosure sale \n \n■ Abandonment\
      \ has occurred when Freddie Mac or the Servicer has reason to know from \nall the facts and circumstances\
      \ concerning the status of the Mortgaged Premises that the \nBorrower intended to and has permanently\
      \ discarded the property from use. If a Servicer \ndetermines that an abandonment has occurred and\
      \ expects to commence foreclosure \nproceedings within three months, the reporting obligation generally\
      \ arises at the end of \nthe three-month period. \n \nThe following events trigger the reporting\
      \ requirement: \n \n■ Freddie Mac acquisition. (Freddie Mac acquires the Mortgaged Premises at a\
      \ foreclosure \nsale or by deed-in-lieu of foreclosure.) \n \n■ Third-party sale. (A third party\
      \ acquires the Mortgaged Premises at a foreclosure sale.) \n \n■ HUD, RHS or VA acquisition. (The\
      \ Mortgaged Premises was acquired by HUD, RHS or \nthe VA.) \n \n■ Abandonment. (The Mortgaged Premises\
      \ has been abandoned, three months have passed \nand foreclosure proceedings have not begun.) \n\
      \ \nA completed IRS Form 1099-A must be filed electronically with the IRS on or before March \n\
      31 of the year following the calendar year in which the reportable event occurred. The \nServicer\
      \ must also furnish the Borrower with an information statement on or before January \n31 of that\
      \ year. The requirement for furnishing such statement to the Borrower can be \nsatisfied by sending\
      \ a completed IRS Form 1099-A to the Borrower’s last known address. \n \nThe form must include the\
      \ following information: \n \n\n \n \n \nPage 8106-5 \n \n■ The form must show Freddie Mac’s name\
      \ and address and include a statement that the \ninformation is being reported to the IRS \n \n\
      ■ The “account number” should include the nine-digit Freddie Mac loan number, followed \nby one\
      \ space and the six-digit Seller/Servicer number \n \nNote: See Section 8106.2(c) for information\
      \ related to when both IRS Forms 1099-A and \n1099-C, Cancellation of Debt, may be filed as the\
      \ result of a cancelation of debt in \nconnection with a foreclosure or similar action in the same\
      \ year for the same Borrower. \n \nInstructions for completing IRS Form 1099-A are set forth in\
      \ Form 1065, Report of IRS \nForm 1099-A and Form 1099-C Filing. Servicers must comply with the\
      \ IRS’s and the \nvarious States’ requirements, as amended from time to time, for filing IRS Form\
      \ 1099-A. \nServicers should consult with either their tax advisors or the IRS concerning questions\
      \ on \nsuch requirements. \n \nThe Servicer must file all IRS Forms 1099-A with the IRS electronically.\
      \ \n \n(i) IRS reporting \n \nServicers must file their reports with the IRS no later than March\
      \ 31 of the year following \nthe calendar year in which the reportable event occurred. Even though\
      \ a Servicer reports \nto the IRS electronically, the Servicer is still responsible for providing\
      \ a copy of the IRS \nForm 1099-A to the Borrower (copy B) and to those States that require it (copy\
      \ C). Copy \nB must be furnished to the Borrower on or before January 31 of the year following the\
      \ \nreportable event. \n \nIRS requirements for filing electronically are set forth in IRS Publication\
      \ 1220, \nSpecifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498 and W2G.\
      \ A Servicer may obtain this publication by downloading it from the IRS website at \nwww.irs.gov\
      \ or by calling the IRS at 1-800-TAX-FORM (1-800-829-3676). \n \nWhen filing electronically, the\
      \ Servicer must: \n \n■ Insert appropriate header information on the electronic report it files\
      \ with the IRS in \naccordance with the following record description: \n \n\n \n \n \nPage 8106-6\
      \ \n \nRequirements for electronic report filing \n“A” record \nPayer’s taxpayer \nidentification\
      \ number \n(TIN) \nPayer city, State and \nZIP CodeTM \n“B” record \nThe nine-digit Freddie Mac\
      \ loan number and the \nsix-digit Seller/Servicer number, separating these \ntwo numbers by one\
      \ space \n \n■ Notify Freddie Mac that the Servicer reported to the IRS electronically: \n \n❑ When\
      \ the report is sent to the IRS, the Servicer must submit Form 1065 to \nFreddie Mac (see Directory\
      \ 3) \n \n❑ A Servicer should not send Freddie Mac copies of the report that it filed with the \n\
      IRS \n \n(ii) Correcting or voiding previously submitted IRS Forms 1099-A \n \nTo correct or void\
      \ a previously submitted IRS Form 1099-A, the Servicer must refer to \nIRS requirements to determine\
      \ how to report either for electronic corrections or voids. To \navoid or minimize penalties that\
      \ may be imposed by the IRS, the Servicer must report \ncorrections or voids to the IRS when an\
      \ error is discovered. When corrections or voids \nare submitted to the IRS, a copy of Form 1065\
      \ must be submitted to Freddie Mac (see \nDirectory 3). Form 1065 should indicate the number of\
      \ corrected or voided IRS Forms \n1099-A submitted to the IRS. \n \n\n \n \n \nPage 8106-7 \n \n\
      (iii) Filing accuracy and documentation \n \nServicers are responsible for completing the IRS Form\
      \ 1099-A and for providing the \ninformation to the IRS and to the Borrower in a timely and accurate\
      \ manner. The Servicer \nmust maintain copies of all statements and reports that Freddie Mac requires\
      \ the Servicer \nto provide directly to the Borrowers and the IRS in compliance with Section 6050J\
      \ of the \nInternal Revenue Code. The Servicer must make such copies available for examination \n\
      by Freddie Mac upon request until Freddie Mac agrees, in writing, that such records may \nbe destroyed.\
      \ \n \nIf the IRS penalizes Freddie Mac or assesses any fee for failure to produce such \ninformation\
      \ or because a Servicer failed to file a return or statement or filed an untimely, \nincorrect or\
      \ incomplete return or statement, the Servicer will be required to reimburse \nFreddie Mac for all\
      \ costs incurred by Freddie Mac as a result of such penalty or \nassessment and an amount representing\
      \ Freddie Mac’s total tax liability resulting from \nsuch reimbursement. Such reimbursement will\
      \ not be required if the Servicer can show \nthat it met the filing requirements. \n \n(c) IRS Form\
      \ 1099-C, Cancellation of Debt \n \nThe Servicer must report cancelations of Borrowers’ mortgage\
      \ debt on IRS Form 1099-C, as \nrequired under Section 6050P of the Internal Revenue Code, for all\
      \ cancelations of mortgage \ndebt of $600 or more occurring on or after January 1, 2005, with respect\
      \ to Mortgages owned \nor guaranteed in whole or in part by Freddie Mac. IRS Form 1099-C must be\
      \ filed regardless \nof whether the Borrower must report the cancelation of debt as income. \n \n\
      Form 1065 includes instructions for completing IRS Form 1099-C. \n \n(i) Coordination with IRS Form\
      \ 1099-A \n \nIf, in the same calendar year, the Servicer cancels a debt in connection with a foreclosure\
      \ \nor abandonment of the Mortgaged Premises, it is not necessary to file both IRS Form \n1099-A\
      \ (see Section 8106.2(b)) and IRS Form 1099-C for the same Borrower. The \nServicer will meet the\
      \ filing requirement for IRS Form 1099-A by completing boxes 4, 5 \nand 7 on IRS Form 1099-C. However,\
      \ the Servicer may complete both IRS Forms 1099A and 1099-C separately; in that case, the Servicer\
      \ should not complete boxes 4, 5 and 7 \non IRS Form 1099-C. (See Form 1065 for filing instructions\
      \ for IRS Forms 1099-A and \n1099-C.) \n \n(ii) Requesting TINs \n \nA Servicer must make a reasonable\
      \ effort to obtain the correct name and TIN of the \nBorrower whose debt was canceled. If the Servicer\
      \ does not obtain the TIN before the \ndebt is canceled, it must request the Borrower’s TIN. Such\
      \ request must clearly notify the \nBorrower that the IRS requires the Borrower to furnish the TIN\
      \ and that failure to furnish \nsuch TIN subjects the Borrower to a $50 penalty imposed by the IRS.\
      \ Use IRS Form WPage 8106-8 \n \n9, Request for Taxpayer Identification Number and Certification,\
      \ to request the TIN. \nHowever, a Borrower is not required to certify the TIN under penalties of\
      \ perjury. \n \n(iii) Exceptions to IRS Form 1099-C \n \nServicers are not required to report the\
      \ following on IRS Form 1099-C: \n \n(A) Certain bankruptcy scenarios \n \nDebt canceled in bankruptcy\
      \ is not reported unless the debt was incurred for business \nor investment purposes. Single-family\
      \ Mortgages may be incurred either for personal \npurposes or for business or investment purposes.\
      \ Thus, Servicers should only file IRS \nForm 1099-C for discharges of debt in bankruptcy if they\
      \ are aware that the Borrower \nis holding the property for investment and not as a Primary Residence\
      \ or second \nhome, such as in the case of an Investment Property Mortgage, determined at \norigination.\
      \ In that case, report debt canceled for the later of: \n \n■ The year in which the amount of canceled\
      \ debt first can be determined, or \n \n■ The year in which the debt is canceled in bankruptcy \n\
      \ \n(B) Interest as part of the canceled debt \n \nServicers do not need to include interest as\
      \ part of the canceled debt in box 2. \nHowever, if interest is reported as part of the canceled\
      \ debt in box 2, Servicers should \nshow the interest separately in box 3. \n \n(C) Nonprincipal\
      \ amounts \n \nNonprincipal amounts include penalties, fines, fees and administrative costs. These\
      \ \ndo not need to be reported. \n \n(D) Release of a Borrower \n \nIRS Form 1099-C need not be\
      \ filed if one of the Borrowers on a Mortgage is released \nas long as the remaining Borrowers remain\
      \ liable for the full amount of the unpaid \n \n(E) Guarantor or surety \n \nIRS Form 1099-C need\
      \ not be filed for a guarantor or surety. A guarantor is not a \ndebtor for purposes of IRS Form\
      \ 1099-C, even if demand for payment is made to the \nguarantor. \n \n(F) Multiple Borrowers \n\
      \ \n\nPage 8106-9 \nFor Mortgages originated after 1994 that involve Borrowers who are jointly and\
      \ \nseverally liable for the Mortgage, the Servicer should report the entire amount of the \ncanceled\
      \ debt on each Borrower’s IRS Form 1099-C. Multiple Borrowers are jointly \nand severally liable\
      \ for a debt if there is no clear and convincing evidence to the \ncontrary. If it can be shown\
      \ that joint and several liability does not exist, an IRS Form \n1099-C is required for each Borrower\
      \ for whom the Servicer canceled a debt of $600 \nor more. \n(G) Mortgages originated before 1995\n\
      For Mortgages originated before 1995, the Servicer must file IRS Form 1099-C only \nfor the primary\
      \ (or first-named) Borrower.\n(H) Multiple Borrowers who were husband and wife\nIf the Servicer\
      \ knows or has reason to know that the multiple Borrowers were \nhusband and wife who were living\
      \ at the same address when the debt was incurred, \nand the Servicer has no information that these\
      \ circumstances have changed, the \nServicer may file only one IRS Form 1099-C.\n(I) Rules to entity\
      \ borrowers\nSee the instructions to Form 1065 for the application of these rules to entity borrowers\
      \ \n(i.e., estates or trusts).\n(J) Report definitions\nFor purposes of these reports, the following\
      \ definitions apply:\nA debt may include all amounts owed, including stated principal, stated interest,\
      \ \nfees, penalties, administrative costs and fines. However, only stated principal is \nrequired\
      \ to be reported. If accrued interest is included in the amount of the stated \ndebt (in box 2),\
      \ then it must be reported in box 3.\nA debt is canceled on the date an identifiable event occurs.\
      \ An identifiable event \n❑A discharge in bankruptcy under Title 11 of the U.S. Code (but see exceptions\
      \ \nin Section 8106.2(c)(iii)( above)\n❑A cancelation or extinguishment making the debt unenforceable\
      \ in a \nreceivership, foreclosure or similar proceeding\n❑A cancelation or extinguishment when\
      \ the statute of limitations for collecting \nthe debt expires or when the statutory period for\
      \ filing a claim or beginning a \ndeficiency judgment proceeding expires. Expiration of the statute\
      \ of \nlimitations is an identifiable event only when the Borrower’s affirmative\n\n \n \n \nPage\
      \ 8106-10 \n \nstatute of limitations defense is upheld in a final judgment or decision of a \n\
      court and the appeal period has expired. \n \n❑ A cancelation or extinguishment when deficiency\
      \ rights were not preserved \nduring the foreclosure process \n \n❑ A cancelation or extinguishment\
      \ when Freddie Mac (or its vendor per \nSection 9601.1(a)) makes the determination not to pursue\
      \ a deficiency action \npost-foreclosure and notifies the Servicer of such determination \n \n❑\
      \ A cancelation or extinguishment when a creditor elects foreclosure remedies \nthat by law end\
      \ or bar the creditor’s right to collect the debt. This event \napplies if collection is barred\
      \ by local law after a “power of sale” in the \nMortgage or deed of trust is exercised. \n \n❑ A\
      \ cancelation or extinguishment due to a probate or similar proceeding \n \n❑ A discharge of indebtedness\
      \ under an agreement with the debtor to cancel the \ndebt at less than full consideration (e.g.,\
      \ a short sale). Freddie Mac will advise \nthe Servicer if such an agreement is reached with a Borrower.\
      \ \n \n❑ A discharge of indebtedness because of a decision or a defined policy of the \ncreditor\
      \ to discontinue collection activity and cancel the debt. A creditor’s \ndefined policy can be in\
      \ writing or an established business practice. A practice \nto stop collection activity and abandon\
      \ a debt when a particular nonpayment \nperiod expires is a defined policy. \n \nFacts and circumstances\
      \ indicating that a debt was not canceled include the existence \nof a lien relating to the debt\
      \ (up to the value of the security) or the sale or packaging \nfor sale of the debt by the creditor.\
      \ \n \nIn the event of a foreclosure sale where deficiency rights were preserved, the Servicer \n\
      must not initially file an IRS Form 1099-C. Freddie Mac will determine whether to \npursue collection\
      \ of the deficiency of that Mortgage. If Freddie Mac makes a \ndetermination not to pursue collection\
      \ of the deficiency, Freddie Mac will notify the \nServicer in the report described below, and the\
      \ Servicer must then file the IRS Form \n1099-C. \n \nServicers must review the 1099-C Loan Detail\
      \ report, accessible via the “Default \nReporting” tile of the Servicer’s Servicer Performance Profile\
      \ (SPP) (see Exhibit 88, \nServicing Tools), by the end of January annually and ensure that an IRS\
      \ Form 1099-C \nis filed with the IRS as required in Section 8106.2(c)(iii)(k) and is provided to\
      \ the \nBorrower as required in Section 8106.2(c)(iii)(L) for all Mortgages in which the debt \n\
      has been discharged in the prior year. This report will list all Mortgages owned or \nguaranteed\
      \ in whole or in part by Freddie Mac whereby Freddie Mac has determined \nnot to pursue collection\
      \ of the deficiency in the prior year. \n\n \n \n \nPage 8106-11 \n \n \nTo help facilitate this\
      \ annual review, from February 1 to December 31 each year, \nServicers can monitor the 1099-C Loan\
      \ Detail report in the SPP, which also provides \na tentative aggregate list of Mortgages for which\
      \ Freddie Mac has decided to not \npursue collection of the deficiency for the current year. \n\
      \ \nServicers may use this current year’s list to prepare for the required annual review \nand reconcile\
      \ any eventual IRS Form 1099-C filings; however, as the status of the \nMortgage and/or the cancelation\
      \ of debt may subsequently change, any Servicer that \nchooses to use this current year’s list in\
      \ such a manner must, as part of the required \nannual review, reconcile the final report against\
      \ any IRS Form 1099-C filings already \nprepared. \n \n(K) Reporting IRS Form 1099-C to the IRS\
      \ \n \nThe Servicer must file IRS Forms 1099-C on Freddie Mac’s behalf. The Servicer \nmust file\
      \ all IRS Forms 1099-C with the IRS electronically. \n \nIRS Publication 1220 sets forth the IRS\
      \ requirements for filing electronic reports and \ncorrections. The Servicer can obtain this publication\
      \ by downloading it from the IRS \nwebsite at http://www.irs.gov, or by calling 1-800-TAX-FORM (1-800-829-3676).\
      \ \n \nWhen filing electronically through the IRS Filing Information Returns Electronically \n(FIRE)\
      \ System, the Servicer must insert appropriate header information on the report \nit files with\
      \ the IRS in accordance with the following record descriptions: \n \n“A” record \nPayer city, State\
      \ and ZIP Code \n“B” record \n\n \n \n \nPage 8106-12 \n \nThe 9-digit Freddie Mac loan number and\
      \ the \n6-digit Seller/Servicer number, separating \nthese two numbers by one space \n \nEach Servicer\
      \ must file its reports with the IRS no later than March 31 of the year \nfollowing the calendar\
      \ year in which the cancelation of debt occurs. \n \n(L) Reporting to the Borrower \n \nEven if\
      \ a Servicer reports to the IRS electronically, the Servicer is still responsible for \nproviding\
      \ a paper copy of the IRS Form 1099-C to the Borrower (copy B) by January \n31 of the year following\
      \ the calendar year in which the cancelation of debt occurred. \nThe Servicer can satisfy the requirement\
      \ for furnishing such statement to the \nBorrower by sending a completed IRS Form 1099-C to the\
      \ Borrower’s last known \naddress. The form must show Freddie Mac’s name and address and include\
      \ a \nstatement that the information is being reported to the IRS. \n \nThe Servicer is also required\
      \ to file IRS Form 1099-C with any State that requires this \nfiling in accordance with the State’s\
      \ filing deadlines. \n \n(M) Notification to Freddie Mac of electronic reporting \n \nThe Servicer\
      \ must notify Freddie Mac that the Servicer reported IRS Form 1099-C to \nthe IRS. When the electronic\
      \ report is sent to the IRS, the Servicer must submit Form \n1065 to Freddie Mac (see Directory\
      \ 3). \n \n(N) Correcting or voiding previously submitted IRS Form 1099-C \n \nTo correct or void\
      \ a previously submitted IRS Form 1099-C, the Servicer must refer \nto IRS requirements to determine\
      \ how to report either electronic corrections or voids. \nTo avoid or minimize penalties that may\
      \ be imposed by the IRS, the Servicer must \npromptly report corrections or voids to the IRS when\
      \ an error is discovered. When the \nServicer submits corrections or voids to the IRS, the Servicer\
      \ must also submit a copy \nof Form 1065 to Freddie Mac (see Directory 3). The Servicer must indicate\
      \ on Form \n1065 the number of corrected or voided IRS Forms 1099-C submitted to the IRS. \n \n\
      (O) Filing accuracy and documentation \n \nServicers are responsible for completing the IRS Form\
      \ 1099-C and for providing the \ninformation to the IRS and to the Borrower in a timely and accurate\
      \ manner. The \n\n \n \n \nPage 8106-13 \n \nServicer must maintain copies of all statements and\
      \ reports that Freddie Mac requires \nthe Servicer to provide directly to the Borrowers and the\
      \ IRS in compliance with \nSection 6050P of the Internal Revenue Code. The Servicer must make such\
      \ copies \navailable for examination by Freddie Mac upon request until Freddie Mac agrees, in \n\
      writing, that such records may be destroyed (which will be a minimum of four (4) \nyears). \n \n\
      If the IRS penalizes Freddie Mac or assesses any fees for failure to produce such \ninformation,\
      \ or because the Servicer failed to file a return or statement or filed an \nuntimely, incorrect\
      \ or incomplete return or statement, the Servicer will be required to \nreimburse Freddie Mac for\
      \ all costs incurred by Freddie Mac as a result of such \npenalty or assessment and for the amount\
      \ representing Freddie Mac’s total tax \nliability resulting from such reimbursement. Freddie Mac\
      \ will not require such \nreimbursement if the Servicer can show that it met the filing requirements.\
      \ \n \n(d) IRS Form 1099-MISC, Miscellaneous Income \n \nServicers should not prepare or file IRS\
      \ Form 1099-MISC using Freddie Mac’s name or TIN. \nThe Servicer should consult with its tax advisor\
      \ to review its reporting obligations with regard \nto the filing of Form 1099-MISC. \n\n \n \n\
      \ \nPage 8107-1 \nChapter 8107: Document Custody \n8107.1: Servicer responsibilities related to\
      \ document \ncustody (12/17/25) \n \n■ Delivery of trailing documents to the Document Custodian\
      \ \n \n■ Requests for release of documents \n \n■ Returning documents to the Document Custodian\
      \ \n \n■ Lost Notes \n \n(a) Delivery of trailing documents to the Document Custodian \n \nUpon\
      \ receiving a Mortgage document that is required to be held by a Document Custodian, \nsuch as a\
      \ modifying instrument or an original document from a recording office, the Servicer \nmust promptly\
      \ deliver it to the Document Custodian holding the related Note. \n \n(b) Requests for release of\
      \ documents \n \nServicers may require possession of a Note to take action in conjunction with the\
      \ payoff, \nforeclosure, repurchase, substitution, conversion, modification or assumption of a Mortgage\
      \ \nor to take legal action, such as responding to a Borrower’s bankruptcy, bringing or defending\
      \ \na lawsuit or other litigation relating to the maturity, prepayment, repurchase, substitution,\
      \ \nconversion, modification or assumption of a Mortgage or a Freddie Mac Default Legal Matter \n\
      (each such bankruptcy, suit or litigation being a “Legal Action”). \n \nServicers often require\
      \ physical possession of a Note for Legal Actions. Even if the Servicer \nneeds only one document\
      \ from the Note file, the Document Custodian will release the entire \nfile because it is important\
      \ to keep all the documents comprising the Note file together. \n \nIn certain circumstances, constructive\
      \ possession, which can be obtained quickly, is legally \nsufficient to establish the Servicer as\
      \ a “holder” of, or person entitled to enforce, the Note in a \nLegal Action. “Constructive possession”\
      \ describes the situation in which someone controls an \nobject without physically possessing it.\
      \ In this context, a Servicer can control and direct a \nNote that is in the Document Custodian’s\
      \ vault. If constructive possession is appropriate for a \nLegal Action, the Servicer will automatically,\
      \ immediately and conclusively be deemed to \nhave constructive possession of the Note from the\
      \ earlier of the date that: \n \n■ The Legal Action commences, or; \n \n\n \n \n \nPage 8107-2 \n\
      ■ The Document Custodian receives the Servicer’s request to release constructive \npossession of\
      \ the Note until the Legal Action is concluded \n \nFor physical possession, the Document Custodian\
      \ will deliver the Note as directed by the \nServicer. For constructive possession, the Document\
      \ Custodian will promptly contact the \nServicer by e-mail or otherwise when Document Custodian’s\
      \ tracking system has been \nupdated to indicate the Servicer (rather than Freddie Mac) as the “owner”\
      \ or “investor” of the \nrelated Mortgage. Upon Document Custodian’s release of the Note, the Servicer\
      \ shall \nautomatically, immediately and conclusively be deemed to be: \n \n■ The holder of the\
      \ Note \n \n■ Entitled to enforce the Note \n \n■ Duly authorized by Freddie Mac to take Legal Action\
      \ in connection with Servicing the \nrelated Mortgage \n \n■ As appropriate, in physical possession\
      \ of the Note \n \nServicers request and return physical and constructive possession of Notes from\
      \ Document \nCustodians (including eMortgages as defined in Section 1402.1(b)) using Form 1036,\
      \ \nRequest for Possession or Control of Documents, or its equivalent (“Form 1036,” regardless \n\
      of its format). A single form may be used to request multiple Notes if each Note is separately \n\
      listed and identified. \n \nAn Electronic, as defined in Section 1401.1(b), or alternative version\
      \ of Form 1036 must \ncontain all information required by the Form 1036, regardless of format. Any\
      \ request for \nrelease that is not delivered as hard copy is considered to be an Electronic Form\
      \ 1036 \n(including a Portable Document Format (PDF) of a paper document attached to an e-mail).\
      \ \nTo use an Electronic Form 1036, the Servicer must enter into an agreement with the \nDocument\
      \ Custodian as described in Section 8107.2(b). \n \nThe procedures to obtain physical or constructive\
      \ possession of a Note are described below. \n \n(i) Designated Custodian \n \nTo obtain physical\
      \ or constructive possession of a Note from a Document Custodian other \nthan The Bank of New York\
      \ Mellon Trust Company, N.A. (“BNYM”) as Designated \nCustodian, a Seller/Servicer must complete\
      \ Form 1036 and deliver it to the Document \n \nWhen the Servicer no longer requires possession\
      \ of the Note, it must promptly: \n \n■ For physical possession, return the Note to the Document\
      \ Custodian unless the \nMortgage was repurchased or paid in full, or \n \n\n \n \n \nPage 8107-3\
      \ \n■ For constructive possession, send notice (a copy of the original Form 1036 with a \nrequest\
      \ for termination of constructive possession) to the Document Custodian, which \nwill then update\
      \ its document tracking system \n \n(ii) BNYM as Designated Custodian \n \nTo obtain physical or\
      \ constructive possession of a Note from BNYM, a Servicer may \ncomplete and send the Form 1036\
      \ as described above or make an electronic request using \nthe Asset Repository and Collateral System\
      \ (“ARK”). Contact BNYM for further \ninformation on ARK (see Directory 4). \n \nWhen the Servicer\
      \ no longer requires possession of the Note, it must promptly: \n \n■ For physical possession, return\
      \ the Note to BNYM unless the related Mortgage was \nrepurchased or paid in full as described above;\
      \ however, Servicers using ARK to \nrequest a Note must use that method to return it and include\
      \ a copy of the ARKgenerated 1036 Release Receipt Report, or \n \n■ For constructive possession,\
      \ notify BNYM by sending a copy of the original Form \n1036 with a notice of termination of constructive\
      \ possession or otherwise as \ninstructed by BNYM, which will then update its document tracking\
      \ system. \n \n(iii) eMortgage designated custodian \n \nIn States in which the Servicer must be\
      \ the holder of an eNote (as defined in Section \n1402.1(b)) to commence foreclosure or other Freddie\
      \ Mac Default Legal Matters, the \nServicer must follow the requirements of Section 1402.5(c)(v)\
      \ and, if required to \nproduce a copy of the eNote for a Freddie Mac Default Legal Matter, Section\
      \ \n1402.5(c)(vi). \n \nServicers must follow prudent business practices to protect and safeguard\
      \ all Notes and \ndocuments while in their possession, in transit and in the possession of foreclosure\
      \ \ncounsel or agents. At a minimum, these practices include protection from damaging \nelements,\
      \ such as water and fire, identification as a Freddie Mac asset, secure storage \nand tracking and\
      \ segregation from unrelated documents. \n \n(c) Returning documents to the Document Custodian \n\
      \ \nWhen a Note is no longer needed for the reason cited on Form 1036, or when the Legal \nAction\
      \ is concluded, the Servicer must promptly, in all events within 90 days, return the Note \nto the\
      \ Document Custodian. Notes and related documents may be transported only by \nnationally recognized\
      \ commercial or bonded carrier or courier services and must be covered \nby in transit insurance.\
      \ \n \nNote: See Section 2202.3(b) for Seller/Servicer and Document Custodian requirements. \n \n\
      \n \n \n \nPage 8107-4 \n(d) Lost Notes \n \n(i) Lost Notes Requirements \n \nIf a Servicer becomes\
      \ aware at any time that an original Note is lost, is missing or has \nbeen inadvertently destroyed,\
      \ the Servicer must promptly conduct a thorough and diligent \nsearch of its premises and business\
      \ records and make diligent inquiry of any party that \nhas had physical responsibility for the\
      \ Note, such as a Document Custodian or \nforeclosure counsel. Servicer is responsible to Freddie\
      \ Mac for the original Note even if it \ndid not have physical possession of the Note at the time\
      \ of loss. If Servicer cannot locate \nthe Note after conducting the search, it must: \n \n■ Retain\
      \ written records describing the search in the Mortgage file, and \n \n■ Immediately send an e-mail\
      \ to Freddie Mac (Directory 9) requesting Freddie Mac’s \npermission to create an LNA that meets\
      \ the requirements of this Section 8107.1. In \nresponse, Freddie Mac will issue: \n \n• An e-mail\
      \ indicating Servicer’s authority to create an LNA subject to the terms \nand conditions set forth\
      \ in this section \n \n• A written communication with a request for additional action \n \n• Additional\
      \ instructions for an alternate remedy, or \n \n• A repurchase request, if the request is not granted\
      \ \n \nUpon Freddie Mac’s approval of the request, the Servicer will create an LNA as \ndescribed\
      \ in subsection (ii) below and maintain the LNA as if it were the original Note, \nprovided that\
      \ a copy of Freddie Mac’s approval of Servicer’s creation of the LNA must \nbe maintained with the\
      \ LNA in the Note file. If a Document Custodian released an \noriginal Note, it is not permitted\
      \ to accept return of an LNA without evidence of \nFreddie Mac’s authorization to create the LNA.\
      \ \n \nServicer must adhere to these procedures, whether it believes that it or another party was\
      \ \nresponsible for losing or destroying the Note and must maintain written policies to \nimplement\
      \ these procedures. \n \n(ii) LNA requirements \n \nEach LNA that Servicer creates must: \n \n■\
      \ Identify information regarding the related Mortgage, including the: \n \n• Name(s) of the Borrower\
      \ \n \n\n \n \n \nPage 8107-5 \n• Original principal balance \n \n• Note Date \n \n• Recording information\
      \ for the Security Instrument \n \n• Address of the Mortgaged Premises (ZIP CodeTM not required)\
      \ \n \n• Freddie Mac loan number; and \n \n• Servicer loan number \n \n■ Confirm that the person\
      \ signing the LNA on behalf of the Servicer (“affiant”) is over \nthe age of 18, is competent to\
      \ testify and either has independent knowledge of the \nfacts set forth in the LNA or has made appropriate\
      \ inquiry of persons having \nknowledge of such facts \n \n■ Identify Freddie Mac as owner of the\
      \ Mortgage \n \n■ Set forth the name and function of the Servicer \n \n■ State the basis for affiant’s\
      \ assertion that the Note is lost or destroyed, including \nwhether affiant is familiar with and\
      \ has access to Servicer’s business records as part \nof affiant’s regular job functions \n \n■\
      \ Verify that Servicer received the original Note \n \n■ State that Servicer conducted a good faith,\
      \ thorough and diligent search of Servicer’s \npremises and business records and has been unable\
      \ to locate the original Note \n \n■ State that, at the time that the Note was lost or destroyed,\
      \ Servicer was entitled to \nenforce the Note \n \n■ State that Freddie Mac and its successors-in-interest\
      \ and assignees may rely on the \nLNA \n \n■ Have attached to it a complete copy of the Note showing\
      \ all endorsements through \ncertification for purchase by Freddie Mac, if any \n \n■ Contain the\
      \ notarized signature of an employee of Servicer who is identified on the \nLNA by printed or typed\
      \ title; and \n \n■ Satisfy the requirements of applicable law to enforce the debt obligation in\
      \ the State \nin which the Mortgage Premises is located \n \n\n \n \n \nPage 8107-6 \nFor each such\
      \ State, Servicer must receive, and make available upon request for \nFreddie Mac’s inspection,\
      \ a legal analysis from either Servicer’s in-house counsel or \noutside counsel that the form of\
      \ LNA used is as valid and enforceable as the Note would \nbe if it were present. \n \nCertain States\
      \ may require additional representations and information. For example, New \nYork requires information\
      \ regarding the original receipt of the Note and the methodology \nof Servicer’s good faith efforts\
      \ to determine that the Note was lost. \n \n(iii)Servicer representations and warranties regarding\
      \ enforceability of the Note; \nindemnification \n \nServicer acknowledges that creating an LNA\
      \ does not relieve Servicer of any \nrepresentation or warranty relating to enforceability of the\
      \ Note and agrees to indemnify \nFreddie Mac under Section 8101.1(d) for any loss, damage or expenses\
      \ that arise because \nthe original Note is unavailable. \n \nServicer must provide written testimony,\
      \ witnesses or other support to prove the LNA \nand enforce the debt obligation in a Legal Action,\
      \ as defined in Section 8107.2, when \nrequested by Freddie Mac, even when Servicer no longer services\
      \ the related Mortgage \nand those activities support a Transferee Servicer’s efforts to enforce\
      \ the debt obligation \nor otherwise service that Mortgage. If the Servicer has transferred servicing\
      \ of a \nMortgage with an LNA, Servicer must provide such support at the request of any \nsubsequent\
      \ Transferee Servicer or Freddie Mac. \n \n(iv) Records and reporting of LNAs \n \nServicer must\
      \ maintain a list of all Mortgages with LNAs created pursuant to this section \n8107.1 and provide\
      \ the list to Freddie Mac upon request. \n \n(v) “Found” Notes \n \nIf a Note is located after an\
      \ LNA has been created, Servicer shall immediately notify \nFreddie Mac by sending an e-mail to\
      \ Loan_Delivery_Funding_Ops@FreddieMac.com \nand deliver the Note as directed below. \n \nIf Freddie\
      \ Mac owns the Mortgage, Freddie Mac may direct Servicer and Document \nCustodian to perform certain\
      \ verifications, deliver the Note to the Document Custodian \nand execute certain documents as further\
      \ described in the Document Custody Procedures \nHandbook. After the Document Custodian accepts\
      \ the Note, Freddie Mac will destroy, or \ndirect the destruction of, the LNA, and the Servicer’s\
      \ indemnification obligations shall \nterminate without further action by any party. \n \nIf Freddie\
      \ Mac no longer owns the Mortgage when the Note is found, the Servicer must \ncontact the new owner\
      \ for instruction. \n\n \n \n \nPage 8107-7 \n8107.2: Document Custodian’s functions and \nThis\
      \ section contains information related: \n \n■ Document Custodian’s general duties \n \n■ Requests\
      \ for release of notes and assignments to Servicers \n \n■ Document delivery requirements \n \n\
      ■ Form imaging and retention requirements \n \n■ Lost Notes and LNAs \n \n(a) Document custodian’s\
      \ general duties \n \nEach Document Custodian must maintain custody of the Notes and assignments\
      \ (collectively, \nas appropriate, “Notes,” see the definition in the Glossary), in trust, for the\
      \ benefit of \nFreddie Mac by: \n \n■ Storing the Notes in secure, fire-resistant facilities as\
      \ required by Section 2202.1(b)(ii). \nWhen a Servicer delivers supplemental or trailing documents,\
      \ such as original modifying \ninstruments, the Document Custodian must place them with the related\
      \ Note. \n \n■ Affixing the Freddie Mac loan number to the Note, if advised that Freddie Mac requires\
      \ \nit, and, if the Note contains the Freddie Mac loan number, changing the Freddie Mac loan \n\
      number on a Note if advised by the Servicer that Freddie Mac has changed the \nFreddie Mac loan\
      \ number for that Mortgage \n \n■ Complying with the requirements of this Section 8107.2 and all\
      \ Tri-Party Agreements \n \n(b) Requests for Release of Notes and assignments to Servicers \n \n\
      Servicers may require physical or constructive possession of Notes in conjunction with a \nLegal\
      \ Action or for the payoff, foreclosure, repurchase, substitution, conversion, \nmodification or\
      \ assumption of a Mortgage. Servicers must complete, sign and submit a \nForm 1036, Request for\
      \ Possession or Control of Documents, or its equivalent, such as the \nWeb Release Request described\
      \ in Section 8107.1(b) (“Form 1036” regardless of its \nformat) to the Document Custodian. Absent\
      \ manifest error, Document Custodians may rely \non information received from Servicers on Form\
      \ 1036. \n \nAlternative versions of Form 1036 must contain all information required by the Form\
      \ 1036, \nregardless of their format. A single form may be used to request multiple Notes if each\
      \ Note \nis separately listed and identified. \n\n \n \n \nPage 8107-8 \n \nA Form 1036 is considered\
      \ to be Electronic, using the definition in Section 1402.1(b), if it is \ntransmitted in any format\
      \ other than paper, including Portable Document Formats (PDFs) of \npaper documents delivered as\
      \ attachments to e-mails. Before using an Electronic Form 1036, \nFreddie Mac requires that the\
      \ Servicer and Document Custodian have in place a written \nagreement that: \n \n■ Defines Electronic\
      \ Signature and the type(s) of electronic transmission(s) permitted \n \n■ States the Document Custodian’s\
      \ requirements for accepting an Electronic Signature \n \n■ States the Servicer’s requirements for\
      \ maintaining and controlling access to Electronic \nSignature information \n \n■ Clearly assigns\
      \ liability when the terms of the agreement are violated \n \nDocument Custodian must retain for\
      \ each Servicer a list of individuals authorized to request \nthe release of documents electronically.\
      \ The list must be dated and signed by an officer of the \nServicer and contain sample signatures\
      \ of the authorized individuals. \n \nThe Document Custodian should review and retain documentation\
      \ of such review for each \nNote file to verify its completeness and that the Note is original before\
      \ releasing it to the \nServicer. This enables the Document Custodian to verify that the Servicer\
      \ returns all the \ndocuments, including the original documents, that were released to it. \n \n\
      (c) Document delivery requirements \n \n(i) Delivery and return of physical possession \n \nServicers\
      \ may require physical possession of Notes to service Mortgages for a Legal \nAction or otherwise.\
      \ Servicers must complete and sign Form 1036 and submit it to the \nDocument Custodian. See Section\
      \ 8107.1(b) for information related to requests for \nrelease of documents. Upon receipt of Servicer’s\
      \ signed Form 1036, the Document \nCustodian shall transfer and deliver physical possession of the\
      \ Note as directed by the \nServicer. Notes may be transported only by a nationally recognized commercial\
      \ or \nbonded carrier or courier service and must be covered by in transit insurance. \n \nNote:\
      \ See Sections 2202.1(b) and 2202.3(b) for information related to Document \nCustodians and document\
      \ custody. \n \nWhen a Note is no longer needed for the reason cited on Form 1036 or when the Legal\
      \ \nAction is concluded, the Servicer must promptly (and in any event within 90 days) return \n\
      the Note to the Document Custodian. Upon receiving the Note, the Document Custodian \nshall immediately\
      \ resume its physical custody, in trust, for the benefit of Freddie Mac, as \nset forth in the Tri-Party\
      \ Agreement, verify that all documents that were released have \nbeen returned and update its tracking\
      \ system to reflect their receipt. See Section 8107.2(e) \n\n \n \n \nPage 8107-9 \nbelow for instances\
      \ in which the Document Custodian released an original Note and the \nServicer returns an LNA in\
      \ lieu of the original Note. \n \n(ii) Delivery and return of constructive possession \n \nThe Servicer\
      \ must complete, sign and submit Form 1036 to request constructive \npossession from the Document\
      \ Custodian. The constructive possession will commence \non the earlier of the date on which the\
      \ Document Custodian receives the Servicer’s \nrequest for constructive possession and the Servicer\
      \ commences the Legal Action. \n \nThe Document Custodian maintains physical custody of the Note\
      \ for the benefit of the \nServicer while the Servicer has constructive possession. For the duration\
      \ of the Legal \nAction, the Servicer shall be: \n \n■ In constructive possession of the Note \n\
      \ \n■ The holder of the Note \n \n■ Entitled to enforce the Note, and \n \n■ Authorized by Freddie\
      \ Mac to take Legal Action to service the related Mortgage \n \nUpon notice from the Servicer that\
      \ the Legal Action is concluded, the Document \nCustodian shall automatically and immediately update\
      \ its document tracking system and \ncease maintaining physical custody of the Note, in trust, for\
      \ the benefit of the Servicer \nand resume maintaining physical custody of the Note, in trust, for\
      \ the benefit of \n \n(d) Form imaging and retention requirements \n \nThe Document Custodian must\
      \ retain Form 1036 for three months after the date the \nMortgage is paid off, but they need not\
      \ retain Form 1034E, Custodial Certification Schedule, \nor the Note Delivery Cover Sheet after\
      \ the related Mortgages have been certified. Documents \nand forms may be retained as Electronic\
      \ Records on the terms and conditions for maintaining \nsuch Records set forth in Chapter 1401.\
      \ \n \nIn disposing of documents, the Document Custodian must have in place and follow \nprocedures\
      \ and use destruction methods that ensure the confidentiality of Borrowers’ private \npersonal information.\
      \ \n \n(e) Lost Notes and LNAs \n \nThe Document Custodian may receive, either as a return of released\
      \ documents or in a \nTransfer of Servicing or transfer of custody, an LNA rather than the original\
      \ Note. The \nDocument Custodian may accept an LNA only if the Servicer delivers evidence of Freddie\
      \ \nMac’s approval of the use of an LNA for that Mortgage. Acceptable evidence of such \n\n \n \n\
      \ \nPage 8107-10 \napproval includes a copy of a single loan exception or the text of an e-mail\
      \ from Freddie \nMac, and the approval must include specific reference to the related Mortgage,\
      \ which may \nappear on a list. If the Servicer does not include such evidence, the Document Custodian\
      \ \nmust contact Freddie Mac immediately at \nLoan_Delivery_Funding_Ops@FreddieMac.com and await\
      \ further instruction. \n \nThe Document Custodian must verify that each LNA: \n \n■ Is an original,\
      \ signed in ink by an officer of the Seller/Servicer that created the LNA and \nnotarized \n \n\
      ■ Includes the name of each Borrower on the Note, the original principal amount of the \nNote, the\
      \ Note Date and recordation information for the related Security Instrument \n \n■ Has attached\
      \ to it a complete copy of the entire missing Note, including all required \nsignatures and endorsements\
      \ to the Servicer that created the LNA \n \nIf the LNA meets these requirements, the Document Custodian\
      \ must verify the loan data \nfrom the Note copy attached to the LNA and maintain the LNA on the\
      \ same basis as it would \nif the LNA were an original Note. This includes observing all requirements\
      \ relating to \nrequests for release. \n \nIf at any time an original Note is recovered as described\
      \ in Section 8107.1(d)(v), the Servicer \nwill deliver it to the Document Custodian, and the Document\
      \ Custodian will follow the \nprocess set forth in the Document Custody Procedures Handbook for\
      \ “found Notes.” \nDocument Custodians may contact Freddie Mac (see Directory 9) for instructions\
      \ and further \ninformation on verifying and managing LNAs. \n\n \n \n \n \n \nPage 8201-1 \nChapter\
      \ 8201: Escrow \n8201.1: Escrow account management for property \ntaxes, ground rents, assessments\
      \ or other charges \nand waiver requirements (09/10/25) \n \n■ Annual Escrow analysis \n \n■ Waiver\
      \ of Escrow accounts \n \n■ Non-payment of Escrow charges \n \n■ Escrow waiver exception requests\
      \ \n \n■ Interest of escrow accounts \n \nThe Servicer must obtain bills for and pay all Escrow\
      \ items in accordance with the terms of the \nMortgage before the applicable penalty or termination\
      \ date. The Servicer must maintain adequate \nrecords to prove payment of all property taxes, ground\
      \ rents and assessments or other charges \nthat, if delinquent, are or may become First Liens on\
      \ the property or that if not paid would result \nin the subordination of Freddie Mac’s interests,\
      \ as applicable. \n \nNote: See Section 9301.6(e) regarding expenses that may become First Liens\
      \ on the property. \n \nIf the Borrower requests, the Servicer may also collect and administer funds\
      \ to pay expenses not \nprovided for in the Mortgage, such as life insurance on the Borrower. \n\
      \ \nIf the Servicer does not collect Escrow or discontinues collecting Escrow, then: \n \n■ The\
      \ Servicer must require that the Borrower furnish proof of payment; and/or \n \n■ The Servicer may\
      \ use other means (such as tax services) commonly employed by private \ninstitutional mortgage investors\
      \ to satisfy itself that these items have been paid \n \n(a) Annual Escrow analysis \n \nAt least\
      \ annually, the Servicer must compute the required Escrow payment based on \nreasonable estimates\
      \ of assessments and bills to determine that sufficient funds are being \ncollected to meet all\
      \ Escrow payments. \n \n(i) Escrow surplus \n\n \n \n \n \n \nPage 8201-2 \n \nIf the amount held\
      \ in Escrow by the Servicer, together with the future monthly \ninstallments of Escrow, exceeds\
      \ the amount required to pay charges as they fall due, plus \nany “cushion” permitted by applicable\
      \ law, the Servicer must either: \n \n■ Repay the excess promptly to the Borrower (if there is no\
      \ default under the terms of \nthe Security Instrument), or \n \n■ Credit the excess to the Borrower\
      \ by a reduction in monthly Escrow installments \n \nAny interest payable to the Borrower for Escrow,\
      \ when required by applicable law, or \nany other funds held by the Servicer, whether due to contractual\
      \ agreement or operation \nof law, must be paid by the Servicer at its own expense. \n \n(ii) Escrow\
      \ shortages \n \nIf the Borrower is unable to pay an Escrow shortage as a lump sum, then the Borrower\
      \ \nmust pay the shortage as part of the monthly payment (“Projected Monthly Escrow \nShortage Payments”)\
      \ on the Mortgage. If the Borrower must pay Projected Monthly \nEscrow Shortage Payments, then the\
      \ Servicer must: \n \nover a period of not more than 60 months; and \n \n■ Account for any remaining\
      \ unpaid amount of the Escrow shortage in any subsequent \nEscrow analysis to ensure that the Borrower\
      \ is able to continue to pay all Escrow \nshortage amounts over the remaining portion of either\
      \ the current remaining Escrow \nshortage repayment period or a period up to 60 months. \n \nThe\
      \ Servicer may not accelerate or compress the remaining Escrow shortage amount \ninto a new Escrow\
      \ payment or shorter repayment period as a result of a future Escrow \nanalysis. \n \n(b) Waiver\
      \ of Escrow accounts \n \nThe Servicer must have a written policy governing the circumstances under\
      \ which Escrow \naccounts may be waived. When a Servicer permits Escrow waivers, subject to the\
      \ Mortgage \nPurchase Documents and applicable law, the Servicer’s written policies must provide\
      \ that the \nwaiver not be based solely on the loan-to-value ratio of the Mortgage but also on whether\
      \ the \nBorrower has the financial ability to handle the lump sum payments of property taxes, \n\
      property insurance premiums and other charges described in the Security Instrument. \n \nThe Servicer\
      \ may, by written notification to the Borrower and without Freddie Mac’s \napproval, start collecting\
      \ Escrow previously waived. \n \n\n \n \n \n \n \nPage 8201-3 \nAny Escrow account waiver must be\
      \ in writing and grant the Servicer the right to resume \ncollection of Escrow if there is any nonpayment\
      \ of the items for which Escrow had \npreviously been collected. \n \n(i) Circumstances in which\
      \ Escrow may be discontinued \n \nServicers must discontinue collecting Escrow when required by\
      \ applicable law. \n \nIf not prohibited by applicable law and the Mortgage is current, Servicers\
      \ may approve \nan Escrow waiver requested by the Borrower, except as stated in Section 8201.1(b)(ii),\
      \ if: \n \n■ The unpaid principal balance for the Mortgage is less than 80% of the original \nappraised\
      \ value; or \n \n■ The Mortgage has not been delinquent for 30 days or more at any time during the\
      \ \nprevious six months \n \nAdditionally, there is no minimum period having elapsed since the Origination\
      \ Date of a \nMortgage when evaluating an Escrow waiver request. \n \n(ii) Circumstances in which\
      \ Escrow may not be discontinued \n \nServicers may not discontinue or waive collecting Escrow on\
      \ the following Mortgages if \nthey had an Escrow account when sold to Freddie Mac: \n \n■ A Mortgage\
      \ secured by a Manufactured Home or a 2- to 4-unit property \n \n■ An Affordable Gold® 97 Mortgage\
      \ \n \n■ A Texas Equity Section 50(a)(6) Mortgage \n \n■ A Freddie Mac 100 Mortgage \n \n■ A Home\
      \ Possible® Mortgage \n \n■ A HomeOne® Mortgage \n \n■ A HeritageOne® Mortgage \n \nAdditionally,\
      \ except Mortgages modified under the terms in Section 9206.1(c)(v), a \nServicer may not discontinue\
      \ or waive collecting Escrow on Mortgages that have been \nmodified under a Freddie Mac mortgage\
      \ modification program. \n \nServicers must follow FHA, VA, RHS or MI Escrow waiver and reinstatement\
      \ \n \n\n \n \n \n \n \nPage 8201-4 \n(c) Non-payment of Escrow charges \n \n(i) Mortgage with an\
      \ Escrow account \n \nIf the funds held in Escrow are insufficient to pay charges when due, the\
      \ Servicer should \nobtain the necessary additional funds from the Borrower before the latest date\
      \ on which \nthe charges may be paid prior to penalty, lapse of insurance policies, adverse impact\
      \ to \nFreddie Mac’s interest in the Mortgage, etc. If the Servicer is unable to obtain the funds\
      \ \nfrom the Borrower, the Servicer must pay any charges due. The Servicer may either \nincrease\
      \ the Borrower’s next payment to cover the entire advance or schedule the \nrepayment of such advance\
      \ over several months. The Servicer may not collect the \nadvance by deducting from one or more\
      \ regular monthly Mortgage payments. \n \nFor delinquent Mortgages, the Servicer must continue to\
      \ pay Escrow items for the \nfollowing expenses: \n \n■ Property taxes, property insurance premiums\
      \ and other charges as described in the \n \n■ Mortgage insurance premiums, if applicable \n \n\
      Servicers must contact Freddie Mac (see Directory 5) and obtain Freddie Mac’s written \napproval\
      \ before paying the taxing authority when federal, State or local income tax liens \nwould take\
      \ priority over Freddie Mac’s First Lien position. \n \nHowever, if the Mortgage is secured by a\
      \ Manufactured Home and the Borrower \nbecomes 60 days or more delinquent, a Servicer must start\
      \ collecting Escrow that was \npreviously waived as a part of any repayment arrangement. \n \n(ii)\
      \ Mortgage without an Escrow account \n \nIf Escrow is not collected and the Servicer discovers\
      \ nonpayment of any charge \notherwise payable from Escrow, the Servicer must contact the Borrower\
      \ and allow the \nBorrower 30 days to provide proof of payment. The Servicer must advance funds\
      \ for the \nunpaid charge and any applicable penalty if the Borrower indicates inability to make\
      \ the \npayment or does not provide proof of payment within the required 30 days. The Servicer \n\
      must attempt to work out an arrangement with the Borrower for repayment of any \nadvance and, if\
      \ allowed by applicable law, must begin to collect Escrow for future bills. \n \nIf both: \n \n\
      ■ The Borrower fails to pay any charge otherwise payable from Escrow; and \n \n■ The Servicer has\
      \ advanced funds for the unpaid charge and any applicable penalty \n \nAnd either: \n\n \n \n \n\
      \ \n \nPage 8201-5 \n \n■ A mutually satisfactory arrangement cannot be made for the Borrower’s\
      \ repayment of \nthe advance or the Borrower fails to comply with the terms of any such arrangement;\
      \ \n \n■ The Borrower fails to pay Escrow to the Servicer after the Servicer starts collecting \n\
      Escrow that was previously waived \n \nThen the Servicer must comply with the collection, loss mitigation\
      \ and, if necessary, \nforeclosure referral requirements set forth in Chapters 9101 or 9102, as\
      \ applicable. \n \n(d) Escrow waiver exception requests \n \nIf the Servicer believes that the Borrower\
      \ should not need an Escrow account, even though \nthe Borrower did not meet the requirements under\
      \ Section 8201.1(c), then the Servicer must \nsubmit an exception request to Freddie Mac (see Directory\
      \ 5) for review. \n \n(e) Interest on Escrow accounts \n \nIf the Servicer either has entered into\
      \ an agreement or is required by law to pay interest on \nEscrow, the Servicer is solely and fully\
      \ responsible for this payment. The accounting related \nto the payment of interest on Escrow may\
      \ not be included with the regular Mortgage \naccounting for principal and interest. \n\n \nPage\
      \ 8202-1 \nChapter 8202: Property Insurance \n8202.1: General property insurance requirements \n\
      \ \n■ General property insurance requirements \n \n■ Mortgage clause \n \n■ Minimum property insurance\
      \ types and amounts \n \n■ Insurance charges covering the Mortgaged Premises \n \n(a) General property\
      \ insurance requirements \n \nFor as long as Freddie Mac owns a Mortgage, the Servicer must ensure\
      \ that the Mortgaged \nPremises is covered by insurance meeting the requirements of Chapters 4703\
      \ and 8202. \n \nServicers must ensure that each insurer or reinsurer that provides property or\
      \ flood insurance \ncoverage for each Mortgaged Premises securing a Mortgage owned by Freddie Mac\
      \ meets \nthe minimum licensing, assessment and rating requirements outlined in Section 4703.1.\
      \ \n \nInsurance policies must include coverage for fire, windstorm, hurricane, hail, flood and\
      \ \nlocalized perils, when applicable, and provide claims to be settled based on replacement cost.\
      \ \n \nNote: Refer to Section 4703.2 for requirements for minimum property insurance types and \n\
      amounts and Section 4703.3 for flood insurance requirements. \n \n \n■ Ensure that the carrier,\
      \ policy amount and coverage meet the minimum Freddie Mac \nrequirements described in Chapter 4703\
      \ \n \n■ Ensure property and flood, when applicable, insurance premiums are paid \n \n■ Obtain Lender-Placed\
      \ Insurance (LPI) when required in accordance with applicable law, \nthe Security Instrument and\
      \ the Guide. See Section 8202.6 for LPI requirements. \n \n\n \nPage 8202-2 \n(b) Mortgage clause\
      \ \n \nServicers must ensure all insurance policies documenting insurance coverage(s) obtained in\
      \ \naccordance with Freddie Mac’s requirements for 1- to 4-unit properties include the insurance\
      \ \nindustry’s standard Mortgage clause and meet the requirements outlined in Section 4703.6. \n\
      \ \n(c) Minimum property insurance types and amounts \n \nFor each Freddie Mac-owned Mortgage it\
      \ services, the Servicer must have policies and \ncontrols in place to ensure that the Mortgaged\
      \ Premises is insured and the coverage meets the \nminimum property insurance requirements outlined\
      \ in Section 4703.2. \n \nIf at any time during the term of the Mortgage the Mortgaged Premises\
      \ is not covered by the \nminimum property insurance requirements outlined in Section 4703.2, the\
      \ Servicer must \nfollow the LPI process under Section 8202.6. \n \n(d) Insurance charges covering\
      \ the Mortgaged Premises \n \nPremiums for insurance covering the Mortgaged Premises will be paid\
      \ when due by \nBorrowers or the Servicer if the Servicer collects Escrows for such purposes. \n\
      \ \nPremiums for insurance obtained by a Planned Unit Development (PUD), condominium \nhomeowners\
      \ association or Cooperative Corporation for the benefit of the PUD, \nCondominium Project or Cooperative\
      \ Project will be paid as a common expense apportioned \nto each unit owner or Shareholder. \n \n\
      If the Condominium Project is located in Puerto Rico, premiums for insurance for a \ncondominium\
      \ homeowners’ association policy for the benefit of the Condominium Project \nmay be paid by the\
      \ Servicer if the Servicer collects Escrow for such purposes. \n8202.1: General property insurance\
      \ requirements \n(Future effective date 01/01/27) \n \n■ General property insurance requirements\
      \ \n \n■ Mortgage clause \n \n■ Minimum insurance monitoring requirements \n \n■ Insurance charges\
      \ covering the Mortgaged Premises \n \n■ Annual insurance reminder \n\n \nPage 8202-3 \n \n(a) General\
      \ property insurance requirements \n \nFor as long as Freddie Mac owns a Mortgage, the Servicer\
      \ must: \n \nEnsure that the Mortgaged Premises is covered by insurance meeting the requirements\
      \ of \nChapters 4703 and 8202, and \n \nEnsure property and flood, when applicable, insurance premiums\
      \ are paid, and \n \nObtain Lender-Placed Insurance (LPI) when required in accordance with applicable\
      \ law, \nthe Security Instrument and the Guide. See Section 8202.6 for LPI requirements. \n \nRefer\
      \ to: \n \n■ Section 4703.1 for requirements related to insurer licensing, assessments and ratings,\
      \ and \n \n■ Section 4703.2 for minimum property insurance requirements, and \n \n■ Section 4703.3\
      \ for flood insurance requirements \n \n(b) Mortgage clause \n \nServicers must ensure all insurance\
      \ policies documenting insurance coverage(s) obtained in \naccordance with Freddie Mac’s requirements\
      \ for 1- to 4-unit properties include the insurance \nindustry’s standard Mortgage clause and meet\
      \ the requirements outlined in Section 4703.6. \n \n(c) Minimum insurance monitoring requirements\
      \ \n \nFor each Freddie Mac-owned Mortgage it services, the Servicer must: \n \n1. Confirm, at least\
      \ annually (or upon policy renewal or replacement), that the Mortgaged \nPremises is insured and\
      \ the coverage meets or exceeds the minimum insurance \nrequirements outlined in Chapter 4703, and\
      \ \n \n2. Have reasonable policies, procedures and controls in place to: \n \nConfirm insurance\
      \ policies meet the minimum requirements in Chapter 4703 \n \nIf an initial insurance review cannot\
      \ determine whether an insurance policy meets the \nminimum requirements in Chapter 4703, obtain\
      \ additional evidence of insurance. \n \nIf the Servicer must obtain additional evidence of 1- to\
      \ 4-unit property insurance \ncoverage sufficiency, it may, as an alternative or supplement to other\
      \ methods of \nevidencing replacement cost, monitor the dwelling coverage limit for renewal \npolicies.\
      \ If the dwelling coverage limit compared to the prior year’s policy has \n\n \nPage 8202-4 \ndecreased,\
      \ then the Servicer may not consider this as additional evidence of coverage \nsufficiency. \n \n\
      In instances where reasonable efforts to obtain additional evidence that the insurance \npolicy\
      \ meets the minimum requirements of Chapter 4703 have been exhausted and \nfailed, the Servicer\
      \ must document its efforts in the Mortgage file. \n \nNotify the Borrower when the Servicer identifies\
      \ a 1- to 4-unit property insurance \npolicy that does not meet one or more of the following minimum\
      \ requirements \noutlined in Sections 4703.1 and 4703.2: \n \n■ Carrier licensing, assessment and\
      \ rating \n \n■ Coverage sufficiency \n \n■ Perils \n \n■ Deductibles \n \n(d) Insurance charges\
      \ covering the Mortgaged Premises \n \nPremiums for insurance covering the Mortgaged Premises will\
      \ be paid when due by \nBorrowers or the Servicer if the Servicer collects Escrows for such purposes.\
      \ \n \nPremiums for insurance obtained by a Planned Unit Development (PUD), condominium \nhomeowners\
      \ association or Cooperative Corporation for the benefit of the PUD, \nCondominium Project or Cooperative\
      \ Project will be paid as a common expense apportioned \nto each unit owner or Shareholder. \n \n\
      If the Condominium Project is located in Puerto Rico, premiums for insurance for a \ncondominium\
      \ homeowners’ association policy for the benefit of the Condominium Project \nmay be paid by the\
      \ Servicer if the Servicer collects Escrow for such purposes. \n \n(e) Annual insurance reminder\
      \ \n \nAt least annually, Servicers must provide a reminder to Borrowers of their responsibility\
      \ to \nmaintain insurance on the Mortgaged Premises and recommend they contact their insurance \n\
      provider to review their coverage. \n \nServicers may include this reminder in any existing Borrower\
      \ communication, refer the \nBorrower to applicable insurance information on the Servicer’s website\
      \ or direct the \nBorrower to insurance resources on Freddie Mac’s website. \n \nServicers may deliver\
      \ this notice via any method as permitted by applicable law, including, \nbut not limited to, e-mail,\
      \ text messaging, voice response unit technology or a Servicer’s web \nportal. \n\n \nPage 8202-5"
    drafter_attestation: 'Verbatim Freddie Mac Guide Section 8104.1 from snapshot 5869ee9e606cd4ae via
      reading projection (furniture stripped); section-bounded by NNNN.N: headers; substring-verified.'
  judgment: false
