source:
  type: regulation
  id: fhlmc-2101.6
  authority: Freddie Mac Single-Family Seller/Servicer Guide §2101.6 — Seller/Servicer insurance requirements (08/10/22)
  description: "Freddie Mac Guide §2101.6 (Seller/Servicer insurance requirements). Gap-fill (verbatim, ID-diff).\
    \ \n"
obligations:
- id: fhlmc-2101.6-0
  canonical_id: fhlmc-2101.6-0
  section: Freddie Mac Guide 2101.6
  description: '2101.6 Seller/Servicer insurance requirements: (08/10/22) (a) Coverage levels (i) Limits of insurance
    The Seller/Servicer must maintain in effect, at all times and at its expense, a fidelity bond and a mortgagee’s
    errors and omissions (E&O) insurance policy. If the Seller/Servicer uses its parent’s bond or policy, as permitte…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §2101.6 — Seller/Servicer insurance requirements
      (08/10/22)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: (08/10/22) (a) Coverage levels (i) Limits of insurance The Seller/Servicer must maintain in
      effect, at all times and at its expense, a fidelity bond and a mortgagee’s errors and omissions (E&O) insurance
      policy. If the Seller/Servicer uses its parent’s bond or policy, as permitted in Section 2101.6, the minimum
      limit of insurance must be based on the consolidated base amount for the parent and for all institutions related
      to the parent that are covered by the parent’s bond or policy, as applicable. Freddie Mac will accept bonds
      or policies that provide for an aggregate limit of insurance for a bond’s or policy’s term provided that the
      aggregate at least equals the minimum limit per loss or occurrence calculated in accordance with this Section
      2101.6.
    drafter_attestation: Verbatim from Freddie Guide §2101.6 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-2101.6-1
  canonical_id: fhlmc-2101.6-1
  section: Freddie Mac Guide 2101.6
  description: '2101.6 Seller/Servicer insurance requirements: 101-11 For fidelity bond and E&O insurance, the higher
    minimum Freddie Mac Multifamily coverage limit applies if: ■ The Seller/Servicer is also a Freddie Mac Multifamily
    Seller/Servicer ■ The required fidelity or mortgagee’s E&O coverage is provided under the same insurance contr…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §2101.6 — Seller/Servicer insurance requirements
      (08/10/22)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '101-11 For fidelity bond and E&O insurance, the higher minimum Freddie Mac Multifamily coverage
      limit applies if: ■ The Seller/Servicer is also a Freddie Mac Multifamily Seller/Servicer ■ The required fidelity
      or mortgagee’s E&O coverage is provided under the same insurance contract that covers both Home Mortgages
      and Multifamily Mortgages and ■ The Freddie Mac Multifamily'
    drafter_attestation: Verbatim from Freddie Guide §2101.6 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-2101.6-2
  canonical_id: fhlmc-2101.6-2
  section: Freddie Mac Guide 2101.6
  description: '2101.6 Seller/Servicer insurance requirements: requires a higher limit of fidelity or mortgagee’s
    E&O coverage (A) Limits of fidelity bond The minimum acceptable limits per fidelity loss or occurrence are as
    follows: Base* Minimum required insurance limit $100 million or less $300,000 $500 million or less $300,000
    +0.15% of b…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §2101.6 — Seller/Servicer insurance requirements
      (08/10/22)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 'requires a higher limit of fidelity or mortgagee’s E&O coverage (A) Limits of fidelity bond
      The minimum acceptable limits per fidelity loss or occurrence are as follows: Base* Minimum required insurance
      limit $100 million or less $300,000 $500 million or less $300,000 +0.15% of base over $100 million $1 billion
      or less $300,000 +0.15% of $400 million (i.e., $600,000) +0.125% of base over $500 million Over $1 billion
      $300,000 +0.15% of $400 million (i.e., $600,000) +0.125% of $500 million (i.e., $625,000) +0.1% of base over
      $1 billion * Base = The highest of total annual Home Mortgage and Multifamily Mortgage origination, sale or
      servicing volume including Home Mortgages and Multifamily Mortgages held in portfolio. (B) Limits of E&O insurance
      Mortgagee’s E&O coverage must be maintained at a minimum limit equal to the higher of (i) $300,000 or (ii)
      20% of the fidelity coverage required in the table above. If the base consists of Home Mortgages only, the
      limit of mortgagee’s E&O insurance may be capped at $10 million. For mortgagee’s E&O insurance, Freddie Mac
      will accept policies providing coverage per Mortgage if the insurance limit per Mortgage is no less than the
      UPB of'
    drafter_attestation: Verbatim from Freddie Guide §2101.6 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-2101.6-3
  canonical_id: fhlmc-2101.6-3
  section: Freddie Mac Guide 2101.6
  description: '2101.6 Seller/Servicer insurance requirements: 101-12 the largest Mortgage originated and/or sold
    by the Seller or serviced by the Servicer, whichever is highest. For mortgagee’s E&O insurance, Freddie Mac
    will accept a policy that provides lower limits of insurance for losses other than those caused by lack or insufficiency
    …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §2101.6 — Seller/Servicer insurance requirements
      (08/10/22)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '101-12 the largest Mortgage originated and/or sold by the Seller or serviced by the Servicer,
      whichever is highest. For mortgagee’s E&O insurance, Freddie Mac will accept a policy that provides lower
      limits of insurance for losses other than those caused by lack or insufficiency of property insurance on Mortgaged
      Premises, if any such lower limit of insurance is the maximum liability that the insurer will assume for similar
      losses by institutions similar to the Seller/Servicer. Examples of calculations of the required minimum insurance
      limits are as follows: Base Calculation Minimum required insurance limit for fidelity bond $90 million not
      applicable $300,000* $400 million $300,000 +0.15% of $300 million $750,000 $750,000* $750 million $300,000
      +0.15% of $400 million +0.125% of $250 million $1,212,500 $1,212,500* $1.5 billion $300,000 +0.15% of $400
      million +0.125% of $500 million +0.1% of $500 million $2,025,000 $2,025,000** * $300,000 in mortgagee’s E&O
      coverage (the higher of $300,000 or 20% of the required fidelity coverage) ** $405,000 in mortgagee’s E&O
      coverage (the higher of $300,000 or 20% of the required fidelity coverage) (ii) Deductibles The maximum deductible
      allowed for any one fidelity loss is the higher of: ■ 5% of the minimum limit of fidelity insurance required
      by Freddie Mac, or ■ $100,000 The maximum deductible allowed for any one mortgagee’s E&O loss is the higher
      of:'
    drafter_attestation: Verbatim from Freddie Guide §2101.6 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-2101.6-4
  canonical_id: fhlmc-2101.6-4
  section: Freddie Mac Guide 2101.6
  description: '2101.6 Seller/Servicer insurance requirements: 101-13 ■ 5% of the minimum limit of mortgagee’s E&O
    insurance required by Freddie Mac, or ■ $100,000 The deductible may not be calculated based on the actual limit
    of insurance in force. For example, Freddie Mac requires a Servicer to maintain at least $5 million in fidelity
    insu…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §2101.6 — Seller/Servicer insurance requirements
      (08/10/22)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '101-13 ■ 5% of the minimum limit of mortgagee’s E&O insurance required by Freddie Mac, or
      ■ $100,000 The deductible may not be calculated based on the actual limit of insurance in force. For example,
      Freddie Mac requires a Servicer to maintain at least $5 million in fidelity insurance. The Servicer actually
      maintains $7 million in fidelity insurance. The maximum deductible allowed is 5% of $5 million or $250.000.
      (b) Acceptable insurer Freddie Mac will accept coverage underwritten by an insurer that is rated A- (A-minus)
      or better by the A.M. Best Company. (c) Parent institution’s coverage When the Seller/Servicer is a subsidiary
      of an institution with fidelity and/or mortgagee’s E&O insurance that meets Freddie Mac’s requirements, Freddie
      Mac will accept the insurance of the Seller/Servicer’s parent as adequate for the Seller/Servicer if: ■ The
      Seller/Servicer is named as joint insured, and ■ Coverage under the parent’s policy or policies of insurance
      does not restrict or otherwise limit the Seller/Servicer’s ability to comply with all of Freddie Mac’s insurance
      requirements (d) Other obligations of the Seller/Servicer The Seller/Servicer must maintain at its offices
      a complete and accurate copy of its fidelity bonds and mortgagee’s E&O policies for the current year and the
      past five years. Copies of these bonds and policies shall be provided to Freddie Mac upon request. The Seller/Servicer
      authorizes Freddie Mac to obtain copies of the bonds and policies and all related information from the Seller/Servicer’s
      insurer and/or agent or representative of the insurer. Freddie Mac’s requirements for fidelity and mortgagee’s
      E&O insurance do not diminish, restrict or otherwise limit the Seller/Servicer’s responsibilities and obligations
      stated in the Purchase Documents. The Seller/Servicer must familiarize itself with the terms of the fidelity
      and mortgagee’s E&O coverages and take all actions necessary to preserve the coverage and maximum benefits
      of such insurance for the Seller/Servicer and Freddie Mac, as applicable.'
    drafter_attestation: Verbatim from Freddie Guide §2101.6 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-2101.6-5
  canonical_id: fhlmc-2101.6-5
  section: Freddie Mac Guide 2101.6
  description: '2101.6 Seller/Servicer insurance requirements: Seller/Servicer insurance requirements (Future effective
    date 06/08/26) (a) Coverage requirements The Seller/Servicer must maintain in effect, at all times and at its
    expense (i) a fidelity bond and (ii) a mortgagee’s errors and omissions (E&O) insurance policy. The required
    limi…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §2101.6 — Seller/Servicer insurance requirements
      (08/10/22)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: Seller/Servicer insurance requirements (Future effective date 06/08/26) (a) Coverage requirements
      The Seller/Servicer must maintain in effect, at all times and at its expense (i) a fidelity bond and (ii)
      a mortgagee’s errors and omissions (E&O) insurance policy. The required limits and deductibles/retentions
      for each coverage are set forth in Sections 2101.7 and 2101.8, respectively. If the Seller/Servicer uses a
      bond or policy that has been issued to its parent company, as permitted in Section 2101.6(c), the minimum
      limit of insurance must be based on the consolidated Base (as defined in Section 2101.7(c)) amount for the
      parent and for all institutions related to the parent that are covered by the parent’s bond or policy, as
      applicable. Freddie Mac will accept bonds or policies that provide for an aggregate limit of insurance for
      a bond’s or policy’s term on the condition that the aggregate at least equals the minimum limit per loss or
      occurrence calculated in accordance with this Section 2101.7 or 2101.8, as applicable. If the Seller/Servicer
      is also a Freddie Mac Multifamily Seller/Servicer and coverage required under this Guide and the Freddie Mac
      Multifamily
    drafter_attestation: Verbatim from Freddie Guide §2101.6 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-2101.6-6
  canonical_id: fhlmc-2101.6-6
  section: Freddie Mac Guide 2101.6
  description: '2101.6 Seller/Servicer insurance requirements: is provided under the same insurance contract, the
    higher minimum required coverage limit shall apply to the Seller/Servicer. If the Seller/Servicer maintains
    broader coverage and/or higher limits than required by this Guide, Freddie Mac requires and shall be entitled
    to the bene…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §2101.6 — Seller/Servicer insurance requirements
      (08/10/22)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 'is provided under the same insurance contract, the higher minimum required coverage limit
      shall apply to the Seller/Servicer. If the Seller/Servicer maintains broader coverage and/or higher limits
      than required by this Guide, Freddie Mac requires and shall be entitled to the benefits of the broader coverage
      and/or higher limits maintained by the Seller/Servicer. Freddie Mac reserves the right to adjust the insurance
      requirements for any particular Seller/Servicer at Freddie Mac’s sole discretion. (b) Acceptable insurer Coverage
      required under this section must be underwritten by an insurer that is rated A- (A- minus) or better by the
      A.M. Best Company. (c) Parent institution’s coverage When the Seller/Servicer is a subsidiary of an institution
      with insurance that meets Freddie Mac’s requirements set forth in Sections 2101.6 through 2101.9, Freddie
      Mac will accept the insurance of the Seller/Servicer’s parent as adequate for the Seller/Servicer if: ■ The
      Seller/Servicer is named as joint insured, and'
    drafter_attestation: Verbatim from Freddie Guide §2101.6 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-2101.6-7
  canonical_id: fhlmc-2101.6-7
  section: Freddie Mac Guide 2101.6
  description: '2101.6 Seller/Servicer insurance requirements: 101-15 ■ Coverage under the parent’s policy or policies
    of insurance does not restrict or otherwise limit the Seller/Servicer’s ability to comply with all of Freddie
    Mac’s insurance requirements (d) Other obligations of the Seller/Servicer The Seller/Servicer must maintain
    at its…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §2101.6 — Seller/Servicer insurance requirements
      (08/10/22)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 101-15 ■ Coverage under the parent’s policy or policies of insurance does not restrict or otherwise
      limit the Seller/Servicer’s ability to comply with all of Freddie Mac’s insurance requirements (d) Other obligations
      of the Seller/Servicer The Seller/Servicer must maintain at its offices a complete and accurate copy of its
      required insurance bonds and policies for the current year and the past five years. Copies of these bonds
      and policies shall be provided to Freddie Mac upon request. The Seller/Servicer authorizes Freddie Mac to
      obtain copies of the bonds and policies and all related information from the Seller/Servicer’s insurer and/or
      agent or representative of the insurer. Freddie Mac’s requirements for Seller/Servicer insurance do not diminish,
      restrict or otherwise limit the Seller/Servicer’s responsibilities and obligations stated in the Purchase
      Documents. The Seller/Servicer must familiarize itself with the terms of the required insurance coverages
      and take all actions necessary to preserve the coverage and maximum benefits of such insurance for the Seller/Servicer
      and Freddie Mac, as applicable. In the event of bankruptcy where a stay is issued in relation to insurance
      coverage, the Seller/Servicer is required to cooperate with Freddie Mac and agree to any stipulation requested
      by Freddie Mac to lift the automatic stay in connection with Freddie Mac pursuing its rights and/or benefits
      under any of the bonds and policies required by this Guide. For any E&O policy provided on a “claims made”
      or “claims made and reported” basis, the Seller/Servicer must maintain continuous coverage dating back to
      the date on which the Seller/Servicer became subject to this Guide. In the event of termination or non-renewal
      of an E&O policy issued on a “claims made” or “claims made and reported” basis, the Seller/Servicer shall
      either procure replacement coverage that provides for the same continuity required by this section, or, if
      such continuity is not available in the marketplace, purchase an extended reporting period (sometimes referred
      to as tail coverage) on the terminated/non-renewed coverage for six years.
    drafter_attestation: Verbatim from Freddie Guide §2101.6 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
