source:
  type: regulation
  id: fhlmc-1401.1
  authority: Freddie Mac Single-Family Seller/Servicer Guide §1401.1 — Overview and defined terms (12/17/25)
  description: "Freddie Mac Guide §1401.1 (Overview and defined terms). Gap-fill (verbatim, ID-diff). \n"
obligations:
- id: fhlmc-1401.1-0
  canonical_id: fhlmc-1401.1-0
  section: Freddie Mac Guide 1401.1
  description: '1401.1 Overview and defined terms: This section contains information related to: ■ Electronic Transactions
    ■ Defined terms (a) Electronic Transactions This chapter sets forth the requirements for Electronic Transactions,
    as defined in Section 1401.1(b). The Electronic Transactions permitted or required hereunder a…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §1401.1 — Overview and defined terms (12/17/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 'This section contains information related to: ■ Electronic Transactions ■ Defined terms (a)
      Electronic Transactions This chapter sets forth the requirements for Electronic Transactions, as defined in
      Section 1401.1(b). The Electronic Transactions permitted or required hereunder are Eligible Electronic Transactions,
      as such term is defined in Section 1401.1(b). See Chapter 1402 for Freddie Mac’s selling and Servicing requirements
      for Mortgages with Electronic Notes (eNotes). A Seller/Servicer who wishes to sell and/or service eMortgages
      (as defined in Section 1402.1(b)) for Freddie Mac should contact its Freddie Mac account representative or
      the Freddie Mac eMortgage Team (eMortgage_Team@FreddieMac.com) to begin the process of determining its eligibility
      to sell and/or service eMortgages for Freddie Mac. (b) Defined terms The following defined terms are used
      throughout Chapter 1401, other chapters of the Guide and the Seller/Servicer’s other Purchase Documents for
      all Eligible Electronic Transactions. Any defined term in Section 1401.1(b) that is used in the definition
      of another defined term in Section 1401.1(b) will be in quotes (“ “) unless the defined term is in a title.
      As used in this chapter, the following terms have the meanings ascribed to them below: Defined terms related
      to Electronic Transactions C Closing Documents All loan documents (excluding eNotes) provided to a Borrower
      at the closing (settlement) of a Mortgage, as required by (i) federal, State and/or local law, regulations,
      rules or ordinances, (ii) the originating lender, and (iii) Freddie Mac Confidential Means of Access A private,
      protected method or process used to enter Freddie Mac’s applications and systems, which includes, but is not
      limited to, user identification codes, passwords, personal identification numbers or'
    drafter_attestation: Verbatim from Freddie Guide §1401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-1401.1-1
  canonical_id: fhlmc-1401.1-1
  section: Freddie Mac Guide 1401.1
  description: '1401.1 Overview and defined terms: 401-2 Defined terms related to Electronic Transactions other
    Freddie Mac permitted methods of or processes to access Freddie Mac’s confidential and proprietary “Systems”
    E Electronic Relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic
    o…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §1401.1 — Overview and defined terms (12/17/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 401-2 Defined terms related to Electronic Transactions other Freddie Mac permitted methods
      of or processes to access Freddie Mac’s confidential and proprietary “Systems” E Electronic Relating to technology
      having electrical, digital, magnetic, wireless, optical, electromagnetic or similar capabilities, as defined
      in the “UETA” and/or “E-SIGN” Electronic Notarization Notarization by “Electronic” means of a person’s “Electronic
      Signature,” after proper identification by a Notary Public, licensed or otherwise authorized by the State
      in which the Notary Public is domiciled, which complies with the State’s laws, regulations and rules, including,
      without limitation, the “UETA” and/or “E-SIGN” Electronic Record A “Record” created, generated, sent, communicated,
      received or stored by “Electronic” means, as defined in the “UETA” and/or “E- SIGN.” The term also includes
      a paper document converted into an Electronic Record. Electronic Recording The process of Electronically recording
      a Record with the applicable county recorder, registrar of deeds or similar land title recordation recording
      office. Electronic Signature An “Electronic” sound, symbol or process attached to, or logically associated
      with, a contract or other “Record” and executed or adopted by a person with the intent to sign the “Record,”
      as defined in the “UETA” and/or “E-SIGN” Electronic Transaction An action or set of actions occurring between
      two or more persons relating to the conduct of business, commercial or governmental affairs, using “Electronic”
      means. Eligible Electronic Transaction An “Electronic Transaction” that Freddie Mac has required or permitted
      the Seller/Servicer to engage in and/or conduct, as specified in Chapter 1401, other chapters of the Guide
      or the Seller/Servicer’s other Purchase Documents eModification Agreement An agreement that is an Electronic
      Record that complies with the applicable modification requirements of the Guide and includes, with respect
      to paper Notes, Electronic modification agreements and Electronic assumption and release of liability agreements
      under Chapters 9206 and 8406, respectively
    drafter_attestation: Verbatim from Freddie Guide §1401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-1401.1-2
  canonical_id: fhlmc-1401.1-2
  section: Freddie Mac Guide 1401.1
  description: '1401.1 Overview and defined terms: 401-3 Defined terms related to Electronic Transactions E-SIGN
    The federal Electronic Signatures in Global and National Commerce Act (15 U.S. Code, Chapter 96) F Federal Financial
    Institutions Examination Council or FFIEC U.S. government interagency body empowered to prescribe uni…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §1401.1 — Overview and defined terms (12/17/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '401-3 Defined terms related to Electronic Transactions E-SIGN The federal Electronic Signatures
      in Global and National Commerce Act (15 U.S. Code, Chapter 96) F Federal Financial Institutions Examination
      Council or FFIEC U.S. government interagency body empowered to prescribe uniform principles, standards, and
      report forms for the federal examination of financial institutions by its members, which membership consists
      of: (i) Board of Governors of the Federal Reserve Board (FRB), (ii) Federal Deposit Insurance Corporation
      (FDIC), (iii) National Credit Union Administration (NCUA), (iv) the Office of the Comptroller of the Currency
      (OCC), and (v) Consumer Financial Protection Bureau (CFPB) Federally Regulated Seller/Servicer A Seller/Servicer
      that is regulated by one of the following federal regulators: (i) FRB, (ii) FDIC, (iii) NCUA, (iv) OCC, or
      (v) CFPB I Initial Loan Documents All documents provided to a Borrower before the closing (settlement) of
      a Mortgage, as required by (i) federal, State and/or local law, regulations, rules or ordinances, (ii) the
      originating lender, and (iii) Freddie Mac R Record Information that is inscribed on a tangible medium or that
      is stored in an electronic or other medium and is retrievable in perceivable form as defined in the “UETA”
      and/or “E-SIGN.” A Record may be a paper or an “Electronic” document. Remote Online Notarization A notarial
      act performed by means of an Electronic device or process that allows a notary public and a principal, who
      is not in the same physical location as the notary public, to complete a notarial act and communicate with
      each other simultaneously by sight and sound S Systems All computers, servers, fax machines, other Electronic
      devices, hardware, websites, internet, private networks, telephone lines or wireless communications, together
      with software applications, security measures, proprietary coding, interfaces and/or connectivity used to
      create, present, sign, transfer, transmit, send, submit, deliver, receive, retrieve maintain and/or store
      Records, Electronic Records or'
    drafter_attestation: Verbatim from Freddie Guide §1401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-1401.1-3
  canonical_id: fhlmc-1401.1-3
  section: Freddie Mac Guide 1401.1
  description: '1401.1 Overview and defined terms: 401-4 Defined terms related to Electronic Transactions Electronic
    Signatures in order to engage in and/or conduct Electronic Transactions T TPPs Third-party providers, which
    include Correspondents, Mortgage Brokers, independent contractors, agents, Outsourced Vendors or other thi…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §1401.1 — Overview and defined terms (12/17/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 401-4 Defined terms related to Electronic Transactions Electronic Signatures in order to engage
      in and/or conduct Electronic Transactions T TPPs Third-party providers, which include Correspondents, Mortgage
      Brokers, independent contractors, agents, Outsourced Vendors or other third parties, including a servicing,
      secondary marketing or other agent or other Related Third Party U UETA The Uniform Electronic Transactions
      Act of 1999, promulgated by the U.S. Uniform Law Commission for consideration and enactment by the States.
      Reference to the UETA herein, means the UETA as enacted by an applicable State.
    drafter_attestation: Verbatim from Freddie Guide §1401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-1401.1-4
  canonical_id: fhlmc-1401.1-4
  section: Freddie Mac Guide 1401.1
  description: '1401.1 Overview and defined terms: General requirements and security standards for Eligible Electronic
    Transactions (12/17/25) This section contains information related to: ■ Requirements applicable to all Eligible
    Electronic Transactions ■ Consent and agreement to engage in and conduct Eligible Electronic Transac…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §1401.1 — Overview and defined terms (12/17/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 'General requirements and security standards for Eligible Electronic Transactions (12/17/25)
      This section contains information related to: ■ Requirements applicable to all Eligible Electronic Transactions
      ■ Consent and agreement to engage in and conduct Eligible Electronic Transactions ■ Security standards for
      all Eligible Electronic Transactions engaged in or conducted by the Seller/Servicer ■ Security standards for
      Eligible Electronic Transactions engaged in or conducted by TPPs ■ The Seller/Servicer’s due diligence requirements
      for the Seller/Servicer’s Systems used to engage in or conduct Eligible Electronic Transactions ■ The Seller/Servicer’s
      due diligence requirements for TPP’s Systems used for Eligible Electronic Transactions (a) Requirements applicable
      to all Eligible Electronic Transactions The following requirements and applicable requirements in Chapter
      1302 apply to all Eligible Electronic Transactions that Freddie Mac permits or requires the Seller/Servicer
      to engage in or conduct:'
    drafter_attestation: Verbatim from Freddie Guide §1401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-1401.1-5
  canonical_id: fhlmc-1401.1-5
  section: Freddie Mac Guide 1401.1
  description: '1401.1 Overview and defined terms: 401-5 ■ This Chapter 1401 ■ Other Guide chapters ■ The Seller/Servicer’s
    other Purchase Documents ■ Any user agreement(s) by and between the Seller/Servicer and Freddie Mac. (Examples
    of some Eligible Electronic Transactions include, but are not limited to, use of Loan Selling Ad…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §1401.1 — Overview and defined terms (12/17/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '401-5 ■ This Chapter 1401 ■ Other Guide chapters ■ The Seller/Servicer’s other Purchase Documents
      ■ Any user agreement(s) by and between the Seller/Servicer and Freddie Mac. (Examples of some Eligible Electronic
      Transactions include, but are not limited to, use of Loan Selling Advisor®, Loan Product Advisor® and Servicing
      Tools.) If these requirements conflict with requirements in any of the following, then the requirements in
      the other Guide chapters, the Seller/Servicer’s other Purchase Documents or any user agreement(s) shall control
      and prevail over these requirements, but only to the extent necessary to resolve the conflict: ■ Other Guide
      chapters ■ The Seller/Servicer’s other Purchase Documents ■ Any user agreement(s) by and between the Seller/Servicer
      and Freddie Mac If the Seller/Servicer believes there is any such conflict, the Seller/Servicer should contact
      Freddie Mac to discuss any such conflict in an effort to resolve it. (b) Consent and agreement to engage in
      and conduct Eligible Electronic Transactions When the Seller/Servicer engages in or conducts Eligible Electronic
      Transactions with Freddie Mac, the Seller/Servicer agrees: ■ That the Seller/Servicer consents and agrees
      to engage in or conduct Eligible Electronic Transactions with Freddie Mac ■ To adopt as its signature (among
      other Electronic Signatures the Seller/Servicer adopts, from time to time) the Seller/Servicer’s Freddie Mac
      Seller/Servicer number(s), a copy or representation of the Seller/Servicer’s representative’s written signature
      and/or Electronic Signature and/or such other symbols or processes as expressly required or permitted by Freddie
      Mac (“Seller/Servicer’s Electronic Signature(s)”) ■ That Freddie Mac can rely on any paper Records (with or
      without Electronic Signatures) or Electronic Records (with or without Electronic Signatures) that are delivered
      to Freddie Mac ■ That the Seller/Servicer will be bound by all Eligible Electronic Transactions the Seller/Servicer
      engages in or conducts with Freddie Mac'
    drafter_attestation: Verbatim from Freddie Guide §1401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-1401.1-6
  canonical_id: fhlmc-1401.1-6
  section: Freddie Mac Guide 1401.1
  description: '1401.1 Overview and defined terms: 401-6 ■ That the Seller/Servicer will be bound by all Eligible
    Electronic Transactions that the Seller/Servicer engages in or conducts with Freddie Mac based upon telephone
    conversations, including those telephone conversations recorded by Freddie Mac in the ordinary course of bu…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §1401.1 — Overview and defined terms (12/17/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '401-6 ■ That the Seller/Servicer will be bound by all Eligible Electronic Transactions that
      the Seller/Servicer engages in or conducts with Freddie Mac based upon telephone conversations, including
      those telephone conversations recorded by Freddie Mac in the ordinary course of business; however, under no
      circumstances will Freddie Mac be bound by any telephone conversations recorded by the Seller/Servicer (c)
      Security standards for all Eligible Electronic Transactions engaged in or conducted by the Seller/Servicer
      Freddie Mac will provide the Seller/Servicer with, or require the Seller/Servicer to create, a Confidential
      Means of Access to Freddie Mac’s Systems or other systems in connection with Eligible Electronic Transactions
      with Freddie Mac. A breach of security by the Seller/Servicer (or any of the Seller/Servicer’s Related Third
      Parties) with respect to the Seller/Servicer’s Confidential Means of Access to Freddie Mac’s Systems may result
      in unauthorized persons (or authorized persons with malicious or unlawful intentions) gaining access to Freddie
      Mac’s Systems. Such persons may: ■ Destroy, damage or misappropriate Freddie Mac property, or ■ Introduce
      malicious software (“Malware”) or other harmful computer information, commands, codes or programs (“Harmful
      Software”) into Freddie Mac’s Systems Any such unlawful entry or intrusion into Freddie Mac’s Systems may
      result in substantial harm to Freddie Mac, including, without limitation, damage to Freddie Mac’s Systems,
      Records and/or data or theft of confidential proprietary information and/or consumer personal private financial
      information. The Seller/Servicer is responsible for protecting and safeguarding the Seller/Servicer’s Confidential
      Means of Access to Freddie Mac’s System and any Related Third Party or other third-party System, if applicable,
      from any and all malicious conduct or theft by any of its employees, vendors, independent contractors, agents
      or third parties, unauthorized persons, Malware and Harmful Software that may: ■ Enable unauthorized access
      to Freddie Mac’s Systems ■ Cause or facilitate the destruction, corruption, malfunction or appropriation of,
      or damage or change to, any of Freddie Mac’s Systems or any Electronic Records and data (e.g., financial information,
      proprietary information, confidential information or personal private information) stored in Freddie Mac’s
      Systems Refer to Section 1302.2 for information regarding Freddie Mac’s minimum information security program
      requirements. The Seller/Servicer must notify Freddie Mac immediately in the event the Seller/Servicer:'
    drafter_attestation: Verbatim from Freddie Guide §1401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-1401.1-7
  canonical_id: fhlmc-1401.1-7
  section: Freddie Mac Guide 1401.1
  description: '1401.1 Overview and defined terms: 401-7 ■ Sustains a breach of security in connection with the
    Seller/Servicer’s Confidential Means of Access to Freddie Mac’s Systems, or ■ Becomes aware of the loss, theft
    or unauthorized disclosure or use of the Seller/Servicer’s Confidential Means of Access to Freddie Mac’s Sys…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §1401.1 — Overview and defined terms (12/17/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '401-7 ■ Sustains a breach of security in connection with the Seller/Servicer’s Confidential
      Means of Access to Freddie Mac’s Systems, or ■ Becomes aware of the loss, theft or unauthorized disclosure
      or use of the Seller/Servicer’s Confidential Means of Access to Freddie Mac’s Systems or other Systems, or
      ■ Has any reason to believe that the Seller/Servicer’s Confidential Means of Access to Freddie Mac’s Systems
      may be, has been or will be compromised and is no longer safe or secure The Seller/Servicer’s compliance with
      Freddie Mac’s requirements in Section 1302.2 will not relieve the Seller/Servicer from any liability set forth
      in this chapter; however, adopting and maintaining such minimum security standards should assist the Seller/Servicer
      in managing and mitigating the Seller/Servicer’s security risks. The Seller/Servicer will be solely responsible
      for implementing and updating its security standards and assessing whether the Seller/Servicer should adopt
      more rigorous minimum security standards. The Seller/Servicer’s failure to adopt, implement, maintain, administer
      and update the required minimum security standards may result in termination of the Seller/Servicer’s access
      to any or all of Freddie Mac’s Systems. In addition, Freddie Mac may take other actions available under the
      Guide, the Seller/Servicer’s other Purchase Documents, any user agreement or law. (d) Security standards for
      Eligible Electronic Transactions engaged in or conducted by TPPs A Federally Regulated Seller/Servicer that
      is expressly approved by Freddie Mac in the Sellers/Servicer’ Purchase Documents to permit the Seller/Servicer’s
      TPPs to engage in or conduct Eligible Electronic Transactions for or on behalf of the Seller/Servicer (or
      in connection with doing business with the Seller/Servicer) must contractually require its TPPs to do the
      following: ■ Adopt the minimum security standards (or higher standards) as described in Section 1401.2(c)
      ■ Use the mandatory minimum security standards (or higher standards) in the Seller/Servicer’s written agreements
      with its TPPs ■ Initially (and annually thereafter) certify to the Seller/Servicer that they have adopted
      and implemented the minimum security standards (or higher standards) before the TPP may conduct any Eligible
      Electronic Transactions for or on behalf of (or in connection with doing business with) the Seller/Servicer
      The Seller/Servicer’s TPPs’ adoption of and compliance with the minimum security standards (or higher standards)
      in Section 1401.2(c) will not relieve the Seller/Servicer from any liability set forth in this chapter; however,
      requiring the Seller/Servicer’s TPPs to adopt'
    drafter_attestation: Verbatim from Freddie Guide §1401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-1401.1-8
  canonical_id: fhlmc-1401.1-8
  section: Freddie Mac Guide 1401.1
  description: '1401.1 Overview and defined terms: 401-8 and maintain such minimum security standards (or higher
    standards) should assist the Seller/Servicer and its TPPs to manage and mitigate the Seller/Servicer’s and the
    TPP’s security risks. The Seller/Servicer will be solely responsible for: ■ Updating and implementing its m…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §1401.1 — Overview and defined terms (12/17/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '401-8 and maintain such minimum security standards (or higher standards) should assist the
      Seller/Servicer and its TPPs to manage and mitigate the Seller/Servicer’s and the TPP’s security risks. The
      Seller/Servicer will be solely responsible for: ■ Updating and implementing its minimum security standards
      ■ Assessing whether the Seller/Servicer should adopt (and require its TPPs to adopt) the security practices
      recommended by the Seller/Servicer’s federal regulator or even higher minimum security standards The Seller/Servicer’s
      failure to require its TPPs to adopt, implement, maintain, administer and update the required minimum security
      standards (or higher standards) may result in: ■ Termination of the Seller/Servicer’s access to any or all
      of Freddie Mac’s Systems and/or applications ■ Other actions taken by Freddie Mac available under the Guide,
      the Seller/Servicer’s other Purchase Documents or law (e) The Seller/Servicer’s due diligence requirements
      for the Seller/Servicer’s Systems used to engage in or conduct Eligible Electronic Transactions The Seller/Servicer
      must conduct due diligence reviews on the Seller/Servicer’s Systems before the Seller may engage in or conduct
      any Eligible Electronic Transactions with Freddie Mac to confirm that: ■ The Seller/Servicer’s Systems are
      in compliance with the minimum security standards as described in Section 1401.2(c) ■ The Seller/Servicer’s
      Systems create valid, enforceable and effective Records, Electronic Records and Electronic Signatures in compliance
      with E-SIGN and/or the UETA, as applicable ■ When conducting an Electronic Transactions in connection with
      a consumer, the Seller/Servicer’s system(s) shall electronically create and permit each such consumer to electronically
      sign a Consumer Consent Form after providing each such consumer with Electronic Transaction disclosures and
      conducting the reasonable demonstration test in compliance with the applicable requirements of E-SIGN and/or
      the UETA ■ The Seller/Servicer’s Systems comply with all State and federal laws The Seller/Servicer’s confirmation
      process would include having the Seller/Servicer’s Systems reviewed by internal or external computer technology
      and security experts and legal experts.'
    drafter_attestation: Verbatim from Freddie Guide §1401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-1401.1-9
  canonical_id: fhlmc-1401.1-9
  section: Freddie Mac Guide 1401.1
  description: '1401.1 Overview and defined terms: 401-9 (f) The Seller/Servicer’s due diligence requirements for
    TPP’s Systems used for Eligible Electronic Transactions The Seller/Servicer must confirm that its TPPs have
    conducted due diligence reviews of the Systems the TPPs intend to use before the Seller/Servicer may permit
    i…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §1401.1 — Overview and defined terms (12/17/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 401-9 (f) The Seller/Servicer’s due diligence requirements for TPP’s Systems used for Eligible
      Electronic Transactions The Seller/Servicer must confirm that its TPPs have conducted due diligence reviews
      of the Systems the TPPs intend to use before the Seller/Servicer may permit its TPPs to conduct Eligible Electronic
      Transactions for, or on behalf of, the Seller/Servicer (or in connection with doing business with the Seller/Servicer).
      The Seller/Servicer must use its reasonable and prudent judgment in determining whether its TPPs have conducted
      sufficient and appropriate due diligence on the TPP’s Systems. The TPPs must conduct the same level of due
      diligence required of the Seller/Servicer in Section 1401.2(e). The Seller/Servicer will be held responsible
      for the acts, errors and omissions of its TPPs and the TPPs’ Systems.
    drafter_attestation: Verbatim from Freddie Guide §1401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
