source:
  type: guide
  id: fhlmc-4701.4
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 4701.4 — Late
    charges
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 4701.4 — Late
    charges.
  coverage_tier: operative
obligations:
- id: fhlmc-4701.4-full
  canonical_id: fhlmc-4701.4-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 4701.4 — Late charges
  type: do
  tags:
  - regulator-direct
  - fhlmc
  - freddie-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide Section 4701.4 — Late
      charges
    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: '4701.4: Late charges (03/02/16) The Uniform Single Family Note
      provides blanks for inserting the amounts of late charges and the grace period
      after which such charges are assessable. Any amount and period stated must be
      permissible under applicable law. For Mortgages purchased by Freddie Mac, the
      Seller agrees to collect late charges only on monthly installments more than
      15 days late. If the 15-day period ends on a weekend or holiday, it is extended
      to the next Business Day. The Seller also agrees not to collect late charges
      of more than 5% of the late principal and interest payment. The Seller may retain
      any late charge collected as additional Servicing compensation. If the late
      charge stated in the Note is more than 5% of the principal and interest payment
      and/or is to be assessed on a monthly installment late 15 days or less, the
      Seller agrees to notify the Borrower in writing of Freddie Mac’s late charge
      and grace period requirements and to retain a copy of the written notification
      in the Mortgage file for each Mortgage purchased by Freddie Mac. 4701.5: Mortgage
      insurance for Cooperative Share Loans (05/04/20) Notwithstanding the requirements
      of Section 4701.1, for New York properties, the sales price of the Cooperative
      Interest may be used solely for the purpose of determining whether mortgage
      insurance is required for purchase transaction Cooperative Share Loans. If mortgage
      insurance is required, the requirements of Section 4701.1 apply for determining
      the loan-to-value ratio for the required percentage of mortgage insurance coverage
      and for purposes of determining whether mortgage insurance should be canceled.
      Freddie Mac Single-Family Seller/Servicer Guide Chapter 4702 As of 02/04/26
      Page 4702-1 Chapter 4702: Title Insurance 4702.1: General Freddie Mac title
      insurance requirements (04/02/25) A title insurance policy is mandatory for
      each Mortgage delivered to Freddie Mac unless specifically excepted by Section
      4702.3 or 4702.4. Each Mortgage purchased by Freddie Mac must be covered by
      one of the following: ■ A paid-up Mortgage title insurance policy meeting the
      requirements in Section 4702.2 ■ An attorney opinion of title letter meeting
      the requirements in Section 4702.3, or ■ A certificate of title issued by Iowa
      Title Guaranty'
  judgment: false
