source:
  type: guide
  id: fhlmc-1302.3
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 1302.3 — Business
    continuity planning
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 1302.3 — Business
    continuity planning.
  coverage_tier: operative
obligations:
- id: fhlmc-1302.3-full
  canonical_id: fhlmc-1302.3-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 1302.3 — Business
    continuity planning
  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 1302.3 — Business
      continuity planning
    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: '1302.3: Business continuity planning (03/11/25) This section
      contains requirements related to: ■ Business continuity plans (BCPs) ■ Review
      of BCPs ■ Additional policies and procedures to support the BCP ■ BCP education
      and training (a) BCPs A Seller/Servicer must have a written BCP in place to
      support its ongoing ability to proactively identify potential threats to, and
      prevent interruption of, its business operations, including without limitation
      in the event of: ■ A natural, climate or manmade disaster Or ■ Other event which
      may cause or causes disruption to Seller/Servicer’s business operations, processes
      or access to Freddie Mac confidential information, Protected Information and
      Systems (as defined in Section 2401.1(b)), Mortgage files, data and records
      Example: The BCP should be operative to maintain business operations in the
      event of loss of personnel, facilities, third party or access to and use of
      technology, regardless of the cause of disruption. A Seller/Servicer must be
      able to maintain and restore any such information it is required to retain in
      accordance with its Purchase Documents, including without limitation, any information
      that it is required to retain pursuant to Chapter 1302, following Freddie Mac’s
      termination of Seller/Servicer’s right to sell and/or service Mortgages. Freddie
      Mac Single-Family Seller/Servicer Guide Chapter 1302 As of 04/01/26 Page 1302-59
      (b) Review of BCPs The BCP must be reviewed and updated by the Seller/Servicer
      at least annually. More frequent assessments may be warranted by material changes
      to: ■ The environment, including without limitation, the critical personnel
      responsible for BCP processes and functions, facilities, Related Third Parties
      and technical infrastructure; ■ The volume of Mortgages originated and sold
      to Freddie Mac or serviced on behalf of Freddie Mac; or ■ Business operations
      or systems occur Upon request by Freddie Mac, including in the event of material
      changes to the conditions described above, Seller/Servicer shall promptly conduct
      additional assessments and share the results with Freddie Mac. (c) Additional
      policies and procedures to support the BCP With respect to the BCP requirements
      set forth in Chapter 1302, the Seller/Servicer must: ■ Establish, maintain and
      implement policies and procedures which support the BCP. The BCP and related
      policies and procedures must: ❑ Be approved by the Chief Risk Officer (or the
      equivalent thereof) and in accordance with Seller/Servicer’s corporate governance
      ❑ Address response, restoration and repair of actual, known disruptions, as
      well as prevention of potential disruptions; and ❑ Be reviewed and updated not
      less than annually ■ Not less than annually, conduct: ❑ A formal risk and threat
      assessment of the organization ❑ More frequent assessments may be warranted
      by material changes to: ■ The environment, including without limitation, the
      critical personnel responsible for BCP processes and functions, facilities,
      Related Third Parties and technical infrastructure ■ The volume of Mortgages
      originated and sold to Freddie Mac or serviced on behalf of Freddie Mac; or
      Freddie Mac Single-Family Seller/Servicer Guide Chapter 1302 As of 04/01/26
      Page 1302-60 ■ Business operations or systems ❑ Upon request by Freddie Mac,
      including in the event of material changes to the conditions described above,
      Seller/Servicer shall promptly conduct additional assessments and share the
      results with Freddie Mac ❑ Testing of the BCP, including recovery of predefined
      critical business functions, which at a minimum shall include a stated test
      objective, scope/success measures, dependency type (People, Facility, Third-Party,
      Technology), process/functions, assumptions and constraints, identified participants,
      test environment and test results and associated remediation actions, as applicable
      ❑ A business disruption impact analysis of the organization (d) BCP education
      and training Seller/Servicer BCP education and training requirements include:
      ■ Seller/Servicer must provide BCP training to all employees, contractors and
      third parties who have responsibility or oversight of BCP functions ■ The training
      must be current in substance and reflect up-to-date continuity threats and recovery
      strategies which are consistent with industry best practices ■ At a minimum,
      the training must provide details on roles and responsibilities for all users
      in executing the BCP and in protecting Freddie Mac confidential information,
      Protected Information and Systems Any documents, plans or policies, including
      without limitation the BCP, referenced in this section shall be provided by
      Seller/Servicer to Freddie Mac upon request. 1302.3: Business continuity planning
      (Future effective date 05/11/26) This section contains requirements related
      to: ■ Business continuity plans (BCPs) ■ Review of BCPs ■ Additional policies
      and procedures to support the BCP ■ BCP education and training Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 1302 As of 04/01/26 Page 1302-61 (a) BCPs A Seller/Servicer
      must have a written BCP in place to support its ongoing ability to proactively
      identify potential threats to, and prevent interruption of, its business operations,
      including without limitation in the event of: ■ A natural, climate or manmade
      disaster Or ■ Other event which may cause or causes disruption to Seller/Servicer’s
      business operations, processes or access to Freddie Mac confidential information,
      Protected Information and Systems (as defined in Section 2401.1(b)), Mortgage
      files, data and records Example: The BCP should be operative to maintain business
      operations in the event of loss of personnel, facilities, third party or access
      to and use of technology, regardless of the cause of disruption. A Seller/Servicer
      must be able to maintain and restore any such information it is required to
      retain in accordance with its Purchase Documents, including without limitation,
      any information that it is required to retain pursuant to Chapter 1302, following
      Freddie Mac’s termination of Seller/Servicer’s right to sell and/or service
      Mortgages. The BCP should include activation and escalation criteria, roles
      and responsibilities, recovery strategies and procedures for all applicable
      loss scenarios (i.e., personnel, systems, facilities, and third parties) regardless
      of cause, and relevant contact information (b) Review of BCPs The BCP must be
      reviewed and updated by the Seller/Servicer at least annually. More frequent
      assessments may be warranted by material changes to: ■ The environment, including
      without limitation, the critical personnel responsible for BCP processes and
      functions, facilities, Related Third Parties and technical infrastructure; ■
      The volume of Mortgages originated and sold to Freddie Mac or serviced on behalf
      of Freddie Mac; or ■ Business operations or systems occur Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 1302 As of 04/01/26 Page 1302-62 Upon request
      by Freddie Mac, including in the event of material changes to the conditions
      described above, Seller/Servicer shall promptly conduct additional assessments
      and share the results with Freddie Mac. (c) Additional policies and procedures
      to support the BCP With respect to the BCP requirements set forth in Chapter
      1302, the Seller/Servicer must: ■ Establish, maintain and implement policies
      and procedures which support the BCP. The BCP and related policies and procedures
      must: ❑ Be approved by the Chief Risk Officer (or the equivalent thereof) and
      in accordance with Seller/Servicer’s corporate governance ❑ Address response,
      restoration and repair of actual, known disruptions, as well as prevention of
      potential disruptions; and ❑ Be reviewed and updated not less than annually
      ■ Not less than annually, conduct: ❑ A formal risk and threat assessment of
      the organization ❑ More frequent assessments may be warranted by material changes
      to: ■ The environment, including without limitation, the critical personnel
      responsible for BCP processes and functions, facilities, Related Third Parties
      and technical infrastructure ■ The volume of Mortgages originated and sold to
      Freddie Mac or serviced on behalf of Freddie Mac; or ■ Business operations or
      systems ❑ Upon request by Freddie Mac, including in the event of material changes
      to the conditions described above, Seller/Servicer shall promptly conduct additional
      assessments and share the results with Freddie Mac ❑ Testing of the BCP, including
      recovery of predefined critical business functions, which at a minimum shall
      include a stated test objective, scope/success measures, dependency type (People,
      Facility, Third-Party, Technology), process/functions, assumptions and constraints,
      identified participants, test environment and test results and associated remediation
      actions, as applicable ❑ A business impact analysis (BIA) of the organization’s
      critical processes. At a minimum, the BIA shall specify critical systems, Freddie
      Mac Critical Data, key Freddie Mac Single-Family Seller/Servicer Guide Chapter
      1302 As of 04/01/26 Page 1302-63 locations, key resources (employees), third
      parties, single points of failure, recovery time objectives, recovery point
      objectives and maximum acceptable outages. ■ Implement and maintain business
      continuity metrics and controls to track and/or determine any need for changes
      to the BCP (d) BCP education and training Seller/Servicer BCP education and
      training requirements include: ■ Seller/Servicer must provide BCP training to
      all employees, contractors and third parties who have responsibility or oversight
      of BCP functions ■ The training must be current in substance and reflect up-to-date
      continuity threats and recovery strategies which are consistent with industry
      best practices ■ At a minimum, the training must provide details on roles and
      responsibilities for all users in executing the BCP and in protecting Freddie
      Mac confidential information, Protected Information and Systems Any documents,
      plans or policies, including without limitation the BCP, referenced in this
      section shall be provided by Seller/Servicer to Freddie Mac upon request.'
  judgment: false
