source:
  type: guide
  id: fhlmc-3401.2
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 3401.2 — Documentation
    and instruments
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 3401.2 — Documentation
    and instruments.
  coverage_tier: operative
obligations:
- id: fhlmc-3401.2-full
  canonical_id: fhlmc-3401.2-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 3401.2 — Documentation
    and instruments
  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 3401.2 — Documentation
      and instruments
    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: '3401.2: Documentation and instruments (02/04/26) Refer to Bulletin
      2025-7, which announced the policy requirements for Uniform Appraisal Dataset
      (UAD) 3.6. Sellers may submit to the Uniform Collateral Data Portal® appraisal
      reports that use UAD 3.6 before the mandatory effective November 2, 2026 version
      of this section. This section contains requirements related to: ■ Note ■ Modifying
      instrument or assumption of indebtedness agreement ■ Underwriting summary ■
      Title insurance ■ Residential loan application ■ Underwriting explanation ■
      Property valuation documentation ■ Appraisal form rental information ■ Leasehold
      Mortgage ■ Buydown agreement ■ Mortgage insurance certificate ■ Documentation
      of flood zone determination ■ Evidence of flood insurance ■ Secondary financing
      ■ Electronic Records and Electronic Signatures Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 3401 As of 03/04/26 Page 3401-12 ■ Other documentation (a) Note
      A legible copy of the Note, with all required accompanying documents (see the
      definition of “Note” in the Glossary) and showing all endorsements, must be
      maintained in the Mortgage file. The endorsement from the Seller, as required
      in Section 6301.2(a), does not need to appear on the copy of the Note submitted
      for postfunding quality control review. For Mortgages secured by property in
      New York State that are documented using a New York Consolidation, Extension
      and Modification Agreement (NY CEMA), the Mortgage files must contain legible
      copies of the following documents: ■ Consolidated Note showing all endorsements
      ■ Original Old Money Note and, if applicable, Original New Money (Gap) Note
      ■ Current Form 3172 as specified in Section 4101.11(b) (b) Modifying instrument
      or assumption of indebtedness agreement The following documents must be included
      in the Mortgage file: ■ The modification or conversion agreement, or the ownership
      transfer instrument and assumption of indebtedness agreement, if the Mortgage
      has been modified or converted from an ARM to a fixed-rate Mortgage or if the
      ownership of the Mortgaged Premises has been transferred in any way. Note: The
      Seller/Servicer does not need to submit for postfunding quality control review
      a copy of any modifying instrument that by its terms ceases to be effective
      upon purchase of the Mortgage by Freddie Mac. ■ The Construction to Permanent
      Modification Agreement for Construction to Permanent Mortgages and Renovation
      Mortgages; and ■ The Mortgage application, credit report, employment and income
      verifications for the current Borrowers if the Mortgaged Premises is currently
      owned by anyone other than the original Borrowers. A certification of the terms
      of the sale of the Mortgaged Premises (e.g., a copy of the purchase agreement
      signed by the seller and purchaser) must also be included. Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 3401 As of 03/04/26 Page 3401-13 (c) Underwriting
      summary A completed Form 1077, Uniform Underwriting and Transmittal Summary,
      or equivalent form (e.g., a Feedback Certificate), must be included in the Mortgage
      file. (d) Title insurance Except as stated below, the Mortgage file must contain
      a copy of a title commitment for title insurance on an American Land Title Association
      form (or its equivalent if a certificate of title or attorney opinion of title
      is being delivered), including all schedules and proposed endorsements. The
      Mortgage file must also contain a copy of the final title insurance policy unless
      it has not been received prior to the delivery of the loan to Freddie Mac. The
      final policy, once issued, must be maintained in the Mortgage file and must
      include all required endorsements. For Cooperative Share Loans recognized as
      personal property and HeritageOne® Mortgages that are leasehold Mortgages, the
      Mortgage file is not required to contain a copy of the title commitment or final
      title insurance policy. Note: See Sections 4702.6 and 4702.7 for title insurance
      requirements for Cooperative Share Loans and HeritageOne Mortgages, respectively.
      (e) Residential loan application The Mortgage file must include the following:
      ■ A Record (as that term is defined in Section 1401.1(b)) of the initial Form
      65, Uniform Residential Loan Application ■ The final signed application, and
      ■ A Record of Form 1103, Supplemental Consumer Information Form The final signed
      application must match the file documentation. If there are any discrepancies
      between the information on the application and the information in the credit,
      income and assets verifications, a written explanation of such discrepancies
      must also be included in the Mortgage file. (f) Underwriting explanation When
      either the total monthly housing expense-to-income ratio guideline of 28% or
      the monthly debt payment-to-income ratio guideline of 36% is exceeded on Manually
      Freddie Mac Single-Family Seller/Servicer Guide Chapter 3401 As of 03/04/26
      Page 3401-14 Underwritten Mortgages, a written explanation fully supporting
      the Seller’s underwriting decision must be retained in the Mortgage file. (g)
      Property valuation documentation Except for Loan Product Advisor® Mortgages
      for which the Seller is offered and accepts automated collateral evaluation
      (ACE), or ACE+ PDR, in accordance with Section 5602.3 or 5602.4, the Mortgage
      file must include all documentation used to determine that the Mortgaged Premises
      is acceptable, including, but not limited to, an appraisal report and any completion
      report for appraisals subject to conditions. (h) Appraisal form rental information
      Rental information on completed appraisal forms (i.e., Form 1000, Single Family
      Comparable Rent Schedule, or Form 72, Small Residential Income Property Appraisal
      Report, as applicable), in accordance with the requirements of Chapter 5306,
      must be included in the Mortgage file. (i) Leasehold Mortgage If the Mortgaged
      Premises is on a leasehold estate, a copy of the lease with recordation information
      must be retained in the Mortgage file. (j) Buydown agreement For Mortgages with
      a temporary subsidy buydown plan, the Mortgage file must contain a copy of the
      executed buydown agreement. (k) Mortgage insurance certificate If mortgage insurance
      is required, a copy of the mortgage insurance certificate or electronic evidence
      of mortgage insurance coverage, as well as all documents and information relating
      to any change in mortgage insurance from that provided at delivery—including,
      but not limited to, notices of cancelation, rescission or termination of mortgage
      insurance and denials of claims—must be included in the Mortgage file. (l) Documentation
      of flood zone determination The flood zone determination must be documented
      in the Mortgage file. (m)Evidence of flood insurance If flood insurance is required,
      the Mortgage file must include acceptable final evidence of flood insurance.
      Freddie Mac Single-Family Seller/Servicer Guide Chapter 3401 As of 03/04/26
      Page 3401-15 If final evidence of flood insurance is not available at the time
      of the quality control review, one of the following documents is acceptable:
      ■ Completed and executed National Flood Insurance Program (NFIP) Flood Insurance
      Application plus a copy of the Borrower’s premium check or agent’s paid receipt
      or ■ Completed and executed NFIP Flood Insurance Application plus the final
      Settlement/Closing Disclosure Statement reflecting the flood insurance premium
      collected at closing or ■ Completed and executed NFIP General Change Endorsement
      Form showing the assignment of the current flood insurance policy by the property
      seller to the Borrower If the flood insurer is not the NFIP, the insurer’s equivalent
      of the applicable NFIP form is acceptable. If the flood zone determination documentation
      shows the insurable improvements are in a Special Flood Hazard Area but flood
      insurance was waived, the Mortgage file must include the documentation which
      served as the basis for the waiver. (n) Secondary financing For each Mortgage
      that is concurrently originated with a subordinate lien (i.e., the Mortgage
      and subordinate lien are originated on the same day), the Seller must include
      in the Mortgage file a copy of the following documentation for the subordinate
      lien: ■ Note or other evidence of subordinate lien terms ■ The Settlement/Closing
      Disclosure Statement or an alternative form required by law that evidences the
      fees and costs paid by the Borrower at closing in connection with the secondary
      financing ■ For Home Equity Lines of Credit (HELOCs), the HELOC agreement indicating
      all fees and costs paid by the Borrower at closing and the maximum permitted
      credit advance. For refinance Mortgages, the Mortgage file must include evidence
      of subordination of outstanding secondary financing. (o) Electronic Records
      and Electronic Signatures If a Mortgage is originated using any Electronic Records
      (as defined in Section 1401.1(b)) expressly permitted by Freddie Mac in the
      Guide or in a Seller/Servicer’s other Purchase Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 3401 As of 03/04/26 Page 3401-16 Documents, the Seller/Servicer’s
      Mortgage file may contain a combination of paper documents and Electronic Records
      and must contain: ■ The clear and conspicuous statement of certain information
      required by E-Sign (see Title I, Section 101(c)(1)(B)(i)-(iv) and (C)(i) of
      E-Sign) and satisfactory evidence that the Borrower received the information
      before consenting to Electronic Records ■ The “Consent to Electronic Records”
      required by E-Sign (see Title I, Section 101(c)(1)(A) and (C)(i)-(ii) of E-Sign)
      and satisfactory evidence that “reasonably demonstrates” that the Borrower was
      able to access the information required by E-Sign (see preceding bullet) before
      electronically consenting or confirming consent to Electronic Records ■ Federal
      or State disclosures that were electronically presented to and accessed by the
      Borrower electronically, with satisfactory evidence of when and how the electronic
      disclosures were received and, if required, signed by the Borrower using an
      Electronic Signature (as defined in Section 1401.1(b)) ■ Any other paper documents
      and/or Electronic Records required by the Seller/Servicer’s Purchase Documents,
      with satisfactory evidence of when and how the paper documents and/or Electronic
      Records were received and, if required, signed by the Borrower either in writing
      or using an Electronic Signature, as applicable In all cases, the paper documents
      and/or Electronic Records (including Electronic Signatures) in the Mortgage
      file must be sufficient to permit Freddie Mac to perform a postfunding quality
      control review and, among other things, obtain a reverification of the Borrower’s
      employment and income from employers and/or other third parties. If the Seller/Servicer’s
      Mortgage files contain a combination of paper documents and Electronic Records,
      the Seller/Servicer must maintain a computerized tracking system that cross-references
      the locations of both paper documents and Electronic Records for each Mortgage.
      Such computerized information must be made available to Freddie Mac promptly
      upon request. (p) Other documentation The Seller/Servicer agrees to maintain
      in the Mortgage file and submit to Freddie Mac: ■ The most recent Feedback Certificate
      and responses, including Risk Class results and underwriting requirements ■
      All documents necessary to evidence compliance with all applicable anti-predatory
      lending laws and regulations, including, for example, any required reasonable
      tangible net benefit analysis, Borrower disclosures or disclosures relating
      to affiliated business or service providers Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 3401 As of 03/04/26 Page 3401-17 ■ All other documents required
      under the Guide or other Purchase Documents, requested by Freddie Mac or otherwise
      commonly maintained in files of private institutional Mortgage investors or
      servicers Freddie Mac may require that the requested documents be delivered
      to Freddie Mac, an agent of Freddie Mac, or to a Document Custodian. 3401.2:
      Documentation and instruments (Future effective date 11/02/26) This section
      contains requirements related to: ■ Note ■ Modifying instrument or assumption
      of indebtedness agreement ■ Underwriting summary ■ Title insurance ■ Residential
      loan application ■ Underwriting explanation ■ Property valuation documentation
      ■ Appraisal form rental information ■ Leasehold Mortgage ■ Buydown agreement
      ■ Mortgage insurance certificate ■ Documentation of flood zone determination
      ■ Evidence of flood insurance ■ Secondary financing ■ Electronic Records and
      Electronic Signatures ■ Other documentation Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 3401 As of 03/04/26 Page 3401-18 (a) Note A legible copy of the
      Note, with all required accompanying documents (see the definition of “Note”
      in the Glossary) and showing all endorsements, must be maintained in the Mortgage
      file. The endorsement from the Seller, as required in Section 6301.2(a), does
      not need to appear on the copy of the Note submitted for postfunding quality
      control review. For Mortgages secured by property in New York State that are
      documented using a New York Consolidation, Extension and Modification Agreement
      (NY CEMA), the Mortgage files must contain legible copies of the following documents:
      ■ Consolidated Note showing all endorsements ■ Original Old Money Note and,
      if applicable, Original New Money (Gap) Note ■ Current Form 3172 as specified
      in Section 4101.11(b) (b) Modifying instrument or assumption of indebtedness
      agreement The following documents must be included in the Mortgage file: ■ The
      modification or conversion agreement, or the ownership transfer instrument and
      assumption of indebtedness agreement, if the Mortgage has been modified or converted
      from an ARM to a fixed-rate Mortgage or if the ownership of the Mortgaged Premises
      has been transferred in any way. Note: The Seller/Servicer does not need to
      submit for postfunding quality control review a copy of any modifying instrument
      that by its terms ceases to be effective upon purchase of the Mortgage by Freddie
      Mac. ■ The Construction to Permanent Modification Agreement for Construction
      to Permanent Mortgages and Renovation Mortgages; and ■ The Mortgage application,
      credit report, employment and income verifications for the current Borrowers
      if the Mortgaged Premises is currently owned by anyone other than the original
      Borrowers. A certification of the terms of the sale of the Mortgaged Premises
      (e.g., a copy of the purchase agreement signed by the seller and purchaser)
      must also be included. Freddie Mac Single-Family Seller/Servicer Guide Chapter
      3401 As of 03/04/26 Page 3401-19 (c) Underwriting summary A completed Form 1077,
      Uniform Underwriting and Transmittal Summary, or equivalent form (e.g., a Feedback
      Certificate), must be included in the Mortgage file. (d) Title insurance Except
      as stated below, the Mortgage file must contain a copy of a title commitment
      for title insurance on an American Land Title Association form (or its equivalent
      if a certificate of title or attorney opinion of title is being delivered),
      including all schedules and proposed endorsements. The Mortgage file must also
      contain a copy of the final title insurance policy unless it has not been received
      prior to the delivery of the loan to Freddie Mac. The final policy, once issued,
      must be maintained in the Mortgage file and must include all required endorsements.
      For Cooperative Share Loans recognized as personal property and HeritageOne®
      Mortgages that are leasehold Mortgages, the Mortgage file is not required to
      contain a copy of the title commitment or final title insurance policy. Note:
      See Sections 4702.6 and 4702.7 for title insurance requirements for Cooperative
      Share Loans and HeritageOne Mortgages, respectively. (e) Residential loan application
      The Mortgage file must include the following: ■ A Record (as that term is defined
      in Section 1401.1(b)) of the initial Form 65, Uniform Residential Loan Application
      ■ The final signed application, and ■ A Record of Form 1103, Supplemental Consumer
      Information Form The final signed application must match the file documentation.
      If there are any discrepancies between the information on the application and
      the information in the credit, income and assets verifications, a written explanation
      of such discrepancies must also be included in the Mortgage file. (f) Underwriting
      explanation When either the total monthly housing expense-to-income ratio guideline
      of 28% or the monthly debt payment-to-income ratio guideline of 36% is exceeded
      on Manually Freddie Mac Single-Family Seller/Servicer Guide Chapter 3401 As
      of 03/04/26 Page 3401-20 Underwritten Mortgages, a written explanation fully
      supporting the Seller’s underwriting decision must be retained in the Mortgage
      file. (g) Property valuation documentation Except for Loan Product Advisor®
      Mortgages for which the Seller is offered and accepts automated collateral evaluation
      (ACE), or ACE+ PDR, in accordance with Section 5602.3 or 5602.4, the Mortgage
      file must include all documentation used to determine that the Mortgaged Premises
      is acceptable, including, but not limited to, an appraisal report and any completion
      report for appraisals subject to conditions. (h) Appraisal form rental information
      Rental information must be completed on the appraisal report in accordance with
      the requirements of Chapter 5306, as applicable, and the appraisal report must
      be included in the Mortgage file. (i) Leasehold Mortgage If the Mortgaged Premises
      is on a leasehold estate, a copy of the lease with recordation information must
      be retained in the Mortgage file. (j) Buydown agreement For Mortgages with a
      temporary subsidy buydown plan, the Mortgage file must contain a copy of the
      executed buydown agreement. (k) Mortgage insurance certificate If mortgage insurance
      is required, a copy of the mortgage insurance certificate or electronic evidence
      of mortgage insurance coverage, as well as all documents and information relating
      to any change in mortgage insurance from that provided at delivery—including,
      but not limited to, notices of cancelation, rescission or termination of mortgage
      insurance and denials of claims—must be included in the Mortgage file. (l) Documentation
      of flood zone determination The flood zone determination must be documented
      in the Mortgage file. (m)Evidence of flood insurance If flood insurance is required,
      the Mortgage file must include acceptable final evidence of flood insurance.
      If final evidence of flood insurance is not available at the time of the quality
      control review, one of the following documents is acceptable: Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 3401 As of 03/04/26 Page 3401-21 ■ Completed and
      executed National Flood Insurance Program (NFIP) Flood Insurance Application
      plus a copy of the Borrower’s premium check or agent’s paid receipt or ■ Completed
      and executed NFIP Flood Insurance Application plus the final Settlement/Closing
      Disclosure Statement reflecting the flood insurance premium collected at closing
      or ■ Completed and executed NFIP General Change Endorsement Form showing the
      assignment of the current flood insurance policy by the property seller to the
      Borrower If the flood insurer is not the NFIP, the insurer’s equivalent of the
      applicable NFIP form is acceptable. If the flood zone determination documentation
      shows the insurable improvements are in a Special Flood Hazard Area but flood
      insurance was waived, the Mortgage file must include the documentation which
      served as the basis for the waiver. (n) Secondary financing For each Mortgage
      that is concurrently originated with a subordinate lien (i.e., the Mortgage
      and subordinate lien are originated on the same day), the Seller must include
      in the Mortgage file a copy of the following documentation for the subordinate
      lien: ■ Note or other evidence of subordinate lien terms ■ The Settlement/Closing
      Disclosure Statement or an alternative form required by law that evidences the
      fees and costs paid by the Borrower at closing in connection with the secondary
      financing ■ For Home Equity Lines of Credit (HELOCs), the HELOC agreement indicating
      all fees and costs paid by the Borrower at closing, and the maximum permitted
      credit advance. For refinance Mortgages, the Mortgage file must include evidence
      of subordination of outstanding secondary financing. (o) Electronic Records
      and Electronic Signatures If a Mortgage is originated using any Electronic Records
      (as defined in Section 1401.1(b)) expressly permitted by Freddie Mac in the
      Guide or in a Seller/Servicer’s other Purchase Documents, the Seller/Servicer’s
      Mortgage file may contain a combination of paper documents and Electronic Records
      and must contain: Freddie Mac Single-Family Seller/Servicer Guide Chapter 3401
      As of 03/04/26 Page 3401-22 ■ The clear and conspicuous statement of certain
      information required by E-Sign (see Title I, Section 101(c)(1)(B)(i)-(iv) and
      (C)(i) of E-Sign) and satisfactory evidence that the Borrower received the information
      before consenting to Electronic Records ■ The “Consent to Electronic Records”
      required by E-Sign (see Title I, Section 101(c)(1)(A) and (C)(i)-(ii) of E-Sign)
      and satisfactory evidence that “reasonably demonstrates” that the Borrower was
      able to access the information required by E-Sign (see preceding bullet) before
      electronically consenting or confirming consent to Electronic Records ■ Federal
      or State disclosures that were electronically presented to and accessed by the
      Borrower electronically, with satisfactory evidence of when and how the electronic
      disclosures were received and, if required, signed by the Borrower using an
      Electronic Signature (as defined in Section 1401.1(b)) ■ Any other paper documents
      and/or Electronic Records required by the Seller/Servicer’s Purchase Documents,
      with satisfactory evidence of when and how the paper documents and/or Electronic
      Records were received and, if required, signed by the Borrower either in writing
      or using an Electronic Signature, as applicable In all cases, the paper documents
      and/or Electronic Records (including Electronic Signatures) in the Mortgage
      file must be sufficient to permit Freddie Mac to perform a postfunding quality
      control review and, among other things, obtain a reverification of the Borrower’s
      employment and income from employers and/or other third parties. If the Seller/Servicer’s
      Mortgage files contain a combination of paper documents and Electronic Records,
      the Seller/Servicer must maintain a computerized tracking system that cross-references
      the locations of both paper documents and Electronic Records for each Mortgage.
      Such computerized information must be made available to Freddie Mac promptly
      upon request. (p) Other documentation The Seller/Servicer agrees to maintain
      in the Mortgage file and submit to Freddie Mac: ■ The most recent Feedback Certificate
      and responses, including Risk Class results and underwriting requirements ■
      All documents necessary to evidence compliance with all applicable anti-predatory
      lending laws and regulations, including, for example, any required reasonable
      tangible net benefit analysis, Borrower disclosures or disclosures relating
      to affiliated business or service providers ■ All other documents required under
      the Guide or other Purchase Documents, requested by Freddie Mac or otherwise
      commonly maintained in files of private institutional Mortgage investors or
      servicers Freddie Mac Single-Family Seller/Servicer Guide Chapter 3401 As of
      03/04/26 Page 3401-23 Freddie Mac may require that the requested documents be
      delivered to Freddie Mac, an agent of Freddie Mac, or to a Document Custodian'
  judgment: false
