source:
  type: guide
  id: fhlmc-1201.7
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 1201.7 — Sale
    of Mortgages by Freddie Mac
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 1201.7 — Sale
    of Mortgages by Freddie Mac.
  coverage_tier: operative
obligations:
- id: fhlmc-1201.7-full
  canonical_id: fhlmc-1201.7-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 1201.7 — Sale of
    Mortgages by Freddie Mac
  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 1201.7 — Sale
      of Mortgages by Freddie Mac
    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: '1201.7: Sale of Mortgages by Freddie Mac (12/17/25) Freddie
      Mac may, from time to time, sell in whole or in part Mortgages it has purchased
      pursuant to the Purchase Documents. Note: For information regarding a termination
      of the Servicing Contract and related Servicing Contract Rights related to the
      sale of Mortgages by Freddie Mac, refer to Section 3603.1(b). 1201.8: Receipt
      and treatment of confidential information (12/17/25) This section contains requirements
      related to: ■ Receipt and treatment of Freddie Mac confidential information
      ■ Treatment of Seller/Servicer confidential information (a) Receipt and treatment
      of Freddie Mac confidential information In connection with its relationship
      with Freddie Mac, Seller/Servicer may obtain, or Freddie Mac may provide Seller/Servicer
      with, information and documentation that Freddie Mac Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 1201 As of 12/17/25 Page 1201-6 identifies or
      has identified as confidential (collectively, “Freddie Mac confidential information”).
      Freddie Mac confidential information may include, but is not limited to: ■ Information
      and documentation concerning the development, negotiation, operation or terms
      of various products or programs ■ Technology, business terms, trade secrets
      and commercial and financial information ■ Confidential information may include
      confidential information belonging to third parties In addition, information
      that Seller/Servicer is required by applicable law to treat as confidential
      and information that Seller/Servicer knows or should know should be treated
      as confidential are considered Freddie Mac confidential information, whether
      or not Freddie Mac has identified the information as confidential. If a Seller/Servicer
      requests that Freddie Mac provide Freddie Mac confidential information to a
      third party, all Freddie Mac confidential information disclosed to the third
      party at Seller/Servicer’s request is Freddie Mac confidential information and
      will be deemed received by Seller/Servicer upon disclosure to the third party.
      All information and materials that are based on, or include, Freddie Mac confidential
      information (“derivative information”), including, without limitation, information
      and materials created by Seller/Servicer, are also considered Freddie Mac confidential
      information. (i) Treatment of Freddie Mac confidential information The Seller/Servicer
      must treat all Freddie Mac confidential information as strictly confidential
      and proprietary to Freddie Mac. The Seller/Servicer must not release or disclose
      or permit the release or disclosure of Freddie Mac confidential information
      or any portion thereof, for any purpose at any time except to the following
      extent (the “Permitted Purposes”): ■ Allowed by this Section 1201.8 ■ Expressly
      required or consented to by Freddie Mac in writing; or ■ Ordered by a court
      or administrative agency of competent jurisdiction If the Seller/Servicer anticipates
      that it may be required, for any reason, to release or disclose Freddie Mac
      confidential information (other than as allowed in the first two bullets of
      the preceding sentence), the Seller/Servicer shall immediately notify Freddie
      Mac (see Directory 1), and provide reasonable cooperation to Freddie Mac, to
      allow Freddie Mac to take any actions it deems necessary to prevent or limit
      the release or disclosure of the Freddie Mac confidential information in question.
      Freddie Mac Single-Family Seller/Servicer Guide Chapter 1201 As of 12/17/25
      Page 1201-7 (ii) Copies of Freddie Mac confidential information The Seller/Servicer
      shall not copy or permit copies to be made of the Freddie Mac confidential information
      or any portion thereof, except to the extent necessary for the Permitted Purposes.
      The Seller/Servicer shall mark “Confidential” in a prominent location on all
      Freddie Mac confidential information and copies. (iii)Authorized parties To
      the extent necessary to fulfill its Servicing obligations under the Servicing
      Contract or other obligations to Freddie Mac (except as set forth below regarding
      the Freddie Mac Exclusionary List), the Seller/Servicer may provide Freddie
      Mac confidential information and copies thereof, to the following persons (“Persons”):
      ■ Officers, directors, principals, partners or employees of the Seller/Servicer
      ■ The Seller Servicer’s regulators, auditors, counsel and accountants ■ Any
      MI or other vendor ■ Any prospective Transferee Servicer, but only with respect
      to copies of a Transferor Servicer’s Purchase Documents applicable to the Mortgages
      related to the Transfer of Servicing required to be provided pursuant to Section
      7101.1(b) The Seller/Servicer also may provide Freddie Mac confidential information
      and copies thereof to Persons to the extent counsel for the Seller/Servicer
      determines that such sharing is legally required. The Seller/Servicer must notify
      any Persons receiving the Freddie Mac confidential information (and any copy
      thereof) that such Person has the same obligations as the Seller/Servicer to
      keep the Freddie Mac confidential information (and any copy thereof) confidential
      and may use it only for the Permitted Purpose for which the information was
      provided to such Person. The Seller/Servicer is responsible for compliance by
      all such Persons with the provisions of this Section 1201.8. The Seller/Servicer
      will deliver to Freddie Mac a list of all such Persons promptly upon request.
      Under no circumstances may a Seller/Servicer provide or otherwise make available
      the Exclusionary List to any Person or entity (other than to the Seller/Servicer’s
      officer, director, principal, partner or employee with a need to have the Exclusionary
      List for the purposes set forth in this section) without the prior express written
      authorization of Freddie Mac. (iv) Exclusions Confidential information does
      not include: Freddie Mac Single-Family Seller/Servicer Guide Chapter 1201 As
      of 12/17/25 Page 1201-8 Any information that is: ■ Generally available to the
      public without violation of the provisions of this Section 1201.8 ■ Provided
      to the Seller/Servicer by a third party that is not itself under a confidentiality
      obligation with respect to the information; or ■ Independently developed by
      the Seller/Servicer without use of the Freddie Mac confidential information,
      derivative information or any portion thereof In addition, nothing in this Section
      1201.8(a) will be deemed to preclude the Seller/Servicer from disclosing Freddie
      Mac confidential information to the extent ordered by a court or agency of competent
      jurisdiction, as long as: ■ If legally permissible, the Seller/Servicer promptly
      notifies Freddie Mac of the order and provides Freddie Mac with a reasonable
      opportunity to respond in such manner as Freddie Mac deems appropriate to limit
      the disclosure; and ■ The Seller/Servicer notifies the court or agency in writing
      before any disclosure that the information is Freddie Mac confidential information
      (b) Treatment of Seller/Servicer confidential information In response to Freddie
      Mac’s request, Seller/Servicer may provide Freddie Mac with the following information
      and documentation that Seller/Servicer identifies as confidential (collectively,
      “Seller/Servicer confidential information”): ■ Information regarding Seller/Servicer’s
      financial condition ■ Seller/Servicer’s responses to Freddie Mac’s security
      questionnaire ■ Information about Seller/Servicer’s information security policies
      ■ Information related to Seller/Servicer’s business continuity/disaster recovery
      plans; and ■ Information in Seller/Servicer’s system and organization controls
      (SOC)-1 or SOC-2 report and other third-party audit reports Seller/Servicer
      confidential information does not include information that is: ■ Publicly available
      ■ Provided to Freddie Mac by a third party that is not to Freddie Mac’s knowledge
      itself under an obligation to keep the information confidential; or Freddie
      Mac Single-Family Seller/Servicer Guide Chapter 1201 As of 12/17/25 Page 1201-9
      ■ Independently developed by Freddie Mac or another third party Freddie Mac
      may use Seller/Servicer confidential information for the purposes for which
      the information was provided to Freddie Mac and for other internal business
      purposes (the “Freddie Mac Purposes”). Freddie Mac will exercise at least the
      same degree of care to preserve the confidentiality of Seller/Servicer confidential
      information that Freddie Mac exercises to protect its own information of a similar
      level of sensitivity, but in no event less than a reasonable degree of care.
      Freddie Mac may disclose Seller/Servicer confidential information as necessary
      or appropriate for Freddie Mac Purposes. Freddie Mac also may disclose it to
      the extent ordered by a court or agency of competent jurisdiction, as long as:
      ■ If legally permissible, Freddie Mac promptly notifies Seller/Servicer of the
      order and provides it with a reasonable opportunity to respond in such manner
      as it deems appropriate to limit the disclosure, and ■ Freddie Mac notifies
      the court or agency in writing before any disclosure that the information is
      Seller/Servicer confidential information. Freddie Mac also may disclose Seller/Servicer
      confidential information to FHFA or Freddie Mac’s other regulators without regard
      to the requirements of this section. Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 1201 As of 12/17/25 Page 1201-10 1201.9: The Mortgage file, Mortgage
      data and related records (12/17/25) This section contains requirements related
      to: ■ Ownership ■ Permitted use of Mortgage data ■ Language (a) Ownership All
      of the following will be and will remain at all times the property of Freddie
      Mac: ■ All documents in the Mortgage file ■ All data related to Mortgages owned
      or guaranteed by Freddie Mac to which the Servicer obtains access in connection
      with any agreement with Freddie Mac, including, without limitation: ❑ Data in
      the documents in the Mortgage file (collectively, Mortgage data) ❑ All other
      documents and records related to the Mortgage of whatever kind or description
      (whether prepared or originated by the Servicer or others or whether prepared
      or maintained or held by the Servicer or others acting for and on behalf of
      the Servicer), including all current and historical computerized data files
      All of these records and Mortgage data in the possession of the Servicer are
      retained by the Servicer in a custodial capacity only. (b) Permitted use of
      Mortgage data The Servicer may use these records and Mortgage data only for
      the following purposes: ■ Servicing Mortgages (and, in compliance with the provisions
      of the Guide, retaining subservicers to service Mortgages) on behalf of, and
      in the interest of, Freddie Mac ■ As background information for the Servicer’s
      use related to marketing or cross-selling of the Servicer’s own primary market
      products and services in compliance with applicable laws, provided that such
      marketing and cross-selling does not involve disclosure of these records or
      Mortgage data to any third parties other than vendors assisting the Servicer
      in its marketing activities who are themselves bound by these requirements Freddie
      Mac Single-Family Seller/Servicer Guide Chapter 1201 As of 12/17/25 Page 1201-11
      ■ As necessary, to enable a vendor to provide analytic services to the Servicer
      with respect to the Servicer’s Servicing portfolio, for the Servicer’s internal
      use only, provided the vendor is bound by these requirements, and ■ As necessary,
      to enable the Servicer to comply with its obligations under applicable law,
      including, without limitation, any disclosures required in connection with audits
      by regulatory agencies with jurisdiction over the Servicer’s operations Except
      as expressly authorized by Freddie Mac in writing, Servicers may not use or
      disclose, or authorize or permit third parties to use or disclose, these records
      or Mortgage data for any other purpose, including, without limitation, resale
      or licensing of Mortgage data, either alone or with other data. See Section
      8101.4(c) for additional information related to Freddie Mac audits and access
      to Mortgage records and Section 8101.4(d) for additional requirements related
      to confidentiality. (c) Language All documents in the Mortgage file related
      to the origination of the Mortgage must be in English or must be translated
      into English by the document originator or an unaffiliated third- party translation
      service. Such translations must be attached to each non-English document, and
      the Seller represents and warrants to Freddie Mac that the translation is complete
      and accurate. 1201.10: Minority-Owned, Women-Owned and Disabled-Owned Business
      Enterprises (12/17/25) It is Freddie Mac’s policy to provide, to the maximum
      extent possible in balance with financially safe and sound business practices,
      the opportunity for Minority-Owned, Women-Owned and Disabled-Owned Business
      Enterprises to compete fairly as suppliers, contractors and subcontractors in
      Freddie Mac’s business activities, taking into account both price and quality.
      As an aspect of this policy, Freddie Mac encourages Seller/Servicers to ensure
      that Minority- Owned, Women-Owned and Disabled-Owned Business Enterprises are
      given the opportunity to compete fairly in supplying services to Seller/Servicers.'
  judgment: false
