source:
  type: guide
  id: fhlmc-4607.1
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 4607.1 — CHOICERenovation®
    Mortgages
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 4607.1 — CHOICERenovation®
    Mortgages.
  coverage_tier: operative
obligations:
- id: fhlmc-4607.1-full
  canonical_id: fhlmc-4607.1-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 4607.1 — CHOICERenovation®
    Mortgages
  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 4607.1 — CHOICERenovation®
      Mortgages
    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: '4607.1: CHOICERenovation® Mortgages (11/25/24) This section
      contains requirements related to: ■ Mortgages with Settlement Dates after completion
      of renovations ■ Mortgages with Settlement Dates before completion of renovations
      ■ CHOICEReno eXPress® Mortgages ■ Loan Status Hub® A CHOICERenovation® Mortgage
      is a Mortgage that meets the requirements of this chapter and the Seller’s Purchase
      Documents. The proceeds from a CHOICERenovation Mortgage must be used to finance
      repairs and/or improvements to the Mortgaged Premises (the “renovations”); the
      renovations may be completed before or after the Settlement Date. All requirements
      in this Chapter 4607 are selling obligations to be fulfilled by the Seller in
      its capacity as a Seller/Servicer. See also Section 4607.17 regarding Transfers
      of Servicing. (a) Mortgages with Settlement Dates after completion of renovations
      If the renovations are completed before the Settlement Date, Freddie Mac’s prior
      written approval is not needed to sell the Mortgage to Freddie Mac and the Seller
      will not be subject to the requirements for: ■ Renovation work and process described
      in Sections 4607.9(a)(1 and 2) and 4607.9(b)(1 through 3) ■ The contingency
      reserve described in Section 4607.11(b) ■ Recourse described in Section 4607.14
      CHOICERenovation Mortgages with renovations that are substantially complete
      such that the only remaining incomplete improvements meet the requirements of
      Section 5601.3 may be delivered to Freddie Mac as CHOICERenovation Mortgages
      with Settlement Dates after completion of renovations. Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 4607 As of 05/04/26 Page 4607-2 (b) Mortgages
      with Settlement Dates before completion of renovations As used in this chapter,
      a “CHOICERenovation In Progress Mortgage” is a CHOICERenovation Mortgage that:
      ■ Is not a CHOICEReno eXPress Mortgage as described in Section 4607.1(c); and
      ■ Has renovations that are not complete or substantially complete as of the
      Settlement Date Such CHOICERenovation Mortgages must be sold to Freddie Mac
      with recourse (see Section 4607.14), and the Seller must obtain Freddie Mac’s
      written approval before selling CHOICERenovation In Progress Mortgages to Freddie
      Mac. The Seller can request approval by contacting its Freddie Mac representative
      or Customer Service at 800-FREDDIE. See Section 4607.3(b) for a special occupancy
      requirement for CHOICERenovation In Progress Mortgages. (c) CHOICEReno eXPress
      Mortgages As used in this chapter, a “CHOICEReno eXPress Mortgage” is CHOICERenovation
      Mortgage with renovations not completed by the Settlement Date that may be sold
      to Freddie Mac without recourse if: ■ All renovations are completed within 180
      days of the Note Date in accordance with Section 4607.4(a), and ■ The maximum
      financed renovation costs for CHOICEReno eXPress Mortgages meet the requirements
      of Section 4607.7 For CHOICEReno eXPress Mortgages, the Seller will not be subject
      to the requirements for: ■ Renovation work and process described in Section
      4607.9(a)(1) ■ The minimum contingency reserve described in Section 4607.11(b)
      ■ Recourse described in Section 4607.14 The Seller is not required to obtain
      Freddie Mac’s prior written approval before selling CHOICEReno eXPress Mortgages
      to Freddie Mac. (d) Loan Status Hub “Loan Status Hub” means the System (as that
      term is defined in Section 2401.1(b)) Freddie Mac makes available to the Seller
      to enable the Seller to submit to Freddie Mac certain data, documents and information
      required by this Chapter 4607 and to receive associated Output (as that term
      is defined in Section 2401.1(b)). Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 4607 As of 05/04/26 Page 4607-3 The Seller must use Loan Status
      Hub to submit required data, documents and information for: ■ CHOICERenovation
      In Progress Mortgages ■ CHOICEReno eXPress Mortgages The Seller must request
      access to Loan Status Hub by calling their Freddie Mac representative or Customer
      Service at 800-FREDDIE. 4607.2: Eligible and ineligible CHOICERenovation® Mortgages
      (04/02/25) This section contains requirements related to: ■ Eligible Mortgages
      ■ Ineligible Mortgages (a) Eligible Mortgages CHOICERenovation® Mortgages must
      be First Lien Mortgages and may be any Mortgage eligible under the Seller’s
      Purchase Documents, unless specifically described as ineligible below. (b) Ineligible
      Mortgages Mortgages with the following characteristics are not eligible for
      sale to Freddie Mac as CHOICERenovation Mortgages: ■ Community Land Trust Mortgages
      ■ Financed Permanent Buydown Mortgages ■ Freddie Mac Enhanced Relief Refinance®
      Mortgages ■ Government Mortgages ■ Mortgages with capitalized balances as described
      in Chapter 4403 ■ Refi Possible® Mortgages ■ Seller-Owned Converted Mortgages
      Freddie Mac Single-Family Seller/Servicer Guide Chapter 4607 As of 05/04/26
      Page 4607-4 ■ Seller-Owned Modified Mortgages ■ Special purpose cash-out refinance
      Mortgages 4607.2: Eligible and ineligible CHOICERenovation® Mortgages (Future
      effective date 07/01/26) This section contains requirements related to: ■ Eligible
      Mortgages ■ Ineligible Mortgages (a) Eligible Mortgages CHOICERenovation® Mortgages
      must be First Lien Mortgages and may be any Mortgage eligible under the Seller’s
      Purchase Documents, unless specifically described as ineligible below. (b) Ineligible
      Mortgages Mortgages with the following characteristics are not eligible for
      sale to Freddie Mac as CHOICERenovation Mortgages: ■ Community Land Trust Mortgages
      ■ Financed Permanent Buydown Mortgages ■ Freddie Mac Enhanced Relief Refinance®
      Mortgages ■ Government Mortgages ■ Refi Possible® Mortgages ■ Seller-Owned Converted
      Mortgages ■ Seller-Owned Modified Mortgages ■ Special purpose cash-out refinance
      Mortgages Freddie Mac Single-Family Seller/Servicer Guide Chapter 4607 As of
      05/04/26 Page 4607-5 4607.3: Property eligibility and occupancy for CHOICERenovation®
      Mortgages (06/04/25) This section contains requirements related to: ■ Property
      eligibility ■ Special occupancy requirement for CHOICERenovation® In Progress
      Mortgages (a) Property eligibility CHOICERenovation Mortgages must be secured
      by one of the following: ■ 1- to 4-unit Primary Residence ■ Second home ■ 1-unit
      Investment Property ■ A Manufactured Home, including a CHOICEHome® as described
      in Section 5703.12 ■ A Condominium Unit, a unit located in a Planned Unit Development
      (PUD), or a Cooperative Unit if permitted under the Seller’s Purchase Documents
      (b) Special occupancy requirement for CHOICERenovation In Progress Mortgages
      For CHOICERenovation In Progress Mortgages or CHOICEReno eXPress secured by
      Primary Residences, if the Borrower does not occupy the Mortgaged Premises during
      the course of renovations, the Mortgaged Premises will be deemed owner-occupied
      as of the Delivery Date so long as the Borrower occupies the Mortgaged Premises
      as a Primary Residence within 60 days of the last disbursement made and distributed
      from the Custodial Account for Renovation Funds (as described in Section 4607.12).
      4607.4: General eligibility requirements for CHOICERenovation® Mortgages (02/05/25)
      This section contains requirements related to: ■ Completion Date and Settlement
      Date requirements ■ Mortgage purpose Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 4607 As of 05/04/26 Page 4607-6 ■ Maximum loan-to-value (LTV)/total
      LTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratios ■ Determining
      value ■ Secondary financing (a) Completion Date and Settlement Date requirements
      (i) Completion Date requirements Renovations to the Mortgaged Premises must
      be completed by the Completion Date as follows: ■ 450 days after the Note Date
      for CHOICERenovation® Mortgages that are not CHOICEReno eXPress® Mortgages ■
      180 days after the Note Date for CHOICEReno eXPress Mortgages (ii) Completion
      Date extension The Seller may request from Freddie Mac a Completion Date extension
      when circumstances outside the Borrower’s or contractor’s control prevent completion
      of the renovations by the Completion Date. The total days requested for the
      extension(s) must not exceed 90 days. To be eligible for a Completion Date extension,
      the Borrower must not: ■ Be delinquent at the time of the Seller’s extension
      request, and ■ Have been 30 days delinquent more than once during the renovation
      period To request a Completion Date extension, the Seller must submit to Loan
      Status Hub® documentation supporting the reason for the delay (e.g., weather,
      supply chain issues, permit delays, etc.). If Freddie Mac grants the extension,
      the Completion Date may be extended: ■ A maximum of 90 days for CHOICERenovation
      Mortgages ■ A maximum of 30 days for CHOICEReno eXPress Mortgages Freddie Mac
      Single-Family Seller/Servicer Guide Chapter 4607 As of 05/04/26 Page 4607-7
      If the extension request is granted, Freddie Mac will provide the extended Completion
      Date through Loan Status Hub. (iii)Settlement Date requirements For CHOICERenovation
      Mortgages with Settlement Dates after completion of renovations (see Section
      4607.1(a)), the Settlement Date must occur no more than 450 days after the Note
      Date. (b) Mortgage purpose CHOICERenovation Mortgages must be either purchase
      transaction or “no cash-out” refinance Mortgages with proceeds used as follows:
      ■ Purchase transaction Mortgages: Proceeds may be used to purchase the Mortgaged
      Premises and to pay for the eligible renovations described in Section 4607.6
      ■ “No cash-out” refinance Mortgages: Proceeds may be used as described in Section
      4301.4, except that proceeds may not be used to disburse cash out to the Borrower.
      A CHOICERenovation Mortgage secured by a property previously owned free and
      clear by the Borrower is considered a “no cash-out” refinance Mortgage if the
      proceeds are used only to finance the eligible renovations described in Section
      4607.6. At least one Borrower must have been on the title to the subject property
      for at least six months prior to the Note Date unless one of the exceptions
      to this title requirement that are specified in the cash-out refinance Mortgage
      requirements of Section 4301.5(b) applies. (c) Maximum LTV/TLTV/HTLTV ratios
      Each CHOICERenovation Mortgage must have maximum LTV/TLTV/HTLTV ratios that
      comply with the LTV/TLTV/HTLTV ratios in Section 4203.1(b) and any other applicable
      LTV/TLTV/HTLTV ratio requirement for the specific Mortgage Product or offering.
      (d) Determining value The value used to determine the LTV, TLTV and HTLTV ratios
      must be established as follows: Freddie Mac Single-Family Seller/Servicer Guide
      Chapter 4607 As of 05/04/26 Page 4607-8 Purchase transaction “No cash-out” refinance
      Value is the lesser of: ■ The purchase price of the Mortgaged Premises prior
      to the renovations plus the total renovation costs, or ■ Appraised value of
      the Mortgaged Premises, as completed Value is the appraised value of the Mortgaged
      Premises, as completed. (e) Secondary financing Secondary financing must comply
      with Guide requirements for the specific Mortgage Product or offering. 4607.5:
      Underwriting CHOICERenovation® Mortgages (05/04/26) This section contains requirements
      related to: ■ Residential loan application ■ Uniform Underwriting and Transmittal
      Summary ■ Accept Mortgages ■ Temporary rental payments for Mortgages with Settlement
      Dates before completion of renovations ■ Rental income from the subject property
      (a) Residential loan application The Seller must code the Purpose of Loan on
      Form 65, Uniform Residential Loan Application, as either Purchase or Refinance
      (as applicable) and not as Construction or Construction-Permanent. (b) Uniform
      Underwriting and Transmittal Summary The Seller must code the Loan Purpose on
      Form 1077, Uniform Underwriting and Transmittal Summary, as either Purchase
      or No Cash-Out Refinance (as applicable) and not as Home Improvement. The Seller
      must indicate in the Underwriter Comments if the Mortgage is a CHOICERenovation®
      Mortgage. Freddie Mac Single-Family Seller/Servicer Guide Chapter 4607 As of
      05/04/26 Page 4607-9 (c) Accept Mortgages All CHOICERenovation Mortgages must
      be Accept Mortgages. (d) Temporary rental payments for Mortgages with Settlement
      Dates before completion of renovations For CHOICERenovation In Progress and
      CHOICEReno eXPress Mortgages secured by Primary Residences, if the Borrower
      plans to rent another property as their principal domicile during the renovations,
      the rental lease must be documented in the Mortgage file. The temporary rental
      payment for the Borrower’s principal domicile must be included in the calculation
      of the monthly debt payment-to-income ratio if: ■ More than 10 payments remain
      on the lease term as of the Note Date, or ■ The rental lease has a renewal or
      extension option (e) Rental income from the subject property For a CHOICERenovation
      Mortgage secured by a 1- to 4-unit Primary Residence or a 1-unit Investment
      Property, rental income from the unit(s), including ADU(s), that are included
      in the renovation project must not be used to qualify the Borrower. 4607.6:
      Eligible renovations for CHOICERenovation® Mortgages (06/04/25) This section
      contains requirements related to: ■ Eligible and ineligible uses of Mortgage
      proceeds ■ Compliance with applicable laws and project documents ■ Renovations
      to Manufactured Homes ■ Payoff of short-term financing that financed renovations
      completed prior to the Note Date Freddie Mac Single-Family Seller/Servicer Guide
      Chapter 4607 As of 05/04/26 Page 4607-10 (a) Eligible and ineligible uses of
      Mortgage proceeds CHOICERenovation® Mortgage proceeds must only be used to finance
      renovations that are made to a property with an existing dwelling and may include:
      ■ Fees related to plans and specifications, permits, title updates, appraisals,
      draw inspections and the final inspection ■ An amount up to, but no more than,
      six monthly payments of principal, interest, taxes and insurance ■ Contingency
      reserve funds as described in Section 4607.11(b) ■ The payoff of short-term
      financing that provided the Borrower with funds to repair, restore, rehabilitate
      or renovate an existing home as described in Section 4607.6(d) ■ Adding or renovating
      outdoor structures used for leisure and recreation, including, but not limited
      to, swimming pools, decking, screening and porch and patio additions Note: In
      accordance with Section 4607.11(b), CHOICERenovation Mortgages whose proceeds
      are used exclusively to finance the addition or renovation of outdoor structures
      used for leisure and recreation will not be subject to the minimum contingency
      reserve requirements. ■ Renovations or repairs to a property that has been damaged
      in a disaster or for renovations that will protect the Mortgaged Premises in
      case of a future disaster (e.g., storm surge barriers, foundation retrofitting
      for earthquakes, retaining walls, etc.) ■ Renovations to improve the energy
      and/or water efficiency, the health and safety and/or the resiliency and preventiveness
      of the Mortgaged Premises Note: See Section 4607.16(b) for special requirements
      when CHOICERenovation Mortgages are combined with GreenCHOICE Mortgages® and
      the eligibility for the credit for Credit Fees for GreenCHOICE Mortgages ■ Adding
      or renovating an ADU, including a Manufactured Home ADU Note: See Section 4607.6(d)
      below regarding the payoff of short-term financing that financed the addition
      or renovation of an ADU prior to the Note Date. CHOICERenovation® Mortgage proceeds
      may not be used: ■ To raze an existing structure and build a new primary dwelling
      unit ■ For personal property with the exception of new appliances Freddie Mac
      Single-Family Seller/Servicer Guide Chapter 4607 As of 05/04/26 Page 4607-11
      (b) Compliance with applicable laws and project documents Renovations must comply
      with all applicable State and local laws and regulations, including zoning regulations.
      All required permits and approvals must be obtained. Renovations of properties
      located in Planned Unit Developments (PUDs), Condominium Projects or Cooperative
      Projects must comply with all applicable project conditions, covenants and restrictions.
      (c) Renovations to Manufactured Homes Renovations to a primary dwelling unit
      that is a Manufactured Home or a Manufactured Home ADU are allowed, provided
      the Manufactured Home remains in compliance with HUD’s property acceptability
      criteria for Manufactured Homes and the general requirements in Section 5703.2,
      property eligibility requirements for Manufactured Homes in Section 5703.3(a)
      and requirements for eligible properties with an ADU in Section 5601.2, as applicable.
      Renovations may include the removal of a Manufactured Home on the property that
      is not the primary dwelling unit, provided any effect of its removal on the
      value of the Mortgaged Premises is reported by the appraiser when determining
      the “as completed” value of the property pursuant to the appraisal requirements
      for CHOICERenovation Mortgages in Section 4607.8. (d) Payoff of short-term financing
      that financed renovations completed prior to the Note Date For CHOICERenovation
      Mortgages that are “no cash-out” refinance Mortgages, proceeds can be used to
      pay off short-term financing that financed renovations (including, but not limited
      to, the addition or renovation of an ADU) completed prior to the Note Date,
      provided the following requirements are met: ■ The CHOICERenovation Mortgage
      is not secured by a Manufactured Home ■ The CHOICERenovation Mortgage is not
      a CHOICEReno eXPress® Mortgage ■ The Borrower on the CHOICERenovation Mortgage
      must be the Borrower on, and obligated to repay, the short-term financing. Exceptions:
      ❑ A Borrower may be omitted in the event of death or divorce, or Freddie Mac
      Single-Family Seller/Servicer Guide Chapter 4607 As of 05/04/26 Page 4607-12
      ❑ A Borrower who is a Related Person may be added, provided that all Borrowers
      on the CHOICERenovation Mortgage are owner-occupants of the Mortgaged Premises
      and considered in the underwriting of the CHOICERenovation Mortgage ■ All renovations
      financed by the short-term financing must be completed prior to the Note Date
      of the CHOICERenovation Mortgage with no outstanding obligations related to
      such financing ■ All renovations financed by the short-term financing must be
      completed prior to the appraisal, which must reflect these renovations having
      been made. The appraisal report obtained in accordance with CHOICERenovation
      Mortgage appraisal requirements in Section 4607.8 must only be completed subject
      to completion of any proposed renovations also being financed with the CHOICERenovation
      Mortgage. ■ The Mortgage file must contain copies of all relevant documentation,
      including, but not limited to: ❑ The short-term financing agreement ❑ Sufficient
      documentation (e.g., purchase contracts, plans and specifications, receipts,
      invoices, lien waivers, etc.) on which to validate the actual cost of all renovations
      financed by the short-term financing ❑ A document clearly showing the calculation
      of the short-term financing ❑ The Settlement/Closing Disclosure Statement or
      an alternative form required by law for the closing of the short-term financing
      ❑ The payoff statement 4607.7: Maximum financed renovation costs for CHOICERenovation®
      Mortgages (10/02/24) This section contains requirements related to: ■ Maximum
      renovation costs overview ■ Purchase transactions ■ Refinance Mortgages ■ Manufactured
      Homes Freddie Mac Single-Family Seller/Servicer Guide Chapter 4607 As of 05/04/26
      Page 4607-13 (a) Maximum renovation costs overview The maximum financed renovation
      costs for CHOICERenovation® Mortgages are outlined below based on the Mortgage
      purpose. Mortgages secured by properties with Manufactured Home ADUs will be
      subject to the maximum financed renovation costs described in either Section
      4607.7(b) for purchase transactions or Section 4607.7(c) for “no cash-out” refinance
      Mortgages, as applicable. (b) Purchase transactions The table below lists the
      maximum financed renovation costs for purchase transaction Mortgages secured
      by Mortgaged Premises that are not Manufactured Homes: Maximum financed renovation
      costs for purchase transaction Mortgages excluding Manufactured Homes For… The
      total cost of the financed renovations must not exceed… Of the lesser of the…
      CHOICERenovation Mortgages delivered pursuant to Sections 4607.1(a) and 4607.1(b)
      75% ■ Sum of the purchase price of the property plus the estimated total of
      the renovation costs, or ■ “As completed” value of the property as determined
      by the appraiser pursuant to the appraisal requirements in Section 4607.8 CHOICEReno
      eXPress® Mortgages located in designated Duty to Serve high-needs areas (refer
      to Exhibit 40, Duty to Serve High-Needs Areas) 15% CHOICEReno eXPress Mortgages
      not in Duty to Serve high-needs areas 10% (c) Refinance Mortgages The table
      below lists the maximum financed renovation costs for “no cash-out” refinance
      Mortgages secured by Mortgaged Premises that are not Manufactured Homes: Freddie
      Mac Single-Family Seller/Servicer Guide Chapter 4607 As of 05/04/26 Page 4607-14
      Maximum financed renovation costs for refinance Mortgages excluding Manufactured
      Homes For… The total cost of the financed renovations must not exceed… Of the…
      CHOICERenovation Mortgages delivered pursuant to Sections 4607.1(a) and 4607.1(b)
      75% “As completed” value of the property as determined by the appraiser pursuant
      to the appraisal requirements in Section 4607.8 CHOICEReno eXPress Mortgages
      located in designated Duty to Serve high-needs areas 15% CHOICEReno eXPress
      Mortgages not in Duty to Serve high-needs areas 10% (d) Manufactured Homes The
      table below lists the maximum financed renovation costs for purchase transaction
      and “no cash-out” refinance Mortgages secured by Manufactured Homes: Maximum
      financed renovation costs for Manufactured Homes For… The total cost of the
      financed renovations must not exceed the lesser of $50,000 or… Of the… CHOICERenovation
      Mortgages delivered pursuant to Sections 4607.1(a) and 4607.1(b) 50% “As completed”
      value of the property as determined by the appraiser pursuant to the appraisal
      requirements in Section 4607.8 CHOICEReno eXPress Mortgages located in designated
      Duty to Serve high-needs areas 15% Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 4607 As of 05/04/26 Page 4607-15 Maximum financed renovation costs
      for Manufactured Homes For… The total cost of the financed renovations must
      not exceed the lesser of $50,000 or… Of the… CHOICEReno eXPress Mortgages not
      in Duty to Serve high-needs areas 10% Note: Mortgages secured by properties
      with Manufactured Home ADUs will be subject to the maximum financed renovation
      costs described in Section 4607.7(a) for purchase transactions, or Section 4607.7(b)
      for “no cash-out” refinance Mortgages, as applicable above. 4607.8: Appraisal
      requirements for CHOICERenovation® Mortgages (01/26/26) 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: ■ Initial appraisal
      report ■ Changes to original plans and specifications ■ Final inspection and
      completion report (a) Initial appraisal report The Seller must obtain an appraisal
      report based on an interior and exterior inspection. The appraisal report must
      include an “as completed” value of the subject property. If there are proposed
      renovations being financed with the CHOICERenovation® Mortgage, the appraisal
      report must be completed subject to completion of the proposed renovations.
      The Seller must provide the appraiser with the cost estimates, plans and specifications
      for the renovations. Freddie Mac Single-Family Seller/Servicer Guide Chapter
      4607 As of 05/04/26 Page 4607-16 Note: If Form 1000, Single Family Comparable
      Rent Schedule, or Form 72, Small Residential Income Property Appraisal Report,
      is required, it must be completed using current rental income for the subject
      property. See Section 5306.1. (b) Changes to original plans and specifications
      If, after the appraiser provides the “as completed” value, changes are made
      to the original plans and specifications in accordance with the Seller responsibilities
      outlined in Section 4607.9(a)(2), the Seller must notify the appraiser of the
      changes and provide change documentation to the appraiser. The appraiser must
      provide a new appraisal to reflect the changes and account for the impact on
      the “as completed” value. (c) Final inspection and completion report Upon completion
      of all proposed renovations, the appraiser must perform a final inspection of
      the property and complete a completion report in accordance with the requirements
      in Section 5605.8 for verifying completion. The completion report must document
      that all renovations were completed in accordance with the plans and specifications
      and must include photographs of the completed renovations. 4607.8: Appraisal
      requirements for CHOICERenovation® Mortgages (Future effective date 11/02/26)
      This section contains requirements related to: ■ Initial appraisal report ■
      Changes to original plans and specifications ■ Final inspection and completion
      report (a) Initial appraisal report The Seller must obtain a Traditional Appraisal
      Report that includes an “as completed” value of the subject property. If there
      are proposed renovations being financed with the CHOICERenovation® Mortgage,
      the appraisal report must be completed subject to completion of the proposed
      renovations. The Seller must provide the appraiser with the cost estimates,
      plans and specifications for the renovations. Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 4607 As of 05/04/26 Page 4607-17 (b) Changes to original plans
      and specifications If, after the appraiser provides the “as completed” value,
      changes are made to the original plans and specifications in accordance with
      the Seller responsibilities outlined in Section 4607.9(a)(2), the Seller must
      notify the appraiser of the changes and provide change documentation to the
      appraiser. The appraiser must provide a new appraisal report to reflect the
      changes and account for the impact on the “as completed” value. (c) Final inspection
      and completion report Upon completion of all proposed renovations, the appraiser
      must perform a final inspection of the property and complete a completion report
      in accordance with the requirements in Section 5605.9 for verifying completion.
      The completion report must document that all renovations were completed in accordance
      with the plans and specifications and must include photographs of the completed
      renovations. 4607.9: Seller responsibilities for renovation work and process
      for CHOICERenovation® Mortgages (11/25/24) This section contains requirements
      related to: ■ Responsibilities during the renovation period ■ Other Seller responsibilities
      ■ Notification of completion of the subject property ■ Seller responsibilities
      for third parties (a) Responsibilities during the renovation period During the
      renovation period: 1. The Seller is responsible for managing the Custodial Account
      for Renovation Funds as described in Section 4607.12 and corresponding draws
      2. The Seller must manage any changes to the plans and specifications requested
      by the Borrower during the course of renovations. Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 4607 As of 05/04/26 Page 4607-18 If any changes
      are made to the plans and specifications and/or the estimated time of completion
      for the renovations, the changes must be agreed upon via a change order signed
      by the Borrower and the contractor and approved by the Seller. Documentation
      evidencing the change order must be signed by the Borrower and the contractor
      and must include the following, as applicable: ■ Detailed description of the
      changes ■ Updated itemized renovation costs ■ Updated total cost of the renovations
      ■ Any changes to the estimated Completion Date 3. The Seller may not approve
      changes to the plans and specifications if such changes impact the loan-to-value
      (LTV)/total LTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratio
      or the property such that the Mortgage: ■ Would not have been eligible for sale
      under the terms of the Seller’s Purchase Documents in effect on the Settlement
      Date, or ■ Would have been eligible for sale but under different terms (b) Other
      Seller responsibilities The Seller is responsible for compliance with the following
      requirements: 1. The Mortgage file must contain all relevant documentation,
      including, but not limited to, copies of: ■ Costs of the renovations ■ Purchase
      contracts ■ Bids ■ Appraisal(s) ■ Renovation contract(s) ■ Plans and specifications
      ■ Permits and applicable homeowners association approvals ■ Documents related
      to change orders and draws Freddie Mac Single-Family Seller/Servicer Guide Chapter
      4607 As of 05/04/26 Page 4607-19 ■ Completion report ■ Close-out documentation
      for the Custodial Account for Renovation Funds ■ Title updates Note: See Section
      4607.6(d) regarding additional Mortgage file documentation requirements when
      CHOICERenovation® Mortgage proceeds are used to pay off short- term financing
      that provided the Borrower with funds to repair, restore, rehabilitate or renovate
      an existing home. 2. The Seller must notify Freddie Mac through Loan Status
      Hub® if there are any concerns that the renovations will not be completed by
      the Completion Date or if there are any changes that impact the “as completed”
      value of the property as determined by the appraiser. If a Completion Date extension
      is necessary, the Seller must follow the requirements in Section 4607.4(a)(ii)
      to request an extension. 3. Unless otherwise noted below, all contractor(s)
      and/or tradespersons chosen by the Borrower to complete the renovations must:
      ■ Have entered into an executed, binding renovation contract with the Borrower
      to complete the renovations no later than the Completion Date. The contract
      must include an indemnification provision requiring the contractor to indemnify
      the Borrower for any property loss or damage caused by the contractor, its employees
      or its subcontractors. ■ Be licensed and insured as required by local and/or
      State requirements, and ■ Be financially able to perform the duties necessary
      to complete the renovation work in a timely manner The above requirements do
      not apply if the Borrower, acting as general contractor, performs all the work
      in accordance with Section 4607.10(a) or if renovations are purchased from a
      home improvement store in accordance with Section 4607.10(c). 4. The Seller
      must obtain title updates as necessary to ensure that the CHOICERenovation Mortgage
      meets all title insurance requirements in Chapter 4702 5. After all renovations
      are completed, the CHOICERenovation Mortgage must remain a valid First Lien
      in accordance with Section 4201.2 Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 4607 As of 05/04/26 Page 4607-20 (c) Notification of completion
      of the subject property For CHOICERenovation In Progress and CHOICEReno eXPress
      Mortgages, when the renovations are complete, the Seller must notify Freddie
      Mac through Loan Status Hub and provide the completion report including photographs
      of the completed renovations. Until the Seller receives written acknowledgment
      from Freddie Mac through Loan Status Hub that all renovations have been completed
      to satisfy the “as completed” appraised value of the original appraisal and
      Freddie Mac approves the removal of recourse, the Seller remains responsible
      for the requirements of Section 4607.9. The Seller represents and warrants that,
      as of the date the Seller notifies Freddie Mac that all renovations are complete,
      all requirements in this Chapter 4607 have been met. If notice that all renovations
      are complete is not received by Freddie Mac by the Completion Date, the Mortgage
      will be subject to a repurchase. (d) Seller responsibilities for third parties
      A third party may perform all or some of the processing, management and performance
      of draw inspections and/or maintenance and management of disbursements from
      the completion escrow account or Custodial Account for Renovation Funds as described
      in Sections 4607.11 and 4607.12, as applicable, and other requirements described
      above as responsibilities or obligations of the Seller. A third party may not
      open and perform ongoing maintenance of the Custodial Account for Renovation
      Funds except as otherwise provided for in Section 4607.17(a) for Transfers of
      Servicing of CHOICERenovation Mortgages. Although these functions may not be
      performed directly by the Seller, the Seller is responsible for the accuracy
      and integrity of the information provided by the third party and for compliance
      with these and all requirements in the Seller’s Purchase Documents. 4607.10:
      Contractor requirements and advancing the costs of materials for CHOICERenovation®
      Mortgages (11/25/24) This section contains requirements related to: ■ Borrower
      as contractor ■ Contractors and/or tradespersons chosen by the Borrower ■ Renovations
      purchased from a home improvement store Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 4607 As of 05/04/26 Page 4607-21 (a) Borrower as contractor The
      Borrower may act as the general contractor and/or may perform some or all of
      the work to complete the renovations when the following requirements are met:
      ■ The Borrower must be a licensed contractor when required by applicable local
      and/or State law ■ The Borrower must be insured to perform the renovations on
      the subject property ■ The Borrower must be qualified to complete the renovations
      The Borrower must submit to the Seller a plan detailing the work items the Borrower
      will perform. CHOICERenovation® Mortgage proceeds may be used to reimburse the
      Borrower for the cost of materials, but may not be used to reimburse the Borrower
      for labor costs. (b) Contractor(s) and/or tradespersons chosen by the Borrower
      Contractor(s) and/or tradespersons chosen by the Borrower to complete the renovations
      must meet the following requirements in accordance with Section 4607.9(b)(3):
      ■ The contractor(s) and/or tradespersons entered into an executed, binding renovation
      contract with the Borrower to complete the renovations no later than the Completion
      Date. The contract must include an indemnification provision requiring the contractor
      to indemnify the Borrower for any property loss or damage caused by the contractor,
      its employees or its subcontractors. ■ The contractor(s) and/or tradespersons
      must be licensed and insured as required by local and/or State requirements
      ■ The contractor(s) and/or tradespersons must be financially able to perform
      the duties necessary to complete the renovation work in a timely manner Except
      when the Borrower is acting as the contractor and/or tradesperson, up to 50%
      of the cost of materials may be advanced to the contractor(s) and/or tradespersons
      at closing in lieu of such funds being deposited into the completion escrow
      account or Custodial Account for Renovation Funds (as described in Sections
      4607.11 and 4607.12), as applicable, when the above requirements are met. (c)
      Renovations purchased from a home improvement store If the Borrower chooses
      a home improvement store to have the renovation work completed and the home
      improvement store’s renovation program requires payment-in-full at the point
      Freddie Mac Single-Family Seller/Servicer Guide Chapter 4607 As of 05/04/26
      Page 4607-22 of purchase, renovations may be purchased from the home improvement
      store at closing, provided the following requirements are met: ■ The CHOICERenovation
      Mortgage is a “no cash-out” refinance Mortgage ■ The Seller must review the
      home improvement store’s renovation program to determine that the following
      requirements are met: ❑ The home improvement store is financially able to perform
      the duties necessary to have the renovation work completed in a timely manner
      and pay the contractor(s) and/or tradespersons chosen by the home improvement
      store to complete the renovations. A contractor and/or tradesperson may not
      require payment directly from the Borrower. ❑ The home improvement store has
      a robust contractor approval process that is managed, maintained and updated
      regularly ❑ The contractor(s) and/or tradespersons chosen by the home improvement
      store to complete the renovations is licensed and insured as required by local
      and/or State requirements, and they must be approved under the home improvement
      store’s contractor approval process during the course of renovations. In the
      event a contractor and/or tradesperson becomes unapproved or is unable to complete
      the renovation work in a timely manner, the home improvement store must choose
      other approved contractor(s) and/or tradespersons to complete the renovations.
      ■ The Borrower may not be chosen by the home improvement store to complete the
      renovations, even if the Borrower is a licensed contractor and/or is licensed
      and qualified to complete the renovations ■ The home improvement store must
      have entered into an executed, binding renovation contract with the Borrower
      to complete the renovations no later than the Completion Date. The contract
      must include an indemnification provision requiring the home improvement store
      to indemnify the Borrower for any property loss or damage caused by the contractor(s)
      and/or tradespersons chosen by the home improvement store to complete the renovations.
      Up to 100% of the cost of materials and renovation costs identified in the renovation
      contract (including labor costs) may be paid to a home improvement store at
      closing in lieu of such funds being deposited into the completion escrow account
      or Custodial Account for Renovation Funds (as described in Sections 4607.11
      and 4607.12), as applicable, if the requirements above are met. Freddie Mac
      Single-Family Seller/Servicer Guide Chapter 4607 As of 05/04/26 Page 4607-23
      4607.11: Funds for renovations and contingency reserve requirements for CHOICERenovation®
      Mortgages (10/02/24) This section contains requirements related to: ■ Renovation
      funds ■ Contingency reserve ■ Unused funds (a) Renovation funds On the Note
      Date, the renovation funds (sufficient to cover the total cost of the renovations
      minus any advances for the cost of materials and/or renovation costs paid pursuant
      to Section 4607.10) must be deposited into a completion escrow account meeting
      the requirements of Section 5601.3 for properties with incomplete improvements.
      For CHOICERenovation® In Progress Mortgages, the renovation funds must be deposited
      into a Custodial Account for Renovation Funds, as described in Section 4607.12,
      on or before the Settlement Date. After taking into consideration any advances
      for the cost of materials and/or renovation costs paid pursuant to Section 4607.10,
      the renovation costs identified in the renovation contract(s) must be consistent
      with the amount of renovation funds deposited into the completion escrow account
      or Custodial Account for Renovation Funds, as applicable. If the CHOICERenovation
      Mortgage proceeds are insufficient to cover the contracted cost of the renovations,
      the Borrower must deposit sufficient funds to pay the remaining amount into
      the completion escrow account or Custodial Account for Renovation Funds, as
      applicable. (b) Contingency reserve In addition to the renovation funds required
      to be deposited into the completion escrow account or Custodial Account for
      Renovation Funds, as applicable, the Seller must also deposit a contingency
      reserve to cover unforeseen renovation costs. Contingency reserve funds may
      come from the CHOICERenovation Mortgage proceeds or directly from the Borrower.
      A contingency reserve is not required for CHOICERenovation Mortgages whose proceeds
      are used exclusively to finance the addition or renovation of outdoor structures
      used for leisure and recreation. (See Section 4607.6 for a description of eligible
      renovations.) Freddie Mac Single-Family Seller/Servicer Guide Chapter 4607 As
      of 05/04/26 Page 4607-24 (i) Minimum contingency reserve For CHOICERenovation
      In Progress Mortgages, the minimum contingency reserve amount must be greater
      than or equal to 10% of the total renovation costs identified in the renovation
      contract(s), except that if the property utilities are not operable as referenced
      in the renovation contract(s) and/or plans and specifications, the minimum contingency
      reserve amount must be greater than or equal to 15% of the total renovation
      costs identified in the renovation contract(s). (ii) Maximum contingency reserve
      For CHOICERenovation Mortgages, the contingency reserve amount must be less
      than or equal to 20% of the total renovation costs identified in the renovation
      contract(s). While a contingency reserve is not required for CHOICEReno eXPress®
      Mortgages or CHOICERenovation Mortgages whose proceeds are used exclusively
      to finance the addition or renovation of outdoor structures used for leisure
      and recreation, if the Seller chooses to establish a contingency reserve, the
      contingency reserve amount must be less than or equal to 20% of the total renovation
      costs identified in the renovation contract(s). (c) Unused funds (i) CHOICERenovation
      Mortgage is current If the CHOICERenovation Mortgage is current, any unused
      funds remaining in the completion escrow account or Custodial Account for Renovation
      Funds, as applicable, after the costs of all renovations have been paid to the
      appropriate parties must be used for the following: ■ Reduce the UPB ■ Complete
      additional renovations, provided the Seller must: ❑ Document that additional
      renovations were paid for from the completion escrow account or Custodial Account
      for Renovation Funds, as applicable, and verify the funds are being used to
      further improve the Mortgaged Premises, and ❑ Verify the additional renovation
      work has been completed by obtaining a completion report pursuant to the appraisal
      requirements in Section 4607.8 ■ Reimburse Borrower contributed funds to the
      contingency reserve ■ If a “no cash-out” refinance Mortgage, disburse to the
      Borrower the remaining proceeds, provided the total amount disbursed to the
      Borrower at closing and from Freddie Mac Single-Family Seller/Servicer Guide
      Chapter 4607 As of 05/04/26 Page 4607-25 the unused funds does not exceed the
      maximum amount allowed under Section 4301.4 for “no cash-out” refinance Mortgages
      (ii) CHOICERenovation Mortgage is delinquent If the CHOICERenovation Mortgage
      is delinquent, any unused funds remaining in the completion escrow account or
      Custodial Account for Renovation Funds, as applicable, after the costs of all
      renovations have been paid to the appropriate parties must be applied in accordance
      with the application of payment requirements in the Note and Security Instrument.
      After the CHOICERenovation Mortgage is brought current, any remaining unused
      funds (including contingency reserve funds not provided by the Borrower) must
      be used for the following: ■ Reduce the UPB ■ Complete additional renovations,
      provided the Seller must: ❑ Document that additional renovations were paid for
      from the completion escrow account or Custodial Account for Renovation Funds,
      as applicable, and verify the funds are being used to further improve the Mortgaged
      Premises, and ❑ Verify the additional renovation work has been completed by
      obtaining a completion report pursuant to the appraisal requirements in Section
      4607.8 ■ Reimburse Borrower contributed funds to the contingency reserve ■ If
      a “no cash-out” refinance Mortgage, disburse to the Borrower the remaining proceeds,
      provided the total amount disbursed to the Borrower at closing and from the
      unused funds does not exceed the maximum amount allowed under Section 4301.4
      for “no cash-out” refinance Mortgages 4607.12: Custodial Accounts for Renovation
      Funds for CHOICERenovation® Mortgages (09/10/25) This section contains requirements
      related to: ■ General requirements ■ Opening the Custodial Account for Renovation
      Funds ■ Changing or transferring Custodial Accounts for Renovation Funds ■ Freddie
      Mac’s rights Freddie Mac Single-Family Seller/Servicer Guide Chapter 4607 As
      of 05/04/26 Page 4607-26 ■ Seller responsibilities related to maintaining the
      Custodial Account The requirements of this section apply to CHOICERenovation®
      In Progress Mortgages. (a) General requirements For each Seller/Servicer number
      associated with one or more CHOICERenovation Mortgage(s), the Seller must: ■
      Open and maintain a separate completion escrow account solely to retain the
      CHOICERenovation Mortgage proceeds and any other deposited funds to be used
      to complete the renovations of Mortgaged Premises securing CHOICERenovation
      Mortgages (such funds, the “Renovation Funds” and each such account, the “Custodial
      Account for Renovation Funds”) ■ Open and maintain each Custodial Account for
      Renovation Funds in accordance with the requirements of this section and the
      account must be utilized exclusively for the CHOICERenovation Mortgages it sells
      to Freddie Mac under a particular Seller/Servicer number ■ Ensure the Custodial
      Account for Renovation Funds does not carry a negative balance, even if permitted
      by its depository institution ■ Maintain a separate account record for each
      CHOICERenovation Mortgage’s Renovation Funds retained in the Custodial Account
      for Renovation Funds until all appropriate parties have been paid and the renovation
      work is completed and all unused funds have been disbursed in accordance with
      Section 4607.11(c) for unused funds. Each separate account record may not reflect
      a negative balance. (b) Opening the Custodial Account for Renovation Funds Each
      Custodial Account for Renovation Funds must meet the requirements in Section
      8302.1(b) for Custodial Accounts, Section 8302.2(b) for an Eligible Depository,
      Section 8302.1(c)(iii) for Escrow Custodial Accounts and Section 8302.1(d) for
      Custodial Account documentation. The Seller must establish a separate Custodial
      Account for Renovation Funds which must be named “Freddie Mac Escrow Completion
      Custodial Account” or “Freddie Mac Renovation Funds Custodial Account.” Freddie
      Mac Single-Family Seller/Servicer Guide Chapter 4607 As of 05/04/26 Page 4607-27
      With respect to the Escrow Custodial Account requirements in Section 8302.1(c)(iii),
      the Seller may not: ■ Designate the Custodial Account for Renovation Funds using
      the abbreviated designation “Freddie Mac Escrow Custodial Account” ■ Commingle
      Renovation Funds with Escrow Funds in the same Custodial Account Custodial Accounts
      for Renovation Funds are not subject to the tier rating requirements in Section
      8302.2(c). (c) Changing or transferring Custodial Accounts for Renovation Funds
      See Sections 8304.3(b) through 8304.3(d) for Freddie Mac’s requirements for
      changing or transferring established Custodial Accounts, including Custodial
      Accounts for Renovation Funds. (d) Freddie Mac’s rights Freddie Mac reserves
      the right to request that the Seller submit copies of Custodial Account for
      Renovation Funds records, such as bank account statements, detailed trial balances
      and completed reconciliations, variance logs, and supporting documentation for
      such records. (e) Seller responsibilities related to maintaining the Custodial
      Account The Seller must manage Custodial Accounts for Renovation Funds as required
      in Sections 8304.1(c), 8304.2(a), 8304.2(c), 8304.2(e), 8304.3(b), 8304.3(c)(i),
      8304.3(d) and 8304.4(a). 4607.13: Property insurance for CHOICERenovation® Mortgages
      (10/02/24) CHOICERenovation® Mortgages must meet the property insurance requirements
      in Chapter 4703. Insurance coverage may need to be adjusted during the course
      of renovations and/or upon completion of all renovations based on the “as completed”
      value of the property (as determined by the appraiser pursuant to Section 4607.8)
      to meet the property insurance requirements in Chapter 8202. 4607.14: Recourse
      for CHOICERenovation® Mortgages (12/03/25) CHOICERenovation® In Progress Mortgages
      must be sold with recourse within the meaning of Section 6201.2(b)(i), except
      that Freddie Mac may require the Seller to repurchase the Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 4607 As of 05/04/26 Page 4607-28 CHOICERenovation
      Mortgage if the Mortgage becomes 120 days delinquent while subject to recourse.
      The recourse will remain in full force and effect until: ■ All renovations are
      completed, ■ The Seller requests removal of recourse in writing indicating the
      applicable Freddie Mac loan number and provides the completion report, including
      photographs of the renovations, and ■ Freddie Mac approves the removal of recourse,
      subject to the requirements below In order to request removal of recourse the
      Seller must submit all required documentation mentioned above to Freddie Mac
      through Loan Status Hub®, and the following requirements must be met: ■ There
      is no Delinquency at the time of the request ■ There has not been a Delinquency
      of 30 days more than once during the renovation period, except that recourse
      may be removed at a later date once the Borrower has made 36 consecutive monthly
      payments with no Delinquencies The Seller represents and warrants that, as of
      the date Freddie Mac approves the Seller’s request for removal of recourse,
      all requirements in this Chapter 4607 have been met. 4607.15: Representations
      and warranties for CHOICERenovation® Mortgages (12/17/25) The selling representation
      and warranty framework described in Section 1301.6 applies to CHOICERenovation®
      Mortgages that meet the requirements of this Chapter 4607 provided that, starting
      on the date that the payments are paid by the Borrower and not from the completion
      escrow account or Custodial Account for Renovation Funds (as described in Sections
      4607.11 and 4607.12), as applicable, the Borrower: 1. Made the first 36 monthly
      payments due with no more than two 30-day Delinquencies and no 60-day or greater
      Delinquencies, and 2. Is not 30 or more days delinquent with respect to the
      36th monthly payment Freddie Mac Single-Family Seller/Servicer Guide Chapter
      4607 As of 05/04/26 Page 4607-29 4607.16: CHOICERenovation® Mortgages combined
      with GreenCHOICE Mortgages® and credit for Credit Fees (11/06/24) This section
      contains requirements related to: ■ Delivery requirements for CHOICERenovation®
      Mortgages ■ Special requirements when CHOICERenovation Mortgages are combined
      with GreenCHOICE Mortgages® (a) Delivery requirements for CHOICERenovation Mortgages
      See Section 6302.43 for special delivery requirements for CHOICERenovation Mortgages.
      (b) Special requirements when CHOICERenovation Mortgages are combined with GreenCHOICE
      Mortgages When CHOICERenovation Mortgage proceeds finance renovations completed
      after the Note Date to improve the energy and/or water efficiency, the health
      and safety and/or the resiliency and preventiveness of the Mortgaged Premises,
      the CHOICERenovation Mortgage may be eligible for the credit for Credit Fees
      for GreenCHOICE Mortgages (see Exhibit 19, Credit Fees, and Exhibit 19A, Credit
      Fee Cap Eligibility Criteria), provided the following requirements are met:
      ■ Except as stated below, the requirements in Section 4606.3(a) for GreenCHOICE
      Mortgages must be met for the subject Mortgage. This includes, but is not limited
      to: ❑ The cost of the financed renovations to improve the energy and/or water
      efficiency, the health and safety and/or the resiliency and preventiveness of
      the Mortgaged Premises must not exceed 15% of the “as completed” appraised value
      of the Mortgaged Premises. Note: In all cases, the maximum financed renovation
      costs must comply with the requirements in Section 4607.7, as applicable. ❑
      Eligible improvements as described in Section 4606.1(b) with an aggregate cost
      of less than or equal to $6,500 may be completed without obtaining an energy
      report. If the aggregate cost should exceed $6,500, an energy report or alternative
      documentation in lieu of an energy report meeting the requirements in Section
      4606.4 must be obtained and retained in the Mortgage file. ❑ The energy report
      exception stated in Section 4606.4(c), when proceeds are used to finance renewable
      energy sources, may apply so long as the appraiser documents the Freddie Mac
      Single-Family Seller/Servicer Guide Chapter 4607 As of 05/04/26 Page 4607-30
      projected income by utilizing PV Value, Ei Value or a similar tool as referenced
      in Section 5601.4, and that the cost effectiveness has been demonstrated ■ All
      renovations, including renovations to improve the energy and/or water efficiency,
      the health and safety and/or the resiliency and preventiveness of the Mortgaged
      Premises, must be completed by the Completion Date ■ The renovation funds are
      deposited into a completion escrow account or Custodial Account for Renovation
      Funds (as described in Sections 4607.11 and 4607.12), as applicable, and ■ If
      the CHOICERenovation Mortgage is current, any funds remaining in the completion
      escrow account or Custodial Account for Renovation Funds, as applicable, after
      the costs of all renovations have been paid to the appropriate parties either
      must be used to reduce the UPB or may be used for additional renovations, as
      described in Section 4607.11(c) For CHOICERenovation Mortgages that are eligible
      for the credit for Credit Fees for GreenCHOICE Mortgages pursuant to this Section
      4607.16(b), in addition to meeting the special delivery requirements for CHOICERenovation
      Mortgages in Section 6302.43, the Seller must deliver the ULDD Data Point(s)
      for GreenCHOICE Mortgages specified in Section 6302.23. 4607.17: Transfers of
      Servicing for CHOICERenovation® Mortgages (09/10/25) This section contains requirements
      related to: ■ Requirements for CHOICERenovation® In Progress Mortgages related
      to a Concurrent Transfer of Servicing ■ Prohibited Transfers of Servicing (a)
      Requirements for CHOICERenovation In Progress Mortgages related to a Concurrent
      Transfer of Servicing For Sellers that have obtained Freddie Mac’s prior written
      approval, Concurrent Transfers of Servicing involving CHOICERenovation In Progress
      Mortgages are permitted, provided the following requirements are met. (See this
      Section 4607.17(b) regarding Subsequent Transfers of Servicing involving such
      CHOICERenovation Mortgages and Transfers of Servicing involving CHOICEReno eXPress®
      Mortgages.) Consistent with Sections 7101.3(c) through 7101.3(f), the Seller,
      as Transferor Servicer, remains jointly liable with the Transferee Servicer
      for all selling representation and warranty obligations, including obligations
      in this Chapter 4607 related to the completion of the Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 4607 As of 05/04/26 Page 4607-31 renovations,
      even if such obligations are performed after the Effective Date of Transfer.
      This includes, but is not limited to, ensuring completion of all renovations
      and delivering through Loan Status Hub® the required notice and documentation
      to support completion of the renovations in accordance with the Seller responsibilities
      in Section 4607.9(c) and fulfilling the recourse obligation in the event that
      Freddie Mac does not approve removal of recourse pursuant to Section 4607.14.
      In addition to the requirements governing Concurrent Transfers of Servicing
      in the Guide, the Transferor Servicer must inform the Transferee Servicer whether
      the Transfer of Servicing involves CHOICERenovation In Progress Mortgages and
      must provide a list of such Mortgages (identified, at a minimum, by Transferor
      Servicer loan number and Freddie Mac loan number) to the Transferee Servicer.
      A Transferee Servicer may engage an Outsourced Vendor or Servicing Agent, which
      may be the Seller, to perform some or all of the activities set forth in Section
      4607.9(d). The Transferee Servicer must have in place appropriate processes
      and communication protocols with any Outsourced Vendor or Servicing Agent it
      engages to perform the obligations in this Chapter 4607 related to the completion
      of the renovations, including, but not limited to: ■ Requiring that any remaining
      funds in the Custodial Account for Renovation Funds (as described in Section
      4607.12) to be remitted to the Servicer to be applied to reduce the UPB or returned
      to the Borrower, as applicable, in accordance with Section 4607.11(c). The Servicer
      may outsource the opening and ongoing maintenance of the Custodial Account for
      Renovation Funds only to its Servicing Agent, if applicable. An Outsourced Vendor
      may be an authorized party to the account’s signature card and act as an agent
      of the primary account holder (either the Servicer or Servicing Agent, as applicable).
      ■ Notifying the Outsourced Vendor of any defaults related to the CHOICERenovation
      Mortgage and ensuring appropriate actions are being taken, such as: ❑ Relaying
      adverse information related to the Mortgaged Premises ❑ If the CHOICERenovation
      Mortgage is delinquent, applying any unused funds in accordance with the application
      of payment requirements in the Note and Security Instrument (see Section 4607.11(c))
      ■ Notifying Freddie Mac in accordance with Section 1301.2(b) and the Outsourced
      Vendor if the Servicer or its Servicing Agent, if any, determines the Borrower
      was added to the Office of Foreign Assets Control Specially Designated Nationals
      list ■ Requiring any Mortgage proceeds allocated to make monthly payments of
      principal, interest, taxes and insurance pursuant to Section 4607.6(a) to be
      remitted from the Custodial Account for Renovation Funds to the Servicer in
      a timely manner for posting to the Borrower’s Mortgage account Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 4607 As of 05/04/26 Page 4607-32 ■ Providing to
      the Servicer for inclusion in the Mortgage file all documentation maintained
      by any Outsourced Vendor related to the completion of renovations as required
      by this Chapter 4607 ■ Enforcing the property insurance requirements in Section
      4607.13 (b) Prohibited Transfers of Servicing The following Transfers of Servicing
      involving CHOICERenovation Mortgages are prohibited: ■ Subsequent Transfers
      of Servicing involving CHOICERenovation In Progress Mortgages are prohibited
      until all renovations have been completed, the Seller has obtained a completion
      report pursuant to the appraisal requirements in Section 4607.8, Freddie Mac
      has acknowledged completion of the renovations pursuant to Section 4607.9(c)
      and Freddie Mac has approved the removal of recourse pursuant to Section 4607.14.
      (See Chapter 7101 regarding Transfers of Servicing.) ■ Transfers of Servicing
      involving CHOICEReno eXPress Mortgages are prohibited until all renovations
      have been completed and the Seller has obtained a completion report pursuant
      to the appraisal requirements in Section 4607.8 CHOICERenovation In Progress
      Mortgages and CHOICEReno eXPress Mortgages may not be sold through Cash-Released
      XChange®. Additionally, CHOICEReno eXPress Mortgages may not be involved in
      any other Concurrent Transfers of Servicing. Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 4701 As of 02/04/26 Page 4701-1 Chapter 4701: Mortgage Insurance'
  judgment: false
