source:
  type: guide
  id: fhlmc-3601.1
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 3601.1 — Freddie
    Mac remedies
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 3601.1 — Freddie
    Mac remedies.
  coverage_tier: operative
obligations:
- id: fhlmc-3601.1-full
  canonical_id: fhlmc-3601.1-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 3601.1 — Freddie
    Mac remedies
  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 3601.1 — Freddie
      Mac remedies
    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: '3601.1: Freddie Mac remedies (11/19/25) This section contains
      information related to: ■ Remedies and related requirements ■ Additional actions
      ■ Occurrence of a Claims Event; resulting liability immediately due and owing
      to Freddie Mac (a) Remedies and related requirements In addition to any other
      remedies it may have at law or in equity or elsewhere in any Purchase Document,
      for any Mortgage it purchased, Freddie Mac may require the Seller or Servicer
      to (and the Seller or Servicer agrees to): ■ Indemnify Freddie Mac and hold
      it harmless for any loss, damage or expense (including court costs and reasonable
      attorney fees) that it may sustain ■ Repurchase Freddie Mac’s interest in the
      Mortgage at any time if the Borrower or any other party in the Mortgage transaction
      has made any misstatement, misrepresentation or omission in conjunction with
      such transaction, whether or not the Seller or Servicer was a party to or had
      knowledge of such false representation ■ Repurchase Freddie Mac’s interest in
      the Mortgage or comply with the terms of any repurchase alternatives at any
      time under any of the other circumstances set forth in Sections 3602.2(a) and
      3602.2(b) ■ Terminate the Servicing Contract and related Servicing Contract
      Rights pursuant to Chapter 3603 ■ Set off any amounts owed by a Seller/Servicer
      to Freddie Mac against any other funds that Freddie Mac owes to a Seller/Servicer,
      including, but not limited to, workout incentives, expense reimbursements or
      any other amounts (b) Additional actions In addition to the above remedies and
      those it may have at law, in equity and pursuant to the Purchase Documents,
      Freddie Mac has the right to take (and the Seller or Servicer agrees to comply
      with) additional actions, including, without limitation: Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 3601 As of 11/19/25 Page 3601-2 ■ Engage in more
      frequent dialogue, quality control or quality assurance reviews or onsite reviews
      and/or require the Seller/Servicer to provide additional information or data
      ■ Require the Seller/Servicer to provide an action, business continuity or remediation
      plan acceptable to Freddie Mac to address specific requirements not met ■ Require
      the Servicer to provide a performance monitoring plan acceptable to Freddie
      Mac to address specific requirements not met ■ Demand further reasonable assurances
      or information ■ Issue a demand for any other specific corrective action ■ Limit
      the risk characteristics of Mortgages to be acquired by Freddie Mac from the
      Seller/Servicer ■ Limit negotiated terms of business to Mortgages acquired by
      Freddie Mac from the Seller/Servicer ■ Limit or deny the acceptability of the
      Seller/Servicer’s and the affiliate’s products or services in connection with
      Freddie Mac’s business ■ Restrict or deny participation in new products, initiatives
      or programs offered by Freddie Mac ■ Impose additional fees upon Mortgages acquired
      by Freddie Mac from the Seller/Servicer ■ Revoke Freddie Mac Servicer Honors
      and Rewards Program (SHARP)SM designation, servicing rewards or other honorary
      accolades ■ Set off or recoup any amounts or obligations that Freddie Mac owes
      to the Seller/Servicer against any amounts or obligations owed by the Seller/Servicer
      to Freddie Mac under any Purchase Document or any other agreement by and between
      Seller/Servicer and Freddie Mac ■ Require posting of collateral, in cash or
      cash equivalent ■ Impose business volume limits for Mortgages to be acquired
      by Freddie Mac from the Seller/Servicer ■ Limit additional Servicing that can
      be acquired by the Seller/Servicer ■ Add the Seller/Servicer’s Senior Management
      to the Freddie Mac Exclusionary List ■ Require engagement of a Servicing Agent
      or replacement of an existing Servicing Agent Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 3601 As of 11/19/25 Page 3601-3 ■ Require voluntary or involuntary
      Transfer of Servicing, in whole or in part, including without limitation to
      Voluntary Partial Cancellations require repurchase of all Mortgages in default
      ■ Suspend the Seller/Servicer ■ Terminate the Seller/Servicer ■ Terminate, in
      whole or in part, the Servicing Contract and related Servicing Contract Rights
      (c) Occurrence of a Claims Event; resulting liability immediately due and owing
      to Freddie Mac Upon the occurrence of any Claims Event, all FRE Claims related
      to the Seller/Servicer shall be deemed immediately and automatically due and
      payable, without further action required by Freddie Mac or any other party.
      As a condition to receipt of Freddie Mac’s approval of, or consent to, such
      Claims Event, a Seller/Servicer must pay, unconditionally and in full, any and
      all FRE Claims. If applicable, the calculation of FRE Claims is conclusive absent
      manifest error; however, Freddie Mac may at any time expressly waive or defer
      such payment obligation, in whole or in part, in writing in its sole and absolute
      discretion. Freddie Mac Single-Family Seller/Servicer Guide Chapter 3602 As
      of 11/19/25 Page 3602-1 Chapter 3602: Repurchases'
  judgment: false
