source:
  type: regulation
  id: fhlmc-3401.1
  authority: Freddie Mac Single-Family Seller/Servicer Guide §3401.1 — Postfunding quality control processes (12/17/25)
  description: "Freddie Mac Guide §3401.1 (Postfunding quality control processes). Gap-fill (verbatim, ID-diff).\
    \ \n"
obligations:
- id: fhlmc-3401.1-0
  canonical_id: fhlmc-3401.1-0
  section: Freddie Mac Guide 3401.1
  description: '3401.1 Postfunding quality control processes: (12/17/25) This section contains requirements related
    to: ■ Postfunding quality control ■ Credit enhancer postfunding review (a) Postfunding quality control (i) Defined
    terms As used in this Section 3401.1(a), the following terms have the meanings ascribed to them below: Defined
    …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §3401.1 — Postfunding quality control processes (12/17/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '(12/17/25) This section contains requirements related to: ■ Postfunding quality control ■
      Credit enhancer postfunding review (a) Postfunding quality control (i) Defined terms As used in this Section
      3401.1(a), the following terms have the meanings ascribed to them below: Defined terms related to postfunding
      quality control C Component Based Review Freddie Mac’s postfunding quality control review of certain components
      of the Mortgage file. A Component Based Review does not constitute a Full-File Review. Correction Action taken
      by the Seller/Servicer, typically through delivery of documentation or information to Freddie Mac, that demonstrates
      that the identified Significant Defect: ■ Did not, in fact, exist at the time of Mortgage purchase, or ■ Has
      been corrected in the time frame and manner specified in the Purchase Documents such that the Defect is no
      longer considered by Freddie Mac to be a Significant Defect Examples of Corrections include, but are not limited
      to, De Minimis Corrections and the acquisition of required insurance. Counterparty Status Freddie Mac’s assessment
      of a Seller/Servicer’s financial capacity that could determine which Remedy Freddie Mac will offer to a Seller/Servicer
      for a Mortgage with a Significant Defect.'
    drafter_attestation: Verbatim from Freddie Guide §3401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-3401.1-1
  canonical_id: fhlmc-3401.1-1
  section: Freddie Mac Guide 3401.1
  description: '3401.1 Postfunding quality control processes: 401-2 Defined terms related to postfunding quality
    control D Defect A loan-level deficiency that breaches a term contained in the Purchase Documents in effect
    at the time of Mortgage purchase. De Minimis Correction Minor amount not to exceed $500 (or such higher amount
    as the Sel…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §3401.1 — Postfunding quality control processes (12/17/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '401-2 Defined terms related to postfunding quality control D Defect A loan-level deficiency
      that breaches a term contained in the Purchase Documents in effect at the time of Mortgage purchase. De Minimis
      Correction Minor amount not to exceed $500 (or such higher amount as the Seller/Servicer and Freddie Mac may
      agree) that, when remitted, refunded or otherwise provided, corrects or otherwise resolves an identified Significant
      Defect. A De Minimis Correction cannot be made: ■ In connection with any Mortgage where the correction would
      result in a specific required minimum Borrower contribution not being met, or ■ To correct a violation of
      the requirements set forth in the Freddie Mac Charter Act P Price-Adjusted Loan (PAL) One or more Defects
      that, when considered with other Mortgage features and based on the facts of the Mortgage as delivered to
      Freddie Mac, result in a Mortgage that was otherwise eligible for delivery to Freddie Mac had the correct
      data been delivered and Credit Fees been paid to Freddie Mac by the Seller/Servicer. R Remedy An action to
      resolve a Significant Defect elected by Freddie Mac pursuant to the Purchase Documents in effect at the time
      of Mortgage purchase. Repurchase Alternative Remedies other than repurchase of the identified Mortgage. Repurchase
      Alternatives could include, but are not limited to: ■ Performing loans ❑ Recourse/repurchase agreement ❑ Indemnification
      agreement ❑ Mortgage insurance stand-in agreement ❑ Collateralized indemnification agreements (collateral
      in lieu of repurchase or collateralized recourse) ❑ Fee-only agreement ■ Non-performing loans'
    drafter_attestation: Verbatim from Freddie Guide §3401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-3401.1-2
  canonical_id: fhlmc-3401.1-2
  section: Freddie Mac Guide 3401.1
  description: '3401.1 Postfunding quality control processes: 401-3 Defined terms related to postfunding quality
    control ❑ Make-whole payment ❑ Split loss ❑ Loss reimbursement S Significant Defect One or more Defects that
    either necessitate a change to the price for which the Mortgage was purchased or result in the Mortgage being
    unacceptab…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §3401.1 — Postfunding quality control processes (12/17/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '401-3 Defined terms related to postfunding quality control ❑ Make-whole payment ❑ Split loss
      ❑ Loss reimbursement S Significant Defect One or more Defects that either necessitate a change to the price
      for which the Mortgage was purchased or result in the Mortgage being unacceptable for purchase had the true
      and accurate information about the Mortgage been known at time of purchase. Mortgages with Findings and PALs
      are not Mortgages with Significant Defects. In determining whether there is a Significant Defect, Freddie
      Mac must give due consideration to the severity of the Defect. In addition, in order to be a Significant Defect,
      the Defect must relate to one of the following: ■ The underwriting of the Borrower’s creditworthiness and
      capacity (e.g., Borrower’s income, Borrower credit/liabilities and Borrower assets) or Borrower eligibility
      and qualification (e.g., Area Median Income, First-Time Homebuyer, lawful presence in the United States) ■
      The underwriting criteria related to property or project eligibility (e.g., residential use and condominium
      eligibility), the property appraisal or the physical condition of the Mortgaged Premises ■ Mortgage or product
      terms and criteria (e.g., products that may require special Seller/Servicer approval as a prerequisite for
      delivery and the criteria described in the Purchase Documents such as loan-to-value (LTV) ratio, occupancy,
      Credit Score, Mortgage purpose and Mortgage Product, and terms such as ineligible transaction types and limitations
      on cash out to the Borrower that determines the type of refinance) or any terms and criteria set forth in
      any negotiated provision) ■ A life-of-loan representation and warranty (as described in Section 1301.6) ■
      Requirements applicable at time of Mortgage purchase (e.g., no defaults, all taxes and insurances have been
      paid or escrows established and no modification, encumbrance, subordination or release of Mortgage) ■ The
      warranties and obligations of Seller/Servicer set forth in Section 3101.1 regarding the Freddie Mac Exclusionary
      List,'
    drafter_attestation: Verbatim from Freddie Guide §3401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-3401.1-3
  canonical_id: fhlmc-3401.1-3
  section: Freddie Mac Guide 3401.1
  description: '3401.1 Postfunding quality control processes: 401-4 Defined terms related to postfunding quality
    control available via Freddie Mac Gateway, or in Section 3101.2 regarding the FHFA Suspended Counterparty Program
    ■ The existence, sufficiency or enforceability of any required insurance or guaranty, or ■ The form and/or executio…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §3401.1 — Postfunding quality control processes (12/17/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '401-4 Defined terms related to postfunding quality control available via Freddie Mac Gateway,
      or in Section 3101.2 regarding the FHFA Suspended Counterparty Program ■ The existence, sufficiency or enforceability
      of any required insurance or guaranty, or ■ The form and/or execution of Freddie Mac-required Mortgage documents
      that without which make the Mortgage ineligible for sale or limit the enforceability of the required Mortgage
      terms (e.g., Uniform Residential Loan Application, power of attorney, Texas 50(a)(6) Mortgage documents or
      nonstandard and special purpose documents such as Living Trusts) (ii) General quality control policy Freddie
      Mac reserves the right to conduct a postfunding quality control review of any Mortgage sold to Freddie Mac.
      This review may be a Component Based Review or a Full-File Review. Freddie Mac will underwrite each Mortgage
      selected for postfunding quality control review to verify that the Mortgage: ■ Is of investment quality (as
      defined in Section 4201.1), ■ Is based on a determination that the Borrower has acceptable credit reputation
      and capacity, ■ Is secured by collateral that is adequate for the transaction, and ■ Otherwise complies with
      Freddie Mac’s underwriting guidelines and other requirements set forth in the Purchase Documents, including
      compliance with applicable anti-predatory lending laws Freddie Mac’s determination of whether a Mortgage is
      of investment quality and otherwise complies with all requirements of the Purchase Documents is conclusive,
      unless the IDR Process described in Section 3602.4(b) is elected, in which case the decision of the Neutral
      (as such term is defined in the IDR Document) shall be binding. (iii) FICO® scores'
    drafter_attestation: Verbatim from Freddie Guide §3401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-3401.1-4
  canonical_id: fhlmc-3401.1-4
  section: Freddie Mac Guide 3401.1
  description: '3401.1 Postfunding quality control processes: 401-5 Freddie Mac obtains FICO scores for Mortgages
    purchased and uses such scores and the accompanying reason codes as one of the sampling criteria for postfunding
    quality control reviews. If the Seller delivers and documents an Indicator Score in accordance with the provisions
    …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §3401.1 — Postfunding quality control processes (12/17/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '401-5 Freddie Mac obtains FICO scores for Mortgages purchased and uses such scores and the
      accompanying reason codes as one of the sampling criteria for postfunding quality control reviews. If the
      Seller delivers and documents an Indicator Score in accordance with the provisions of Section 5202.1, Freddie
      Mac will use the Seller-delivered score. (iv) Reviewing Accept Mortgages For Accept Mortgages, the Borrower
      will be considered creditworthy and no further assessment of Borrower creditworthiness will be made in the
      postfunding review if: ■ The Seller has submitted to Loan Product Advisor® all required information and has
      complied with the terms applicable to Accept Mortgages in the Guide ■ The information submitted is true, complete,
      accurate and documented in the loan file (v) Mortgage file submission requirements Freddie Mac will notify
      the Seller/Servicer via e-mail that certain Mortgages have been selected for postfunding quality control review
      and will provide a checklist of documents that must be submitted to Freddie Mac for each selected Mortgage.
      Unless otherwise instructed by Freddie Mac, the Seller/Servicer must submit: ■ All credit, income, employment,
      collateral and asset documentation used by the Seller to make the Mortgage underwriting decision, ■ The documents
      listed in Sections 3401.2(a) through 3401.5(c), as applicable, ■ The source documentation for any Indicator
      Score, ■ Any other documents listed on the checklist, and ■ If requested by Freddie Mac, any other Mortgage-related
      documents that the Seller/Servicer is required to maintain in the Mortgage file, including any documents required
      under the Guide or other Purchase Documents In addition, for nonperforming Mortgages requested for postfunding
      quality control review, the checklist includes records of all collection efforts. This includes Borrower contacts,
      property inspections, attempts to develop a workout plan and bankruptcy and/or foreclosure tracking logs and
      notes.'
    drafter_attestation: Verbatim from Freddie Guide §3401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-3401.1-5
  canonical_id: fhlmc-3401.1-5
  section: Freddie Mac Guide 3401.1
  description: '3401.1 Postfunding quality control processes: 401-6 The Seller/Servicer must provide all documents
    indicated on the applicable postfunding quality control checklist in an electronic media format and file size
    as specified on the Freddie Mac Quality Control webpage located at https://sf.freddiemac.com/general/specifications-f…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §3401.1 — Postfunding quality control processes (12/17/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '401-6 The Seller/Servicer must provide all documents indicated on the applicable postfunding
      quality control checklist in an electronic media format and file size as specified on the Freddie Mac Quality
      Control webpage located at https://sf.freddiemac.com/general/specifications-for-electronic-file-delivery-for-qc-
      loan-file-reviews. Freddie Mac reserves the right, at its sole discretion, to take appropriate action if a
      Seller/Servicer fails to deliver the required documents in the specified media format and file size. Such
      action may include, but is not limited to, assessing a noncompliance fee to cover costs incurred by manually
      processing file deliveries. Although all documentation sent to Freddie Mac may be considered in the postfunding
      quality control review, trended credit data (as described in Section 5202.1(c)) will not be considered. The
      Seller/Servicer is responsible for ensuring the accuracy and authenticity of all documentation in the Mortgage
      file. Freddie Mac must receive requested Mortgage files, containing all specified documentation, within 30
      days after the request for postfunding quality control review. If the requested Mortgage file is not received
      within this time frame, Freddie Mac may issue a repurchase request. Failing to submit the Mortgage file as
      requested may result in a Seller’s or Servicer’s suspension or disqualification. However, Freddie Mac may,
      at its discretion, specify a shorter or longer period for the receipt of the requested Mortgage files. Finally,
      an offer by the Seller/Servicer to repurchase the Mortgage does not exempt them from submitting the required
      documents for postfunding quality control. (vi) Process for remedying selling and origination defects The
      steps below describe the process that Freddie Mac will follow to categorize Defects, allow Corrections to
      Defects and remedy Defects through either a repurchase request or Repurchase Alternative. 1. Identification
      of Defects After a postfunding quality control review is completed, Freddie Mac will designate any Defect(s)
      as resulting in one of the following: ■ A Finding ■ A PAL'
    drafter_attestation: Verbatim from Freddie Guide §3401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-3401.1-6
  canonical_id: fhlmc-3401.1-6
  section: Freddie Mac Guide 3401.1
  description: '3401.1 Postfunding quality control processes: 401-7 ■ A Significant Defect Freddie Mac’s Remedy
    letters will detail the specific Significant Defects found during the quality control review. If Freddie Mac
    designates the Defect as resulting in a Finding, Freddie Mac will not require a Correction or a Remedy from
    the Seller/Se…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §3401.1 — Postfunding quality control processes (12/17/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '401-7 ■ A Significant Defect Freddie Mac’s Remedy letters will detail the specific Significant
      Defects found during the quality control review. If Freddie Mac designates the Defect as resulting in a Finding,
      Freddie Mac will not require a Correction or a Remedy from the Seller/Servicer. However, Freddie Mac may request
      a data update from the Seller/Servicer. If Freddie Mac designates the Defect as resulting in a PAL, the Seller/Servicer
      must pay to Freddie Mac the applicable Credit Fees that should have been paid when the Mortgage was purchased
      by Freddie Mac had the true and accurate facts about the Mortgage been known at the time of purchase, which
      will be paid in accordance with Section 6303.2(a). Freddie Mac may not demand repurchase of a PAL. Note: The
      Seller/Servicer may not voluntarily repurchase a PAL. If Freddie Mac identifies a Significant Defect, Freddie
      Mac will require repurchase of the Mortgage or may offer the Seller a Repurchase Alternative. Freddie Mac
      also checks for data discrepancies (which could be independent of a Full-File Review) that may result in the
      assessment of or an adjustment to a Credit Fee. 2. Correcting certain significant Defects During the Appeal
      Process described in Section 3602.4(b), a Seller/Servicer has the right to provide a Correction of any Significant
      Defects. Any additional documentation or information that the Seller/Servicer provides is subject to the same
      standard of quality control review as the initial Mortgage file documentation. The documentation submitted
      to correct a Significant Defect must be based on information or data that either: ■ Was available at the time
      of underwriting (and no later than the Note Date), or ■ Covers the time of underwriting so long as such evidence
      meets the applicable documentation requirements set forth in the Purchase Documents During the appeals process,
      Seller/Servicers have the ability to correct Defects related to property, flood or mortgage insurance. If
      a Seller/Servicer does not repurchase the Mortgage or perform any Repurchase Alternative in accordance with
      the Purchase Documents, such Seller/Servicer continues to have the obligation to correct any Significant Defect
      in accordance with the Purchase Documents.'
    drafter_attestation: Verbatim from Freddie Guide §3401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-3401.1-7
  canonical_id: fhlmc-3401.1-7
  section: Freddie Mac Guide 3401.1
  description: '3401.1 Postfunding quality control processes: 401-8 3. Freddie Mac review of Seller response and
    Mortgage reassessment During the Appeal Process described in Section 3602.4(b), Freddie Mac reassesses a Mortgage
    by reviewing any Corrections submitted by the Seller/Servicer according to the applicable Purchase Documents
    to det…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §3401.1 — Postfunding quality control processes (12/17/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 401-8 3. Freddie Mac review of Seller response and Mortgage reassessment During the Appeal
      Process described in Section 3602.4(b), Freddie Mac reassesses a Mortgage by reviewing any Corrections submitted
      by the Seller/Servicer according to the applicable Purchase Documents to determine if a Significant Defect
      remains. If the Seller/Servicer provides additional documentation or information or takes necessary steps
      that correct all Significant Defects per the Purchase Documents, Freddie Mac will rescind the Remedy request.
      However, if after reassessment any Significant Defects have not been corrected according to the Purchase Documents,
      the Seller/Servicer must promptly comply with the Remedy request. If the reassessment leads Freddie Mac to
      classify the Mortgage as a PAL, the Seller/Servicer must remit the applicable Credit Fees to Freddie Mac per
      Section 6303.2. These fees reflect what should have been paid at the time of Mortgage purchase had the true
      facts been known. Throughout the appeals process, the Seller/Servicer can propose a Repurchase Alternative
      upon identification of a Significant Defect. Freddie Mac will consider this proposal in good faith and respond
      accordingly. Nonetheless, Freddie Mac can offer or decline Repurchase Alternatives depending on the Seller/Servicer’s
      Counterparty Status, especially where future obligations are involved. Other factors for consideration may
      include the Seller/Servicer’s quality of loan origination and their capacity and willingness to honor other
      Purchase Document provisions. If a Mortgage has multiple Significant Defects and the Seller/Servicer manages
      to correct only some, Freddie Mac may pursue repurchase or other alternatives as a Remedy if Significant Defects
      persist after reassessment. Conversely, if all Significant Defects are rectified, yet a defect still classifies
      the Mortgage as a PAL post-reassessment, Freddie Mac will notify the Seller/Servicer of the due Credit Fee,
      which must be paid in alignment with Section 6303.2. 4. Range of possible outcomes (A) Finding If the Mortgage
      has had a Full-File Review completed with only Findings discovered, the Seller/Servicer will be relieved from
      Freddie Mac’s enforcement of certain selling representations and warranties related to such Mortgage (as described
      in Section 1301.6(a)), provided all other requirements in Section 1301.6 are met. If a Mortgage has not had
      a Full-File Review, the Seller/Servicer may still be relieved from Freddie Mac’s enforcement of certain selling
      representations and
    drafter_attestation: Verbatim from Freddie Guide §3401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-3401.1-8
  canonical_id: fhlmc-3401.1-8
  section: Freddie Mac Guide 3401.1
  description: '3401.1 Postfunding quality control processes: 401-9 warranties through other provisions under the
    selling representation and warranty framework described in Section 1301.6. (B) PAL The appeals process for a
    PAL will result in one of the following outcomes: ■ Rescission of the request for the payment of the Credit
    Fee, or ■ P…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §3401.1 — Postfunding quality control processes (12/17/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '401-9 warranties through other provisions under the selling representation and warranty framework
      described in Section 1301.6. (B) PAL The appeals process for a PAL will result in one of the following outcomes:
      ■ Rescission of the request for the payment of the Credit Fee, or ■ Payment of the Credit Fee If a PAL has
      undergone a Full-File Review and no Significant Defects have been identified, the Seller/Servicer will be
      relieved from Freddie Mac’s enforcement of certain selling representations and warranties related to that
      Mortgage (as outlined in Section 1301.6(a)) once the Seller/Servicer pays the Credit Fee and meets all other
      requirements specified in Section 1301.6. Conversely, for a PAL that has not had a Full-File Review, the Seller/Servicer
      will not be relieved from Freddie Mac’s enforcement of the aforementioned selling representations and warranties
      upon payment of the Credit Fee. However, the Seller/Servicer may still achieve relief from enforcement of
      certain selling representations and warranties through other provisions within the selling representation
      and warranty framework described in Section 1301.6. (C) Significant Defects The appeals process for Mortgages
      with Significant Defects may result in a range of outcomes, including: ■ Rescission of the Remedy request,
      ■ Agreement on a Repurchase Alternative, or ■ Fulfillment of the Remedy request If Freddie Mac offers a Repurchase
      Alternative after a repurchase demand has been issued, the Seller/Servicer has the option to repurchase the
      Mortgage instead of accepting the Repurchase Alternative. If a Mortgage with a Significant Defect has had
      a Full-File Review, the Seller/Servicer will be relieved from Freddie Mac’s enforcement of certain selling
      representations and warranties related to such Mortgage (as described in Section 1301.6(a)) if: ■ All Significant
      Defects have been corrected, or'
    drafter_attestation: Verbatim from Freddie Guide §3401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-3401.1-9
  canonical_id: fhlmc-3401.1-9
  section: Freddie Mac Guide 3401.1
  description: '3401.1 Postfunding quality control processes: 401-10 ■ A Repurchase Alternative has been offered,
    accepted and fully executed and completed by the Seller/Servicer in compliance with any related terms, including
    the expiration of all applicable time frames, provided all other requirements set forth in Section 1301.6 are
    met A…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §3401.1 — Postfunding quality control processes (12/17/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '401-10 ■ A Repurchase Alternative has been offered, accepted and fully executed and completed
      by the Seller/Servicer in compliance with any related terms, including the expiration of all applicable time
      frames, provided all other requirements set forth in Section 1301.6 are met At its sole discretion, Freddie
      Mac, in addition to its other contractual and legal remedies, will require repurchase of each Mortgage that
      does not comply with the requirement(s) set forth in the Purchase Documents to submit requested Mortgage documentation
      for postfunding quality control review within the allotted time, unless the IDR Process is elected, in which
      case the decision of the Neutral (as such term is defined in the IDR Document) shall be binding. (b) Credit
      enhancer postfunding review Freddie Mac may choose to obtain a credit enhancement on some or all of the Mortgages
      it purchases, either concurrently with or after the Mortgage purchase. In such cases, the Seller, as the Servicer,
      or any transferee Servicer may receive an electronic request from Freddie Mac to supply the credit enhancer
      with Mortgage files or other Mortgage information or documentation (“Mortgage information”) for the credit-enhanced
      Mortgages. Freddie Mac’s request will: 1. Identify the credit enhancer requesting the Mortgage information
      2. Authorize the release of specific Mortgage information 3. Provide the name and contact details for the
      individual at the credit enhancer to whom the Mortgage information should be directed The Seller or transferee
      Servicer must provide the Mortgage information by either: ■ 30 days after receiving the request, or ■ The
      written deadline agreed upon between the credit enhancer and the Seller or transferee Servicer For each request
      for Mortgage information: ■ The Seller or transferee Servicer will not receive notice regarding any action
      taken by the credit enhancer ■ If the Seller or transferee Servicer fails to cooperate with the credit enhancer
      and this jeopardizes Freddie Mac’s ability to maintain the credit enhancement, Freddie Mac may exercise any
      rights and remedies under the relevant Purchase Documents'
    drafter_attestation: Verbatim from Freddie Guide §3401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
