source:
  type: guide
  id: fhlmc-3402.3
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 3402.3 — Documenting
    and reporting
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 3402.3 — Documenting
    and reporting.
  coverage_tier: operative
obligations:
- id: fhlmc-3402.3-full
  canonical_id: fhlmc-3402.3-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 3402.3 — Documenting
    and reporting
  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 3402.3 — Documenting
      and reporting
    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: '3402.3: Documenting and reporting (05/06/26) This section contains
      information related to: ■ Documenting reviews ■ Reporting requirements ■ Retention
      of Seller’s quality control records (a) Documenting reviews The Seller must:
      ■ Maintain complete records for each Mortgage file selected for a preclosing
      or a post- closing quality control review ■ Document and explain discrepancies
      or inconsistencies found in the Mortgage file that affect the eligibility of
      the Mortgage based on the requirements of the Seller, the MI or Freddie Mac
      Freddie Mac Single-Family Seller/Servicer Guide Chapter 3402 As of 05/06/26
      Page 3402-21 (b) Reporting requirements The Seller’s quality control program
      must provide that all preclosing and post-closing quality control activities
      be fully documented in writing and reviewed by management on a regular basis.
      (i) Reporting results Quality control review results must be reported in writing
      to the Seller’s Senior Management within 90 days of selection of the Mortgage
      files for review. The Seller must thoroughly analyze findings affecting the
      acceptability or eligibility of Mortgages and initiate any necessary corrective
      actions. (ii) Notification to Freddie Mac The Seller must notify Freddie Mac
      within 30 days of the date the quality control results are reported in writing
      to the Seller’s Senior Management when a finding affects the eligibility of
      a Mortgage sold to Freddie Mac or if the finding is related to fraud or possible
      fraud. The Seller must notify Freddie Mac Quality Control via the Tip Referral
      Tool, accessible via Freddie Mac Gateway®, of findings that relate to any of
      the following: ■ Misrepresentations, misstatements or omissions identified in
      Section 3201.2(a), to the extent they are associated with the origination of
      a Mortgage, whether discovered through a post-closing quality control review
      or by any other means. All other findings related to fraud, suspected fraud
      or other Suspicious Activity must be reported in accordance with Section 3201.2.
      ■ The underwriting of the Borrower’s creditworthiness and capacity (e.g., Borrower’s
      income, credit/liabilities, 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, condominium eligibility), the appraisal report or the
      physical condition of the Mortgaged Premises ■ Mortgage or program terms and
      criteria (e.g., program 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 ratio, occupancy, Credit Score, Mortgage purpose and Mortgage
      Product, 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) regarding Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 3402 As of 05/06/26 Page 3402-22 the following:
      ❑ Charter matters ❑ Misstatements, misrepresentations and omissions ❑ Data inaccuracies
      ❑ Clear title/First Lien priority ❑ Compliance with laws ❑ Unacceptable Mortgage
      products ■ Requirements applicable at the time the Mortgage was sold to Freddie
      Mac (e.g., no defaults, all taxes and insurances have been paid or escrows have
      been established, no modification, encumbrance, subordination or release of
      the Mortgage) ■ The existence, sufficiency or enforceability of any required
      insurance or guaranty ■ The form and/or execution of Freddie Mac required Mortgage
      documents, without which the Mortgage would be ineligible for sale to Freddie
      Mac or the enforceability of the required Mortgage terms would be limited (e.g.,
      Form 65, power of attorney, Texas Equity Section 50(a)(6) Mortgage documents,
      nonstandard or special purpose documents such as Living Trusts) Note: Freddie
      Mac reserves the right to increase the sampling or to impose other requirements
      on a case-by-case basis. (c) Retention of Seller’s quality control records For
      at least three years from the date of the preclosing or post-closing quality
      control review, the Seller must retain all records of its quality control findings,
      along with documentation of any corrective action taken. These records must
      be made available to Freddie Mac and upon request to the new Servicer if a Transfer
      of Servicing occurs. Upon request by Freddie Mac, the Seller must provide records
      that clearly indicate: ■ The Freddie Mac loan number, ■ The Seller’s final determination
      (from its quality control department) of whether the Mortgage is an Investment
      Quality Mortgage, and ■ Other loan-level information that is requested by Freddie
      Mac Freddie Mac Single-Family Seller/Servicer Guide Chapter 3403 As of 02/11/26
      Page 3403-1 Chapter 3403: Servicer’s Quality Control Program'
  judgment: false
