source:
  type: guide
  id: fhlmc-2101.1
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 2101.1 — Eligibility
    criteria
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 2101.1 — Eligibility
    criteria.
  coverage_tier: operative
obligations:
- id: fhlmc-2101.1-full
  canonical_id: fhlmc-2101.1-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 2101.1 — Eligibility
    criteria
  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 2101.1 — Eligibility
      criteria
    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: '2101.1: Eligibility criteria (12/17/25) (a) Approval required
      An institution must be approved by Freddie Mac as a Seller/Servicer before it
      can sell Mortgages to and/or service Mortgages for Freddie Mac. Once approved,
      the Seller/Servicer must comply with all the applicable requirements in the
      Purchase Documents, including the requirements in this chapter. A Seller/Servicer
      must be separately and specifically approved before it can sell eMortgages to
      and/or service eMortgages for Freddie Mac. (See Sections 1402.1(c) and 1402.5(a).)
      (b) Representations, warranties, covenants and agreements The Seller/Servicer
      represents and warrants to, and covenants and agrees with, Freddie Mac that
      at all times it: ■ Is a viable organization and, as applicable, able effectively
      to: ❑ Originate or otherwise acquire Mortgages acceptable for sale to Freddie
      Mac in accordance with the Guide and applicable Purchase Documents and/or ❑
      Service Mortgages in accordance with the Servicing Contract ■ Maintains a minimum
      Tangible Net Worth and other financial requirements (see Section 2101.2) ■ Will
      comply with any additional requirements, as deemed appropriate by Freddie Mac
      in its sole discretion. Freddie Mac will provide Seller/Servicer with notice
      of any additional requirements ■ Will provide audited or Reviewed Financial
      Statements, as may be required by Freddie Mac, at the time of approval and otherwise
      as may be required by Freddie Mac, including audited or Reviewed Financial Statements
      for the Seller/Servicer’s parent, subsidiaries, and affiliates ■ Maintains fidelity
      and errors and omissions insurance coverages as set forth in Sections 2101.6
      through 2101.9 ■ Maintains a quality control program that is acceptable to Freddie
      Mac (see Chapter 3402) Freddie Mac Single-Family Seller/Servicer Guide Chapter
      2101 As of 05/06/26 Page 2101-2 ■ Is able to demonstrate to Freddie Mac’s satisfaction,
      that it has sufficient capitalization, profitability, liquidity and funding
      sources to support its ongoing operations and its commitments to Freddie Mac
      ■ Complies with the information security and business continuity planning requirements
      in Chapter 1302, and ■ Upon request, provides information related to Related
      Third Parties, including but not limited to the nature of the relationship and
      address of the Related Third Party Freddie Mac’s determinations regarding Seller/Servicer’s
      compliance with the representations, warranties, covenants and agreements listed
      above shall be conclusive and in Freddie Mac’s sole discretion. (c) Freddie
      Mac may request additional organizational documents In addition to the other
      information and documents required at the time of application in accordance
      with the Freddie Mac Single-Family Seller/Servicer Application Document Checklist,
      Freddie Mac in its sole discretion may request the applicant provide additional
      information related to its application including, without limitation, any or
      all of the following: ■ Articles of Incorporation/Organization of the applicant
      and any amendments thereto ■ Operating Agreement/Bylaws of the applicant and
      any amendments thereto ■ Certificate of Formation of the applicant ■ Identification
      information for every person who directly or indirectly has the right to vote
      a material portion of a class of a voting interest of the company or has the
      power to sell or direct the sale of a material portion of a class of voting
      interests of the company (d) Special purpose entities For applicants whose ownership
      structure or affiliate relationships may pose a bankruptcy consolidation risk
      (such as special purpose entities, special purpose vehicles or organizations
      that have or are requested by Freddie Mac to have a similar organizational structure),
      Freddie Mac may require that the applicant (and its parent) adopt some or all
      of the separateness covenants substantially similar to those in Exhibit 115,
      Special Purpose Entity (“SPE”) Covenants Sample Provisions. Freddie Mac may
      require a non-consolidation opinion from a law firm generally acceptable to
      Freddie Mac and containing only industry standard qualifications and assumptions.
      Freddie Mac may deny approval or request additional assurances if an applicant
      is a recycled entity or vehicle. Freddie Mac Single-Family Seller/Servicer Guide
      Chapter 2101 As of 05/06/26 Page 2101-3 2101.2: Acceptable Net Worth and other
      financial requirements (12/31/23) (a) Defined terms Seller/Servicers should
      be familiar with the following terms used in this section as they relate to
      financial requirements: ■ Agency Mortgage Servicing: The aggregate Residential
      First Lien Mortgage Servicing UPB of all Mortgages serviced for the Enterprises
      and Ginnie Mae ■ Enterprise: Freddie Mac and Fannie Mae, each an “Enterprise”
      and collectively the “Enterprises.” ■ Large Non-Depository Institutions: Non-depository
      institutions with $50 billion or more in Residential First Lien Mortgage Servicing
      UPB plus Other Servicing UPB as determined at the end of each calendar quarter.
      ■ Liquidity: Cash and cash equivalents (unrestricted), certain unpledged investment
      grade securities that are available for sale or held for trade (including single-family
      mortgage- backed securities backed solely by Agency Mortgage Servicing, obligations
      of the Enterprises, and Treasury obligations), and 50% of committed/unused Agency
      Mortgage Servicing advance lines of credit. ■ Long-Term Senior Unsecured Debt
      Rating: A rating assigned to a financial obligation with an original maturity
      of one year or more that reflects both on the likelihood of a default on contractually
      promised payments on senior unsecured debts and the expected financial loss
      suffered in the event of default on such debts from a Rating Agency. ■ Long-Term
      Corporate Family Rating: A long-term rating that reflects the relative likelihood
      of a default on a corporate family’s debt and debt-like obligations and the
      expected financial loss suffered in the event of default from a Rating Agency.
      ■ Other Servicing UPB: Using the fields from the Form 1055, Mortgage Bankers’
      Financial Reporting Form (MBFRF), the outstanding UPB of a Seller/Servicer’s
      portfolio of one- to four- unit residential First Lien Mortgages the Seller/Servicer
      is contractually obligated to service for all investors other than the Enterprises
      and Ginnie Mae, plus the following regardless of the investor: ❑ Second lien
      Mortgages, ❑ Funded home equity lines of credit, ❑ Reverse Mortgages, plus Freddie
      Mac Single-Family Seller/Servicer Guide Chapter 2101 As of 05/06/26 Page 2101-4
      ❑ Construction and land development Mortgages This does not include the outstanding
      UPB of Mortgages serviced under a subservicing arrangement. ■ Rating Agency:
      An entity that is a “Nationally Recognized Statistical Rating Organization”
      as defined by Section 78c(a) of Title 15 of the United States Code (15 U.S.C.
      78c(a)). ■ Residential First Lien Mortgage Servicing UPB: Using the fields from
      the Form 1055, Mortgage Bankers’ Financial Reporting Form (MBFRF), the outstanding
      UPB of a Seller/Servicer’s portfolio of one- to four- unit residential First
      Lien Mortgages the Seller/Servicer is contractually obligated to service for
      the Enterprises and Ginnie Mae, as applicable, excluding: ❑ Funded home equity
      lines of credit, ❑ Reverse Mortgages, plus ❑ Construction and land development
      Mortgages This does not include the outstanding UPB of Mortgages serviced under
      a subservicing arrangement. ■ Servicer Rating: An evaluation of a servicer for
      its capacity to carry out servicing business, which is different from evaluations
      of financial instruments or credit standing of corporations, from a Rating Agency.
      Servicer Ratings may be conducted based upon the type of servicing actions performed,
      including evaluations for entities that act as primary servicers, special servicers
      or master servicers. ■ Small Seller: A Seller that originates $1 billion or
      less in one- to four- unit residential first lien Mortgages (excluding reverse
      Mortgages, one-to four-unit residential construction and land development loans
      to home buyers, and lot loans to consumers) in the most recent four-quarter
      period. ■ Tangible Net Worth: Total equity (as determined by generally accepted
      accounting principles (GAAP)) less receivables due from related entities, less
      goodwill and other intangible assets, less carrying value of pledged assets
      net of associated liabilities, less deferred tax assets net of associated deferred
      tax liabilities. Note: If the deferred tax liabilities are greater than the
      deferred tax assets, then the deduction from the Tangible Net Worth will be
      zero. Freddie Mac Single-Family Seller/Servicer Guide Chapter 2101 As of 05/06/26
      Page 2101-5 (b) Seller/Servicers that are depository institutions Seller/Servicers
      that are depository institutions must maintain at all times a Tangible Net Worth
      of $2,500,000 plus a dollar amount equal to or exceeding the sum of: ■ 25 basis
      points of that portion of the Seller/Servicer’s Residential First Lien Mortgage
      Servicing UPB serviced for the Enterprises, ■ 25 basis points of the Other Servicing
      UPB, plus ■ 35 basis points of that portion of the Seller/Servicer’s Residential
      First Lien Mortgage Servicing UPB serviced for Ginnie Mae Seller/Servicers that
      are depository institutions must maintain compliance with their applicable capital
      and liquidity requirements imposed by their regulators. (c) Seller/Servicers
      that are non-depository institutions Seller/Servicers that are non-depository
      institutions must maintain at all times the Tangible Net Worth requirements
      applicable to depository institutions above, and must also maintain: ■ A Tangible
      Net Worth/total assets ratio greater than or equal to 6%, where total assets
      are determined in accordance with GAAP, and ■ A base Liquidity of eligible assets
      equal to or exceeding the sum of: ❑ 7 basis points of that portion of the Seller/Servicer’s
      Residential First Lien Mortgage Servicing UPB serviced for the Enterprises,
      if the Seller/Servicer remits (or an Enterprise draws) interest or principal,
      or both, as scheduled, regardless of whether principal or interest has been
      collected from the Borrower, ❑ 3.5 basis points of that portion of the of the
      Seller/Servicer’s Residential First Lien Mortgage Servicing UPB serviced for
      the Enterprises, if the Seller/Servicer remits (or an Enterprise draws) the
      interest and principal only as actually collected from the Borrower, ❑ 3.5 basis
      points of the Seller/Servicer’s Other Servicing UPB, plus ❑ 10 basis points
      of that portion of the Seller/Servicer’s Residential First Lien Mortgage Servicing
      UPB serviced for Ginnie Mae ■ An origination Liquidity* equal to or exceeding
      50 basis points of the sum of the following as reported by Seller/Servicer using
      the fields from the Form 1055, Mortgage Bankers’ Financial Reporting Form (MBFRF):
      Freddie Mac Single-Family Seller/Servicer Guide Chapter 2101 As of 05/06/26
      Page 2101-6 ❑ One-to-four unit residential first lien (excluding reverse Mortgages,
      one-to-four-unit residential construction and land development loans to home
      buyers, and lot loans to consumers) Mortgages held for sale, at lower of cost
      or market, ❑ One-to-four unit residential first lien (excluding reverse Mortgages,
      one-to-four-unit residential construction and land development loans to home
      buyers, and lot loans to consumers) Mortgages held for sale, at fair value,
      plus ❑ UPB of interest rate lock commitments after fallout adjustments. *Note:
      These origination Liquidity requirements do not apply to Small Sellers. (d)
      Seller/Servicers that are Large Non-Depository Institutions In addition to the
      Liquidity requirements specified in subsection (c) above, all Seller/Servicers
      that are Large Non-Depository Institutions must at all times maintain supplemental
      Liquidity equal to or exceeding the sum of: ■ 2 basis points of that portion
      of the Seller/Servicer’s Residential First Lien Mortgage Servicing UPB serviced
      for the Enterprises, plus ■ 5 basis points of that portion of the Seller/Servicer’s
      Residential First Lien Mortgage Servicing UPB serviced for Ginnie Mae (e) Additional
      requirements Notwithstanding the above, Freddie Mac may, as it deems appropriate
      and in its sole discretion: ■ Modify a Seller/Servicer’s Tangible Net Worth
      requirement ■ Impose limitations, restrictions or qualifications on the sale
      of Mortgages to, or the Servicing of Mortgages for Freddie Mac by any Seller/Servicer,
      and ■ Impose additional financial requirements on any Seller/Servicer, including,
      but not limited to, (i) requirements relating to liquidity and profitability,
      regardless of the Seller/Servicer’s Tangible Net Worth, and (ii) the requirement
      that any Seller/Servicer execute and deliver a Collateral Pledge Agreement,
      in substantially the form and substance of Exhibit 104, whereby the Seller/Servicer
      will pledge certain collateral (whether cash, securities or otherwise), as pledgor,
      to Freddie Mac, as secured party, in such amount as determined by Freddie Mac,
      in its sole discretion Freddie Mac will provide the Seller/Servicer with notice
      of any modification to the Seller/Servicer’s Tangible Net Worth or other financial
      requirements, any additional requirements, and any limitations, restrictions
      or qualifications on the sale of Mortgages or Servicing of Mortgages. Freddie
      Mac Single-Family Seller/Servicer Guide Chapter 2101 As of 05/06/26 Page 2101-7
      2101.3: Activity thresholds and no-activity fee (04/07/21) Beginning January
      1, 2014, a Seller/Servicer that does not meet certain activity thresholds may
      be assessed a no-activity fee. To avoid being assessed the no-activity fee,
      Seller/Servicers must meet at least one of the following activity thresholds:
      ■ Sell to Freddie Mac during the immediately preceding 36 months, or ■ Service,
      or be a Servicing Agent for, a Mortgage portfolio for Freddie Mac as of December
      31 of the immediately preceding calendar year New Seller/Servicers are exempt
      from the fee until they have been approved by Freddie Mac for three years. The
      no-activity fee may also be assessed for each subsequent calendar year in which
      the Seller/Servicer does not meet the activity threshold but remains an approved
      Freddie Mac Seller/Servicer. The fee will be assessed and paid in accordance
      with the requirements of Chapter 6303.'
  judgment: false
