source:
  type: guide
  id: fhlmc-6305.5
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 6305.5 — Liability
    and indemnification
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 6305.5 — Liability
    and indemnification.
  coverage_tier: operative
obligations:
- id: fhlmc-6305.5-full
  canonical_id: fhlmc-6305.5-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 6305.5 — Liability
    and indemnification
  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 6305.5 — Liability
      and indemnification
    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: '6305.5: Liability and indemnification (12/03/25) This section
      contains requirements related to: ■ Liability for a postponed Settlement Date
      for Pledged Mortgages ■ Seller indemnification ■ Reimbursement by the Seller
      for Pledged Mortgages (a) Liability for a postponed Settlement Date for Pledged
      Mortgages Freddie Mac will not be liable to the Seller, the Warehouse Lender
      or any third party for any losses, costs, expenses or damages that such party
      may incur if the Settlement Date for a Pledged Mortgage is postponed due to
      the Seller’s failure to deliver wire transfer instructions (Form 987E, Wire
      Transfer Authorization for a Cash Warehouse Delivery) into the applicable Loan
      Selling Advisor® screens or Form 996E, Warehouse Provider Release and Transfer,
      because the person executing Form 987E, the contact person on Form 996E or the
      Freddie Mac Single-Family Seller/Servicer Guide Chapter 6305 As of 04/08/26
      Page 6305-11 employee performing the Loan Selling Advisor Setup Manager role
      is not designated as an “Authorized Employee” on the Seller’s Certificate of
      Incumbency. (See Section 2201.1 for additional information.) (b) Seller indemnification
      The Seller agrees to indemnify and hold Freddie Mac, its successors, assigns
      and transfer agents harmless from and against any and all losses, claims, demands,
      actions, suits, damages, costs and expenses (including reasonable attorney fees)
      of every nature and character that may arise or be made against or be incurred
      by Freddie Mac as a result of any of the following: ■ The deposit of the Note
      and any ancillary documents with, and their maintenance by, the Document Custodian
      pending Freddie Mac’s purchase of the Mortgages or the determination not to
      purchase certain Mortgages (and the subsequent return of rejected Notes and
      any ancillary documents) ■ The delivery or transfer of any Purchase Proceeds
      by Freddie Mac or its agent to any person if: ❑ Such Purchase Proceeds in the
      form of a UMBS®, MBS or WAC ARM PC are delivered in accordance with the terms
      of the Purchase Documents and security wire instructions inserted in Loan Selling
      Advisor screens, or ❑ Such Purchase Proceeds are delivered in accordance with
      the Purchase Documents and the Seller’s wire transfer instructions on Form 987E
      ■ The Seller’s failure to provide any of the following forms, as applicable,
      that designate employees authorized to provide Freddie Mac with wire transfer
      instructions (or modify instructions) to transfer funds or securities on the
      Seller’s behalf: ❑ Form 988SF, Certificate of Incumbency for a Bank, Savings
      Bank, Savings and Loan Association, Credit Union, Corporation or Limited Liability
      Company ❑ Form 988SF – HFA, Certificate of Incumbency for Housing Finance Agency
      ❑ Form 989SF, Certificate of Incumbency for Limited Partnerships ■ The Seller’s
      failure to provide complete, accurate and authorized wire transfer instructions
      or failure to notify Freddie Mac of any necessary or desired changes to the
      authorized wire transfer instructions ■ Security interests, claims, encumbrances
      of any third party, including any Warehouse Lender, or the failure of any third
      party, including any Warehouse Lender, to release or to transfer to Freddie
      Mac all of the rights, title and interest of whatever nature the third party
      may have with respect to or in the Note Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 6305 As of 04/08/26 Page 6305-12 ■ The failure of the Warehouse
      Lender to submit any required forms or documents, including Form 990SF, Agreement
      and Certificate of Incumbency: Warehouse Lender, or Form 996E to Freddie Mac
      as described in Section 6305.4(c) (c) Reimbursement by the Seller for Pledged
      Mortgages No fees in addition to those associated with specific Mortgage programs
      described elsewhere in this Guide are charged pursuant to a delivery of Pledged
      Mortgages. The Seller agrees to the following reimbursement obligations: ■ The
      Seller must reimburse Freddie Mac for any reasonable expenses incurred by Freddie
      Mac in connection with the delivery of Pledged Mortgages by Warehouse Lenders
      to Freddie Mac. The nature and amount of such expenses will be specified in
      a written notice to the Seller from Freddie Mac. ■ The Seller must reimburse
      Freddie Mac for the amount of any such expenses within 10 Business Days of request
      by Freddie Mac. Freddie Mac Single-Family Seller/Servicer Guide Chapter 6306
      As of 09/10/25 Page 6306-1 Chapter 6306: Correspondent XChange®'
  judgment: false
