source:
  type: guide
  id: fhlmc-4702.2
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 4702.2 — Title
    insurance policy requirements
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 4702.2 — Title
    insurance policy requirements.
  coverage_tier: operative
obligations:
- id: fhlmc-4702.2-full
  canonical_id: fhlmc-4702.2-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 4702.2 — Title
    insurance policy requirements
  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 4702.2 — Title
      insurance policy requirements
    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: '4702.2: Title insurance policy requirements (04/02/25) This
      section contains information related to: ■ Title insurer ■ Amount of protection
      ■ Insured Mortgages ■ Title insurance policy forms ■ Survey requirements ■ Exceptions
      to survey matters Each title insurance policy must meet the following minimum
      requirements: (a) Title insurer The title insurance policy must be written by
      a title insurer legally able to do business in the jurisdiction where the Mortgaged
      Premises is located. The policy must be fully enforceable and protective of
      the mortgagee’s rights and comply with all other requirements of this section.
      Freddie Mac Single-Family Seller/Servicer Guide Chapter 4702 As of 02/04/26
      Page 4702-2 If a preliminary binder or commitment is issued, it must be issued
      by the same title insurer that issues the final title insurance policy. Selection
      or acceptance of the title insurance company by the Seller must be based solely
      on considerations, such as: ■ The comprehensiveness of the policy ■ The financial
      ability of the company to stand behind its commitment ■ The company’s record
      on settling claims and other considerations normally employed by institutional
      investors originating or purchasing Mortgages in the jurisdiction where the
      Mortgaged Premises is located The selection or acceptance must not be based
      on receipt of any fee or other consideration by the Seller or its employees,
      officers or directors. (b) Amount of protection The title insurance policy must
      protect the mortgagee up to at least the current principal balance of the Mortgage.
      (c) Insured Mortgage The title insurance protection must run to Freddie Mac
      for Mortgages purchased in their entirety by Freddie Mac. If a Mortgage is registered
      with MERS® and is originated naming MERS as original mortgagee of record, solely
      as nominee for the Lender named in the Security Instrument and the Note, and
      Lender’s successors and assigns, then the “insured Mortgage” covered by the
      title insurance policy must be identified in the title insurance policy as the
      Security Instrument given to MERS, solely as nominee for Lender and Lender’s
      successors and assigns. However, under no circumstances may MERS be named as
      an insured in a title insurance policy. Furthermore, if a Mortgage is registered
      with MERS, the Seller/Servicer must arrange for all insurance drafts, notices,
      policies, invoices, etc., to be delivered directly to the Seller/Servicer. Although
      the MERS address appears in local public land records, the address for MERS
      must not be given to organizations that normally direct mail to the Seller/Servicer
      or Servicing Agent. (d) Title insurance policy forms The title insurance policy
      must be written on: Freddie Mac Single-Family Seller/Servicer Guide Chapter
      4702 As of 02/04/26 Page 4702-3 ■ Effective for Mortgages with Note Dates up
      to December 31, 2023, Freddie Mac will accept either the 2006 (adopted 6/17/06)
      or 2021 (adopted 7/1/2021) versions of the following policy forms: ❑ The American
      Land Title Association (ALTA) Loan Policy ❑ The ALTA Short Form Residential
      Loan Policy One-to-Four-Family or ❑ The ALTA Expanded Coverage Residential Loan
      Policy One- to Four-Family ■ Effective for Mortgages with Note Dates on or after
      January 1, 2024, only the 2021 versions of the above policy forms will be accepted
      Whichever policy is used, it must be permitted to be issued in the State where
      the Mortgaged Premises is located under applicable law (e.g., Seller cannot
      deliver a 2021 Loan Policy in New York until the State of New York has approved
      use of that policy form). Sellers may use a title insurance policy written on
      a form other than one of the ALTA insurance policy forms described above, provided
      the Seller warrants that the coverage the policy provides is at least as broad
      as the coverage provided by the applicable ALTA title insurance policy. Regardless
      of the title insurance policy form used, endorsements must be attached to or,
      where applicable, incorporated by reference into the policy. The following endorsements
      must correspond to the year of the title insurance policy form used (e.g., an
      endorsement used only with the ALTA 2006 Loan policy cannot be used with the
      ALTA 2021 Loan Policy): Endorsements that must correspond to the year of the
      title insurance policy form used An ALTA Form 8.1, Environmental Protection
      Lien Endorsement. Form 8.1 may make an exception only for specific State statutes
      that provide for possible subsequent “superliens” that could take priority over
      the Mortgage. For all ARMs, the appropriate ALTA form for Variable Rate Mortgages
      (ALTA Form 6, Variable Rate Mortgage; ALTA Form 6.1, Variable Rate Mortgage
      — regulations; or ALTA Form 6.2, Variable Rate Mortgage — Negative Amortization)
      An ALTA Form 4 endorsement or its equivalent for each Condominium Unit Mortgage
      An ALTA Form 5 endorsement or its equivalent for each Mortgage secured by a
      Planned Unit Development (PUD) unit An ALTA Form 13.1 endorsement or its equivalent
      for all leasehold Mortgages and Freddie Mac Single-Family Seller/Servicer Guide
      Chapter 4702 As of 02/04/26 Page 4702-4 Endorsements that must correspond to
      the year of the title insurance policy form used Community Land Trust Mortgages
      An ALTA Form 7.1 endorsement in States where available, or Form 7 endorsement
      in other States, or its equivalent for each Mortgage secured by a Manufactured
      Home. The title policy must identify the Manufactured Home located on the land
      and insure against any loss if the Manufactured Home is not real property. An
      ALTA Form 9 endorsement or its equivalent meeting the requirements of Section
      4702.4(d) (3rd bullet) for each Mortgage secured by property subject to a restrictive
      agreement or restrictive covenant A Seller may accept an ALTA Form 47.1 (Operative
      Law) endorsement for jurisdictions where State and Native American Indian tribal
      authorities overlap, and tribal law could potentially govern real estate interests
      in the Mortgaged Premises. However, the endorsement may not contain any exclusions
      to coverage, which are noted as optional in the endorsement. Sellers must review
      the endorsement to ensure that the exclusions to coverage are removed or not
      present. A Seller may accept evidence of title insurance under a master title
      insurance policy for any Home Mortgage. Any Seller that accepts evidence of
      title insurance under a master title insurance policy represents and warrants
      as follows: ■ The Seller has reviewed the title insurer’s master policy documents,
      including the certificate of title insurance or short-form title policy, the
      master policy with all endorsements and any other applicable documents, and,
      based on this review and on certifications from the title insurer, the Seller
      has confirmed that the master policy provides at least the amount and scope
      of coverage given by the applicable ALTA title insurance policy and that the
      master policy otherwise meets the requirements of this Section 4702.2 ■ The
      Seller has obtained from the title insurer a fully executed master title insurance
      policy issued in the Seller’s name as insured and assigns to Freddie Mac its
      rights in the policy ■ The master policy has been approved by the applicable
      State or local authority where such approval is required ■ The insurer will
      replace the title insurance certificate with a full individual ALTA or similar
      policy upon 10 days’ notice by Freddie Mac Freddie Mac may refuse to accept
      the master title insurance policy of any title insurer. Freddie Mac Single-Family
      Seller/Servicer Guide Chapter 4702 As of 02/04/26 Page 4702-5 (e) Survey requirements
      If the title company insuring the Mortgage or the attorney rendering the opinion
      of title requires a survey to remove exceptions to survey matters, the Seller
      must provide a survey of the Mortgaged Premises. The survey provided must conform
      to: ■ The title insurance company’s or attorney’s standards, and ■ Any applicable
      legal standards relating to surveys (f) Exceptions to survey matters When the
      title insurance policy takes exception to survey matters, other than those permitted
      under Section 4702.4, the Seller must provide whatever information is required
      by the title insurance company to either remove the exception or obtain an endorsement
      providing the insurance required. If the title company will not issue a policy
      without a survey exception, Freddie Mac will not purchase the Mortgage. In addition,
      the title policy must not be subject to any title exceptions other than those
      permitted under Section 4702.4.'
  judgment: false
