source:
  type: regulation
  id: fhlmc-8401
  authority: "FHLMC Single-Family Seller/Servicer Guide Chapter 8401 — Changes to the Mortgaged Premises"
  description: "FHLMC Single-Family Guide §8401.1 governs Servicer-side handling\nof partial release / easement / land-acquisition requests for the\nMortgaged Premises: appraisal-with-interior-exterior-inspection\nrequirement (Topic 5600); current-payment + continuing-capacity\nBorrower precondition; required written approvals from FHA/VA/\nRHS/MI + all superior lienholders; 12-month-since-origination\nminimum seasoning; tax-authority notification on release; First\nLien + title insurance integrity preservation. Fills FHLMC\nServicing Chapter 8401 gap.\n"
obligations:
- id: fhlmc-8401-appraisal-with-interior-exterior-for-partial-release
  canonical_id: fhlmc-8401-appraisal-with-interior-exterior-for-partial-release
  section: "FHLMC Single-Family Guide §8401.1(a)(i) — Appraisal with interior+exterior inspection for partial release / easement requests"
  description: "For partial-release or easement-grant requests, [LENDER]\n(Servicer) shall obtain an appraisal report with an interior\nAND exterior inspection that meets the requirements of Topic\n5600. The pre-action appraisal establishes pre-release and\nestimated-post-release values driving the eligibility and UPB-\nreduction decisions. Carve-out: if current LTV < 60%, the\nconsideration ≤ 5% of original value, and the transaction is\narm's-length, NO appraisal is required.\n"
  type: do
  audit_question: "For every partial release or easement [LENDER] processed, can [LENDER] produce a Topic-5600-compliant appraisal with interior+exterior inspection — OR documentation that the carve-out conditions (LTV <60%, consideration ≤5% original value, arm's-length) were met?"
  workflow_phase: general_servicing_ops
  owner_role: chief_servicing_officer
  secondary_owner_role: appraisal_manager
  cadence: per-partial-release-request
  consequence: Approving a partial release without proper appraisal (when carve-out doesn't apply) is a Servicing Guide breach + collateral-valuation risk.
  tags:
  - round-d
  - regulator-direct
  - fhlmc
  - servicing-guide
  - partial-release
  - easement
  - appraisal-required
  - promoted
  primary_source:
    tier: 1
    authority: "FHLMC Single-Family Guide §8401.1(a)(i) — Processing requests for partial releases and granting of easements"
    source_class: fhlmc-guide
    source_url: https://guide.freddiemac.com/app/guide/
    snapshot_id: fbba421721d90cb1
    fetched_at: '2026-05-25T14:09:48Z'
    content_hash: sha256:placeholder-snapshot-content-hash-from-source-json
    paragraph_quote: 'the Servicer must obtain an appraisal report with an interior and exterior inspection that meets the requirements of Topic 5600 when considering such requests

      '
    drafter_attestation: "Copied verbatim from snapshot fbba421721d90cb1. §8401.1(a)(i)\nappraisal-with-interior-exterior operative requirement. Carve-out\nconditions (LTV <60% + ≤5% consideration + arm's-length)\nparaphrased in description.\n"
  promoted_at: '2026-05-25T20:45:33+00:00'
  promoted_from: fhlmc-8401-roundd-v1.yaml
  auditor_minimum_evidence:
    derivation: snapshot_extract
    derivation_source:
      snapshot_id: fbba421721d90cb1
      paragraph_quote: "the Servicer must obtain an appraisal report with an interior and exterior inspection that meets the requirements of Topic 5600 when conside"
      page_or_section: "FHLMC Single-Family Guide §8401.1(a)(i)"
      fetched_at: '2026-05-25T14:09:48Z'
    pathway_selection_kind: mutually_exclusive_by_facts
    pathways:
    - pathway_id: csh-amep-fhlmc-8401-appraisal-required
      name: "Standard partial-release / easement request — full appraisal with interior+exterior inspection required"
      evidence_items:
      - evidence_id: csh-ev-fhlmc-8401-appraisal-report
        kind: third_party_attestation
        description: "Topic-5600-compliant appraisal report with interior + exterior inspection, dated before approval of the partial release or easement grant. Report shows value pre-release and estimated value post-release."
        retention_rule_ref: reg-z-1026.25
        examiner_question_ref: "FHLMC Servicer Review §8401.a"
      - evidence_id: csh-ev-fhlmc-8401-appraisal-vendor-attestation
        kind: third_party_attestation
        description: "Appraiser attestation of independence (no party-in-interest relationship) and licensing per Topic 5600."
        retention_rule_ref: reg-z-1026.25
        examiner_question_ref: "FHLMC Servicer Review §8401.b"
    - pathway_id: csh-amep-fhlmc-8401-appraisal-carveout
      name: "Carve-out applies — appraisal NOT required (LTV <60% + consideration ≤5% original + arm's-length)"
      evidence_items:
      - evidence_id: csh-ev-fhlmc-8401-current-ltv-record
        kind: record
        description: "Current LTV calculation based on value at origination per §4203.1, demonstrating LTV <60% as of the partial-release-request date."
        retention_rule_ref: reg-z-1026.25
        examiner_question_ref: "FHLMC Servicer Review §8401.c"
      - evidence_id: csh-ev-fhlmc-8401-consideration-record
        kind: record
        description: "Consideration record showing the amount received by the Borrower (or zero) does not exceed 5% of the original property value."
        retention_rule_ref: reg-z-1026.25
        examiner_question_ref: "FHLMC Servicer Review §8401.d"
      - evidence_id: csh-ev-fhlmc-8401-arms-length-attestation
        kind: document
        description: "Arm's-length transaction attestation — no identity-of-interest between Borrower and counterparty."
        retention_rule_ref: reg-z-1026.25
        examiner_question_ref: "FHLMC Servicer Review §8401.e"
    pathway_selection_logic: |
      Two pathways selected by transaction facts: A — default path requiring Topic-5600-compliant appraisal; B — three-condition carve-out per \u00A78401.1(a)(i) (LTV <60% AND consideration \u22645% original value AND arm's-length). All three carve-out conditions must hold simultaneously; failure of any one drops the loan back into pathway A.
  program_review: Does the program ensure partial-release/easement requests obtain a Topic-5600-compliant interior+exterior appraisal, accounting for the carve-out (LTV <60%, consideration ≤5% of original value, arm's-length → no appraisal)?
  file_review: For partial-release/easement files, confirm a Topic-5600 appraisal OR documentation the carve-out conditions were met.
  judgment: false
  feeds:
  - fhlmc-8401-preserve-first-lien-post-release
- id: fhlmc-8401-written-approval-from-fha-va-rhs-mi-and-superior-lienholders
  canonical_id: fhlmc-8401-written-approval-from-fha-va-rhs-mi-and-superior-lienholders
  section: "FHLMC Single-Family Guide §8401.1(a)(i) — Written approval from FHA/VA/RHS/MI + all superior lienholders for partial release/easement"
  description: 'Before approving a partial release or easement, [LENDER]

    (Servicer) shall have received written approval of FHA, VA, RHS

    or MI (whichever applies) AND all superior lienholders, if

    applicable. Layered-approval ensures all stakeholders concur on

    the change in collateral.

    '
  type: do
  audit_question: For every partial release or easement [LENDER] approved, can [LENDER] produce written approvals from (a) the applicable agency/MI (FHA, VA, RHS, or MI) AND (b) all superior lienholders if any?
  workflow_phase: general_servicing_ops
  owner_role: chief_servicing_officer
  secondary_owner_role: vendor_management
  cadence: per-partial-release-request
  consequence: Approving without all required written approvals is a Servicing Guide breach + agency/MI exposure if collateral value diminishes.
  tags:
  - round-d
  - regulator-direct
  - fhlmc
  - servicing-guide
  - partial-release
  - easement
  - agency-approvals
  - lienholder-approvals
  - promoted
  primary_source:
    tier: 1
    authority: "FHLMC Single-Family Guide §8401.1(a)(i) — Processing requests for partial releases"
    source_class: fhlmc-guide
    source_url: https://guide.freddiemac.com/app/guide/
    snapshot_id: fbba421721d90cb1
    fetched_at: '2026-05-25T14:09:48Z'
    content_hash: sha256:placeholder-snapshot-content-hash-from-source-json
    paragraph_quote: 'The Servicer has received written approval of the FHA, VA, RHS or MI and all superior lienholders, if applicable

      '
    drafter_attestation: "Copied verbatim from snapshot fbba421721d90cb1. §8401.1(a)(i)\nagency-and-lienholder-approvals operative requirement.\n"
  promoted_at: '2026-05-25T20:45:33+00:00'
  promoted_from: fhlmc-8401-roundd-v1.yaml
  auditor_minimum_evidence:
    derivation: snapshot_extract
    derivation_source:
      snapshot_id: fbba421721d90cb1
      paragraph_quote: "The Servicer has received written approval of the FHA, VA, RHS or MI and all superior lienholders, if applicable"
      page_or_section: "FHLMC Single-Family Guide §8401.1(a)(i)"
      fetched_at: '2026-05-25T14:09:48Z'
    pathway_selection_kind: parallel_satisfaction
    pathways:
    - pathway_id: csh-amep-fhlmc-8401-agency-or-mi-approval
      name: "Agency / MI written approval — applicable approver(s) confirmed in writing"
      evidence_items:
      - evidence_id: csh-ev-fhlmc-8401-applicable-approver-determination
        kind: record
        description: "Loan-classification record identifying the applicable approver(s) — FHA (if FHA-insured), VA (if VA-guaranteed), RHS (if USDA-guaranteed), or MI carrier (if conventional with MI). Multiple may apply for layered insurance."
        retention_rule_ref: reg-z-1026.25
        examiner_question_ref: "FHLMC Servicer Review §8401.f"
      - evidence_id: csh-ev-fhlmc-8401-agency-approval-letter
        kind: document
        description: "Copy of FHA/VA/RHS/MI written approval letter(s) for the specific partial-release or easement request, dated before [LENDER]'s approval decision."
        retention_rule_ref: reg-z-1026.25
        examiner_question_ref: "FHLMC Servicer Review §8401.g"
    - pathway_id: csh-amep-fhlmc-8401-superior-lienholders
      name: "Superior lienholder written approvals — all senior liens consented"
      evidence_items:
      - evidence_id: csh-ev-fhlmc-8401-lien-inventory
        kind: record
        description: "Current lien inventory for the Mortgaged Premises identifying every superior lien (if any) — e.g., senior mortgages, tax liens, mechanics liens, judgment liens."
        retention_rule_ref: reg-z-1026.25
        examiner_question_ref: "FHLMC Servicer Review §8401.h"
      - evidence_id: csh-ev-fhlmc-8401-superior-lienholder-consents
        kind: document
        description: "Written consent from each superior lienholder for the specific partial-release or easement request (or attestation that no superior liens exist)."
        retention_rule_ref: reg-z-1026.25
        examiner_question_ref: "FHLMC Servicer Review §8401.i"
    pathway_selection_logic: |
      Both pathways required in parallel: A — applicable agency/MI written approval (the right approver(s) determined by loan-program facts); B — every superior lienholder's written consent. If no superior lienholders exist, pathway B is satisfied by an attestation. A loan with FHA insurance AND a second-lien HELOC needs BOTH FHA approval AND HELOC-lender approval — these are independent obligations not selectable.
  program_review: Does the program ensure that before approving a partial release/easement, written approval is obtained from the applicable agency/MI AND all superior lienholders (if any)?
  file_review: Confirm written approvals from the applicable FHA/VA/RHS/MI and any superior lienholders are in the file.
  judgment: false
- id: fhlmc-8401-12-month-origination-minimum-seasoning
  canonical_id: fhlmc-8401-12-month-origination-minimum-seasoning
  section: "FHLMC Single-Family Guide §8401.1(a)(i) — 12-month-since-origination minimum seasoning for partial release/easement"
  description: '[LENDER] (Servicer) shall not approve a partial release or

    easement until at least 12 months have passed since the

    Origination Date. The 12-month seasoning floor prevents

    collateral-altering changes immediately post-origination.

    '
  type: refrain
  audit_question: For every partial release or easement [LENDER] approved, can [LENDER] evidence the loan's Origination Date and confirm at least 12 months elapsed before approval?
  workflow_phase: general_servicing_ops
  owner_role: chief_servicing_officer
  secondary_owner_role: compliance_officer
  cadence: per-partial-release-request
  consequence: Approving partial release within first 12 months post-origination is a Servicing Guide breach + R&W exposure on the original loan.
  tags:
  - round-d
  - regulator-direct
  - fhlmc
  - servicing-guide
  - partial-release
  - 12-month-seasoning
  - promoted
  primary_source:
    tier: 1
    authority: "FHLMC Single-Family Guide §8401.1(a)(i) — Processing requests for partial releases"
    source_class: fhlmc-guide
    source_url: https://guide.freddiemac.com/app/guide/
    snapshot_id: fbba421721d90cb1
    fetched_at: '2026-05-25T14:09:48Z'
    content_hash: sha256:placeholder-snapshot-content-hash-from-source-json
    paragraph_quote: 'At least 12 months have passed since the Origination Date

      '
    drafter_attestation: "Copied verbatim from snapshot fbba421721d90cb1. §8401.1(a)(i) 12-\nmonth-origination-seasoning operative requirement.\n"
  promoted_at: '2026-05-25T20:45:34+00:00'
  promoted_from: fhlmc-8401-roundd-v1.yaml
  auditor_minimum_evidence:
    derivation: snapshot_extract
    derivation_source:
      snapshot_id: fbba421721d90cb1
      paragraph_quote: "At least 12 months have passed since the Origination Date"
      page_or_section: "FHLMC Single-Family Guide §8401.1(a)(i)"
      fetched_at: '2026-05-25T14:09:48Z'
    pathway_selection_kind: mutually_exclusive_by_facts
    pathways:
    - pathway_id: csh-amep-fhlmc-8401-seasoning-met
      name: "12+ months elapsed since Origination Date — eligible for partial release / easement"
      evidence_items:
      - evidence_id: csh-ev-fhlmc-8401-origination-date-record
        kind: timestamp
        description: "Loan-file Origination Date timestamp (Note Date)."
        retention_rule_ref: reg-z-1026.25
        examiner_question_ref: "FHLMC Servicer Review §8401.j"
      - evidence_id: csh-ev-fhlmc-8401-request-date-record
        kind: timestamp
        description: "Partial-release / easement request received-date timestamp, with calculated days-since-origination ≥ 365."
        retention_rule_ref: reg-z-1026.25
        examiner_question_ref: "FHLMC Servicer Review §8401.k"
    - pathway_id: csh-amep-fhlmc-8401-seasoning-not-met-denial
      name: "Less than 12 months elapsed — request denied (request cannot proceed under delegated authority)"
      evidence_items:
      - evidence_id: csh-ev-fhlmc-8401-denial-record
        kind: document
        description: "Servicer denial / forward-to-FHLMC record for partial-release requests received before the 12-month seasoning, with applicable communication to the Borrower per the Servicing Guide."
        retention_rule_ref: reg-z-1026.25
        examiner_question_ref: "FHLMC Servicer Review §8401.l"
    pathway_selection_logic: |
      Two pathways selected by days-elapsed facts: A — \u226512 months since Origination Date, request can proceed under \u00A78401.1 delegated authority; B — <12 months, [LENDER] cannot approve under delegated authority and must either deny or forward to Freddie Mac via Form 715. The 12-month seasoning is a bright-line eligibility gate.
  program_review: Does the program ensure no partial release/easement is approved until at least 12 months after the Origination Date?
  file_review: Confirm the Origination Date and that ≥12 months elapsed before approval.
  judgment: false
- id: fhlmc-8401-notify-tax-authorities-upon-release
  canonical_id: fhlmc-8401-notify-tax-authorities-upon-release
  section: "FHLMC Single-Family Guide §8401.1(a)(i) — Notify tax authorities upon partial release for assessment adjustment"
  description: 'Upon release, [LENDER] (Servicer) shall ensure that all

    applicable tax authorities are notified for adjustment of

    applicable assessments. Property-tax assessments must reflect

    the post-release Mortgaged Premises footprint; failure to

    notify can leave stale assessments + escrow shortfall risk.

    '
  type: do
  audit_question: For every partial release [LENDER] completed, can [LENDER] evidence (via certified mailings, tax-authority confirmations, or escrow-adjustment records) that all applicable tax authorities were notified for assessment adjustment?
  workflow_phase: general_servicing_ops
  owner_role: escrow_administrator
  secondary_owner_role: chief_servicing_officer
  cadence: per-partial-release-completed
  consequence: Missing tax-authority notification creates escrow shortfall + property-tax-payment risk post-release.
  tags:
  - round-d
  - regulator-direct
  - fhlmc
  - servicing-guide
  - partial-release
  - tax-authority-notification
  - promoted
  primary_source:
    tier: 1
    authority: "FHLMC Single-Family Guide §8401.1(a)(i) — Partial release tax notification"
    source_class: fhlmc-guide
    source_url: https://guide.freddiemac.com/app/guide/
    snapshot_id: fbba421721d90cb1
    fetched_at: '2026-05-25T14:09:48Z'
    content_hash: sha256:placeholder-snapshot-content-hash-from-source-json
    paragraph_quote: 'Upon release, the Servicer must ensure that all applicable tax authorities are notified for adjustment of applicable assessments.

      '
    drafter_attestation: "Copied verbatim from snapshot fbba421721d90cb1. §8401.1(a)(i)\ntax-authority-notification operative requirement.\n"
  promoted_at: '2026-05-25T20:45:34+00:00'
  promoted_from: fhlmc-8401-roundd-v1.yaml
  program_review: Does the program ensure all applicable tax authorities are notified for assessment adjustment upon a partial release?
  file_review: For completed partial releases, confirm tax-authority notification (certified mailings / confirmations / escrow-adjustment records).
  judgment: false
- id: fhlmc-8401-preserve-first-lien-post-release
  canonical_id: fhlmc-8401-preserve-first-lien-post-release
  section: "FHLMC Single-Family Guide §8401.1(a)(i) — Preserve valid First Lien position post-release"
  description: "[LENDER] (Servicer) shall be responsible for ensuring that the\ntitle of the Mortgaged Premises after the partial release\nremains a valid First Lien as required in §4201.2. [LENDER]\nshall also ensure title insurance meets the requirements of\nChapter 4702 after the partial release or easement has been\ngranted. The First-Lien-preservation duty is the structural\nbackbone protecting Freddie Mac's collateral interest.\n"
  type: do
  audit_question: "For every partial release or easement [LENDER] processed, can [LENDER] evidence (a) post-release title review confirming valid First Lien per §4201.2, AND (b) post-release title insurance conforming to Chapter 4702?"
  workflow_phase: general_servicing_ops
  owner_role: chief_servicing_officer
  secondary_owner_role: vendor_management
  cadence: per-partial-release-completed
  consequence: Post-release loss of First Lien position or title insurance non-conformance compromises FHLMC collateral; major Servicing Guide breach.
  tags:
  - round-d
  - regulator-direct
  - fhlmc
  - servicing-guide
  - partial-release
  - first-lien-preservation
  - title-insurance
  - promoted
  primary_source:
    tier: 1
    authority: "FHLMC Single-Family Guide §8401.1(a)(i) — Partial release title and lien integrity"
    source_class: fhlmc-guide
    source_url: https://guide.freddiemac.com/app/guide/
    snapshot_id: fbba421721d90cb1
    fetched_at: '2026-05-25T14:09:48Z'
    content_hash: sha256:placeholder-snapshot-content-hash-from-source-json
    paragraph_quote: 'The Servicer is responsible for ensuring that the title of the Mortgaged Premises after the partial release remains a valid First Lien as required in Section 4201.2

      '
    drafter_attestation: "Copied verbatim from snapshot fbba421721d90cb1. §8401.1(a)(i)\nFirst-Lien-preservation operative duty. The Chapter 4702 title-\ninsurance tail paraphrased in description.\n"
  promoted_at: '2026-05-25T20:45:34+00:00'
  promoted_from: fhlmc-8401-roundd-v1.yaml
  auditor_minimum_evidence:
    derivation: snapshot_extract
    derivation_source:
      snapshot_id: fbba421721d90cb1
      paragraph_quote: "The Servicer is responsible for ensuring that the title of the Mortgaged Premises after the partial release remains a valid First Lien as re"
      page_or_section: "FHLMC Single-Family Guide §8401.1(a)(i)"
      fetched_at: '2026-05-25T14:09:48Z'
    pathway_selection_kind: parallel_satisfaction
    pathways:
    - pathway_id: csh-amep-fhlmc-8401-post-release-title-review
      name: "Post-release title review confirms continued First Lien position"
      evidence_items:
      - evidence_id: csh-ev-fhlmc-8401-post-release-title-binder
        kind: third_party_attestation
        description: "Post-release title binder or update endorsement from title company confirming the Mortgaged Premises after the partial release remains a valid First Lien per §4201.2 requirements."
        retention_rule_ref: reg-z-1026.25
        examiner_question_ref: "FHLMC Servicer Review §8401.m"
    - pathway_id: csh-amep-fhlmc-8401-title-insurance-update
      name: "Title insurance endorsement / update conforms to Chapter 4702"
      evidence_items:
      - evidence_id: csh-ev-fhlmc-8401-title-insurance-endorsement
        kind: document
        description: "Copy of title insurance endorsement (or replacement policy) covering the post-release Mortgaged Premises, meeting Chapter 4702 requirements (coverage amount ≥ UPB, lender's policy form, exception schedule reviewed)."
        retention_rule_ref: reg-z-1026.25
        examiner_question_ref: "FHLMC Servicer Review §8401.n"
      - evidence_id: csh-ev-fhlmc-8401-policy-effective-date
        kind: timestamp
        description: "Title insurance endorsement effective-date timestamp showing coverage in place at or before partial-release recording date — no gap in coverage."
        retention_rule_ref: reg-z-1026.25
        examiner_question_ref: "FHLMC Servicer Review §8401.o"
    pathway_selection_logic: |
      Both pathways required in parallel: A — independent title review confirming First Lien position survived the release (defends \u00A74201.2); B — title insurance endorsement updated to cover the post-release Mortgaged Premises (defends Chapter 4702). Title review alone without insurance leaves [LENDER] exposed if a future title defect surfaces; insurance alone without independent review may insure incorrect post-release boundaries. Defense-in-depth.
  program_review: Does the program ensure that after a partial release/easement the title remains a valid First Lien per §4201.2 and that title insurance conforms to Chapter 4702?
  file_review: For processed releases, review the post-release title work for valid First Lien per §4201.2 and Chapter 4702 title insurance. The compliance person judges whether First Lien position was preserved.
  judgment: true
_promotion_history:
- promoted_at: '2026-05-25T20:45:34+00:00'
  candidate_path: obligations\_remediation\round-d-investor-guides\fhlmc-8401-roundd-v1.yaml
  candidates_promoted: 5
  candidates_skipped_existing: 0
