FHLMC Single-Family Seller/Servicer Guide Chapter 5401 — Evaluation of Monthly Obligations

fhlmc-5401

FHLMC Single-Family Guide §5401.1 governs Monthly Housing Expense- to-Income ratio calculation: mandatory file documentation of monthly housing expense; primary-residence components (P&I, hazard insurance, real estate taxes, MI, flood, leasehold, HOA, etc.); new-construction estimated tax based on improvements + land value; tax abatement/exemption 5-year continuance documentation rule; HELOC payment inclusion when outstanding balance exists; 1.5% imputed monthly payment for HELOCs lacking credit-report payment.

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Verbatim regulatory text (5)

Verbatim provisions from FHLMC Single-Family Seller/Servicer Guide Chapter 5401 — Evaluation of Monthly Obligations — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

FHLMC Single-Family Guide §5401.1 — Document monthly housing expense in Mortgage file

The monthly housing expense must be documented in the Mortgage file and established as described below.

Source: FHLMC Single-Family Guide §5401.1 — Monthly housing expense-to-income ratio · source URL · snapshot fbba421721d90cb1

FHLMC Single-Family Guide §5401.1(a) — New construction: tax based on improvements + land value when actual not available

the real estate tax amount included in the monthly housing expense must be based on the value of the improvements and the land

Source: FHLMC Single-Family Guide §5401.1(a) — Establishing the monthly housing expense for Mortgages secured by Primary Residences · source URL · snapshot fbba421721d90cb1

FHLMC Single-Family Guide §5401.1(a) — Tax abatement requires 5-year continuance evidence

Evidence of continuance for at least five years after the Note Date

Source: FHLMC Single-Family Guide §5401.1(a) — Tax abatements · source URL · snapshot fbba421721d90cb1

FHLMC Single-Family Guide §5401.1(a) — HELOC payments included when outstanding balance exists

HELOC payments must be included when there is an outstanding balance on the account.

Source: FHLMC Single-Family Guide §5401.1(a) — Payments on secondary financing including HELOC · source URL · snapshot fbba421721d90cb1

FHLMC Single-Family Guide §5401.1(a) — 1.5% imputed HELOC payment when no credit-report payment

1.5% of the outstanding balance is considered the monthly payment amount.

Source: FHLMC Single-Family Guide §5401.1(a) — HELOC payment computation · source URL · snapshot fbba421721d90cb1

Operationalizing FHLMC Single-Family Seller/Servicer Guide Chapter 5401 — Evaluation of Monthly Obligations

This is verbatim, source-snapshotted regulator text from the Claude for Compliance open corpus. To turn a rule like this into compliance work product: gap-analyze your policies and procedures (P&Ps) against these requirements to surface stale, conflicting, or missing provisions; operationalize any change with a ready-to-run update kit; and produce audit-ready evidence — every step grounded only in the regulator’s own words, never invented.

Source of record: https://claudeforcompliance.com/regs/fhlmc-5401/ · register fhlmc-5401 · Claude for Compliance. Free to read and download; see regulatory updates and methodology.