Freddie Mac Single-Family Seller/Servicer Guide 1201.4 — Limitation on Mortgage purchases and commitments

Freddie Mac Single-Family Seller/Servicer Guide 1201.4 — Limitation on Mortgage purchases and commitments

Effective 2025-12-17 · Freddie Mac's stamp for this section

This section contains requirements related to: ■ Limitation on number and amount of Mortgage purchases and commitments ■ Review of aggregate purchase amount (a) Limitation on number and amount of Mortgage purchases and commitments Freddie Mac reserves the right to, at its sole discretion: ■ Limit the number and/or aggregate dollar amount of Mortgage commitments it will accept from any Seller. Maximums are subject to change by Freddie Mac at any time without prior notice or publication. ■ Establish the Maximum Annual Mortgage Purchase Amount that Freddie Mac will purchase from a Seller in any calendar year. Freddie Mac will notify a Seller in writing if Freddie Mac has established a Maximum Annual Mortgage Purchase Amount for that Seller for that calendar year and will inform the Seller of the maximum amount for that year. Note: The Maximum Annual Mortgage Purchase Amount will not be adjusted by a purchase tolerance, and the purchase tolerances in Section 6401.1 will not apply to the Maximum Annual Mortgage Purchase Amount. ■ Limit the number and/or aggregate dollar amount of Home Mortgages it will purchase in any subdivision, tract, Condominium Project, Planned Unit Development (PUD) or ground lease community ■ Establish maximum Mortgage purchase amounts for time frames other than one year ■ Establish maximum purchase amounts for specific types of Mortgages based on Mortgage characteristics ■ Establish representative mix requirements such that Mortgages sold to Freddie Mac must have similar loan characteristics when compared to Mortgages sold by the Seller to other investors ■ Establish minimum Mortgage purchase amounts (b) Review of aggregate purchase amount If Freddie Mac has established a Maximum Annual Mortgage Purchase Amount with respect to the Seller, Freddie Mac will, after a commitment has been made, review the aggregate amount of Mortgages purchased from the Seller to date in the current calendar year. Freddie Mac will notify the Seller if the contract commitment amount stated in the Purchase Contract, when added to the aggregate amount of Mortgage purchases to date from the Seller for that calendar year, would cause the Seller to exceed the Maximum Annual Mortgage Purchase Amount established for the Seller. In such cases, Freddie Mac, in its sole and absolute discretion, may either: ■ Purchase Mortgages from the Seller in an amount that exceeds the Seller’s Maximum Annual Mortgage Purchase Amount; or ■ Rescind, in whole or in part, any Purchase Contract (including any Purchase Contract entered into by any other Freddie Mac authorized method) that will result in the Seller’s exceeding its Maximum Annual Mortgage Purchase Amount The Seller agrees that any such rescission shall be made without the payment by Freddie Mac of any Seller claims.

Source: Freddie Mac Single-Family Seller/Servicer Guide 1201.4 — Limitation on Mortgage purchases and commitments · source URL · snapshot 4c94f67729042dd6