Freddie Mac Single-Family Seller/Servicer Guide §1301.5 — Warranties, representations and review (12/17/25)
Freddie Mac Guide §1301.5 (Warranties, representations and review). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide §1301.5 — Warranties, representations and review (12/17/25) — 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.
Freddie Mac Guide 1301.5
(12/17/25) This section contains requirements related to: ■ Reliance on the Seller/Servicer warranties and representations ■ Review of Mortgages by Freddie Mac prior to purchase ■ Warranties and representations by the Seller ■ Survival of warranties; remedies (a) Reliance on the Seller/Servicer warranties and representations The Seller/Servicer should carefully read the Purchase Documents. The Seller/Servicer acknowledges that Freddie Mac and any transferees or assignees of Freddie Mac purchase Mortgages and trade in any related securities in reliance on the accuracy and truth of the Seller/Servicer’s warranties and representations and on its compliance with the agreements, requirements, terms and conditions set forth in the Purchase Documents. (b) Review of Mortgages by Freddie Mac prior to purchase Before the Freddie Mac Funding Date (Cash programs) or Settlement Date of the UMBS®, MBS or WAC ARM PC (Guarantor programs), Freddie Mac may, in its discretion, refuse to purchase any Mortgage if it determines any of the following: ■ The Mortgage is not of investment quality ■ The Seller has failed to satisfy or has breached any of the provisions of the Purchase Documents
Freddie Mac Guide 1301.5
301-15 ■ Any of the warranties or representations of the Seller to Freddie Mac are untrue ■ The Seller has failed to provide Freddie Mac with information that is true, complete and accurate as to the Mortgage For each Mortgage it refuses to purchase, Freddie Mac may require the Seller to substitute in its place another Mortgage that is satisfactory to Freddie Mac. (c) Warranties and representations by the Seller As of the Delivery Date, the Funding Date or the Settlement Date (as applicable), and the date of any substitution of Mortgages pursuant to the Purchase Documents, the Seller makes the warranties and representations in this section for each Mortgage purchased by Freddie Mac. The Seller is fully liable for all warranties and representations made to Freddie Mac, regardless of whether the Seller originated the Mortgage. (i) General warranties and representations 1. The terms, conditions and requirements stated in the Purchase Documents have been fully satisfied 2. All warranties and representations of the Seller are true and correct 3. The Seller is in compliance with its agreements contained in the Purchase Documents 4. The Seller has not misstated, misrepresented or omitted any material fact about the Mortgage 5. The Seller has given correctly and on a timely basis to the Borrower all disclosures and notices required under Applicable Laws and the terms of the Note and the Security Instrument 6. With respect to each ARM, the Seller has calculated any and all adjustments to the interest rate or the monthly payment correctly and given on a timely basis any and all notices of such adjustments completely in accordance with the terms of the Note and Security Instrument and with the requirements of applicable law 7. The Seller has adopted Exhibit 35, Appraiser Independence Requirements, and, for each conventional Mortgage delivered with an appraisal report, the appraisal report was obtained in a manner consistent with Exhibit 35 8. No person or entity on the Freddie Mac Exclusionary List as of the Note Date played a role, as described in Section 3101.1, in the origination or sale of such Mortgage or the related real estate transaction
Freddie Mac Guide 1301.5
301-16 9. Solely with respect to a Mortgage registered with MERS®, MERS is the mortgagee of record (either by being named in the Security Instrument as nominee for the Seller or as the assignee in a recorded assignment of the Security Instrument), or, where applicable, MERS is not the mortgagee of record for purposes of MERS iRegistration 10. The Seller has adopted Exhibit 42, Property Data Collector Independence Requirements, and, for each conventional Mortgage delivered with a PDR, the property data collection was obtained in a manner consistent with Exhibit 42 Upon Freddie Mac’s written request, either before or after the Funding Date, the Seller will supply evidence satisfactory to Freddie Mac of the Seller’s compliance with any provision of the Purchase Documents. Before the Funding Date, the Seller must obtain Freddie Mac’s written approval of any waivers or modifications to the provisions of the Purchase Documents. The Seller represents and warrants that all persons executing documents on behalf of the Seller are duly authorized to do so. The Seller warrants that it and, if applicable, the originator of the Mortgages it sells to Freddie Mac have complied with all applicable laws relating to licensing, qualification to do business or approval to originate Mortgages. Before the Funding Date, the Seller may contact Freddie Mac to request review of a Mortgage in order to obtain a waiver of the warranty requirements of Sections 3101.1(d) and 1301.5(c)(i)(8). The Seller should make such request to the Freddie Mac Exclusionary List Mailbox at [email protected]. As part of the request, the Seller must: ■ Inform Freddie Mac of the nature and extent of the role played by the person or entity on the Exclusionary List in connection with the Mortgage, and ■ Provide other relevant information upon request If Freddie Mac reviews the Mortgage and subsequently elects to purchase the Mortgage, Freddie Mac will provide the Seller with written notice of such election, in which case the warranty concerning the involvement of an excluded person or entity will not be applicable to the sale of the Mortgage. All other requirements of the Purchase Documents relating to the sale of the Mortgage will remain in full force and effect. Freddie Mac’s election to review and its decision to purchase such a Mortgage are within its sole discretion. (ii) Seller sole Mortgage owner; Mortgage not subject to any other interest As of the Delivery Date, the Seller must be the sole owner of the Mortgage.
Freddie Mac Guide 1301.5
301-17 As of the Funding Date or the Settlement Date, whichever is applicable, all Mortgages purchased by Freddie Mac must be free and clear of all claims, security interests or other encumbrances. The Seller agrees to take or cause to be taken such further actions, including, without limitation, the preparation, execution and filing of additional documents and instruments, as may be reasonably necessary to assure and confirm to Freddie Mac that the Mortgages purchased by Freddie Mac are free and clear of any and all security interests as of the Funding Date or the Settlement Date. The Seller warrants to Freddie Mac that as of the Freddie Mac Funding Date (Cash programs) or Settlement Date of the UMBS, MBS or WAC ARM PC (Guarantor programs), the Mortgage is not subject to any other interest. The Seller further warrants and agrees not to sell, assign, convey, hypothecate, pledge or in any other way transfer (conditionally or otherwise) its interest in a Mortgage that Freddie Mac has purchased except as expressly permitted in the Purchase Documents. (iii)eMortgage representations and warranties For additional representations and warranties related to eMortgages, see Section 1402.3(c)(viii). (d) Survival of warranties; remedies The warranties and representations in the Purchase Documents for any Mortgage purchased by Freddie Mac survive payment of the purchase price by Freddie Mac. The warranties and representations are not affected by any investigation made by, or on behalf of, Freddie Mac except when expressly waived in writing by Freddie Mac. When any party has purchased a Mortgage from Freddie Mac that Freddie Mac previously purchased from a Seller, Freddie Mac may exercise any rights or remedies at law or in equity on behalf of the party to the extent that the party does not affirmatively do so. Freddie Mac may also exercise its discretion to disqualify or suspend a Seller or a Servicer pursuant to Chapter 2301 or Section 9102.1. For each Mortgage purchased by Freddie Mac, the Seller and the Servicer agree that Freddie Mac may, at any time and without limitation, require the Seller or the Servicer, at the Seller’s or the Servicer’s expense, to make such endorsements to and assignments and recordations of any of the Mortgage documents so as to reflect the interests of Freddie Mac and/or its successors and assigns.
Freddie Mac Guide 1301.5
Enforcement of representations and warranties related to underwriting of the Borrower, Mortgaged Premises and project (05/06/26) This section contains requirements related to: ■ Representations and warranties ■ Eligible Mortgages ■ Life-of-loan representations and warranties Freddie Mac will not exercise its remedies, including the issuance of a repurchase request, in connection with the Seller/Servicer’s breaches of certain selling representations and warranties as described below. Mortgages that are processed by the Seller through Loan Collateral Advisor® and Loan Product Advisor® may also qualify for additional enforcement relief related to value, condition and marketability, provided certain conditions are met. See Section 5602.2 for details. Selling representation and warranty framework The requirements below are effective for Mortgages with Freddie Mac Settlement Dates on and after July 1, 2014. (a) Representations and warranties For Mortgages, including Mortgages sold pursuant to negotiated provisions, that comply with the eligibility requirements set forth in (b) below, Freddie Mac will not exercise its remedies, including the issuance of a repurchase request, in connection with the Seller/Servicer’s breaches of selling representations and warranties in the topics, chapters and sections of the Guide listed in the table below1, relating to: ■ The underwriting of the Borrower, which includes the Seller’s assessment of the Borrower’s loan terms, credit history, employment and income, assets, and other financial information used for qualifying the Borrower for the Mortgage ■ The underwriting of the Mortgaged Premises, which is the analysis of the description and valuation of the Mortgaged Premises to determine its adequacy as collateral for the Mortgage ■ The underwriting of the project in which the Mortgaged Premises is located, which is the analysis of the Planned Unit Development (PUD), Condominium Project or Cooperative Project 1 This includes the topics, chapters and sections as amended by the Seller’s Purchase Documents, if applicable.
Freddie Mac Guide 1301.5
301-19 For Guide provisions not listed in this table, the Seller/Servicer will continue to be responsible for representations and warranties for the life of the loan. Seller/Servicer representations and warranties Guide topic/chapter/section Title of topic, chapter or section and where noted, exclusions to provisions in the topic/chapter/section Note: Where the following provisions of the Guide contain references to requirements located in other topics, chapters and/or sections of the Guide, Freddie Mac will not exercise its remedies in connection with breaches of representations and warranties related to those requirements only if the topic/chapter/section where the requirement is located is included below. Section 4101.1 The Mortgage application Section 4201.1 Investment Quality Mortgage, with the following exceptions: ■ The Mortgage is adequately secured by real property ■ For all Mortgages with Application Received Dates on or after July 1, 2021, and all Mortgages with Settlement Dates after August 31, 2021, all ATR Covered Mortgages sold to Freddie Mac must satisfy the requirements in the Revised General QM Rule Section 4201.3 Amortization and term, with the following exceptions: For a Mortgage with an Application Received Date prior to January 10, 2014, and a Freddie Mac Settlement Date on or before July 31, 2014: The Mortgage must not have an original term that exceeds 40 years from the date that is one month before the first payment Due Date as described in Section 4201.3. For a Mortgage with an Application Received Date on or after January 10, 2014, or a Freddie Mac Settlement Date after July 31, 2014: The Mortgage must not have an original term that exceeds 30 years from the date that is one month before the first payment Due Date as described in Section 4201.3. Subsection 4201.4(c) Additional requirements for Mortgages with Settlement Dates More than 120 days After the Note Date
Freddie Mac Guide 1301.5
301-20 Seller/Servicer representations and warranties Guide topic/chapter/section Title of topic, chapter or section and where noted, exclusions to provisions in the topic/chapter/section Note: Where the following provisions of the Guide contain references to requirements located in other topics, chapters and/or sections of the Guide, Freddie Mac will not exercise its remedies in connection with breaches of representations and warranties related to those requirements only if the topic/chapter/section where the requirement is located is included below. Section 4201.7 Assumption of Mortgage Section 4201.10 No circumstances adversely affecting value of Mortgage Section 4201.11 Mortgages secured by Primary Residences Section 4201.12 Second home Mortgages Section 4201.13 Investment Property Mortgages Section 4201.14 Impact of Contaminated Sites Chapter 4203 Maximum Loan Amounts and LTV, TLTV and HTLTV Ratios Chapter 4204 Secondary Financing and Other Financing Arrangements, with the following exceptions: ■ The requirement that for any Mortgage with a buydown plan, the initial interest rate may not be more than 3% below the Note Rate and the buydown plan may not extend for more than 3 years ■ Subsection 4204.3(a) regarding Borrower qualification and qualifying rates, as follows: For all Mortgages with Application Received Dates on or after July 1, 2021, and all Mortgages with Settlement Dates after August 31, 2021, the qualifying rate must, at a minimum, equal the maximum interest rate that may apply during the first five years after the date on which the first regular periodic payment will be due, based on the loan amount over the loan term. Chapter 4301 Refinance Mortgages
Freddie Mac Guide 1301.5
301-21 Seller/Servicer representations and warranties Guide topic/chapter/section Title of topic, chapter or section and where noted, exclusions to provisions in the topic/chapter/section Note: Where the following provisions of the Guide contain references to requirements located in other topics, chapters and/or sections of the Guide, Freddie Mac will not exercise its remedies in connection with breaches of representations and warranties related to those requirements only if the topic/chapter/section where the requirement is located is included below. With the exception of Section 4301.3 regarding refinance practices Subsection 4401.2(b) ARM qualifying rates, with the following exception: For all Mortgages with Application Received Dates on or after July 1, 2021, and all Mortgages with Settlement Dates after August 31, 2021, the qualifying rate must, at a minimum, equal the maximum interest rate that may apply during the first five years after the date on which the first regular periodic payment will be due, based on the loan amount over the loan term. Chapter 4402 Seller-Owned Converted and Seller-Owned Modified Mortgages Chapter 4404 Land Contract; Contract for Deed Chapter 4405 Energy Conservation Improvements Chapter 4406 Mortgages Secured by Properties Subject to Resale Restrictions Chapter 4407 Properties Impacted by Disasters Chapter 4408 Mortgages Made Pursuant to Employee Relocation Programs Topic 4500 Affordable Mortgages and Duty to Serve Topic 4600 Special Freddie Mac Mortgage Products Subsection 4701.2(a) Borrower-paid financed premiums (mortgage insurance premiums)
Freddie Mac Guide 1301.5
301-22 Seller/Servicer representations and warranties Guide topic/chapter/section Title of topic, chapter or section and where noted, exclusions to provisions in the topic/chapter/section Note: Where the following provisions of the Guide contain references to requirements located in other topics, chapters and/or sections of the Guide, Freddie Mac will not exercise its remedies in connection with breaches of representations and warranties related to those requirements only if the topic/chapter/section where the requirement is located is included below. Topic 5100 Determining Borrower Eligibility With the exception of: ■ Section 5103.2 regarding requirements for permanent and nonpermanent resident aliens ■ Section 5103.5 regarding requirements for living trusts Topic 5200 Credit Assessment Topic 5300 Stable Monthly Income and Asset Qualification Sources Topic 5400 Evaluation of Monthly Obligations Topic 5500 Assets Topic 5600 Property Eligibility and Valuation With the exception of: ■ Subsection 5601.1(a), Eligible properties ■ Subsection 5603.1(b) relating to Exhibit 35, Appraiser Independence Requirements ■ Section 5603.1 relating to the Uniform Standards of Professional Appraisal Practice ■ Subsection 5603.5(a) relating to Exhibit 42, Property Data Collector Independence Requirements Chapter 5701 Condominiums With the exception of: ■ Section 5701.2 relating to project insurance requirements ■ Section 5701.2 relating to title insurance
Freddie Mac Guide 1301.5
301-23 Seller/Servicer representations and warranties Guide topic/chapter/section Title of topic, chapter or section and where noted, exclusions to provisions in the topic/chapter/section Note: Where the following provisions of the Guide contain references to requirements located in other topics, chapters and/or sections of the Guide, Freddie Mac will not exercise its remedies in connection with breaches of representations and warranties related to those requirements only if the topic/chapter/section where the requirement is located is included below. ■ Subsection 5701.3(a), Projects in which the unit owners do not have an undivided ownership or leasehold interest in the land on which the project is located ■ Subsection 5701.3(b), Condominium Hotel ■ Subsection 5701.3(d), Project with excessive commercial or non-residential space ■ Subsection 5701.3(e), Tenancy-in-Common apartment project ■ Subsection 5701.3(f), Timeshare project or project with segmented ownership ■ Subsection 5701.3(g), Houseboat project ■ Subsection 5701.3(k), Continuing Care Retirement Community (CCRC) ■ Subsection 5701.3(l), Manufactured Homes ■ Subsection 5701.3(m), Project with mandatory dues or similar membership fees for use of Amenities such as clubhouses or recreational facilities ■ Subsection 5701.6(e), Compliance with laws ■ Subsection 5701.6(f), Limitations on ability to sell/right of first refusal ■ Subsection 5701.6(h), Mortgagee consent ■ Subsection 5701.6(i), Rights of Condominium mortgagees and guarantors Chapter 5702 Planned Unit Developments (PUDs) With the exception of Subsection 5702.1(f) relating to insurance requirements