Freddie Mac Single-Family Seller/Servicer Guide 2101.7 — Fidelity insurance coverage

Freddie Mac Single-Family Seller/Servicer Guide 2101.7 — Fidelity insurance coverage

Effective 2026-06-08 · Freddie Mac's stamp for this section

(a) Documentation Fidelity insurance coverage may be documented on a bond form acceptable to Freddie Mac or on the standard bond form currently mandated by or acceptable to the government agency that has regulatory or supervisory authority over the Seller/Servicer. If the Seller/Servicer is not regulated or supervised, Freddie Mac will accept coverage documented on the bond form commonly issued to institutions similar to the Seller/Servicer. The coverage may be provided in policy forms with names that include, but are not limited to, Fidelity Bond, Mortgage Bankers Bond, Financial Institution Bond, Financial Institution Crime Policy or Bankers Blanket Bond. Whichever policy form is relied upon to document the coverage required by Freddie Mac, the Seller/Servicer warrants that the terms of such coverage meet all of the requirements in this section. (b) Scope Fidelity insurance coverage must protect the Seller/Servicer against loss resulting from dishonesty, theft and/or fraud committed by any of the following persons (referred to as “Designated Agents”), whether acting alone or in collusion with others: ■ Any officer or employee of the Seller/Servicer ■ Any employee of an outside firm while they are providing legal, data processing or other accounting services for the Seller/Servicer ■ Any person assigned to the Seller/Servicer through an intervening employer or agency to perform the usual duties of an employee of the Seller/Servicer on a contingent or temporary basis, and ■ Any intern of the Seller/Servicer Fidelity insurance must also include the following provisions for the benefit of Freddie Mac, as holder of an insurable interest in the Mortgages and/or REO originated, sold and/or serviced by the Seller/Servicer: ■ Freddie Mac is protected against any loss it incurs in connection with dishonesty, theft and/or fraud committed by any partner, sole proprietor or major shareholder of the Seller/Servicer, whether acting alone or in collusion with others and without any limitation as to improper personal gain ■ Freddie Mac is named as a sole loss payee on payment drafts the insurer issues for losses that Freddie Mac incurs in connection with acts covered by the insurance ■ Freddie Mac has the right to file a claim directly with the insurer if the Seller/Servicer fails to file a claim for a covered loss incurred by Freddie Mac when reasonably available ■ Bankruptcy or insolvency of the insured or of the insured’s estate will not relieve the insurer of any of its obligations under the bond (c) Limits and deductibles/retentions required The minimum acceptable limits per fidelity loss or occurrence are listed in the following table. The maximum amount of fidelity bond coverage required is $150 million. Base* Minimum required insurance limit Maximum deductible clause based on face value of policy $100 million or less $300,000 Higher of 10% or $100,000 Over $100 million up to $1 billion + 0.150% of the next $400 million + 0.125% of the next $500 million Over $1 billion + 0.100% of any amount over $1 billion 15% Note: The deductible cannot exceed 1% of the Seller/Servicer’s total net worth. *Base = The highest of total annual Home Mortgage and Multifamily Mortgage origination, sale or Servicing volume, including Home Mortgages and Multifamily Mortgages held in portfolio. The Seller/Servicer must include in its Base the UPB of all Mortgages for which it holds the related Servicing Contract Right, regardless of whether a Servicing Agent has been engaged to perform subservicing on behalf of the Seller/Servicer. A Servicing Agent must only include in its Base the UPB of Mortgages for which it holds the related Servicing Contract Right and need not include the UPB of Mortgages for which the Servicing Agent has been engaged to perform subservicing on behalf of another Seller/Servicer.

Source: Freddie Mac Single-Family Seller/Servicer Guide 2101.7 — Fidelity insurance coverage · source URL · snapshot 4c94f67729042dd6