Freddie Mac Single-Family Seller/Servicer Guide 3101.1 — Freddie Mac Exclusionary List

This section contains requirements related to: ■ Purpose and use of the Exclusionary List ■ Seller/Servicer warranties regarding the Exclusionary List ■ Reporting and confidentiality obligations ■ Process for placement on the Exclusionary List ■ Remedies (a) Purpose and use of the Exclusionary List (i) Purpose of the Exclusionary List Freddie Mac maintains the Freddie Mac Exclusionary List (“Exclusionary List”) to protect the integrity of its Mortgage purchasing and Servicing functions. The names and other identifying information of persons or entities whose conduct presents risks to Freddie Mac, as determined by Freddie Mac in its sole discretion, may be placed on the Exclusionary List, in which case such persons or entities are prohibited from doing business with Freddie Mac in any role described in Section 3101.1(a)(ii) below. (ii) Use of the Exclusionary List The Seller/Servicer must use the Exclusionary List only in accordance with the Guide, including for the following purposes:

(A) Screen parties involved in the origination of the Mortgage Before the sale of each Mortgage to Freddie Mac, the Seller must use the Exclusionary List to determine whether, as of the Note Date, any person or entity identified on the Exclusionary List—including through information such as names, license numbers or other identifiers—performed any of the following roles in the origination of the Mortgage or the underlying real estate transaction: ■ Borrower(s) ■ Property seller(s) ■ Loan Originator (e.g., loan officer) ■ Loan Origination Company (e.g., Third Party Originators, retail lenders, Mortgage Brokers and Correspondents) ■ Real estate agent(s) ■ Real estate company(ies) ■ Settlement agent or the individual listed as the settlement agent on the Settlement/Closing Disclosure Statement ■ Settlement company(ies) ■ Appraiser ■ Appraisal company If a party on the Exclusionary List performed any of these roles in the origination of a Mortgage or the underlying real estate transaction, the Mortgage is not eligible for sale to Freddie Mac.

(B) Screen parties involved in sales, quality control, loan production, processing, underwriting or Servicing functions for Freddie Mac Mortgages The Seller/Servicer must use the Exclusionary List to confirm that none of the Seller/Servicer’s own employees who engaged in any of the following functions regarding Freddie Mac Mortgages are on the Exclusionary List: ■ Sales ■ Quality control ■ Loan production ■ Processing ■ Underwriting ■ Servicing The Seller/Servicer must use the Exclusionary List to confirm that no third-party entity that performed any of the sales, quality control, loan production, processing, underwriting or Servicing functions regarding Freddie Mac Mortgages is on the Exclusionary List. The Seller/Servicer must screen its new employees and any third-party entity involved in the aforementioned activities against the Exclusionary List at the time of onboarding and at least once per year thereafter. The Seller/Servicer must confirm that any buyer of a short sale property is not on the Exclusionary List. Note: Prohibited roles in sales functions include, without limitation, parties involved in the delivery of Freddie Mac Mortgages. Prohibited roles in quality control functions include, without limitation, parties involved in reviewing eligibility of Freddie Mac Mortgages and reporting adverse findings to Freddie Mac. (iii)Access to the Exclusionary List The Exclusionary List is updated at least monthly and is available to Seller/Servicers via Freddie Mac Gateway®. The Seller/Servicer must use only the most current version of the Exclusionary List and must obtain an authorized ID and password to access the Exclusionary List. Seller/Servicers may obtain additional information on accessing the Exclusionary List by calling Customer Service at 800-FREDDIE or contacting their Freddie Mac account representative. (b) Seller/Servicer warranties regarding the Exclusionary List (i) Seller warranties regarding the Exclusionary List With respect to each Mortgage delivered to Freddie Mac, the Seller represents and warrants that: ■ As of the Note Date, no person or entity on the Exclusionary List performed a role in the origination of the Mortgage, the sale of the Mortgage to Freddie Mac or the underlying real estate transaction (as set forth in Section 3101.1(a)(ii)(A), above) ■ No person or entity on the Exclusionary List performed a role in the sales, quality control, loan production, processing, underwriting or Servicing functions (as set forth in Section 3101.1(a)(ii)(B), above) for the Mortgage at any time ■ It will maintain sufficient controls, and supporting documentation of such, to meet these warranty obligations (ii) Waiver of Seller warranties regarding the Exclusionary List Before the Funding Date, the Seller may contact Freddie Mac to request review of a Mortgage to obtain a waiver of the warranty requirements in Sections 3101.1(b)(i) and 1301.5(c)(i)(8). The Seller should make such requests to Freddie Mac as set forth in Section 1301.5(c)(i). (iii)Servicer warranties regarding the Exclusionary List With respect to each Mortgage serviced on behalf of Freddie Mac, the Servicer represents and warrants that: ■ No person or entity on the Exclusionary List will perform a role in any Servicing or quality control functions relating to the Mortgage. This warranty applies to both the Servicer’s own employees and any third-party entity that performed any of the Servicing or quality control functions regarding Freddie Mac Mortgages. ■ The buyer of a short sale property is not on the Exclusionary List ■ It will maintain sufficient controls, and supporting documentation of such, to meet these warranty obligations (ii) Waiver of Servicer warranties regarding the Exclusionary List The Servicer must contact Freddie Mac to request a written waiver before performing a function or entering into a transaction that would violate the Servicer’s warranties set forth in Section 3101.1(b)(iii). The Servicer should make such request to the Freddie Mac Exclusionary List mailbox at [email protected]. As part of the request, the Servicer must inform Freddie Mac of the nature and extent of the role played in the proposed transaction by the person or entity on the Exclusionary List and provide other relevant information upon request. If Freddie Mac elects to grant the waiver, Freddie Mac will provide to the Servicer written notice of such election, in which case the warranty concerning the involvement of an excluded person or entity will not be applicable to such transaction. All other requirements of the Purchase Documents relating to the Servicing of the Mortgage will remain in full force and effect. Freddie Mac’s decision regarding the waiver of any warranties is within its sole discretion. (c) Reporting and confidentiality obligations (i) Reporting obligations of the Seller/Servicer The Seller/Servicer must immediately report the discovery of a possible breach of any warranty in Section 3101.1 to the Freddie Mac Exclusionary List mailbox at [email protected]. (ii) Confidentiality and use of the Exclusionary List The Exclusionary List and the identities of the persons and entities on the Exclusionary List whose names are not publicly available are “Freddie Mac confidential information” for the purposes of Section 1201.8. The Seller/Servicer represents and warrants that it will keep the Exclusionary List confidential in accordance with the terms and conditions of Section 1201.8. The Seller/Servicer may use the Exclusionary List only for the purposes described in Section 3101.1(a)(ii) and must not use or disclose the Exclusionary List for any other purpose without first obtaining Freddie Mac’s written permission. The Seller/Servicer will indemnify Freddie Mac for any loss, damage, or expense resulting from the Seller/Servicer’s failure to maintain the confidentiality of the Exclusionary List or information contained in the Exclusionary List. (d) Process for placement on the Exclusionary List Freddie Mac will generally provide a person or entity with written notice of any proposed placement on the Exclusionary List, along with an opportunity to submit a written response; however, Freddie Mac may determine, in its sole discretion, that circumstances require immediate placement of a person or entity on the Exclusionary List, without prior written notice. Grounds for placement on the Exclusionary List include, without limitation: ■ Fraud or possible fraud ■ Misrepresentations, misstatements or omissions of facts ■ Theft or misappropriation of funds ■ Willful or reckless violation of statutory or regulatory requirements ■ Business practices that Freddie Mac determines present risks to Freddie Mac ■ Lack of business controls to ensure the integrity of the Mortgages sold to or serviced for Freddie Mac ■ Evidence that demonstrates a lack of integrity or business competence ■ Any grounds that, in Freddie Mac’s judgment, may adversely affect Freddie Mac Freddie Mac, in its sole discretion, will render a final decision regarding placement on the Exclusionary List after reviewing any response submitted by the proposed person or entity. (e) Remedies