Freddie Mac Single-Family Seller/Servicer Guide 3403.1 — Servicer’s quality control program

Freddie Mac Single-Family Seller/Servicer Guide 3403.1 — Servicer’s quality control program

Effective 2026-02-11 · Freddie Mac's stamp for this section

The Servicer must implement a quality control program with respect to its Servicing of Mortgages for Freddie Mac, and, in implementing this program, it may leverage its existing processes. Freddie Mac may review and require changes to a Servicer’s quality control program. Servicers must: ■ Have written policies and procedures documenting its quality control program’s requirements ■ Consistently monitor compliance with these policies and procedures as part of a prudent risk management framework ■ Regularly review and assess the adequacy of its internal controls, procedures and systems used in connection with the Servicing of Freddie Mac Mortgages to ensure compliance with the Guide and other Purchase Documents The Servicer must take remedial steps, as appropriate, to address any deficiencies identified regardless of whether such deficiencies are: ■ Discovered by the Servicer, ■ Identified and communicated by Freddie Mac, ■ Identified by a Borrower and confirmed by the Servicer, or ■ Identified by a third party (e.g., external auditor, law firm, regulatory agency) and confirmed by the Servicer The Servicer must formally document the results of its reviews and assessments and make the results, including any remediation plan or completed remediation, available to Freddie Mac upon request. A Servicer must provide evidence of its quality control program upon Freddie Mac’s request. At a minimum, the program must: 1. Comply with the fraud prevention and detection requirements of Section 3201.1(c), as well as other applicable fraud prevention, detection and reporting requirements of Chapter 3201 2. Evaluate whether the Servicer is maintaining accurate and complete records as required by Chapter 3302 and the document retention and Document Custodian requirements set forth in Sections 9206.4(b), 9205.1(b) and 9205.3 3. Establish control and identification features for all Mortgage files, in accordance with Section 3302.1(c) 4. Provide for periodic reviews of the Servicer’s cash accounting, investor reporting and remitting, escrow management and notifications to Borrowers, portfolio reconciliation and custodial accounts management processes and controls, using a Mortgage sample size that reflects a meaningful representation of the UPB of the Mortgages the Servicer services for Freddie Mac 5. Assess ARM adjustment accuracy and notifications to Borrowers 6. Periodically perform quality control reviews or audits on any authorized Outsourced Vendor’s use of any Servicing Tool to ensure compliance with the Guide and other Purchase Documents 7. Evaluate whether its operations personnel and, if applicable, Outsourced Vendors are complying with and accurately conducting the preforeclosure referral Mortgage file review requirements of Sections 9101.1(e), 9102.4(b) and 9301.2(a) and preforeclosure sale account review requirements of Section 9301.7(b) 8. Periodically review notices of default, notices of acceleration, right to cure notices and, where applicable, right to appeal a loan modification denial notice to ensure that they are properly dated, timely sent and otherwise provide Borrowers with all rights required by applicable law and assess whether all condition precedents to proceeding with foreclosure are met 9. Periodically review compliance with Freddie Mac’s loss mitigation requirements, which includes compliance with Freddie Mac’s modification program requirements and short sales 10. Maintain policies and procedures that are reasonably designed to ensure that the Servicer investigates, responds to and makes corrections in response to complaints or errors asserted by Borrowers

Source: Freddie Mac Single-Family Seller/Servicer Guide 3403.1 — Servicer’s quality control program · source URL · snapshot 4c94f67729042dd6