Freddie Mac Single-Family Seller/Servicer Guide Section 4201.15 — Escrow accounts

Freddie Mac Single-Family Seller/Servicer Guide Section 4201.15 — Escrow accounts

4201.15: Escrow accounts (04/02/25) This section contains requirements related to: ■ Escrow accounts ■ Seller policy for not requiring Escrow accounts ■ Best practices (a) Escrow accounts Freddie Mac does not require Escrow accounts except with respect to the collection of Borrower-paid mortgage insurance paid monthly as described in Section 4701.2 and when required by applicable law. (b) Seller policy for not requiring Escrow accounts Sellers that sell Mortgages without Escrow accounts must establish and maintain a written policy for determining when Escrow accounts are not required. Freddie Mac Single-Family Seller/Servicer Guide Chapter 4201 As of 03/04/26 Page 4201-15 The Seller’s determination that Escrow accounts are not required for a Mortgage must be based on the evaluation of the Borrower’s ability to make all payments for the expenses to be paid under the Mortgage as they become due. These expenses include: ■ Property hazard insurance premiums ■ Real estate taxes ■ Ground rents and other charges that are or may become First Liens on the Mortgaged Premises ■ Special assessments Sellers may not waive the requirement for Escrow accounts with respect to collection of Borrower-paid mortgage insurance and when Escrows are required by law. (c) Best practices Although not required, Freddie Mac encourages Sellers to require Escrows for the following Mortgages: ■ Mortgages to Borrowers that are First-Time Homebuyers ■ Home Possible® Mortgages ■ HomeOne® Mortgages ■ Mortgages secured by 2- to 4-unit properties ■ Mortgages secured by Manufactured Homes ■ Second home Mortgages ■ Investment Property Mortgage ■ Mortgages where the Borrower has less than six months of reserves ■ Refinance Mortgages where taxes were past due on the Mortgage being refinanced Freddie Mac Single Family Seller/Servicer Guide Chapter 4202 As of 02/04/26 Page 4202-1 Chapter 4202: Responsible Lending

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