Freddie Mac Single-Family Seller/Servicer Guide 4402.2 — Special requirements for Seller-Owned Converted Mortgages
Freddie Mac Single-Family Seller/Servicer Guide section 4402.2 — Special requirements for Seller-Owned Converted Mortgages. Full verbatim section text, substring-verified against snapshot 5869ee9e606cd4ae.
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide 4402.2 — Special requirements for Seller-Owned Converted Mortgages — 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 Single-Family Seller/Servicer Guide 4402.2 — Special requirements for Seller-Owned Converted Mortgages
This section contains: ■ Eligibility requirements ■ Delivery requirements (a) Eligibility requirements The following are requirements related to Mortgage eligibility for Seller-Owned Converted Mortgages: ■ A Community Land Trust Mortgage is not eligible for sale as a Seller-Owned Converted Mortgage ■ A HeritageOne® Mortgage is not eligible for sale as a Seller-Owned Converted Mortgage ■ A Mortgage secured by property subject to income-based resale restrictions that terminate upon foreclosure (or expiration of any applicable legally required foreclosure redemption period) or recordation of a deed-in-lieu of foreclosure where the property value must be determined in accordance with Section 4406.4(c) is not eligible for sale as a Seller-Owned Converted Mortgage ■ A Mortgage with a temporary subsidy buydown plan is not eligible for sale as a SellerOwned Converted Mortgage. If the original Mortgage included a temporary subsidy buydown, any remaining funds in the buydown account at time of conversion must be distributed in accordance with the buydown agreement. ■ The Seller must warrant that all the original Note and Security Instrument terms for converting the Mortgage to a fixed rate of interest have been met ■ The Seller-Owned Converted Mortgage Note must be negotiable, and the entire indebtedness must be fully enforceable against the Borrower and secured by a First Lien on the Mortgaged Premises ■ The Seller-Owned Converted Mortgage Note must have a fixed rate of interest with level monthly principal and interest payments ■ A fully enforceable due-on-sale clause, such as contained in Freddie Mac’s current fixedrate Uniform Instruments, must be in effect after conversion to fixed rate (b) Delivery requirements See Section 6302.19 for delivery and pooling requirements for Seller-Owned Converted Mortgages.
Operationalizing Freddie Mac Single-Family Seller/Servicer Guide 4402.2 — Special requirements for Seller-Owned Converted Mortgages
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Source of record: https://claudeforcompliance.com/regs/fhlmc-4402-2/
· register fhlmc-4402-2 · Claude for Compliance. Free to read and download;
see regulatory updates and methodology.