Freddie Mac Single-Family Seller/Servicer Guide 4402.5 — Uniform Instruments for Seller-Owned Modified Mortgages

Freddie Mac Single-Family Seller/Servicer Guide 4402.5 — Uniform Instruments for Seller-Owned Modified Mortgages

Effective 2026-02-04 · Freddie Mac's stamp for this section

This section contains requirements related to: ■ Security Instrument ■ Note ■ Loan modification agreement ■ Seller-Owned Modified Mortgages originated as a Construction to Permanent Mortgage or Renovation Mortgage Documentation for a Seller-Owned Modified Mortgage should consist of all of the following. (a) Security Instrument The Security Instrument must be either: ■ The version of the Fannie Mae/Freddie Mac Uniform Security Instrument for the State in which the Mortgaged Premises is located in effect on the Note Date, or ■ A nonstandard document that has been modified to conform to the current Fannie Mae/Freddie Mac Uniform Security Instrument for the State in which the Mortgaged Premises are located (b) Note The promissory note must be either: ■ The original Fannie Mae/Freddie Mac Uniform Fixed-Rate Note with the loan modification agreement attached, or ■ A new Note; a new Note must be used if the Seller-Owned Modified Mortgage is not a fixed-rate Mortgage. If a new Note is executed, Seller must use the applicable Uniform Instrument Note as required by Section 4101.2 for the modified Mortgage Product. (c) Loan modification agreement The loan modification agreement must be recorded if necessary to establish that the SellerOwned Modified Mortgage is a First Lien. The loan modification agreement must contain the following information with respect to the modification on the Seller-Owned Modified Mortgage: ■ The effective date of the loan modification ■ The current outstanding principal balance on the Seller-Owned Modified Mortgage ■ Whether the interest rate on the Seller-Owned Modified Mortgage is fixed or adjustable ■ The yearly interest rate on the Seller-Owned Modified Mortgage ■ The monthly payment amount on the Seller-Owned Modified Mortgage ■ The date the monthly payments on the Seller-Owned Modified Mortgage begin ■ The maturity date of the Seller-Owned Modified Mortgage The Seller may use the Freddie Mac Multistate Loan Modification to a Fixed Interest Rate, Freddie Mac Uniform Instrument Form 5161, as the loan modification agreement if the original Mortgage is either: ■ A fixed-rate Mortgage originated on the Fannie Mae/Freddie Mac Uniform Fixed-Rate Note and after modification will remain a fixed-rate Mortgage, or ■ A Mortgage that is being modified to a fixed-rate Mortgage using the Fannie Mae/Freddie Mac Uniform Fixed-Rate Note If Seller uses a different instrument to evidence the loan modification for a fixed-rate SellerOwned Modified Mortgage, the Seller represents and warrants that the instrument, when completed, contains substantially identical provisions to the Freddie Mac Loan Modification to a Fixed Interest Rate and is appropriate for use to evidence the modification of the Mortgage. (d) Seller-Owned Modified Mortgages originated as a Construction to Permanent Mortgage or Renovation Mortgage For a Seller-Owned Modified Mortgage that was originated as a Construction to Permanent Mortgage or Renovation Mortgage, the conversion of Interim Construction Financing to Permanent Financing must have occurred prior to the modification and must have been documented in accordance with Chapter 4602. The modification of the Permanent Financing that occurs after the Effective Date of Permanent Financing must be documented in accordance with this Section 4402.5.

Source: Freddie Mac Single-Family Seller/Servicer Guide 4402.5 — Uniform Instruments for Seller-Owned Modified Mortgages · source URL · snapshot 4c94f67729042dd6