Freddie Mac Single-Family Seller/Servicer Guide 4406.9 — Excess proceeds for Mortgages secured by properties subject to income-based resale restrictions
Freddie Mac Single-Family Seller/Servicer Guide section 4406.9 — Excess proceeds for Mortgages secured by properties subject to income-based resale restrictions. Full verbatim section text, substring-verified against snapshot 5869ee9e606cd4ae.
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide 4406.9 — Excess proceeds for Mortgages secured by properties subject to income-based resale restrictions — 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 4406.9 — Excess proceeds for Mortgages secured by properties subject to income-based resale restrictions
The subsidy provider may be entitled to any applicable excess proceeds when there is a transfer of title on a property subject to income-based resale restrictions that occurs as a result of such property being sold by: ■ The Borrower for an amount exceeding the resale restricted price, or ■ Freddie Mac after acquiring title through a completed foreclosure sale or deed-in-lieu of foreclosure Excess proceeds on properties subject to income-based resale restrictions are those proceeds that are above the amount required to satisfy the total indebtedness, including any additional liens, claims or encumbrances, in addition to any amount(s) incurred during an REO holding period if title was acquired by Freddie Mac via a completed foreclosure sale or deed-in-lieu of foreclosure. Upon satisfaction of the total indebtedness as outlined above, any excess proceeds should be distributed as outlined below: ■ For properties that are sold by the Borrower for an amount exceeding the resale restricted price agreed upon in the resale restricted covenants: ❑ First to the Borrower and subsidy provider for equity due as agreed upon in the resale restricted covenants, and ❑ All remaining excess proceeds to the subsidy provider when the resale restricted covenants include terms for excess proceeds to be distributed to the subsidy provider ■ For properties that are sold by Freddie Mac after acquiring title through a completed foreclosure sale or deed-in-lieu of foreclosure: ❑ First to Freddie Mac for any amount(s) incurred during an REO holding period, as applicable, and ❑ All remaining excess proceeds to the subsidy provider when the resale restricted covenants include terms for excess proceeds to be distributed to the subsidy provider Note: Servicers will not be responsible for these REO activities. For more information on Servicer responsibilities on REO properties, see Chapter 9601.
Operationalizing Freddie Mac Single-Family Seller/Servicer Guide 4406.9 — Excess proceeds for Mortgages secured by properties subject to income-based resale restrictions
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Source of record: https://claudeforcompliance.com/regs/fhlmc-4406-9/
· register fhlmc-4406-9 · Claude for Compliance. Free to read and download;
see regulatory updates and methodology.