Freddie Mac Single-Family Seller/Servicer Guide Section 4701.4 — Late charges

Freddie Mac Single-Family Seller/Servicer Guide Section 4701.4 — Late charges

4701.4: Late charges (03/02/16) The Uniform Single Family Note provides blanks for inserting the amounts of late charges and the grace period after which such charges are assessable. Any amount and period stated must be permissible under applicable law. For Mortgages purchased by Freddie Mac, the Seller agrees to collect late charges only on monthly installments more than 15 days late. If the 15-day period ends on a weekend or holiday, it is extended to the next Business Day. The Seller also agrees not to collect late charges of more than 5% of the late principal and interest payment. The Seller may retain any late charge collected as additional Servicing compensation. If the late charge stated in the Note is more than 5% of the principal and interest payment and/or is to be assessed on a monthly installment late 15 days or less, the Seller agrees to notify the Borrower in writing of Freddie Mac’s late charge and grace period requirements and to retain a copy of the written notification in the Mortgage file for each Mortgage purchased by Freddie Mac. 4701.5: Mortgage insurance for Cooperative Share Loans (05/04/20) Notwithstanding the requirements of Section 4701.1, for New York properties, the sales price of the Cooperative Interest may be used solely for the purpose of determining whether mortgage insurance is required for purchase transaction Cooperative Share Loans. If mortgage insurance is required, the requirements of Section 4701.1 apply for determining the loan-to-value ratio for the required percentage of mortgage insurance coverage and for purposes of determining whether mortgage insurance should be canceled. Freddie Mac Single-Family Seller/Servicer Guide Chapter 4702 As of 02/04/26 Page 4702-1 Chapter 4702: Title Insurance 4702.1: General Freddie Mac title insurance requirements (04/02/25) A title insurance policy is mandatory for each Mortgage delivered to Freddie Mac unless specifically excepted by Section 4702.3 or 4702.4. Each Mortgage purchased by Freddie Mac must be covered by one of the following: ■ A paid-up Mortgage title insurance policy meeting the requirements in Section 4702.2 ■ An attorney opinion of title letter meeting the requirements in Section 4702.3, or ■ A certificate of title issued by Iowa Title Guaranty

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