Freddie Mac Single-Family Seller/Servicer Guide 5705.2 — Cooperative Project review and general Cooperative Project eligibility requirements

Freddie Mac Single-Family Seller/Servicer Guide 5705.2 — Cooperative Project review and general Cooperative Project eligibility requirements

Effective 2025-03-05 · Freddie Mac's stamp for this section

The Seller must determine compliance with Freddie Mac’s Cooperative Project review and eligibility requirements in this section. This section contains the following subsections: ■ Cooperative Project review requirements ■ General Cooperative Project eligibility requirements ■ Freddie Mac right to review Cooperative Projects (a) Cooperative Project review requirements Except for Freddie Mac-owned “no cash-out” refinance Cooperative Share Loans delivered in accordance with the requirements in Section 5705.7 relating to Exempt from Review, the Seller must ensure that: 1. The Cooperative Project, the Cooperative Unit and Cooperative Share Loan comply with the following sections in this chapter: ■ Cooperative Project eligibility (see Section 5705.4) ■ Legal requirements for New Cooperative Projects (see Section 5705.6) 2. The project must not be an ineligible Cooperative Project (see Section 5705.3) 3. The Seller must review and determine that a Cooperative Project complies with Freddie Mac’s requirements as follows: Cooperative Project review expiration Type of Cooperative Project Expiration of project review Established Cooperative Project Within one year prior to the Note Date New and Newly Converted Cooperative Projects Within 180 days prior to the Note Date If the Cooperative Project does not meet Freddie Mac’s project eligibility requirements on the Note Date, the Seller may deliver the Cooperative Share Loan at the time the Cooperative Project complies with all of the project eligibility requirements as long as all other applicable requirements have been met. 4. The Cooperative Project, Cooperative Project Documents and Cooperative Share Loan documents must comply with all applicable laws, ordinances and regulations for the State and local jurisdiction in which the project is located, and all documents must be enforceable under the laws, ordinances and regulations of the applicable jurisdiction. (b) General Cooperative Project eligibility requirements The Seller must also review and determine compliance with the following requirements: 1. The project must have insurance that complies with the applicable requirements of 2. The Cooperative Unit and the Cooperative Project must be covered by a title insurance policy that complies with requirements of Chapter 4702 3. The Cooperative Project and Cooperative Unit must comply with all applicable requirements of Topic 5600 4. The Cooperative Project must be designed primarily for residential use 5. The Cooperative Share Loan must comply with all applicable requirements in Section 5705.5 6. A Cooperative Share Loan must be delivered to Freddie Mac within 120 days after the Note Date. If the Cooperative Share Loan is not delivered within 120 days after the Note Date, Seller must update the project review and eligibility determination prior to delivery. 7. The Seller must have policies and procedures in place and take appropriate steps to ensure that the Cooperative Unit, Cooperative Share Loan and Cooperative Project comply with applicable requirements 8. The Seller must retain all documentation related to the review of the Cooperative Project. Upon request, the Seller must provide the project information and documentation to Freddie Mac. (c) Freddie Mac right to review Cooperative Projects Freddie Mac reserves the right to conduct its own review of the Cooperative Project for Cooperative Share Loans delivered to Freddie Mac.

Source: Freddie Mac Single-Family Seller/Servicer Guide 5705.2 — Cooperative Project review and general Cooperative Project eligibility requirements · source URL · snapshot 4c94f67729042dd6