Freddie Mac Single-Family Seller/Servicer Guide §6301.2 — Documentation preparation and endorsements (02/04/26)
Freddie Mac Guide §6301.2 (Documentation preparation and endorsements). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide §6301.2 — Documentation preparation and endorsements (02/04/26) — 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 Guide 6301.2
(02/04/26) This section contains information related to: ■ Endorsement of Notes ■ Power of attorney (POA) ■ Modifying instrument or assumption of indebtedness agreement
Freddie Mac Guide 6301.2
301-2 ■ Assignment of Security Instrument to Freddie Mac (a) Endorsement of Notes (i) Without recourse For each Mortgage delivered to Freddie Mac (except for Mortgages sold with recourse under the Guarantor or MultiLender Swap program, pursuant to Section 6201.2(b)(i)), the original of the Note must be delivered pursuant to the requirements of this chapter, and the Note must bear the following endorsement signed by the Seller’s duly authorized representative: PAY TO THE ORDER OF ______________________________________________ WITHOUT RECOURSE (Name of Seller-endorser) (Signature of duly authorized representative) (Typed name and title of signatory) This endorsement “without recourse” will in no way affect the Seller/Servicer’s repurchase obligations under the Purchase Documents. If the Seller is a corporation, the person endorsing the Notes must be a duly authorized officer of the Seller. If the Seller is a partnership or other type of organization that is not a corporation, the person endorsing the Notes must be duly authorized by the Seller, in accordance with the organization’s constituent documents and applicable law, to take such action on behalf of the Seller. Endorsement may not be made pursuant to a POA. (ii) With recourse For each Mortgage sold with recourse under the Guarantor or MultiLender Swap program, the original of the Note must be delivered bearing the following endorsement signed by the Seller’s duly authorized representative: PAY TO THE ORDER OF ______________________________________________ (Name of Seller-endorser) (Signature of duly authorized representative) (Typed name and title of signatory) If the Seller is a corporation, the person endorsing the Notes must be a duly authorized officer of the Seller. If the Seller is a partnership or other type of organization that is not a
Freddie Mac Guide 6301.2
301-3 corporation, the person endorsing the Notes must be duly authorized by the Seller, in accordance with the organization’s constituent documents and applicable law, to take such action on behalf of the Seller. Endorsement may not be made pursuant to a POA. (iii)Chain of endorsement If the Seller is not the original payee on the Note, the chain of endorsements must be proper and complete from the original payee shown on the Note to the Seller. At the time the Mortgage is sold to Freddie Mac, the Seller must endorse the Note in blank, in accordance with (i) or (ii) above. With respect to each Note, the Seller is responsible for all endorsement negotiability issues and represents and warrants to Freddie Mac that (i) each endorsement is valid for preservation of negotiability, and (ii) the Document Custodian did not endorse such Note. When a Transfer of Servicing occurs, the Transferor Servicer may not complete the blank endorsement or further endorse the Note. Note: Endorsements are not applicable for eNotes because eNotes are Transferable Records under the Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act (E-SIGN) and not subject to the UCC endorsement requirements applicable to paper promissory notes and other negotiable instruments. (iv) Facsimile signature Notes may be endorsed by use of a facsimile signature stamp if the following conditions are met: ■ The signature is that of a corporate officer of the Seller who has authority pursuant to a resolution of the Seller’s Board of Directors ■ The corporate officer whose signature is imprinted on the stamp authenticates his signature by affidavit, which will be made available to Freddie Mac upon request ■ Before the Delivery Date, the Seller must obtain an opinion of the Seller’s counsel that the use of a facsimile signature constitutes a valid signature for an endorsement on each Note so endorsed. The Seller must furnish this opinion to Freddie Mac upon request. (v) Use of an Allonge for the endorsement of a Note The Seller may use an Allonge to endorse a Note if the following conditions are met: ■ The Allonge is permanently affixed to the Note
Freddie Mac Guide 6301.2
301-4 ■ The Allonge references the Borrower’s name, the property address and the original principal balance of the Note ■ The form of the Allonge, and its use, complies with all applicable laws ■ The use of the Allonge does not impair Freddie Mac’s status as a “holder in due course” or any of Freddie Mac’s rights under the Purchase Documents (b) POA Sellers may allow use of a POA to close a Mortgage, including an eMortgage, in accordance with the following requirements. In accordance with Section 4201.8, relating to Wholesale Home Mortgages, the Seller’s obligations herein may be performed by the broker, correspondent or other originator, and the Seller remains responsible for compliance with this section and its representations and warranties relating to this section. (i) Using a POA A POA may be used only when: ■ There is an event such as a medical emergency, natural disaster, military deployment or other hardship preventing the Borrower from executing the requisite documents in person, by electronic signature or through other alternative electronic means (e.g., Remote Online Notarization (as defined in Section 1401.2), eClosing), or ■ Applicable law requires the Seller to accept use of a POA A POA may not be used merely for the convenience of the parties. The POA must comply with the laws of the applicable jurisdiction, and the Borrower must have had the capacity to grant the POA at the time it was made. A notation, description or other information about the reason why a POA was used must be included in the Mortgage file whenever a POA is used. If the acceptance of a POA is required by law, the Seller must include a written statement that explains the circumstances in the Mortgage file. (ii) POAs signed by attorney-in-fact The person using the POA to sign on behalf of the Borrower is referred to as an “attorney-in-fact.” The attorney-in-fact must: ■ Have a familial or fiduciary relationship with the Borrower, ■ Be an individual employed by the title insurer underwriting the title insurance product insuring the Mortgage, or
Freddie Mac Guide 6301.2
301-5 ■ Be an individual employed or engaged contractually by the title agency issuing the title insurance product for the Mortgage and closing the transaction, but only if the title insurer has issued a closing protection letter relating to the transaction (or has similar contractual indemnity to the Seller and assignees of the Seller) for such policy issuing agent Neither the Seller of the property in a purchase transaction nor an employee of the originating lender is eligible to be an attorney-in-fact under a POA. A POA may be used to execute any of the Initial Loan Documents and Closing Documents (both as defined in Section 1401.2) in connection with any Mortgage type. The Borrower may execute the POA using an electronic signature. The POA must be executed by the Borrower prior to its use by an attorney-in-fact. The POA does not have to be specific to the Mortgage transaction. (iii) Special POA requirements for cash-out refinances Before closing and after finalizing Mortgage terms, an employee of the originating lender or settlement agent must explain and discuss the Mortgage terms and use of the POA with the Borrower to confirm that the Borrower understands them. However, if the Borrower is in a Period of Military Service as defined in Section 8503.1(a) and is unavailable for the discussion or the Borrower is incapacitated such that he or she cannot participate in a discussion, then this requirement is waived as to that Borrower. At a minimum, the discussion must include: ■ Review of the rate, term and principal balance of the Mortgage, ■ The address of the Mortgaged Premises, ■ The fact that the attorney-in-fact uses the Borrower’s POA to sign documents on behalf of the Borrower, and ■ The scheduled or estimated closing date This discussion must take place in person, telephonically or using a video conference system. It may take place just before closing and does not require the presence of the attorney-in-fact. It must be memorialized by a Borrower acknowledgment that may be in: ■ Writing, ■ An e-mail exchange with the Borrower at an e-mail address provided by the Borrower, or ■ A recording or a transcript of the telephone or video discussion with the Borrower
Freddie Mac Guide 6301.2
301-6 The acknowledgement must be retained in the Mortgage file and made available to Freddie Mac upon request. (iv) POA delivery requirements for all Mortgages If documents are executed under a paper POA, the Seller must comply with the following delivery requirements, regardless of the Mortgage Application Received Date or Note Date: ■ The Seller must deliver to the Document Custodian one of the following with the Note: • The original POA (signed in ink by the Borrower), • A copy of the POA, or • A copy of the POA showing the recordation information ■ If applicable law requires an original POA (signed in ink by the Borrower) for enforcement or foreclosure purposes, the Seller must deliver an original POA (signed in ink by the Borrower) to the Document Custodian ■ If the POA is recorded and the copy of the POA with recordation information is not delivered to the Document Custodian along with the Note, the Seller must provide the Document Custodian with the recorded copy of the POA, including recordation details, within 30 days of receiving the POA from the recording office If the Note, Security Instrument and other closing documents are executed under an Electronic POA (“Electronic” as defined in Section 1401.2), the following requirements apply: ■ The Seller must deliver the Electronic POA to the Document Custodian, along with the Note ■ If the Electronic POA is recorded and the copy of the Electronic POA with recordation information is not delivered to the Document Custodian along with the Note, the Seller must provide the Document Custodian with the recorded copy of the Electronic POA, including recordation details, within 30 days of receiving it from the recording office Note: If the Document Custodian is not able to accept Electronic Documents, the Seller must send a paper copy of the POA to the Document Custodian. (v) Other provisions related to loans with a POA
Freddie Mac Guide 6301.2
301-7 Refer to the following Guide provisions for additional delivery requirements for loans with a POA: Other Guide provisions related to loans with a POA Guide provision Guide location Electronic Recording of paper Closing Documents and post- closing Documents Section 1401.3(d) Electronic Recording of Electronic Closing Documents Section 1401.3(e) Power of attorney-originated eMortgage delivery requirements Section 1402.3 (c) Modifying instrument or assumption of indebtedness agreement The Seller must deliver the following documents with the original Note: ■ If a Mortgage has been modified or converted from an ARM to a fixed-rate Mortgage: ❑ The original modification or conversion agreement, unless it is recorded with the Security Instrument ❑ If the original modification or conversion agreement is recorded with the Security Instrument, a copy of the modification or conversion agreement must be delivered ■ For a modified Construction to Permanent Mortgage or a Renovation Mortgage: ❑ The original Construction to Permanent Modification Agreement, unless it is recorded with the Security Instrument ❑ If the original Construction to Permanent Modification Agreement is recorded with the Security Instrument, a copy of the Construction to Permanent Modification Agreement ■ If the ownership of the Mortgaged Premises has been transferred in any way, the ownership transfer instrument and assumption of indebtedness agreement The Seller need not submit a modifying instrument that by its terms ceases to be effective upon purchase of the modified Mortgage by Freddie Mac. (d) Assignment of Security Instrument to Freddie Mac The Seller/Servicer is not required to prepare an assignment of the Security Instrument to Freddie Mac. However, Freddie Mac may, in its sole discretion and at any time, require a
Freddie Mac Guide 6301.2
301-8 Seller/Servicer, at the Seller/Servicer’s expense, to prepare, execute and/or record assignments of the Security Instrument to Freddie Mac. If an assignment of the Security Instrument to Freddie Mac has been prepared, the Seller/Servicer must not record it unless directed to do so by Freddie Mac. Any statement in the assignment to the effect that the assignment is made without recourse will in no way affect the Seller/Servicer’s repurchase obligations under the Purchase Documents. For transfer or assignment of Freddie Mac’s interest in the Mortgage, the Seller/Servicer shall prepare at its own expense any assignment necessary to transfer the Security Instrument to Freddie Mac’s assignee, designee or transferee. Intervening Assignments must be prepared in accordance with the requirements of this section. Note: Special provisions for preparing assignments for Mortgages secured by Manufactured Homes located in certificate of title States where there is no provision for surrender and cancelation of the certificate of title are set forth in Sections 5703.4(b) and 5703.4(f)(iii). Mortgages secured by Manufactured Homes located in certificate of title States where there is no provision for surrender and cancelation of the certificate of title may not be registered with MERS®. (i) Mortgages not registered with MERS For a Mortgage not registered with MERS, the Seller/Servicer must ensure that the chain of assignments is complete and recorded from the original mortgagee on the Security Instrument to the Seller. If the Seller enters into a Concurrent or Subsequent Transfer of Servicing, an assignment to the Transferee Servicer must be completed and recorded where required, thus keeping the chain complete. If a State does not accept assignments for recordation, the Seller must so state in an affidavit maintained with the unrecorded assignment. (ii) Mortgages registered with MERS For a Mortgage registered with MERS, if MERS is not the original mortgagee of record, the Seller/Servicer must ensure that: ■ An assignment of the Security Instrument to MERS has been prepared, duly executed and recorded in all places necessary to perfect a First Lien security interest in the Mortgaged Premises in favor of MERS, solely as nominee for the lender named in the Security Instrument and the Note, and the lender’s successors and assigns. Mortgages subsequently assigned to MERS in the States of Montana, Oregon and Washington are not eligible for sale to Freddie Mac.
Freddie Mac Guide 6301.2
301-9 ■ The chain of assignments is complete and recorded from the original mortgagee to MERS If the Seller/Servicer engages in a Concurrent or Subsequent Transfer of Servicing related to a Mortgage registered with MERS, no further assignments are required if the Transferee Servicer is a MERS Member. If the Transferee Servicer is not a MERS Member, or if the Mortgage has not been, or is no longer, registered with MERS, the Seller/Servicer must complete the assignments in accordance with the requirements in Section 6301.2(d)(i) above. (iii) Mortgages registered with MERS naming MERS as original mortgagee of record No assignments are required for a Mortgage registered with MERS if: ■ The Mortgage is originated naming MERS as the original mortgagee of record, solely as nominee for the lender named in the Security Instrument and the Note, and the lender’s successors and assigns, and ■ The Seller/Servicer has ensured that the Security Instrument is properly executed, acknowledged, delivered and recorded in all places necessary to perfect a First Lien security interest in the Mortgaged Premises in favor of MERS, solely as nominee for the lender named in the Security Instrument and the Note, and the lender’s successors and assigns (iv) Concurrent Transfers of Servicing If the Mortgage is registered with MERS, and the Transferee Servicer is not a MERS Member, then the requirements for Mortgages not registered with MERS must be followed. For a Concurrent Transfer of Servicing when a Mortgage is registered with MERS: ■ The Seller must notify MERS of the Transfer of Servicing and reflect such Transfer of Servicing on the MERS System ■ The Transferee Servicer must follow the document custodial procedures in Section 7101.4(c) and deliver the assignments to the Transferee Document Custodian to be verified and certified in accordance with the requirements of Section 6304.2, unless the Transferee Servicer has elected to retain all assignments for MERS- registered Mortgages in the Mortgage files. The Transferee Servicer must also supply its Document Custodian with any documentation necessary for the Document Custodian to determine whether the Seller/Servicer has elected to hold all assignments in the Mortgage files. For a Concurrent Transfer of Servicing when a Mortgage is not registered with MERS:
Freddie Mac Guide 6301.2
301-10 ■ The Seller must record any Intervening Assignments to complete the chain of assignments from the original mortgagee to the Seller, in accordance with Section 6301.2(d)(i) ■ The Seller must then assign the Security Instruments to the Transferee Servicer and record the assignments ■ The Transferee Servicer must follow the document custodial procedures set forth in Section 7101.4(c), and deliver the assignments to the Transferee Document Custodian, to be verified and certified in accordance with the requirements of Section 6304.2 Special provisions for Concurrent Transfers of Servicing of Mortgages secured by Manufactured Homes located in certificate of title States where there is no provision for surrender and cancelation of the certificate of title are set forth in Sections 5703.4(b) and 5703.4(f)(iii).