Freddie Mac Single-Family Seller/Servicer Guide 8107.1 — Servicer responsibilities related to document custody

This section contains requirements related to: ■ Delivery of trailing documents to the Document Custodian ■ Requests for release of documents ■ Returning documents to the Document Custodian ■ Lost Notes

(a) Delivery of trailing documents to the Document Custodian Upon receiving a Mortgage document that is required to be held by a Document Custodian, such as a modifying instrument or an original document from a recording office, the Servicer must promptly deliver it to the Document Custodian holding the related Note.

(b) Requests for release of documents Servicers may require possession of a Note to take action in conjunction with the payoff, foreclosure, repurchase, substitution, conversion, modification or assumption of a Mortgage or to take legal action, such as responding to a Borrower’s bankruptcy, bringing or defending a lawsuit or other litigation relating to the maturity, prepayment, repurchase, substitution, conversion, modification or assumption of a Mortgage or a Freddie Mac Default Legal Matter (each such bankruptcy, suit or litigation being a “Legal Action”). Servicers often require physical possession of a Note for Legal Actions. Even if the Servicer needs only one document from the Note file, the Document Custodian will release the entire file because it is important to keep all the documents comprising the Note file together. In certain circumstances, constructive possession, which can be obtained quickly, is legally sufficient to establish the Servicer as a “holder” of, or person entitled to enforce, the Note in a Legal Action. “Constructive possession” describes the situation in which someone controls an object without physically possessing it. In this context, a Servicer can control and direct a Note that is in the Document Custodian’s vault. If constructive possession is appropriate for a Legal Action, the Servicer will automatically, immediately and conclusively be deemed to have constructive possession of the Note from the earlier of the date that: ■ The Legal Action commences, or; ■ The Document Custodian receives the Servicer’s request to release constructive possession of the Note until the Legal Action is concluded For physical possession, the Document Custodian will deliver the Note as directed by the Servicer. For constructive possession, the Document Custodian will promptly contact the Servicer by e-mail or otherwise when Document Custodian’s tracking system has been updated to indicate the Servicer (rather than Freddie Mac) as the “owner” or “investor” of the related Mortgage. Upon Document Custodian’s release of the Note, the Servicer shall automatically, immediately and conclusively be deemed to be: ■ The holder of the Note ■ Entitled to enforce the Note ■ Duly authorized by Freddie Mac to take Legal Action in connection with Servicing the related Mortgage ■ As appropriate, in physical possession of the Note Servicers request and return physical and constructive possession of Notes from Document Custodians (including eMortgages as defined in Section 1402.1(b)) using Form 1036, Request for Possession or Control of Documents, or its equivalent (“Form 1036,” regardless of its format). A single form may be used to request multiple Notes if each Note is separately listed and identified. An Electronic, as defined in Section 1401.1(b), or alternative version of Form 1036 must contain all information required by the Form 1036, regardless of format. Any request for release that is not delivered as hard copy is considered to be an Electronic Form 1036 (including a Portable Document Format (PDF) of a paper document attached to an e-mail). To use an Electronic Form 1036, the Servicer must enter into an agreement with the Document Custodian as described in Section 8107.2(b). The procedures to obtain physical or constructive possession of a Note are described below. (i) Designated Custodian To obtain physical or constructive possession of a Note from a Document Custodian other than The Bank of New York Mellon Trust Company, N.A. (“BNYM”) as Designated Custodian, a Seller/Servicer must complete Form 1036 and deliver it to the Document Custodian. When the Servicer no longer requires possession of the Note, it must promptly: ■ For physical possession, return the Note to the Document Custodian unless the Mortgage was repurchased or paid in full, or ■ For constructive possession, send notice (a copy of the original Form 1036 with a request for termination of constructive possession) to the Document Custodian, which will then update its document tracking system (ii) BNYM as Designated Custodian To obtain physical or constructive possession of a Note from BNYM, a Servicer may complete and send the Form 1036 as described above or make an electronic request using the Asset Repository and Collateral System (“ARK”). Contact BNYM for further information on ARK (see Directory 4). When the Servicer no longer requires possession of the Note, it must promptly: ■ For physical possession, return the Note to BNYM unless the related Mortgage was repurchased or paid in full as described above; however, Servicers using ARK to request a Note must use that method to return it and include a copy of the ARKgenerated 1036 Release Receipt Report, or ■ For constructive possession, notify BNYM by sending a copy of the original Form 1036 with a notice of termination of constructive possession or otherwise as instructed by BNYM, which will then update its document tracking system. (iii) eMortgage designated custodian In States in which the Servicer must be the holder of an eNote (as defined in Section 1402.1(b)) to commence foreclosure or other Freddie Mac Default Legal Matters, the Servicer must follow the requirements of Section 1402.5(c)(v) and, if required to produce a copy of the eNote for a Freddie Mac Default Legal Matter, Section 1402.5(c)(vi). Servicers must follow prudent business practices to protect and safeguard all Notes and documents while in their possession, in transit and in the possession of foreclosure counsel or agents. At a minimum, these practices include protection from damaging elements, such as water and fire, identification as a Freddie Mac asset, secure storage and tracking and segregation from unrelated documents.

(c) Returning documents to the Document Custodian When a Note is no longer needed for the reason cited on Form 1036, or when the Legal Action is concluded, the Servicer must promptly, in all events within 90 days, return the Note to the Document Custodian. Notes and related documents may be transported only by nationally recognized commercial or bonded carrier or courier services and must be covered by in transit insurance. Note: See Section 2202.3(b) for Seller/Servicer and Document Custodian requirements.

(d) Lost Notes (i) Lost Notes Requirements If a Servicer becomes aware at any time that an original Note is lost, is missing or has been inadvertently destroyed, the Servicer must promptly conduct a thorough and diligent search of its premises and business records and make diligent inquiry of any party that has had physical responsibility for the Note, such as a Document Custodian or foreclosure counsel. Servicer is responsible to Freddie Mac for the original Note even if it did not have physical possession of the Note at the time of loss. If Servicer cannot locate the Note after conducting the search, it must: ■ Retain written records describing the search in the Mortgage file, and ■ Immediately send an e-mail to Freddie Mac (Directory 9) requesting Freddie Mac’s permission to create an LNA that meets the requirements of this Section 8107.1. In response, Freddie Mac will issue: • An e-mail indicating Servicer’s authority to create an LNA subject to the terms and conditions set forth in this section • A written communication with a request for additional action • Additional instructions for an alternate remedy, or • A repurchase request, if the request is not granted Upon Freddie Mac’s approval of the request, the Servicer will create an LNA as described in subsection (ii) below and maintain the LNA as if it were the original Note, provided that a copy of Freddie Mac’s approval of Servicer’s creation of the LNA must be maintained with the LNA in the Note file. If a Document Custodian released an original Note, it is not permitted to accept return of an LNA without evidence of Freddie Mac’s authorization to create the LNA. Servicer must adhere to these procedures, whether it believes that it or another party was responsible for losing or destroying the Note and must maintain written policies to implement these procedures. (ii) LNA requirements Each LNA that Servicer creates must: ■ Identify information regarding the related Mortgage, including the: • Name(s) of the Borrower • Original principal balance • Note Date • Recording information for the Security Instrument • Address of the Mortgaged Premises (ZIP CodeTM not required) • Freddie Mac loan number; and • Servicer loan number ■ Confirm that the person signing the LNA on behalf of the Servicer (“affiant”) is over the age of 18, is competent to testify and either has independent knowledge of the facts set forth in the LNA or has made appropriate inquiry of persons having knowledge of such facts ■ Identify Freddie Mac as owner of the Mortgage ■ Set forth the name and function of the Servicer ■ State the basis for affiant’s assertion that the Note is lost or destroyed, including whether affiant is familiar with and has access to Servicer’s business records as part of affiant’s regular job functions ■ Verify that Servicer received the original Note ■ State that Servicer conducted a good faith, thorough and diligent search of Servicer’s premises and business records and has been unable to locate the original Note ■ State that, at the time that the Note was lost or destroyed, Servicer was entitled to enforce the Note ■ State that Freddie Mac and its successors-in-interest and assignees may rely on the LNA ■ Have attached to it a complete copy of the Note showing all endorsements through certification for purchase by Freddie Mac, if any ■ Contain the notarized signature of an employee of Servicer who is identified on the LNA by printed or typed title; and ■ Satisfy the requirements of applicable law to enforce the debt obligation in the State in which the Mortgage Premises is located For each such State, Servicer must receive, and make available upon request for Freddie Mac’s inspection, a legal analysis from either Servicer’s in-house counsel or outside counsel that the form of LNA used is as valid and enforceable as the Note would be if it were present. Certain States may require additional representations and information. For example, New York requires information regarding the original receipt of the Note and the methodology of Servicer’s good faith efforts to determine that the Note was lost. (iii)Servicer representations and warranties regarding enforceability of the Note; indemnification Servicer acknowledges that creating an LNA does not relieve Servicer of any representation or warranty relating to enforceability of the Note and agrees to indemnify Freddie Mac under Section 8101.1(d) for any loss, damage or expenses that arise because the original Note is unavailable. Servicer must provide written testimony, witnesses or other support to prove the LNA and enforce the debt obligation in a Legal Action, as defined in Section 8107.2, when requested by Freddie Mac, even when Servicer no longer services the related Mortgage and those activities support a Transferee Servicer’s efforts to enforce the debt obligation or otherwise service that Mortgage. If the Servicer has transferred servicing of a Mortgage with an LNA, Servicer must provide such support at the request of any subsequent Transferee Servicer or Freddie Mac. (iv) Records and reporting of LNAs Servicer must maintain a list of all Mortgages with LNAs created pursuant to this section 8107.1 and provide the list to Freddie Mac upon request. (v) “Found” Notes If a Note is located after an LNA has been created, Servicer shall immediately notify Freddie Mac by sending an e-mail to [email protected] and deliver the Note as directed below. If Freddie Mac owns the Mortgage, Freddie Mac may direct Servicer and Document Custodian to perform certain verifications, deliver the Note to the Document Custodian and execute certain documents as further described in the Document Custody Procedures Handbook. After the Document Custodian accepts the Note, Freddie Mac will destroy, or direct the destruction of, the LNA, and the Servicer’s indemnification obligations shall terminate without further action by any party. If Freddie Mac no longer owns the Mortgage when the Note is found, the Servicer must contact the new owner for instruction.