Freddie Mac Single-Family Seller/Servicer Guide Chapter 8203 — Mortgage Insurance

fhlmc-8203

Chapter 8203 of the Freddie Mac Single-Family Seller/Servicer Guide governs Borrower-paid and Lender-paid mortgage insurance: warranties and covenants, Borrower-requested cancellation (HPA Mortgage), automatic termination and final termination under the HPA, and related annual notices. NOTE: actual title is "Mortgage Insurance".

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source:
  type: regulation
  id: fhlmc-8203
  authority: Freddie Mac Single-Family Seller/Servicer Guide Chapter 8203 — Mortgage Insurance
  description: |
    Chapter 8203 of the Freddie Mac Single-Family Seller/Servicer Guide
    governs Borrower-paid and Lender-paid mortgage insurance: warranties
    and covenants, Borrower-requested cancellation (HPA Mortgage),
    automatic termination and final termination under the HPA, and
    related annual notices. NOTE: actual title is "Mortgage Insurance".
obligations:
  - id: fhlmc-8203-maintain-mortgage-insurance
    canonical_id: fhlmc-8203-maintain-mortgage-insurance
    section: Freddie Mac Guide Section 8203.1(b) — General warranties and covenants
    description: |
      [LENDER], as Seller/Servicer, warrants that mortgage insurance has
      been obtained as required in Section 4701.1 and agrees and covenants
      that such mortgage insurance will be maintained unless canceled in
      accordance with the requirements of Section 4701.1, Sections 8203.2
      through 8203.4(c), or pursuant to applicable law.
    type: maintain
    audit_question: Can [LENDER] evidence that, for every Freddie Mac-owned Mortgage requiring mortgage insurance, MI coverage is maintained until canceled in accordance with Sections 4701.1, 8203.2-8203.4(c), or applicable law?
    program_review: Does the program ensure MI obtained per §4701.1 is maintained until canceled per §4701.1, §§8203.2-8203.4(c), or applicable law?
    file_review: For MI loans, confirm coverage is maintained and any cancellation followed the permitted bases.
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: escrow_analyst
    secondary_owner_role: compliance_officer
    cadence: continuous
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - fhlmc
      - freddie-mac
      - servicing-guide
      - mortgage-insurance
      - hpa
      - promoted
    primary_source:
      tier: 1
      authority: Freddie Mac Single-Family Seller/Servicer Guide Section 8203.1(b)
      source_class: fhlmc-guide
      source_url: https://guide.freddiemac.com/ci-guide
      snapshot_id: 5869ee9e606cd4ae
      fetched_at: '2026-05-23T00:27:40Z'
      content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
      paragraph_quote: The Seller/Servicer warrants that mortgage insurance has been obtained as required in
      drafter_attestation: Copied verbatim from Freddie Mac Guide snapshot 5869ee9e606cd4ae (Chapter 8203) at 2026-05-22.
    promoted_at: '2026-05-23T00:52:31+00:00'
    promoted_from: fhlmc-8203-roundb-v1.yaml
  - id: fhlmc-8203-hpa-disclosures-to-borrower
    canonical_id: fhlmc-8203-hpa-disclosures-to-borrower
    section: Freddie Mac Guide Section 8203.1(b) — HPA disclosures
    description: |
      [LENDER], as Seller/Servicer, warrants that the Borrower has been
      given, and agrees and covenants to provide, all disclosures required
      by applicable law, including, but not limited to, the HPA, relating
      to the terms on which the Borrower-paid mortgage insurance may be
      canceled.
    type: do
    audit_question: Can [LENDER] evidence that, for every HPA Mortgage and Pre-HPA Mortgage, all applicable HPA disclosures (initial HPA notice, HPA Mortgage Annual Notice, Pre-HPA Mortgage Annual Notice) have been provided to the Borrower?
    program_review: Does the program ensure all applicable HPA disclosures (initial HPA notice, HPA Mortgage Annual Notice, Pre-HPA Mortgage Annual Notice) are provided for HPA and Pre-HPA Mortgages?
    file_review: Sample HPA/Pre-HPA loans; confirm the applicable HPA disclosures were provided.
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: escrow_analyst
    secondary_owner_role: compliance_officer
    cadence: annual
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - fhlmc
      - freddie-mac
      - servicing-guide
      - mortgage-insurance
      - hpa
      - annual-notice
      - disclosure
      - promoted
    primary_source:
      tier: 1
      authority: Freddie Mac Single-Family Seller/Servicer Guide Section 8203.1(b)
      source_class: fhlmc-guide
      source_url: https://guide.freddiemac.com/ci-guide
      snapshot_id: 5869ee9e606cd4ae
      fetched_at: '2026-05-23T00:27:40Z'
      content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
      paragraph_quote: The Seller/Servicer also warrants that the Borrower has been given, and agrees and covenants
      drafter_attestation: Copied verbatim from Freddie Mac Guide snapshot 5869ee9e606cd4ae (Chapter 8203) at 2026-05-22.
    promoted_at: '2026-05-23T00:52:31+00:00'
    promoted_from: fhlmc-8203-roundb-v1.yaml
  - id: fhlmc-8203-no-second-mortgage-certification-required
    canonical_id: fhlmc-8203-no-second-mortgage-certification-required
    section: Freddie Mac Guide Section 8203.1(e) — Borrower-requested cancellation conditions
    description: |
      When a Borrower requests cancelation of Borrower-paid mortgage
      insurance pursuant to Sections 8203.2 and 8203.3, [LENDER], as
      Seller/Servicer, must not request or require that a Borrower make a
      written certification or any other representation concerning the
      existence or nonexistence of a Second Mortgage or other subordinate
      lien on the Mortgaged Premises, except as may otherwise be provided
      in a Purchase Document.
    type: dont
    audit_question: Can [LENDER] evidence that no Borrower requesting MI cancellation under Sections 8203.2 or 8203.3 was asked for a written certification or representation about the existence or nonexistence of a Second Mortgage or other subordinate lien, except as expressly permitted by a Purchase Document?
    program_review: Does the program ensure no Borrower requesting MI cancellation under §§8203.2/8203.3 is asked for a written certification or representation about the existence/nonexistence of a Second Mortgage or subordinate lien, except as a Purchase Document permits?
    file_review: For Borrower-requested MI cancellations, confirm no prohibited second-lien certification/representation was required.
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: escrow_analyst
    secondary_owner_role: compliance_officer
    cadence: per-mi-cancellation-request
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - fhlmc
      - freddie-mac
      - servicing-guide
      - mortgage-insurance
      - mi-cancellation
      - hpa
      - promoted
    primary_source:
      tier: 1
      authority: Freddie Mac Single-Family Seller/Servicer Guide Section 8203.1(e)
      source_class: fhlmc-guide
      source_url: https://guide.freddiemac.com/ci-guide
      snapshot_id: 5869ee9e606cd4ae
      fetched_at: '2026-05-23T00:27:40Z'
      content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
      paragraph_quote: the Seller/Servicer must not request or require that a Borrower make a written certification or
      drafter_attestation: Copied verbatim from Freddie Mac Guide snapshot 5869ee9e606cd4ae (Chapter 8203) at 2026-05-22.
    promoted_at: '2026-05-23T00:52:31+00:00'
    promoted_from: fhlmc-8203-roundb-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-23T00:52:31+00:00'
    candidate_path: obligations\_remediation\_round_b_drafts\fhlmc-8203-roundb-v1.yaml
    candidates_promoted: 3
    candidates_skipped_existing: 0

Verbatim regulatory text (3)

Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide Chapter 8203 — Mortgage Insurance — 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 Section 8203.1(b) — General warranties and covenants

The Seller/Servicer warrants that mortgage insurance has been obtained as required in

Source: Freddie Mac Single-Family Seller/Servicer Guide Section 8203.1(b) · source URL · snapshot 5869ee9e606cd4ae

Freddie Mac Guide Section 8203.1(b) — HPA disclosures

The Seller/Servicer also warrants that the Borrower has been given, and agrees and covenants

Source: Freddie Mac Single-Family Seller/Servicer Guide Section 8203.1(b) · source URL · snapshot 5869ee9e606cd4ae

Freddie Mac Guide Section 8203.1(e) — Borrower-requested cancellation conditions

the Seller/Servicer must not request or require that a Borrower make a written certification or

Source: Freddie Mac Single-Family Seller/Servicer Guide Section 8203.1(e) · source URL · snapshot 5869ee9e606cd4ae