Freddie Mac Single-Family Seller/Servicer Guide Section 9202.2 — Mortgage and property risk analysis

Freddie Mac Single-Family Seller/Servicer Guide Section 9202.2 — Mortgage and property risk analysis

9202.2: Mortgage and property risk analysis (09/10/25) This section contains requirements related to: ■ Service reconciliation of inconsistencies, fraud detection and document authenticity Freddie Mac Single-Family Seller/Servicer Guide Chapter 9202 As of 12/17/25 Page 9202-11 ■ Risk of Property Ownership ■ Tenant-occupied properties built before 1978 (a) Service reconciliation of inconsistencies, fraud detection and document authenticity (i) Reconciling income and/or hardship information inconsistencies If, based on the Servicer’s good business judgment, the Borrower’s income and/or the hardship information disclosed by the Borrower is inconsistent with the income and/or hardship documentation provided by the Borrower, the Servicer must attempt to reconcile such inconsistencies. The Servicer must also document such material differences in its servicing system. (ii) Fraud detection The Servicer must not offer the Borrower a relief or workout option if there is reasonable evidence indicating the Borrower submitted false or misleading information or otherwise engaged in fraud in connection with the request for payment relief. A Servicer must use good business judgment in determining whether the evidence is reasonably indicative of a Borrower’s intentional misrepresentation or submission of false or misleading information. Refer to Section 3201.2 for reporting requirements related to the discovery of fraud or possible fraud on a Mortgage. (iii)Document authenticity A Servicer must use good business judgment when determining whether verification documents are authentic and accurate, and allow the Servicer to underwrite the Borrower in accordance with the requirements of this Guide. A Servicer may elect to accept documentation with imperfections (blank fields, erasures, use of correction tape, inaccurate dates, etc.) if the Servicer determines that the imperfections are immaterial to the eligibility decision, are not indicative of fraud and do not impact the Servicer’s ability to verify the completeness and accuracy of the Borrower’s financial representations. (b) Risk of Property Ownership Risk of Property Ownership exists when there is a risk of liability to Freddie Mac if Freddie Mac becomes the owner of the property. For example, there is Risk of Property Ownership if the condition of the Mortgaged Premises, or its immediate surroundings, pose a threat to the health or safety of a property owner (e.g., condemnation), or there is otherwise a situation or presence that is exigent or atypical that would cause a potential property owner to incur extraordinary risk of liability if it becomes the owner of the property. The Servicer must review the property inspection reports that the Servicer receives to determine if a Risk of Property Ownership exists. Refer to Sections 8403.1(a) and 8403.1(b) Freddie Mac Single-Family Seller/Servicer Guide Chapter 9202 As of 12/17/25 Page 9202-12 for the requirements for managing a property securing a Mortgage identified as posing a Risk of Property Ownership. (c) Tenant-occupied properties built before 1978 Before considering a deed-in-lieu of foreclosure on a tenant-occupied property built before 1978, if the Servicer is aware of, or becomes aware of, any outstanding lead-based paint or health code citations or violations against the property or property owner, it must notify Freddie Mac (see Directory 5), and include a copy of the citation or violation and any other pertinent information. After reviewing the documentation, Freddie Mac will provide the Servicer with instructions on the course of the action to take. 9202.3: Property inspections and abandonment (09/10/25) This section contains requirements related to: ■ What is a property inspection? ■ Documenting property inspections ■ When to order a property inspection ■ Results of property inspection ■ Reimbursement of property inspections (a) What is a property inspection? Except when an interior inspection is required (see Section 9202.3(c)(iii)), a property inspection is an exterior inspection of the property to determine: 1. The condition of the property 2. If there is any waste, deterioration or vandalism 3. The occupancy status 4. If the property has been abandoned 5. If the property is listed for sale Freddie Mac Single-Family Seller/Servicer Guide Chapter 9202 As of 12/17/25 Page 9202-13 6. If there are obvious environmental hazards 7. If there is deferred maintenance or there are health and safety problems. The property is considered to have deferred maintenance when the Borrower has allowed the property condition to deteriorate to a point where general maintenance items such as trash removal, painting, yard work and general repairs have not been performed. 8. If visible asset preservation is needed (b) Documenting property inspections (i) Form to use A Servicer must document each inspection of the property with an inspection report that is prepared on Form 1013, 1-4 Unit Property Inspection Report, or a substitute report. The substitute report can be the Servicer’s proprietary form or a form the inspection company performing the inspection prepares, including a computer-generated or automated form. The substitute form must contain all of the data elements on Form 1013. (ii) Retaining inspection reports The Servicer must retain the inspection reports in the Mortgage file or other form of data storage for the same period of time that it retains the Mortgage file. (c) When to order a property inspection The Mortgaged Premises must be inspected in accordance with the requirements below to determine the physical condition and occupancy status. The Servicer may use a third party to conduct property inspections. (i) Inspection dates The Servicer must order a property inspection on or after the 90th day of Delinquency and obtain the complete inspection report by the 120th day of Delinquency. The Servicer must continue to obtain a newly completed property inspection report every calendar month. No two reports may be completed within a 20-day period while the Mortgage remains 90 days or more delinquent. However, weekly and biweekly ordinance-required property inspections (reimbursable under expense codes 404016 and 404017) are exempt from the 20-day limitation. (ii) Discontinuance of property inspections The Servicer must discontinue obtaining newly-completed property inspection reports when or upon: Freddie Mac Single-Family Seller/Servicer Guide Chapter 9202 As of 12/17/25 Page 9202-14 ■ The Servicer has achieved quality right party contact within the last 30 days ■ The Borrower has made a full P&I payment within the last 30 days ■ The Borrower has been approved for, or is performing under the terms of a reinstatement, relief option, or workout option ■ The Borrower has filed for bankruptcy and is performing under the applicable bankruptcy plan, or where otherwise performing a property inspection would be considered a violation of the automatic stay provision ■ The Servicer has successfully reported the foreclosure sale date or the deed-in-lieu of foreclosure via Resolve® pursuant to Section 9603.1(a); or ■ The property is sold to a third party at the foreclosure sale and the foreclosure action is complete. (Note that, depending upon the jurisdiction, a foreclosure action may not be complete until the sale is confirmed or ratified.) If the property is found to be vacant or if the occupancy is unknown, property inspections must continue as long as the Mortgage remains 90 or more days delinquent regardless of the Servicer achieving quality right party contact or a prospective resolution to the Delinquency. In the event that extenuating circumstances cause property inspection delays, Servicers are instructed to document the mortgage file explaining the cause of the delays. (iii)Curbside inspections Freddie Mac does not generally consider a curbside or “drive-by” property inspection to be a sufficient exterior property inspection. However, Freddie Mac will permit a curbside inspection to be performed in the following circumstances: ■ Legal constraints due to compliance with federal, State or local law, including, but not limited to, an active bankruptcy by the Borrower; or ■ Personal danger to the inspector (iv) Abandonment or waste An abandoned property is: 1. A property to which the owner has voluntarily and intentionally relinquished ownership, claim and control, or 2. As otherwise defined under local laws. Factors evidencing abandonment include vacancy, waste, deterioration and lack of utilities. Freddie Mac Single-Family Seller/Servicer Guide Chapter 9202 As of 12/17/25 Page 9202-15 When the Servicer learns that the Mortgaged Premises have been abandoned or are in a severe state of deterioration, waste or disrepair that warrants a physical condition rating of “poor” on Form 1013, 1-4 Unit Property Inspection Report, the Servicer must take action as required in Section 8403.1 including, but not limited to, ordering a monthly property inspection, even if the Mortgage payments are less than 60 days delinquent. In addition, if the Mortgaged Premises have been confirmed as abandoned, the Servicer must obtain monthly interior inspections, in accordance with the terms of the Mortgage documents and applicable law. (v) Property seizure Refer to the following Sections for property inspection requirements related to property seizure. Additional guidelines related to property seizures Topic Guide location Unsolicited disclosure of pre-seizure information Section 8402.1(b) Requested disclosure of pre-seizure information Section 8402.1(c) Government notice of property seizure to the Servicer Section 8402.2(a) (d) Results of property inspection Review the completed inspection report and determine if any further action is needed. Results of property inspection IF the property inspection indicated that the property is... THEN the Servicer must... Listed for sale ■ Obtain the name and telephone number of the listing broker and retain for future use ■ Enter in its monthly EDR, the date that it became aware that the property was listed for sale Vacant and/or not maintained Follow the requirements in Section 8403.1 (e) Reimbursement of property inspections Freddie Mac Single-Family Seller/Servicer Guide Chapter 9202 As of 12/17/25 Page 9202-16 For each property inspection completed in accordance with the requirements set forth in Section 9202.3(c), Freddie Mac will reimburse the Servicer the lesser of: ■ The actual cost of the property inspection ■ The applicable expense limit stated in Exhibit 57, 1- to 4- Unit Property Approved Expense Amounts Note: Refer to Section 9701.2(d) for details regarding the reimbursement of property inspections.

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