Freddie Mac Single-Family Seller/Servicer Guide Section 9202.4 — When to obtain a property value

Freddie Mac Single-Family Seller/Servicer Guide Section 9202.4 — When to obtain a property value

9202.4: When to obtain a property value (12/17/25) This section contains requirements related to: ■ When to obtain a property value ■ Obtaining a property value and Borrower Disclosures ■ Checking the status of orders for property valuations ■ Valuation costs ■ Remitting BPO cost reimbursements to Freddie Mac (a) When to obtain a property value (i) Obtaining a property value in connection with an alternative to foreclosure Servicers must obtain a property value from Freddie Mac when considering a Borrower for a workout. The requirements for obtaining a property value differ based on the type of alternative to foreclosure for which the Borrower is being considered. Refer to Chapters 9206 through 9210 for the requirements for obtaining a property value for each specific foreclosure alternative. Note: If the Mortgage is covered by mortgage insurance, the Servicer must ensure that the property value it obtains is based on a property valuation type that is consistent with the MI’s requirements. (ii) Obtaining a property value to prepare foreclosure sale bidding instructions Servicers are not required to obtain property values when preparing foreclosure sale bidding instructions on properties subject to resale restrictions that survive foreclosure or recordation of a deed-in-lieu of foreclosure (in accordance with Chapters 4406, 4502 or 4504, as applicable). The Servicer must refer to the applicable resale restrictions for Freddie Mac Single-Family Seller/Servicer Guide Chapter 9202 As of 12/17/25 Page 9202-17 details on the property valuation and/or the restricted resale price, as well as any other terms and conditions that must be met. If State law requires that an appraisal report be used to set the bid, then the Servicer must obtain the appraisal report in sufficient time to complete the foreclosure by the scheduled foreclosure sale date. The Servicer may obtain the appraisal report either directly from Freddie Mac through BPOdirect® or from an appraiser of its choice. If a Servicer does not obtain the appraisal report directly from Freddie Mac, then the Servicer must: ■ Obtain Freddie Mac’s prior written approval to order the appraisal report from an appraiser of its choice at least 30 days before the scheduled foreclosure sale date. Freddie Mac’s approval can be obtained by submitting a request for pre-approval (RPA) via PAID (Payments Automated Intelligent and Dynamic) (see Exhibit 88, Servicing Tools). If a Servicer does not obtain Freddie Mac’s prior approval, Freddie Mac will not reimburse the Servicer for the appraisal expense. ■ Ensure the appraisal is obtained in accordance with applicable law, and the appraisal must comply with the requirements of Topic 5600 and Section 9301.8(c) When State law does not require an appraisal report to be used to set the bid, unless the foreclosure sale is of a property subject to resale restrictions that survive foreclosure or recordation of a deed-in-lieu of foreclosure, the Servicer must comply with the credit bid requirements in Section 9301.8(b) for First-Lien Mortgages not covered by mortgage insurance. In States where the sheriff orders an appraisal to determine the opening bid at a foreclosure sale, the Servicer must still determine the maximum bid the Servicer is authorized to make on Freddie Mac’s behalf. (See Sections 9301.8(a) through 9301.8(f) for instructions for bidding at a foreclosure sale.) (b) Obtaining a property value and Borrower Disclosures Regardless of whether the Servicer, Freddie Mac or both are evaluating the Borrower for a workout or relief option, the Servicer must provide the Borrower such notices and valuations as are required by applicable law, including the Equal Credit Opportunity Act. This includes notices and valuations developed in connection with a workout or relief option that is considered to be an application for credit. The Servicer must give the Borrower the property valuation provided to the Servicer by Freddie Mac through BPOdirect or other sources. If Freddie Mac participated in evaluating a Borrower for a workout or relief option that gives rise to an obligation to provide the Borrower a valuation developed in connection with an application for a workout or relief option, then the Servicer must provide the valuation to the Borrower on behalf of Freddie Mac. In these cases, the communication from the Servicer to Freddie Mac Single-Family Seller/Servicer Guide Chapter 9202 As of 12/17/25 Page 9202-18 the Borrower transmitting the valuation must identify both the Servicer and Freddie Mac as providing the valuation. (i) Obtaining a property value via BPOdirect For requirements on obtaining a property value via BPOdirect, refer to Section 2406.1. Refer to Section 9209.5(d) for additional details on obtaining a property valuation for a deed-in-lieu of foreclosure. Refer to Section 9210.1(c) for valuation requirements to submit a recommendation for a charge-off. (ii) Property values obtained via the Freddie Mac Real Estate Valuation and Pricing tool Except for Mortgages secured by properties subject to resale restrictions (in accordance with Chapter 4502 or 4406, as applicable), the Servicer must obtain a property value through the Real Estate Valuation and Pricing tool (see Exhibit 88, Servicing Tools) for a Borrower being considered for a Standard Short Sale. Refer to Section 9208.2(a) for additional details on obtaining a short sale property value. Note: Based on the information provided by the Servicer, Resolve® will determine the property value of each Mortgage under consideration for a Freddie Mac Flex Modification®. (c) Checking the status of orders for property valuations A Servicer may determine the status of its BPO order by accessing BPODirect and entering the Freddie Mac loan number. Contact Freddie Mac with any questions about a BPO order (see Directory 6). A Servicer may determine the status of the property valuation ordered in the Freddie Mac Real Estate Valuation and Pricing tool (see Exhibit 88, Servicing Tools) for the purposes of a Freddie Mac Standard Short Sale pursuant to Section 9202.4(b). (See also Section 9208.2(a) for details on obtaining a short sale property value via the Freddie Mac Real Estate Valuation and Pricing tool.) (d) Valuation costs Freddie Mac does not charge a fee for automated valuations. For all other valuations, the cost of the valuation depends on whether an interior or exterior valuation is conducted. Servicers should consult the table below for further details related to the cost of the property valuations ordered through BPODirect or Real Estate Valuation Pricing (see Exhibit 88, Servicing Tools): Freddie Mac Single-Family Seller/Servicer Guide Chapter 9202 As of 12/17/25 Page 9202-19 Cost of property valuation through BPODirect Purpose of valuation order Valuation type Cost ■ Short sale ■ Deed-in-lieu of foreclosure ■ Workout Mortgage assumption of: ❑ A Mortgage secured by a 2- to 4-unit property, a Manufactured Home or a dwelling subject to a leasehold estate ❑ A Cooperative Share Loan secured by a First Lien on the Cooperative Interest to a Cooperative Unit (see Chapter 8801 for special Servicing requirements for Cooperative Share Loans) ■ Determine value for Borrower- requested cancelation of Borrower-paid mortgage insurance BPO: Interior valuation with interior and exterior photographs Full interior/exterior appraisal 1-unit single family property 2-4 unit property Note: A Servicer should only order an appraisal when required by applicable law or the Servicer determines an appraisal is in the best interest of the Borrower. $150 $775 $850 ■ Workout Mortgage assumption of a Mortgage secured by a 1- unit property (not a Manufactured Home, a dwelling subject to a leasehold estate or a Cooperative Unit). Note: A Servicer must not order a new BPO through BPOdirect for a 1-unit property if the Servicer is required to use an available automated value in accordance with the requirements of Section 9207.1(d). ■ Prepare bidding instructions for a foreclosure sale BPO: Exterior valuation with exterior photographs Exterior (drive-by) appraisal Note: A Servicer should only order an appraisal when required by applicable law or the Servicer determines an appraisal is in the best interest of the Borrower. $100 $550 Freddie Mac Single-Family Seller/Servicer Guide Chapter 9202 As of 12/17/25 Page 9202-20 Cost of property valuation through BPODirect Purpose of valuation order Valuation type Cost ■ Determine value for a bankruptcy (e) Remitting BPO cost reimbursements to Freddie Mac (i) BPOs ordered for loss mitigation or foreclosure sale bidding For BPOs ordered for loss mitigation or foreclosure sale bidding, the Servicer must forward a check made payable to the Federal Home Loan Mortgage Corporation at the following address. FREDDIE MAC P.O. BOX 730453 Dallas, TX 75373-0453 Send overnight and courier deliveries to: JP MORGAN CHASE Dallas National Wholesale LB TX 1-0029 14800 Frye Road Fort Worth, TX 76155 Attn: HomeSteps #73453 Whenever possible and if permitted by State law, the Servicer must collect the cost of any applicable BPOs from the Borrower if the Mortgage was fully reinstated, paid-off or modified pursuant to the modification requirements in Chapter 9206 or assumed under Freddie Mac’s workout Mortgage assumption option in Chapter 9207. If the Servicer was unable to collect the cost of the BPO from the Borrower, it must document in the Mortgage file the reason it was unable to collect the funds. Freddie Mac will review the reasons for noncollection when it audits the Servicer’s files. If the Borrower is offering to fully reinstate the Mortgage and can pay all arrearages and costs, except for the cost of the BPO, the Servicer may reinstate the Mortgage without collecting the BPO cost. The Servicer is not required to remit the BPO funds to Freddie Mac, but must document the reason for nonremittance in the Mortgage file. The Servicer may collect accrued late charges from the Borrower once all other arrearages and costs, including the BPO costs, are paid. (ii) BPOs ordered for Borrower-paid mortgage insurance cancelation Freddie Mac Single-Family Seller/Servicer Guide Chapter 9202 As of 12/17/25 Page 9202-21 For BPOs ordered for cancelation of Borrower-paid mortgage insurance, the Servicer will be billed for the cost of the BPO on its Performing Loans monthly Servicer Billing Statement. This cost must be paid in accordance with the requirements for remitting payment of fees billed on the Servicer’s billing statement. Refer to Section 8303.1(d) for information on remitting fees billed on the Performing Loans monthly Servicer Billing Statement. Freddie Mac Single-Family Seller/Servicer Guide Chapter 9203 As of 05/01/26 Page 9203-1 Chapter 9203: Reinstatements and Relief Options

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