Freddie Mac Single-Family Seller/Servicer Guide Glossary
Freddie Mac Single-Family Seller/Servicer Guide Glossary: the Guide's defined terms, verbatim, one block per letter (about a page each), substring-verified against snapshot 3628b6cf6f1f9f34.
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Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide Glossary — 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 Single-Family Seller/Servicer Guide Glossary — Numbers: 11th District Cost of Funds Index (11th District COFI) – 5- to 10-Unit Condominium Project
11th District Cost of Funds Index (11th District COFI) For ARMs, the 11th District COFI is the monthly average cost of savings, borrowings and advances of the members of the Federal Home Loan Bank of San Francisco (the "Bank"), as made available by the Bank. 11th District COFI ARMs are not eligible for sale to Freddie Mac. 2- to 4-Unit Condominium Project A project that is comprised of at least two but no more than four units that are each separately deeded with separate legal descriptions. The units may be attached, detached or semi-detached units or a mixture of attached, detached and/or semi-detached units. The units may also be a mixture of residential units and no more than one commercial unit. 5- to 10-Unit Condominium Project A project that is comprised of at least five but no more than 10 units that are each separately deeded with separate legal descriptions. The units may be attached, detached or semi-detached units or a mixture of attached, detached and/or semi-detached units. The units may also be a mixture of residential units and commercial units.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — A (part 1): Accept Mortgage – Affordable Seconds®
Accept Mortgage A Loan Product Advisor® Mortgage that receives a Risk Class of Accept. Acceptable Net Worth Generally defined as GAAP capital but Freddie Mac may make adjustments to GAAP net worth when Freddie Mac deems it appropriate. Accounting Cycle The one-month period beginning on the first day of the calendar month. Servicer reporting for the Accounting Cycle must be completed no later than the last day of the calendar month plus one Business Day. Accounting Net Yield (ANY) The net yield rate that the Servicer uses to calculate the amount of interest due to Freddie Mac each month. The ANY for each Mortgage is equal to the Note Rate less the Servicing Spread of the Mortgage. The ANY for Mortgages purchased through RNY Cash or ARM Cash equals the Required Net Yield (RNY) except for Mortgages sold to Freddie Mac at a discount. ACE+ PDR ACE+ PDR is an offer to the Seller by Loan Product Advisor® that allows the Seller to deliver the Mortgage to Freddie Mac with a PDR instead of an appraisal. Acknowledgment Agreement The agreement entered into by and among Freddie Mac, Servicer and Secured Party pursuant to which Freddie Mac gives its consent to a Servicing Contract Rights Financing as set forth in Section 1101.2(c)(iii) and Exhibits 33A, 33B, 33C or 33D (as applicable), and any modifications, supplements or amendments to the same. Additional Supplement An Additional Supplement is a disclosure document containing information solely provided by the Seller that supplements the information contained in the applicable Offering Circular or the Pool Supplement concerning the Mortgages in a Pool as of Settlement Date. ADU An accessory dwelling unit is an additional living area as described in Section 5601.2. Affiliate Any entity related to a Seller that is subject to common operating control and that is operated as part of the same system or enterprise. The Seller typically owns less than a majority of the voting stock or the Seller and the entity are subsidiaries of a third party. For purposes of the definitions of Correspondent, Mortgage Broker, Retail Mortgage and Wholesale Home Mortgage, Affiliate means: Any entity that is related to another party as a consequence of the entity, directly or indirectly, controlling the other party, being controlled by the other party, or being under common control with the other party. Affiliates Freddie Mac's term "Affiliates" encompasses all of the following as defined in GAAP FAS No. 57: Affiliates A party that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with the enterprise Management Persons who are responsible for achieving the objectives of the enterprise and who have the authority to establish policies and make decisions by which those objectives are to be pursued. Management normally includes Members of the board of directors Chief executive officer Chief operating officer Vice presidents in charge of principal business functions (such as sales, administration or finance), and other persons who perform similar policy-making functions Persons without formal titles also may be members of management Principal owners Owners of record or known beneficial owners of more than 10% of the voting interests of the enterprise Related parties Entities for which investments are accounted for by the equity method by the enterprise; trusts for the benefit of employees, such as pension and profit-sharing trust that are managed by or under the trusteeship of management Principal owners of the enterprise; its management, members of the immediate families of principal owners of the enterprise and its management, and other parties with which the enterprise may deal if one party controls or can significantly influence the management or operating policies of the other, to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests Any party that can significantly influence the management or operating policies of the transacting parties or that has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests Affordable Seconds® Subsidized secondary financing or other type of financial assistance, evidenced in land records, that is provided by an Agency and that meets the requirements of Section 4204.2.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — A (part 2): Agency – Automated Valuation Model (AVM)
Agency The sponsor or provider of financial assistance through an agency gift or grant, Affordable Second®, Individual Development Account (IDA) or unsecured loan, as applicable. An Agency must be one of the following: A municipality which includes any duly authorized authority or agency of the federal, State, local or municipal government A non-profit organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code An employer where the Borrower is an employee A regional Federal Home Loan Bank under one of its affordable housing programs A Native American Tribe as defined in Section 4504.2(c) Note: An entity created or partially or wholly owned by a Native American Tribe that does not qualify as a Tribally Designated Housing Entity (TDHE) cannot be considered an Agency. Agent For Wholesale Home Mortgages, an Agent is an entity or individual that is not an employee of a Seller and that acts for and on behalf of the Seller in originating Mortgages or in taking or processing a Mortgage application or underwriting or funding a Mortgage. Aggregator An institution that has been approved by Freddie Mac as a Seller of Wholesale Home Mortgages. Allonge An addendum attached to a Note that can be used for endorsements. Alt 97® Mortgage A Mortgage eligible for Freddie Mac's Alt 97 offering and delivered as an Alt 97 Mortgage. Alt 97 Mortgages are no longer eligible for sale to Freddie Mac. Alternative Dispute Resolution (ADR) An ADR process includes any process or procedure other than adjudication by a presiding judge in which a neutral third party participates to assist in the resolution of issues in controversy through processes such as early neutral evaluation, mediation, minitrial and arbitration. Amenities Amenities are natural features or constructed improvements that enhance property or project attractiveness and owner or Shareholder enjoyment but are not essential to the property’s or project’s use by the owners or Shareholders. Application Received Date The date the creditor or originator first received the information necessary to constitute a loan application under the Truth in Lending Act (TILA)/Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure (TRID) rules. Appraisal Identifier The unique identifier assigned by the Uniform Collateral Data Portal®(UCDP®) to the appraisal data delivered to the UCDP for the subject Mortgage. Area Median Income Annually determined midpoint of a defined region’s income distribution. Area Median Income limits are provided by FHFA. Area Median Income Percent The total income used to qualify the Borrower(s) for the Mortgage converted to an annual basis divided by the Area Median Income for the location of the Mortgaged Premises. ARM An ARM is an adjustable-rate Mortgage. ARM PC An ARM PC is an MBS issued by Freddie Mac pursuant to the relevant Master Trust Agreement, representing a beneficial ownership interest in a specified Pool of ARMs. The term "ARM PC" includes a WAC ARM PC. ARM PC Lifetime Ceiling For WAC ARM PCs, the ARM PC Lifetime Ceiling is the weighted average of the Lifetime Ceilings of the underlying Mortgages, minus the Credit Fee in Yield and the Minimum Contract Servicing Spread. ARM PC Margin For WAC ARM PCs, the ARM PC Margin is the weighted average of the Margins of the underlying Mortgages, minus the Credit Fee in Yield and the Minimum Contract Servicing Spread. ARM PC Offering Circular The ARM PC Offering Circular is the offering circular, in effect on the Date of Seller’s Offer, that relates to the ARM PCs being sold. Each ARM PC Offering Circular incorporates any amendments or supplements to that offering circular in effect on the Date of Seller’s Offer or sale. ATR Covered Mortgage An ATR Covered Mortgage is a consumer credit transaction secured by a dwelling that is covered by the ATR/QM Rule and is not an Exempt Mortgage. ATR/QM Rule Regulation Z’s Ability to Repay (ATR) rule (12 C.F.R. § 1026.43) that implements the Truth in Lending Act’s provisions requiring a creditor to determine a Borrower’s ability to repay a Mortgage loan. QMs are a subset of loans under the ATR requirements. Automated Valuation Model (AVM) An Automated Valuation Model (AVM) is a mathematically based software program that produces a value or value range for a subject property.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — B: Best Efforts Contract – Buydown Custodial Account
Best Efforts Contract A Best Efforts Contract is an agreement between the Seller and Freddie Mac for the purchase of a specified Mortgage with respect to which the Seller's obligation to deliver the Mortgage becomes mandatory only when and if the Mortgage is closed and funded. Book-Entry Form A UMBS®, MBS or ARM PC that is issued in Book-Entry Form is: Issued by means of an entry on the books and records of a Federal Reserve Bank. The entry includes the name of the security investor, the original principal balance owned by the security investor, the CUSIP Number, the Coupon, the Pool Number and the security description code. The security description code is a four-character code used by the Federal Reserve Bank book-entry system to describe the issuer and the type of security. Evidenced only by that entry and not by a certificated security Book-Entry Rules The Book-Entry Rules are the provisions in effect from time to time that Set forth the terms and conditions under which Freddie Mac may issue UMBS®, MBS or ARM PCs in Book-Entry Form Authorize the Federal Reserve Banks to act as Freddie Mac’s agents in connection with UMBS, MBS or ARM PCs issued by entries on the books and records of Federal Reserve Banks These rules are contained in Title 1, Part 462 of the Code of Federal Regulations. Borrower The Borrower is the party obligated to repay the indebtedness secured by the Mortgaged Premises. For a Home Mortgage, the Borrower must be one of the following: An individual or individuals (not a corporation or partnership) A Living Trust, subject to the conditions in Section 5103.5 Borrower Evaluation Notice The notice a Servicer must send to a Borrower once the Servicer completes its evaluation of the Borrower for an alternative to foreclosure. Borrower Response Package The documents that must be submitted by a Borrower in order to be evaluated for certain alternatives to foreclosure. Borrower Solicitation Package The documents that must be sent to a delinquent Borrower informing him or her of alternatives to foreclosure and the process and documentation required to be submitted to a Servicer in order to be evaluated for an alternative to foreclosure. BPO Broker's price opinion, a broker's written estimate of the probable sale price of the property. Bulletin A publication that is issued by Freddie Mac and amends, supplements, revises or terminates a provision of the Guide. Business Day A Business Day is a day other than: A Saturday or Sunday A day on which the Federal Reserve Bank of New York (or other agent acting as Freddie Mac's fiscal agent) is authorized or obligated by law or executive order to remain closed A day on which the offices of Freddie Mac are closed In this Guide, the word "day" without the modifier "business" refers to a calendar day. Buydown Custodial Account A Buydown Custodial Account is a Custodial Account into which the Servicer deposits buydown funds.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — C (part 1): Cash-Released XChange® – Claims Event
Cash-Released XChange® A contract option under which a Seller sells fixed-rate Mortgages under a Mandatory Cash Contract or a Best Efforts Contract and enters into a Concurrent Transfer of Servicing involving such Mortgages to a Freddie Mac-approved Servicer selected by Freddie Mac. Mortgages sold under this contract option may be referred to as “Mortgages sold servicing released.” Caution Mortgage A Loan Product Advisor® Mortgage that receives a Risk Class of Caution. Change of Control Any event resulting in a change in the power, directly or indirectly, to direct or cause the direction of the management or policies of a Seller/Servicer or other entity, whether through ownership or transfer of securities, by contract or otherwise. For purposes of this definition, ownership includes both direct ownership and beneficial ownership as determined under Rule 13d-3 under the Securities Exchange Act of 1934. A Change of Control includes: Any person or group acquiring beneficial ownership of, or voting control over, 5% or more of the entity’s voting securities or ownership interests; or A change in the majority of the entity’s board of directors (or equivalent governing body) within 24 months Claims Any and all disputes, suits, claims, actions, events, losses, liabilities, damages, judgments, awards, costs, charges, expenses and disbursements of any kind or nature whatsoever, including costs and expenses of outside and in-house counsel. Claims Event Each of the following shall constitute a “Claims Event,” as determined by Freddie Mac, such determination being conclusive, absent Freddie Mac’s bad faith: Any Unauthorized Servicing Transfer, either in a single transaction or cumulatively over a series of transactions during any 180-day period, that results in the transfer of all or, in Freddie Mac’s sole determination, substantially all of the Seller/Servicer’s Servicing Contract Rights or the Seller/Servicer’s Freddie Mac Servicing portfolio; The initiation of a Subsequent Transfer of Servicing (STOS) request (as further described below) or the execution and submission of one of more STOS Agreements (as defined in Section 7101.2), including any negotiated STOS Agreement, Voluntary Partial Cancelation Agreement, or Voluntary Full Cancelation Agreement either in a single transaction or cumulatively over a series of transactions during any 180-day period, that upon consummation would result in the transfer of all or substantially all of the Seller/Servicer’s Servicing Contract Rights or Seller/Servicer’s Freddie Mac Servicing portfolio; Actual insolvency of the Seller or the Servicer, its parent or an affiliate or subsidiary of the Seller or the Servicer; The filing of a voluntary petition by the Seller or the Servicer, its parent or an affiliate or subsidiary of the Seller or the Servicer under federal bankruptcy or State insolvency laws; The filing of an answer by the Seller or the Servicer, its parent or an affiliate or subsidiary of the Seller or the Servicer, in an involuntary proceeding admitting insolvency or inability to pay debts; The adjudication of the Seller or Servicer, its parent or an affiliate or subsidiary of the Seller or the Servicer, as bankrupt; The appointment of a trustee or receiver for the Seller or the Servicer or its property, or for its parent, an affiliate or subsidiary of the Seller or the Servicer or for the property of such entities; The execution by the Seller or the Servicer, its parent or an affiliate or subsidiary of the Seller or the Servicer, of an assignment for the benefit of creditors; The failure of the Seller or the Servicer, its parent or an affiliate or subsidiary of the Seller or the Servicer, to obtain a vacation or stay of involuntary proceedings brought for its reorganization, dissolution or liquidation within the time allotted under applicable law; Any event of default under any collateral pledge agreement between the Seller/Servicer and Freddie Mac, or Freddie Mac’s exercise of any remedies to collect, enforce, or satisfy its interest in any collateral pledged to Freddie Mac by the Seller/Servicer; Failure by the Seller/Servicer to comply with any remedy or action required or imposed by Freddie Mac under Section 3601.1(a) or (b), including the failure to post collateral, in cash or cash equivalent, if required by Freddie Mac; Termination in whole or in part of the Servicing Contract; Disqualification or suspension of the Seller/Servicer as a Seller or Service; Notification of intent to disqualify or suspend a Seller or Servicer under Section 2301.1(c); and Termination of the Seller/Servicer as a Seller or Servicer For purposes of this definition, the initiation of a “STOS request” means a Seller/Servicer’s completion of the fields in the “Create a new STOS” request screen on the “Manage Portfolio” tab in Servicing Transfer Manager and the submission of that data and the Proposed Mortgage List to Freddie Mac as described in Section 7101.1(b)(ii). In its sole discretion, Freddie Mac may declare any other basis for disqualification or suspension under Section 2301.1(b)(i) as the trigger for a “Claims Event.”
Freddie Mac Single-Family Seller/Servicer Guide Glossary — C (part 2): Closing Costs – Community Savings System
Closing Costs Any fees associated with the real estate and/or Mortgage transaction including, but not limited to, the following: Origination and discount points Application fees Appraisal and credit report fees Funding for a temporary subsidy buydown plan Prepaids/Escrows Legal services, settlement or escrow services, survey, title insurance, transfer taxes and tax stamps. Commitment Amount The Commitment Amount is the aggregate UPB of all Mortgages that can be delivered under Pricing Identifier Terms or a Purchase Contract, as applicable, subject to any tolerances. Common Elements Common Elements are all portions of a project other than the units or individual lots within: (1) a Condominium Project which are owned as tenants in common by the unit owners, (2) a Planned Unit Development which are owned by the homeowners association and (3) a Cooperative Project which are owned by the Cooperative Corporation but not subject to a proprietary lease or occupancy agreement. Common Elements are typically used by unit owners or Shareholders who share in the cost of maintenance and operation. Common Elements are defined in the Project Documents, and may include but are not limited to parking, walkways, lighting, elevators, boilers, hallways, foyers, and legal ingress and egress to individual units. The term includes common areas and Limited Common Elements. Community Land Trust A non-profit entity, State or local government, or instrumentality that owns land and leases it under a long-term ground lease to a homebuyer who purchases the improvements on the land. The ground lease contains certain land use restrictions that preserve use of the property for affordable housing. If the Community Land Trust is a non-profit entity, it must be legally chartered in the State in which it is located or housed within a non-profit corporation that has a 501(c)(3) tax exemption from the Internal Revenue Service. Community Land Trust Mortgage A Mortgage secured by a leasehold interest in land owned by a Community Land Trust and the property improvements on such land owned by the Borrower. Community Savings System A savings system to which members of a community make regular contributions and from which members are entitled to a distribution of funds in accordance with a specified plan.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — C (part 3): Completion Date – Conversion Formula
Completion Date For CHOICERenovation® Mortgages, the date when the renovations to the Mortgaged Premises must be complete. Future Effective 01/25/2027 For CHOICERenovation® Mortgages and CHOICEReno eXPress® Mortgages, the date when the renovations to the Mortgaged Premises must be complete. Concurrent Transfer of Servicing A Transfer of Servicing initiated by a Seller to a Servicer that occurs, subject to prior Freddie Mac approval, concurrently with Freddie Mac's purchase of a Mortgage on the Settlement Date. For the sake of convenience, the Seller may be referred to as the "Transferor Servicer" and the Servicer may be referred to as the "Transferee Servicer." In each instance, the Mortgage is delivered for certification to the Servicer's Document Custodian. Condominium Hotel A Condominium Hotel is a project that is operated and managed as a commercial hotel, even though the units are individually owned. Condominium Project A Condominium Project is a project that is legally established as a Condominium Project in compliance with the applicable State law in which the project is located. Condominium Unit A Condominium Unit is a one-unit dwelling located in a Condominium Project. Condominium Unit Mortgage A Mortgage secured by a unit in a Condominium Project. Consent Agreement The agreement entered into by and among Freddie Mac, Servicer and Secured Party pursuant to which Freddie Mac gives its consent to an Advance Financing (as such term is defined in Exhibit 103) as set forth in Section 9701.5(c) and Exhibit 103, and any modifications, supplements or amendments to the same. Constant Maturity Treasury (CMT) Index For ARMs, the CMT Index is the weekly average yield on United States Treasury securities adjusted to a specified constant maturity, such as one, three or five years, as made available by the Federal Reserve Board. Construction to Permanent Mortgage A Mortgage for which the proceeds are used to construct the Mortgaged Premises and consists of both Interim Construction Financing and Permanent Financing. A Construction to Permanent Mortgage may be a One-Time Close or Two-Time Close transaction. Contaminated Sites A Contaminated Site is any real property that has been identified: By any federal, State or local government entity as containing one or more Hazardous Substances, or In any media report as possibly being subject to investigation or review by any federal, State or local government entity as a source of contamination by one or more Hazardous Substances Contract Commitment Amount For the Guarantor and MultiLender Swap programs, the Contract Commitment Amount is the dollar amount of Mortgages that Freddie Mac agrees to purchase, as specified in the applicable Purchase Contract. Conversion Date The Conversion Date is the date on which the interest rate applicable to a Convertible ARM changes from an adjustable interest rate to a fixed interest rate. The Conversion Date is the first day of the second month after the month in which the Borrower exercises the option to convert. For example, if the option to convert is exercised at any time during the month of January, then March 1 is the Conversion Date. Convertible ARMs are not eligible for sale to Freddie Mac. Conversion Formula For Convertible ARMs, the Conversion Formula is the methodology, set forth in the Note, for establishing the Note Rate upon conversion of the adjustable interest rate to a fixed interest rate. The Conversion Formula refers to a published required net yield plus a specified number of basis points. Convertible ARMs are not eligible for sale to Freddie Mac.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — C (part 4): Conversion Window – Correspondent
Conversion Window For Convertible ARMs, the Conversion Window is either a specified period of time or specific dates, as stated in the Note, during which the Borrower can exercise the option to convert the adjustable interest rate to a fixed interest rate. Convertible ARMs are not eligible for sale to Freddie Mac. Converted Mortgage A Converted Mortgage is a conventional, fully amortizing, level payment, fixed-rate Mortgage, originated as a Convertible ARM, that had an adjustable interest rate until the Borrower exercised the option to convert to a fixed interest rate. See also Freddie Mac-Owned Converted Mortgage and Seller-Owned Converted Mortgage. Convertible ARMs are not eligible for sale to Freddie Mac. Convertible ARM A Convertible ARM is an ARM as to which the Borrower has the option, exercisable during a Conversion Window, to convert the adjustable interest rate to a fixed interest rate pursuant to a Conversion Formula. Convertible ARMs are not eligible for sale to Freddie Mac. Cooperative Corporation An entity that holds title to and governs a Cooperative Project in compliance with applicable law and the Cooperative Project Documents. Cooperative Housing Corporation A Cooperative Corporation that meets the requirements of the Internal Revenue Code Section 216. Cooperative Interest A Shareholder’s ownership interest in the Cooperative Corporation that owns the Cooperative Project, and the right to occupy a specific Cooperative Unit granted through a Proprietary Lease. The ownership interest and occupancy right cannot be divided. Cooperative Project Real estate owned by a Cooperative Corporation in fee simple. Cooperative Project Documents For each Cooperative Project, the documents that are enforceable by the Cooperative Corporation and pertain to the following: Formation of the Cooperative Project Rights and limitations of the sponsor/developer Mortgagee rights Operation and governance of the Cooperative Corporation Insurance coverage, assessments, fees, rules, regulations and rights of Shareholders The Cooperative Project Documents include but are not limited to the bylaws, articles of incorporation, and other governing documents, and recorded agreements, and public offering statement or offering plan, purchase agreement and similar documents. Cooperative Share The portion of the Cooperative Corporation that an individual Shareholder owns and is evidenced by a stock or membership certificate or another form of contractual agreement. Cooperative Share also refers to the evidence of such ownership in any form in which ownership is documented. Cooperative Share Loan A loan secured by a First Lien on the Cooperative Interest granted to a Shareholder in a Cooperative Corporation. The loan is secured by a perfected lien on the Cooperative Shares and an assignment of the Proprietary Lease. Cooperative Unit A 1-unit dwelling located in a Cooperative Project. Correspondent An entity that typically sells the Mortgages it originates to other lenders. The Correspondent performs some or all of the loan processing functions such as taking the Mortgage application; ordering credit reports, appraisals, and title reports; and verifying the Borrower's income and employment. The Correspondent may or may not have delegated underwriting and typically funds the loans at settlement. The Mortgage is closed in the Correspondent's name and the Correspondent may or may not service the Mortgage. The Correspondent may use a Mortgage Broker to perform some of the processing functions or even to fund the Mortgage on its behalf; however, under such circumstances, such a Mortgage will be considered, and should be delivered as, a Mortgage Broker third party origination Mortgage and not as a Correspondent third party origination Mortgage. (See the definition of Affiliate and Mortgage Broker.)
Freddie Mac Single-Family Seller/Servicer Guide Glossary — C (part 5): Coupon – Custodial Account
Coupon The Coupon is the interest rate, expressed as an annual percentage, which is passed through monthly to a security investor. For WAC ARM PCs, the Coupon is derived by calculating a weighted average of the Note Rates of the underlying Mortgages, and then subtracting the Credit Fee in Yield and the Minimum Contract Servicing Spread. Credit Fee A Credit Fee in Price and/or a Credit Fee in Fixed Dollars. The term “Credit Fee” does not include a Credit Fee in Yield. Credit Fee in Fixed Dollars A Credit Fee in Fixed Dollars is a one-time fee that is a set dollar amount, associated with the type of mortgage product, loan purpose, Mortgaged Premises or other attributes of a Mortgage and is assessed and billed to the Seller at the time the Mortgage is sold to Freddie Mac. Credit Fee in Price A Credit Fee in Price is a one-time fee in basis points that is associated with the type of mortgage product, loan purpose, Mortgaged Premises or other attributes of a Mortgage and is assessed and billed to the Seller at the time the Mortgage is sold to Freddie Mac. Credit Fee in Yield A Credit Fee in Yield is the management and guarantee fee retained by Freddie Mac as specified in the applicable Purchase Documents. The Credit Fee in Yield is assessed and remitted by the Servicer each month. Credit Score A number summarizing an individual’s credit profile that indicates the likelihood that a Borrower will repay future obligations. Critical Repairs Repairs and replacements that significantly impact the safety, soundness, structural integrity or habitability of the project’s building(s) and/or that impact unit values, financial viability or marketability of the project. These include: Material deficiencies which, if left uncorrected, have the potential to result in or contribute to critical element or system failure within one year Any mold, water intrusions or potentially damaging leaks to the project’s building(s) that have not been repaired Advanced physical deterioration Any project that failed to pass state, county, or other jurisdictional mandatory inspections and/or certifications specific to structural soundness, safety and habitability; or Any unfunded repairs costing more than $10,000 per unit that should be undertaken within the next 12 months (does not include repairs made by the unit owner or repairs funded through a special assessment) Examples of some items to consider include, but are not limited to, sea walls, elevators, waterproofing, stairwells, balconies, foundation, electrical systems, parking structures or other load-bearing structures. CUSIP Number A CUSIP Number is a unique nine-character alphanumeric designation assigned by the CUSIP Service Bureau to each UMBS®, MBS or ARM PC. The CUSIP Number is used to identify the UMBS, MBS or ARM PC on the books and records of the Federal Reserve Bank’s book-entry system. All UMBS, MBS and ARM PCs in Book-Entry Form are identified by a CUSIP Number. Custodial Account A Custodial Account is a Demand Deposit Account or Interest-Bearing Deposit Account established and maintained by a Servicer at an Eligible Depository, into which Principal and Interest Payments, Escrow Funds and other monies due to Freddie Mac or held on behalf of Freddie Mac Mortgages are deposited. The types of Custodial Accounts are: Principal and Interest Custodial Accounts Principal and Interest Disbursement Clearing Custodial Accounts Escrow Custodial Accounts Buydown Custodial Accounts
Freddie Mac Single-Family Seller/Servicer Guide Glossary — D (part 1): Date of Seller's Offer – Detached Condominium Project
Date of Seller's Offer The Date of Seller's Offer is the date the Seller accepts the applicable Purchase Contract in Loan Selling Advisor®. DDLPI Due date of last paid installment, the Due Date of the last fully paid monthly installment of principal, interest and Escrow (if any) (not the date on which such payment was credited or the date of the next scheduled installment). The related ULDD Data Point name is Last Paid Installment Due Date. Delinquency Delinquency occurs when all or part of the Borrower’s monthly installment of principal, interest and, where applicable, Escrow is unpaid after the due date. If the due date is The Mortgage is 30 days delinquent The 1st day of the month, When all or part of one or more payment(s) remain unpaid as of close of business on the last Business Day of the month Not the 1st day of the month (from the second through the 31st day of the month), When all or part of one or more payment(s) remain unpaid 30 or more actual calendar days as of close of business on the last Business Day of the month Delivery Date With respect to the sale of Mortgages to Freddie Mac, "Delivery Date" means the date when all of the following have been completed: The delivery to, and acceptance by, Freddie Mac of all loan data and other information and documentation required by the Purchase Documents, and The delivery and certification of the Notes and delivery of all other required documentation to Freddie Mac or a Custodian approved by Freddie Mac, as applicable. Demand Deposit Account For Custodial Accounts, a Demand Deposit Account is a deposit account from which funds may be withdrawn by the Servicer/depositor immediately and without any advance notice of intended withdrawal or any restrictions on the frequency of withdrawals. Designated Custodian The Designated Custodian is a Document Custodian with which Freddie Mac has contracted to provide custodial services for Seller/Servicers. The Designated Custodians are Bank of New York Mellon Trust Company, N.A. and Computershare Trust Company, N.A. Freddie Mac has verified that each Designated Custodian meets the eligibility requirements for Document Custodians set forth in Section 2202.1(b). Desktop Appraisal Report Future Effective 11/02/2026 An appraisal assignment for which the scope of work includes using third-party data sources, other than a recent collection of property data, in lieu of an appraiser performing an onsite inspection. Detached Condominium Project A Condominium Project comprised solely of Detached Condominium Units.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — D (part 2): Detached Condominium Unit – Due Date
Detached Condominium Unit A Condominium Unit that is completely detached from any other unit in a Condominium Project. A Detached Condominium Unit can be in a Detached Condominium Project or in a Condominium Project that contains a mixture of attached, detached and/or semi-detached units. Disabled-Owned Business Enterprise A business: (i) Qualified as a Service-Disabled Veteran-Owned Small Business Concern as defined in 13 C.F.R. §§ 125.8-125.13; or (ii) More than 50% of the ownership or control of which is held by one or more persons with a disability; and (iii) More than 50% of the net profit or loss of which accrues to one or more persons with a disability. Disability has the meaning defined in 29 C.F.R. § 1630.2(g), § 1630.3 and Appendix to Part 1630 - Interpretive Guidance on Title I of the Americans with Disabilities Act. Distributed Software Distributed Software is software or software-related documentation that is not specifically covered by the terms of a separate agreement between Freddie Mac and the Seller/Servicer. Document Custodian A Document Custodian is an institution that accepts delivery of, verifies and maintains the original Notes and assignments of the Security Instruments. As the context requires, references to "Document Custodian" include the Designated Custodian(s). A Document Custodian must satisfy the eligibility requirements described in Section 2202.1(b) and must enter into a Tri-Party Agreement as described in Section 2202.2 with the Seller/Servicer and Freddie Mac. For eMortgages, Freddie Mac approved third-party eNote custodians must also comply with the eligibility requirements of an eNote custodian as described in Section 1402.4. A Seller/Servicer may act as its own Document Custodian, as described in Section 2202.1(b), or a Document Custodian may be an Affiliate of the Seller/Servicer or an independent third-party entity, including a Designated Custodian. Documentation Level The Documentation Level shown on the Feedback Certificate indicates the minimum level of documentation acceptable for a Loan Product Advisor® Mortgage. Down Payment The difference between the purchase price and the First Lien amount on a purchase transaction. Due Date The Due Date is the date on which the Borrower's monthly installment of principal, interest and where applicable, Escrow, is due as stated in the Note. For Initial Interest℠ Mortgages during the Interest Only Period, it is the date on which the Borrower's monthly installment of interest and where applicable, Escrow, is due. Initial Interest Mortgages are not eligible for sale to Freddie Mac.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — E (part 1): Early Delinquency Counseling – Employer Assisted Homeownership (EAH) Benefit
Early Delinquency Counseling Counseling provided to a delinquent Borrower by a nonprofit third-party homeownership-counseling agency or eligible Servicer, that involves identifying the reason(s) a Borrower did not make a Mortgage payment on time and working with the Borrower to resolve any financial problems so that future Mortgage payments can be made on a timely basis. The counseling includes a personal and interactive relationship with the Borrower that deals with money management, budgeting and debt management counseling. Early Delinquency Counseling is further described in Sections 9101.1(e) and 9102.4(c). EDR Electronic default reporting, the process used by Servicers to report delinquency and default information to Freddie Mac monthly. Effective Date of Permanent Financing For Construction to Permanent Mortgages and Renovation Mortgages, the date when the Interim Construction Financing is replaced by the Permanent Financing through either a payoff, conversion or modification. The Effective Date of Permanent Financing is as follows: Construction to Permanent Mortgages and Renovation Mortgages Effective Date of Permanent Financing One-Time Close transaction with automatic conversion Due Date of the first monthly payment of principal and interest on the Permanent Financing One-Time Close transaction with Construction to Permanent Modification Agreement Date on which the Construction to Permanent Modification Agreement is effective Two-Time Close transaction Note Date of the Permanent Financing Effective Date of Transfer For a Concurrent Transfer of Servicing, the Effective Date of Transfer is the applicable Funding Date or Settlement Date. For a Subsequent Transfer of Servicing, the Effective Date of Transfer is the first calendar day of the month of the transfer, unless otherwise approved by Freddie Mac. Eligible Depository An Eligible Depository is a depository institution in which a Servicer must establish a Custodial Account or invest monies deposited into a Custodial Account, that meets the institutional requirements and rating requirements as found in Sections 8302.2(b) and 8302.2(c). Eligible Disaster A disaster, either man-made or natural, which meets the following qualifications: A financial hardship (e.g., a loss/reduction of income or increase in expenses) that impacts the Borrower’s ability to pay his or her current contractual monthly payment, and One of the following: The property securing the Mortgage loan experienced an insured loss The property securing the Mortgage loan is located in a FEMA-Declared Disaster Area eligible for Individual Assistance, or The Borrower’s place of employment is located in a FEMA-Declared Disaster Area eligible for Individual Assistance Eligible Disaster Area An area comprised of counties or municipalities that have been declared by the President of the United States to be a major disaster area where federal aid in the form of individual assistance is being made available. Employer Assisted Homeownership (EAH) Benefit Financial assistance provided to an employee from the employer pursuant to an established, ongoing and documented employer benefit program, provided (i) the employer is not an interested party (as described in Section 5501.6) and (ii) the funds were not obtained from an interested party either directly or through a third party. See Section 5501.5 for additional requirements.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — E (part 2): Ending UPB – Exterior Appraisal Report
Ending UPB The UPB as of the end of an Accounting Cycle. Equity The difference between the value of the Mortgaged Premises and the total dollar amount of all Mortgages and other liens secured by the Mortgaged Premises. Escrow Escrow includes all funds collected to cover expenses to be paid under the Mortgage including, but not limited to, property taxes, ground rents and assessments or other charges that, if delinquent, are or may become First Liens on the property or that if not paid would result in the subordination of Freddie Mac’s interests (see Section 9301.6(e) regarding expenses that may become First Liens on the property), as well as property insurance premiums and mortgage insurance premiums. Escrow Custodial Account An Escrow Custodial Account is a Custodial Account into which the Servicer deposits Escrow Funds. Escrow Disbursement Clearing Account An Escrow Disbursement Clearing Account is a deposit account established by a Servicer, at its option, specifically for the payment of all expenses payable from Escrow Funds with respect to Mortgages serviced for Freddie Mac and for others. Escrow Funds For Custodial Accounts, Escrow Funds are any and all funds deposited by a Servicer on a Borrower’s behalf (such as buydown funds) or any and all funds remitted by a Borrower to a Servicer, to be used by the Servicer to pay, with respect to a Mortgage in which Freddie Mac has an ownership interest, such expenses as property insurance premiums, mortgage insurance premiums, property taxes, ground rents, and assessments or other charges that, if delinquent, are or may become First Liens on the property or that if not paid would result in the subordination of Freddie Mac’s interests (see Section 9301.6(e) regarding expenses that may become First Liens on the property). Established Condominium Project An Established Condominium Project is a Condominium Project in which: The Condominium Project (all Condominium Units, Common Elements and Amenities) and related facilities owned by any Master Association are complete and not subject to any additional phasing At least 75% of the total units in the project have been conveyed to the unit purchasers, and The unit owners control the homeowners association Exempt Mortgage There are two classifications of Exempt Mortgages, as follows: TILA Exempt Mortgage: A TILA Exempt Mortgage is a Mortgage exempt from the Truth in Lending Act and, as such, is exempt from the ATR requirements in Regulation Z. TILA Exempt Mortgages include business purpose loans as defined in 12 C.F.R. § 1026.3. ATR Exempt Mortgage: An ATR Exempt Mortgage is a Mortgage that is exempt from the ATR requirements in Regulation Z as set forth in 12 C.F.R. § 1026.43(a)(3). Extended Buydown Mortgage A Mortgage with a temporary subsidy buydown plan for which: The buydown plan extends for more than two years after the first scheduled payment date, or The effective interest rate during the buydown period is more than two percentage points below the Note Rate of the Mortgage regardless of the duration of the buydown period Exterior Appraisal Report Future Effective 11/02/2026 An appraisal assignment for which the scope of work includes an onsite inspection of the exterior areas of the subject property from at least the street by the appraiser.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — F (part 1): FDIC; FDIC-Insured Depository – Financed Permanent Buydown Mortgage
FDIC; FDIC-Insured Depository FDIC is the abbreviation for the Federal Deposit Insurance Corporation. The FDIC administers the BIF and the SAIF. An FDIC-Insured Depository is a depository institution whose deposits are insured by the FDIC. Federal Reserve Bank The Federal Reserve Bank means the Federal Reserve Bank of New York and/or such other Federal Reserve Bank(s) as may from time to time maintain UMBS®, MBS and ARM PCs on their books and records. Feedback Certificate The printed or printable document returned by Loan Product Advisor® that details the results of the Loan Product Advisor submission, including but not limited to Risk Class, purchase eligibility, minimum documentation requirements, and representation and warranty relief eligibility. The in-file and merged credit reports printed by Loan Product Advisor are not part of the Feedback Certificate. FHA; FHA Mortgage FHA is the Federal Housing Administration. An FHA Mortgage is a Home Mortgage that is fully insured by the FHA under Sections 203(b), 203(h) or 203(i) [Home Unsubsidized], 222 [Servicemen] or 234 [Individual Condominium Unit] of the National Housing Act, as amended. FHFA The Federal Housing Finance Agency, Freddie Mac's regulator and conservator. Final Delivery Date For Mortgages sold to Freddie Mac under the fixed-rate Guarantor, WAC ARM Guarantor and MultiLender programs, is the date set forth in Loan Selling Advisor® by which all of the following must be completed: The loan data and applicable documentation required by Loan Selling Advisor must be provided to Freddie Mac All of the purchase edits and allocation errors identified by Loan Selling Advisor with respect to the Mortgages must be resolved in accordance with Freddie Mac requirements The Notes for all Mortgages in the applicable Contract must be delivered to and certified by the Document Custodian Seller must provide wire transfer instructions in Loan Selling Advisor that account for the entire UPB associated with the Contract For Pledged Mortgages allocated to a contract, the Warehouse Lender must submit Form 996E, Warehouse Provider Release and Transfer, to Freddie Mac in accordance with the requirements of Sections 6305.3(a) (Cash) and 6305.3(b) (Guarantor or MultiLender Swap), as applicable The foregoing must be completed by 8:00 p.m. Eastern time on the Final Delivery Date, which is the Business Day immediately preceding the date on which the selected Settlement Cycle begins. See Section 6203.3(c), 6204.3(c) or 6205.3(c) for additional instructions and requirements for wire transfer instructions and submitting Form 996E, Warehouse Provider Release and Transfer. The Final Delivery Date is also referred to as the Final Delivery Due Date in Loan Selling Advisor, and the two terms can be used interchangeably. Financed Permanent Buydown Mortgage A Mortgage for which the Borrower has permanently reduced the interest rate by financing discount points in the loan amount.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — F (part 2): First Amortizing Payment Date – First-Time Homebuyer
First Amortizing Payment Date For Initial Interest℠ Mortgages, the First Amortizing Payment Date is the date stated in the Initial Interest Note of the first monthly amortizing principal and interest payment. It is determined by adding the number of months of the Interest Only Period to the Due Date of the first monthly payment stated in the Initial Interest Note. Initial Interest Mortgages are not eligible for sale to Freddie Mac. First Complete Borrower Response Package The first complete Borrower Response Package received in connection with a Mortgage secured by a Primary Residence for any period of continuous Delinquency. First Lien A First Lien is any lien that meets both of the following requirements: The lien is acceptable to private institutional first-mortgage investors in the area where the Mortgaged Premises are located. The lien grants to the lienholder a claim against the property that, under the law of the jurisdiction where the Mortgaged Premises are located, is prior to the rights of all others, subject only to prior liens and encumbrances expressly waived by Freddie Mac pursuant to Section 4702.4. First-Generation Homebuyer Mortgage A First-Generation Homebuyer Mortgage is one in which each Borrower meets the following requirements: Is purchasing the Mortgaged Premises, Will reside in the Mortgaged Premises as a Primary Residence, and Has had no ownership interest (sole or joint) in another property during the last three years preceding the Note Date One of the following must also apply: No parent of the Borrower has had an ownership interest (sole or joint) in a property in the last three years preceding the Note Date, The Borrower has aged out of foster care, or The Borrower has become emancipated First-Time Homebuyer A First-Time Homebuyer is an individual who meets all of the following requirements: Is purchasing the Mortgaged Premises Will reside in the Mortgaged Premises as a Primary Residence Had no ownership interest (sole or joint) in a residential property during the three-year period preceding the date of the purchase of the Mortgaged Premises. Ownership of a timeshare is not considered ownership interest in a residential property. The related ULDD Data Point name is Borrower First Time Homebuyer Indicator. For additional information related to completion of the Borrower First Time Homebuyer Indicator, see Exhibit 1, Instructions for Completing the Borrower First Time Homebuyer Indicator. In addition, a displaced homemaker or a single parent may also be considered a First-Time Homebuyer if the individual had no ownership interest in a residential property during the preceding three-year period other than an ownership interest in the marital residence with a spouse. If a displaced homemaker or a single parent solely owned the marital residence, or solely or jointly owned a second home or Investment Property, the individual may not be considered a First-Time Homebuyer. For purposes of meeting the requirement in the first bullet above: If a Living Trust is purchasing the Mortgaged Premises, then for purposes of this definition, an Underwritten Settlor of that Living Trust will be deemed to be purchasing the Mortgaged Premises If a Land Trust is purchasing the Mortgaged Premises, then for purposes of this definition, a beneficiary of that Land Trust who is a Borrower will be deemed to be purchasing the Mortgaged Premises
Freddie Mac Single-Family Seller/Servicer Guide Glossary — F (part 3): Fixed-Rate Guarantor Contract – Funding Date
Fixed-Rate Guarantor Contract A Fixed-Rate Guarantor Contract is an optional Purchase Contract entered into by the Seller to sell eligible Mortgages to Freddie Mac under the fixed-rate Guarantor program. FRE Claims (or “Freddie Mac’s Claims”) The amounts of any and all defaults and outstanding obligations of Seller/Servicer to Freddie Mac and any and all Claims of Freddie Mac with respect to Seller/Servicer, including those arising out of or relating to (a) the Servicing Contract, the Guide and the other Purchase Documents, (b) the purchase or sale of securities from or to Freddie Mac (including any transactions entered into with any department, division or Affiliate of Freddie Mac that may perform any securities trading activities), (c) any repurchase agreement transactions with Freddie Mac, and/or (d) any other agreement with Freddie Mac (including any applicable acknowledgment agreement, consent agreement, pledge and security agreement, guaranty, letter of credit agreement, or indemnity agreement). For the avoidance of doubt, FRE Claims/Freddie Mac’s Claims (i) are not limited to amounts of defaults, obligations or Claims arising out of or relating to any specific agreement or pool of Mortgages, and (ii) include amounts of modeled or future Claims, regardless of whether such Claims are contingent or unmatured at the time of such determination, unless Freddie Mac in its sole and absolute discretion finally determines that such amounts are not due and payable. Freddie Mac 100 Mortgage A Mortgage eligible for Freddie Mac's 100% LTV offering and delivered as a Freddie Mac 100 Mortgage. Freddie Mac 100 Mortgages are no longer eligible for sale to Freddie Mac. Freddie Mac Default Legal Matters Freddie Mac Default Legal Matters include bankruptcies and default-related legal matters, which include foreclosures, loss mitigation (e.g., deed-in-lieu of foreclosure) and related litigation involving Freddie Mac-owned or guaranteed Mortgages. Freddie Mac Income Calculator Certificate The printed or printable document that details the results of the Freddie Mac Income Calculator submission, including but not limited to calculated income and representation and warranty relief eligibility. Freddie Mac-Owned Converted Mortgage A Convertible ARM that is owned by Freddie Mac and that was converted to a fixed interest rate after Freddie Mac purchased the Mortgage. See also Converted Mortgage. Convertible ARMs are not eligible for sale to Freddie Mac. Freddie Mac’s Claims See FRE Claims. Full Payment Full Payment is the monthly payment of principal and interest sufficient to amortize fully the remaining principal balance of the ARM at the then applicable Note Rate over the remaining Mortgage term. Funding Date The date on which Freddie Mac disburses payment to the Seller to purchase a Mortgage. For Pledged Mortgages purchased by Freddie Mac, the date on which Freddie Mac disburses the Purchase Proceeds to the Warehouse Lender.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — G: Government Mortgage – Gut Rehabilitation
Government Mortgage A Mortgage funded, guaranteed or insured by a government agency. GSE Patch GSE Patch refers to the Consumer Financial Protection Bureau (CFPB) temporary QM rule definition in Regulation Z, 12 C.F.R. § 1026.43(e)(4), that became effective January 10, 2014, under which Mortgages were considered to be QMs if they satisfied certain requirements and were eligible for purchase by Freddie Mac. Guide Freddie Mac's Single-Family Seller/Servicer Guide, as it may be modified, amended or supplemented from time to time. Guide Plus Additional Provisions Written amendments or supplements to the Guide provided to Seller by Freddie Mac through AllRegs® and amended by Freddie Mac from time to time. Gut Rehabilitation The repair and restoration of an existing building(s) to its shell. The rehabilitation involves all new mechanical equipment (such as heating, exhaust, insulation, roofing, plumbing and electrical). The renovations include new interiors, fixtures, appliances, and flooring for individual units and common areas.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — H: Hazard Distressed BPO – Hybrid Appraisal Report
Hazard Distressed BPO A Hazard Distressed BPO is a BPO conducted to determine the value of a damaged property. Hazardous Substance A Hazardous Substance is any hazardous or toxic substance, pollutant, waste or contaminant, designated as such under any federal, State or local law. High Needs Rural Region Any of the following regions provided the region is located in a designated “Rural Area”, as defined by FHFA’s Duty to Serve regulation: (1) Middle Appalachia; (2) The Lower Mississippi Delta; (3) A colonia census tract; or (4) A tract located in a persistent poverty county and not included in Middle Appalachia, the Lower Mississippi Delta or a colonia census tract. High-Cost Area An area in which 115 percent of the local median home value exceeds the baseline conforming loan limit, as defined by FHFA. Higher-Priced Covered Transaction (HPCT) A First Lien Mortgage secured by a Primary Residence, a second home or Investment Property not exempt from ATR requirements under the Truth in Lending Act and its implementing regulations that has an annual percentage rate (APR) of 1.5% or more above the average prime offer rate (APOR) for a comparable transaction as of the rate lock date. APR and APOR are both defined in Regulation Z. The APOR is published at least weekly by the Federal Financial Institutions Examination Council (FFIEC) and is derived from pricing terms obtained from a survey of prime mortgage lenders. For purposes of this Guide, a Higher-Priced Covered Transaction that is secured by a Primary Residence is also a Higher-Priced Mortgage Loan. Higher-Priced Mortgage Loan (HPML) A First Lien Mortgage secured by a Primary Residence that has an annual percentage rate (APR) of 1.5% or more above the average prime offer rate (APOR) for a comparable transaction as of the rate lock date. APR and APOR are both defined in Regulation Z. The APOR is published at least weekly by the FFIEC and is derived from pricing terms obtained from a survey of prime mortgage lenders. An HPML does not include a second home or Investment Property. Home Equity Line of Credit (HELOC) A revolving line of credit that is secured by the Borrower’s real property. Home Improvement Loan (HIL) A Home Improvement Loan (HIL) is a Home Mortgage to finance permanent improvements for energy conservation, solar installation, rehabilitation, modernization or addition. Home Mortgage A Home Mortgage is a Mortgage secured by a First Lien on real estate on which there is located a structure designed principally for residential use by one to four families. A conventional Mortgage is a Home Mortgage other than a Home Mortgage guaranteed or insured by the federal government. A conforming Mortgage is a Home Mortgage with an original loan amount that does not exceed the applicable loan limits specified in the Guide. Home Possible® Mortgage A Mortgage that offers underserved qualified Borrowers flexible underwriting, low down payment options and other special underwriting features. Home Possible Mortgages must be originated in accordance with Chapter 4501. HUD The U.S. Department of Housing and Urban Development. Hybrid Appraisal Report Future Effective 11/02/2026 An appraisal assignment for which the scope of work includes using a recent collection of property data in lieu of the appraiser performing an onsite inspection. The collection of property data must comply with the Uniform Property Dataset.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — I: Index – Investment Quality Mortgage
Index For ARMs, an Index is a fluctuating economic indicator specified in the Note, the value of which is used to adjust the Note Rate periodically. Indicator Score The one Underwriting Score identified to represent the eligibility of the Mortgage for the product offering. The related ULDD Data Point names are Loan Level Credit Score Selection Method Type and Loan Level Credit Score Value. Individual Development Account (IDA) A savings account designated by the Borrower for the purpose of purchasing a residence and into which the Borrower has regularly deposited funds which are matched by funds from an Agency. If the Agency matching funds are to be used as a source of funds, the objective for which the IDA was established and the vesting requirements must be satisfied. Initial Cap For ARMs, the Initial Cap is the maximum increase or decrease in the Note Rate on the first Interest Change Date, expressed in percentage points. The related ULDD Data Point names are Per Change Maximum Decrease Rate Percent and Per Change Maximum Increase Rate Percent. Initial Interest℠ Mortgages Initial Interest Mortgages are Mortgages that require (i) interest only payments for a specified period of time beginning with the first monthly payment after the Note Date, and (ii) principal and interest payments on a fully amortizing basis for the remainder of the Mortgage term. Initial Interest Mortgages are not eligible for sale to Freddie Mac. Initial Period For ARMs, the Initial Period is the period from the Note Date of the Mortgage until the first Interest Change Date, expressed in months. The related ULDD Data Point name is Initial Fixed Period Effective Months Count. Interest Change Date For ARMs, the Interest Change Date is each date, as established in the Note, on which any adjustment in the Note Rate is effective. The related ULDD Data Point names are Per Change Rate Adjustment Effective Date and Next Rate Adjustment Effective Date. Interest Only Period For Initial Interest℠ Mortgages, the Interest Only Period is the period (expressed in months) for which the monthly payments are interest only. The Interest Only Period begins on the date of the first monthly (interest only) payment stated in the Initial Interest Note and ends on the last day of the month before the First Amortizing Payment Date. Initial Interest Mortgages are not eligible for sale to Freddie Mac. Interest-Bearing Deposit Account For Custodial Accounts, an Interest-Bearing Deposit Account is a deposit account that pays short-term interest rates on the deposited balance, such as savings accounts or money market deposit accounts. This definition does not include money market mutual fund accounts. Interim Construction Financing The short-term financing that provides the Borrower with funds to construct or renovate the Mortgaged Premises. Interim Construction Financing is replaced by Permanent Financing. Intervening Assignment An Intervening Assignment is an assignment of a Security Instrument: That reflects transfer(s) of a Mortgage's ownership prior to the time the Mortgage is sold to Freddie Mac From a Transferor Servicer to a Transferee Servicer in conjunction with a Concurrent Transfer of Servicing or a Subsequent Transfer of Servicing To or from MERS®, in conjunction with a Mortgage being registered or deregistered in MERS Investment Property A 1- to 4-unit residential property, other than a Primary Residence or second home, that is: Owned by an individual, who is also a Borrower, and Suitable for year-round rental and occupancy Investment Property Mortgage A Mortgage secured by an Investment Property. Investment Quality Mortgage An Investment Quality Mortgage is a Mortgage that is: Made to a Borrower from whom repayment of the Mortgage can be expected Adequately secured by real property, and Originated in accordance with the requirements of the Purchase Documents
Freddie Mac Single-Family Seller/Servicer Guide Glossary — K: Key Number
Key Number A unique identifier assigned to a Mortgage by Loan Product Advisor® when the Mortgage is first submitted to Loan Product Advisor. The Key Number is returned to the Seller on the Feedback Certificate and is used by the Seller and Freddie Mac to identify an individual Mortgage. In addition to the Key Number, each Loan Product Advisor submission will receive a Transaction Number. Key Number is also referred to as "Loan Prospector® (LP) AUS Key Number" and "LP Key Number." These three terms can be used interchangeably.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — L (part 1): Land Trust – LNA
Land Trust A Land Trust is a trust arrangement that meets all of the following requirements: The legal and equitable title to the trust property is held by a trustee The interest of any beneficiary of the trust is personal property, and The beneficiary(ies) of the trust possesses (possess) the sole: Power of direction and control over the trustee in dealing with title to the trust property Control of the management, operation, renting, and selling of the trust property, and Right to the earnings and proceeds of the sale or rental of the trust property Land Trust Mortgage A Mortgage secured by property for which the title is held by a Land Trust. Last Feedback Certificate The Feedback Certificate returned from the last submission to Loan Product Advisor® prior to the Delivery Date. Lender-Placed Insurance (LPI) Lender-Placed Insurance (LPI) shall have the same meaning as "forced-placed insurance" as defined in 12 C.F.R. Section 1024.37 by the Consumer Financial Protection Bureau. LIBOR The London Interbank Offered Rate (LIBOR) index that ceased being available and/or representative at the close of business on July 3, 2023. Life Cap For ARMs, the Life Cap is the number of percentage points, which when added to the initial Note Rate yields the Lifetime Ceiling. Lifetime Ceiling For ARMs, the Lifetime Ceiling is the maximum Note Rate to which an ARM may adjust over the life of the loan. The Lifetime Ceiling is determined by adding a Life Cap to the initial Note Rate. The related ULDD Data Point name is Ceiling Rate Percent. Lifetime Floor For an ARM, the minimum Note Rate to which an ARM may ever adjust; the Lifetime Floor must equal the Margin. The related ULDD Data Point name is Floor Rate Percent. Limited Buydown Mortgage A Mortgage with a temporary subsidy buydown plan for which: The buydown plan extends for two years or less after the first scheduled payment date and The effective interest rate during the buydown period is two percentage points or less below the Note Rate of the Mortgage, regardless of the duration of the buydown period Limited Common Elements Limited Common Elements are portions of Common Elements reserved for use by one or more unit owners but not all unit owners. Limited Common Elements are defined in the Project Documents, and may include, but are not limited to, balconies or patios serving a single unit, assigned parking spaces or storage bins. Living Trust A Living Trust is an inter vivos revocable trust that meets all of the following requirements: The trust is created by one or more Settlors during his or her lifetime, The trust becomes effective during the lifetime of the Settlor(s), and Each Settlor retains the right during his or her lifetime to revoke or amend the trust Living Trusts also may be referred to as "inter vivos trusts" or "inter vivos revocable trusts." LNA An LNA is a lost note affidavit, which is a sworn statement that represents and substitutes for a promissory note (other than an e-Note) that is lost, missing, or destroyed.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — L (part 2): Loan Origination Company – Lookback Period
Loan Origination Company For purposes of providing the Loan Originator information on Form 65, Uniform Residential Loan Application, and at delivery, a Loan Origination Company is the company that employs the Loan Originator or that the Loan Originator represents as an independent contractor. Loan Originator For purposes of providing the Loan Originator information on Form 65, Uniform Residential Loan Application, and delivering the ULDD Data Point Loan Originator Type only, Loan Originator shall have the same meaning as the term defined in section 1503 of the Secure and Fair Enforcement for Mortgage Licensing Act (as may be amended from time to time). The current SAFE Act defines a Loan Originator as an individual who: (i) takes a residential mortgage loan application, and (ii) offers or negotiates terms of a residential mortgage loan for compensation or gain. The current SAFE Act excludes from the definition of Loan Originator the following: (i) [an] individual who is not otherwise a Loan Originator as described above and who performs purely administrative or clerical tasks on behalf of such a person (ii) a person or entity that only performs real estate brokerage activities and is licensed or registered in accordance with applicable State law, unless the person or entity is compensated by a lender, a mortgage broker, or other Loan Originator or by any agent of such lender, mortgage broker, or other Loan Originator; and (iii) a person or entity solely involved in extensions of credit relating to timeshare plans, as that term is defined in section 101(53D) of title 11, United States Code. Loan Product Loan Product as used in Loan Selling Advisor® means Mortgage Product as that term is defined in the Glossary. Loan Product Advisor® Freddie Mac's automated underwriting system. Loan Product Advisor is a successor System to Loan Prospector. Any Guide reference to Loan Product Advisor shall be deemed to include a reference to Loan Prospector. Loan Product Advisor® Mortgage A Mortgage that is submitted to Loan Product Advisor, receives a Risk Class of Accept or Caution and complies with all of the requirements of Chapter 5101. Loan Selling Advisor® Freddie Mac's proprietary web-based system for purchasing Mortgages including, but not limited to, all visual content displayed on screens and pages, system processes, system rules, terms and conditions, privacy policy and instructions. Loan Selling Advisor is a successor System to the Selling System®. Lookback Period For ARMs, the Lookback Period is the date on which the Index value used to calculate the new Note Rate is determined. The Lookback Period is stated in the Note and is generally expressed as the number of days preceding the Interest Change Date. The related ULDD Data Point names are Interest And Payment Adjustment Index Lead Days Count and Interest Adjustment Index Lead Days Count.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — M (part 1): Maintenance Fees – Material Adverse Effect
Maintenance Fees The monthly charge the Shareholder pays to the Cooperative Corporation to cover the Cooperative Unit’s Pro Rata Share of maintenance and operating costs, including reserve funding but not including the Cooperative Project’s debt and taxes. Manually Underwritten Mortgage A Mortgage for which the Seller makes the determination regarding Borrower creditworthiness and excessive layering of risk that is one of the following: A Mortgage that was never submitted to Loan Product Advisor® A Mortgage that was submitted to Loan Product Advisor and did not receive a Risk Class A Mortgage that was submitted to Loan Product Advisor and received a Risk Class of Caution Manufactured Home A Manufactured Home is a one-unit dwelling built on a permanent chassis in accordance with the National Manufactured Construction and Safety Standards Act as promulgated by HUD and affixed to a permanent foundation. Manufactured Home Purchase Agreement An agreement between the Manufactured Home purchaser and the retailer or dealer from whom the Manufactured Home is purchased. The Manufactured Home Purchase Agreement must be either the manufactured housing purchase agreement required to be used under applicable State law or if none is required, the Jenkins Business Forms Manufactured Housing Form 500 or a State-specific Form 500 or a substantially equivalent form. Margin For ARMs, the Margin is the number of percentage points that is added to the current Index value to establish the new Note Rate at each Interest Change Date. The related ULDD Data Point name is Margin Rate Percent. Market Area The geographic region, for a subject property, from which most demand comes and in which most of the competition is located. Master Agreement A Master Agreement is an agreement between Freddie Mac and the Seller providing the terms for origination, underwriting, delivery and any other relevant negotiated terms under which Freddie Mac will purchase eligible Mortgages. Master Association An association that governs (1) multiple affiliated projects, (2) a mixed-use development (3) sub-associations within the same condominium project, such as residential and commercial units’ sub-associations, or (4) a Planned Unit Development (PUD). It typically manages the affairs that affect the entire planned community or development, whereas the sub-associations handle the affairs pertaining to their specific project(s) or areas of the larger development. Master Servicer A Servicer that has entered into a Subservicing Agreement with a Servicing Agent. Material Adverse Effect A Material Adverse Effect shall mean any event or circumstance having a material adverse effect on (a) the Seller/Servicer’s ability to perform its obligations under the Purchase Documents, (b) Freddie Mac’s interests as an assignee, (c) a class or significant group of Borrowers, and/or (d) Freddie Mac’s economic interests.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — M (part 2): Maximum Annual Mortgage Purchase Amount – Minority-Owned Business Enterprise
Maximum Annual Mortgage Purchase Amount The Maximum Annual Mortgage Purchase Amount is the maximum aggregate dollar amount of Home Mortgages that Freddie Mac will purchase from a Seller in any calendar year. The Maximum Annual Mortgage Purchase Amount applies only to those Sellers for whom such a limit has been established pursuant to Section 1201.4. (The Maximum Annual Mortgage Purchase Amount does not apply to purchases of Multifamily Mortgages by Freddie Mac.) MBS An MBS is a mortgage-backed security issued by Freddie Mac pursuant to the relevant Master Trust Agreement, representing a beneficial ownership interest in a specified Pool. MERS® MERS (Mortgage Electronic Registration System, Inc.) is a cooperative undertaking by and for the entire mortgage industry. This system is an electronic registry specifically created for tracking the ownership of individual Mortgages, Servicing rights and security interests and used by MERS Members. MERS® Governing Documents A Seller/Servicer's MERS membership application and/or agreement with MERS, the MERS System Rules of Membership and the MERS Procedures Manual, as may be amended from time to time. MERS® Member A MERS Member is a Seller/Servicer who has executed the MERS Membership Agreement with MERS. MI An MI is a mortgage insurer approved by Freddie Mac. MIN A MIN is the Mortgage Identification Number that is assigned to a Mortgage that is registered in MERS®. This number remains with the Mortgage throughout its life. Minimum Contract Servicing Spread The Minimum Contract Servicing Spread is selected by the Seller at time of commitment or when the Seller enters into a Purchase Contract under Pricing Identifier Terms, and is the least amount of interest income that must be retained by the Servicer as compensation for Servicing all the Mortgages delivered pursuant to a specific Purchase Contract. The amount selected by the Seller must be no less than the Minimum Servicing Spread. The Servicing Spread applicable to any individual Mortgage delivered pursuant to a specific Purchase Contract may be greater than or equal to, but not less than, the Minimum Contract Servicing Spread selected by the Seller for that Purchase Contract. Minimum Gross Yield The Minimum Gross Yield is the sum of the Required Net Yield plus the Minimum Contract Servicing Spread. Minimum Servicing Spread The Minimum Servicing Spread is the least amount of interest income, as established by Freddie Mac for the applicable Mortgage product, that must be retained by the Servicer as compensation for Servicing. Minority-Owned Business Enterprise A business: More than 50% of the ownership or control of which is held by one or more minority individuals; and (ii) More than 50% of the net profit or loss of which accrues to one or more minority individuals. Minority means any Black (or African) American, Native American (or American Indian), Hispanic (or Latino) or Asian American.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — M (part 3): Modification Effective Date – MultiLender Swap Contract
Modification Effective Date For purposes of a modification processed under Chapters 9204 through 9210, the Modification Effective Date is the first day of the month following the end of the Trial Period, which is also the first payment due date of the modified Mortgage. In the event the Servicer utilizes the option to include an interim month following the Trial Period, then the Modification Effective Date and the due date of the first modified payment will be the first day of the second month following the end of the Trial Period. The effective date of the modification interest rate change occurs one month prior to the first payment due date, as the terms of the modified Mortgage are established so that the first payment due under the modified Mortgage pays interest in arrears that accrued during the month prior to the first payment due date. Mortgage A loan secured by a lien on real estate held in fee simple or on an acceptable leasehold estate; as the context requires, the term may refer to a Cooperative Share Loan. Mortgage Broker A person or entity that specializes in loan originations, receiving a commission (from a Correspondent or other lender) to match Borrowers and lenders. The Mortgage Broker performs some or most of the loan processing functions, such as taking loan applications, or ordering credit reports and title reports. Typically, the Mortgage Broker does not underwrite or service the loan and generally does not use its own funds for closing; however, a Mortgage Broker could fund a Mortgage on a lender’s behalf and such a Mortgage will be considered, and should be delivered as, a Mortgage Broker third party origination Mortgage. The Mortgage is generally closed in the name of the lender who commissioned the Mortgage Broker’s services. Mortgage Credit Certificate (MCC) A certificate issued by an authorized State or local housing finance agency that documents a federal income tax credit awarded to a qualified First-Time Homebuyer and/or low- or moderate-income homebuyer. Mortgage Product A Mortgage Product is any one of the specific types of Mortgages for which the applicable Purchase Documents may provide specific eligibility, Credit Fees in Yield and other terms. Mortgage Service Provider An entity or individual engaged to handle or perform, for a Seller or Correspondent, part of the mortgage application processing, underwriting, funding or post-closing functions, but not any activities related to obtaining an application for a wholesale origination. This entity or individual is typically paid on a fee basis for services performed, with the payment of fees not being contingent on Mortgage approval or closing. Mortgage Service Providers include: Contract underwriters Contract processing firms Contract quality control services Escrow companies and settlement agents Contract document preparation companies Mortgaged Premises The land and improvements thereon subject to the lien of a Security Instrument; as the context requires, this term may refer to a Cooperative Unit. Multifamily Mortgage A Multifamily Mortgage is a Mortgage on real estate on which there is located a structure designed principally for residential use by more than four families. MultiLender Swap Contract A MultiLender Swap Contract is an optional Purchase Contract entered into by the Seller to sell certain conventional fixed-rate Mortgages to Freddie Mac under the MultiLender Swap program.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — N: NCUSIF; NCUSIF-Insured Depository – Notice of Default
NCUSIF; NCUSIF-Insured Depository NCUSIF is the abbreviation for the National Credit Union Share Insurance Fund. An NCUSIF-Insured Depository is a depository institution whose deposits are insured by the NCUSIF. Negative Amortization Negative Amortization is the amount (i) by which the monthly interest calculated at the Note Rate exceeds the Borrower's scheduled monthly interest payment to the Servicer, and (ii) which is added to the UPB of the Mortgage. Neighborhood A congruous group of complementary land uses. New Condominium Project A New Condominium Project is a Condominium Project in which: The Condominium Project (all Condominium Units, Common Elements and Amenities) and related facilities owned by any Master Association are not complete, or are subject to additional phasing Fewer than 75% of the total number of units in the project must have been conveyed to the unit purchasers, or The developer has not turned control of the homeowners association over to the unit owners Non-arm’s Length Transaction A purchase transaction between parties who are related, are affiliated or have a pre-existing personal or business relationship. Non-Gut Rehabilitation The repair and restoration of an existing building(s) that does not involve substantial rehabilitation of the building(s) or individual units or the substantial replacement of mechanical equipment. Non-Loan Product Advisor Mortgage A Mortgage that was: Never submitted to Loan Product Advisor®, or Submitted to Loan Product Advisor and did not receive a Risk Class, or Submitted to Loan Product Advisor for the first time after the Note Date, or for Construction to Permanent Mortgages and Renovation Mortgages, the Effective Date of Permanent Financing, or Submitted to Loan Product Advisor, but did not comply with Chapter 5101, or Submitted to Loan Product Advisor, but was not eligible to be a Loan Product Advisor Mortgage under the Guide or the Seller's other Purchase Documents, or Submitted to Loan Product Advisor, but was delivered without the Key Number (Loan Prospector AUS Key Number) Noncredit Payment Reference A continuing obligation, such as rent, utilities and insurance, that requires periodic payments at least quarterly. The related ULDD Data Point name is Credit Reference Type (Loan Level). Note A Note is the instrument evidencing the indebtedness secured by a Security Instrument. With respect to document custody, unless the context requires otherwise, the term "Note" may include any power of attorney or any applicable modifying instrument, such as a modification, a conversion agreement or an assumption of indebtedness and release of liability agreement. Note Date The Note Date is the date of the Note. Note Rate The Note Rate is the interest rate payable under the Note. For ARMs, the Note Rate may adjust from time to time in accordance with the terms of the Note. The term Interest Rate may be used to refer to Note Rate. Notice of Acceleration A Notice of Acceleration is a written notice sent to the Borrower notifying the Borrower that: A default has not been cured, and The Servicer will accelerate the Mortgage and call all sums due and payable if the default is not cured within 30 days of the notice Notice of Default A Notice of Default is a written notice sent to the Borrower stating that the Borrower is in violation of the terms of the Note and/or Security Instrument. The Notice contains a time limit within which the Borrower must cure or remedy the violation. When issued because of a delinquent monthly payment, this notice is usually sent out when the payment is 30 days delinquent.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — O: One-Time Close – Owner-Occupant
One-Time Close For a Construction to Permanent Mortgage or Renovation Mortgage, a transaction structure where there is one closing for both Interim Construction Financing and Permanent Financing. The terms for the Permanent Financing are documented in the Note and Security Instrument with the terms of the Interim Construction Financing in an addendum or rider. Operational Bifurcated Mortgage An Operational Bifurcated Mortgage is a Mortgage sold through Correspondent XChange® in accordance with Exhibit 29, Correspondent Xchange® Operational Bifurcation Multi-Party Agreement. Origination Date The Origination Date is the Note Date. Other Assets For use in Section 2101.1, the "Other Assets" line items, less any other asset items that have previously been deducted. For example, if some of the "Other Intangibles" line items are included in "Other Assets," they must not be provided on the "Other Assets" line item. Outsourced Vendor A service bureau or other third party, other than a Servicing Agent, engaged by a Servicer or Servicing Agent to provide information and transaction processing services and other activities including, but not limited to, mailing solicitation letters, performing property inspections, property valuations or default-related legal services. Owner of Record The entity or individual that appears in the public records as the legal owner. Owner-Occupant An Owner-Occupant is an individual who meets all of the following requirements: Resides in the Mortgaged Premises, using it as a Primary Residence Is listed as an owner of record (by deed or for a Cooperative Share Loan, on the Cooperative Share ownership documentation) Has executed the Note and the Security Instrument For a Land Trust Mortgage, a beneficiary of a Land Trust is deemed to be an Owner-Occupant if all of the following requirements are met: The beneficiary is an individual who resides in the Mortgaged Premises, using it as a Primary Residence The beneficiary has executed the Note The Land Trust is listed as an owner of record (by deed) The trustee of the Land Trust has executed the Security Instrument For purposes of this definition, if a Borrower is a Living Trust that is listed as an owner of record (by deed), then an Underwritten Settlor of that Living Trust who resides in the Mortgaged Premises, using it as a Primary Residence, and who has executed the Note and acknowledged the Security Instrument, is deemed to be an Owner-Occupant.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — P (part 1): P&I Determination Date – Prefix
P&I Determination Date The 15th calendar day of the month (or next Business Day if the 15th calendar day falls on a weekend or holiday). P&I Draft Date The second Business Day following the P&I Determination Date. PAID (Payments Automated Intelligent and Dynamic) The Freddie Mac expense reimbursement System that allows Servicers to submit, manage and view the status of reimbursement requests. Payment Change Date For ARMs, the Payment Change Date is each date, as established in the Note, on which the monthly payment reflects any Note Rate adjustment. The related ULDD Data Point name is First Rate Change Payment Effective Date. Payoff Date The Payoff Date is the date the Servicer receives the amount necessary to pay off the Mortgage. Payoff Determination Date The date that Freddie Mac determines the amount it will draft based on Servicer reporting. For payoffs reported within two Business Days of the payoff, the Payoff Determination Date will be two Business Days before the Payoff Draft Date. Payoffs reported three or more Business days after the payoff are late and the Payoff Determination Date will be the same day the payoff was successfully reported. Payoff Draft Date Two Business Days after the Payoff Determination Date. PDR The PDR is a property data report that provides property data about a subject property collected onsite by a property data collector. PDR Completion Report The PDR Completion Report documents that required repairs or alterations identified during the property data collection process have been completed. Periodic Cap For ARMs, the Periodic Cap is the maximum increase or decrease in the Note Rate on any Interest Change Date after the first Interest Change Date, expressed in percentage points. The related ULDD Data Point names are: Per Change Maximum Decrease Rate Percent Per Change Maximum Increase Rate Percent Per Change Maximum Principal And Interest Payment Decrease Percent Per Change Maximum Principal And Interest Payment Increase Percent Permanent Financing The long-term financing used to replace Interim Construction Financing that becomes effective after construction or renovation is completed and the Interim Construction Financing has been paid off, converted or modified. PITIAS Payment The PITIAS payment is the payment that reflects the monthly housing expense on a Mortgage and is the sum of the following: A modified monthly principal and interest payment Monthly pro rata amount for real estate taxes, plus applicable monthly Escrow cushion Monthly pro rata amount for property and flood insurance, if applicable, plus applicable monthly Escrow cushion Monthly pro rata amount of homeowner’s association dues, Condominium Unit or cooperative unit maintenance fees, and ground rent, as applicable, and If applicable, the Projected Monthly Escrow Shortage Payment, if any (see Section 9206.3(b)(ii)) Planned Unit Development (PUD) A PUD is a real estate project in which each unit owner holds title to a lot and the improvements on the lot, and the homeowners association (HOA) holds title to the Common Elements. The unit owners have a right to the use of the Common Elements and pay a fee to the HOA to maintain the Common Elements for their benefit. Pledged Mortgages Mortgages, as to which the Seller has granted a continuing lien and security interest in, or conveyed an ownership or other interest to, a Warehouse Lender, pursuant to a Warehouse Agreement. Pool A Pool is a discrete group of Mortgages identified by a CUSIP Number and a Pool Number in the records maintained by Freddie Mac. Pool Number A Pool Number is a unique numeric or alphanumeric designation used to identify a Pool. Pool Supplement A Pool Supplement is a disclosure document that supplements the UMBS/MBS Offering Circular or the ARM PC Offering Circular and contains information about the Mortgages in a Pool as of Settlement Date. Prefix A Prefix is a two-character numeric or alphanumeric designation that Freddie Mac uses to indicate terms and underlying Mortgage types of a Pool. The Prefix is presented separately from the Pool Number of the related Pool.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — P (part 2): Prepaids/Escrows – Principal and Interest Payments
Prepaids/Escrows Prepaid interest, prepaid real estate taxes and Escrows, initial or renewal mortgage insurance premiums and Escrows, hazard or other insurance premiums, homeowners association fees and Escrows associated with a Mortgage transaction. Prepayment Penalty Mortgage A Prepayment Penalty Mortgage is a Mortgage with respect to which the Borrower is, or at any time has been, obligated to pay a designated penalty in the event of certain prepayments of principal. Pricing Identifier A Pricing Identifier is a number (or such other designation that Freddie Mac may select) that identifies an agreement providing the terms under which Freddie Mac will purchase eligible Mortgages. The Pricing Identifier may be designated in Loan Selling Advisor® as “None.” Pricing Identifier Effective Date The Pricing Identifier Effective Date is the date identified in Pricing Identifier Terms upon or after which a Seller may begin to sell Mortgages to Freddie Mac under the Pricing Identifier Terms. Pricing Identifier Effective Date is also known as PI Effective Date. Pricing Identifier Expiration Date The Pricing Identifier Expiration Date is the expiration date of Freddie Mac's purchase commitment under a Seller's Pricing Identifier Terms. The Pricing Identifier Expiration Date is also known as PI Expiration Date. For Guarantor, WAC ARM Guarantor or MultiLender Swap transactions, the Pricing Identifier Expiration Date is the last date upon which the Seller may settle such transactions entered into under the Pricing Identifier Terms. For Cash transactions, the Pricing Identifier Expiration Date is the last date upon which the Seller may sell Mortgages to Freddie Mac under the Contracts. Pricing Identifier Terms Pricing Identifier Terms are terms associated with a Pricing Identifier under which the Seller may sell Mortgages to Freddie Mac. Primary Residence A Primary Residence is the residential property physically occupied by an owner as the principal home domicile, except as specifically stated in Section 4201.11 for active-duty military Borrowers. Among the criteria the Seller should consider in evaluating whether a property is a principal home domicile are the following: It is occupied by the owner for the major portion of the year. It is in a location relatively convenient to the owner's principal place of employment. It is the address of record for such activities as federal income tax reporting, voter registration, occupational licensing and similar functions. It possesses the physical characteristics to accommodate the owner's immediate dependent family. These characteristics are those traditional to both the owner and the neighborhood. The Borrower states an intention to occupy the property as a Primary Residence. Freddie Mac may, in its discretion, determine that a property is not a Primary Residence. Principal and Interest Custodial Account A Principal and Interest Custodial Account is a Custodial Account, into which the Servicer deposits Principal and Interest Payments due to Freddie Mac. Principal and Interest Disbursement Clearing Custodial Account A Principal and Interest Disbursement Clearing Custodial Account is a Custodial Account established by a Servicer, at its option, specifically for drafting remittance funds due to Freddie Mac. The Servicer must deposit Principal and Interest Payments into the account immediately before remitting them to Freddie Mac. Principal and Interest Payments For Custodial Accounts, Principal and Interest Payments include all of the following: Freddie Mac's share of Principal and Interest Payments on all of our Mortgages whether received from the Borrower, applied from the buydown account or advanced by the Servicer Principal curtailments Payoff proceeds including short sale and third-party foreclosure sale proceeds Prepayment premiums if applicable Amounts for other billings assessed by Freddie Mac Biweekly payments that require biweekly amortization based on Note terms All monies owed as a result of Mortgage repurchases that are payable by the Servicer to Freddie Mac due to Freddie Mac's ownership interest in the Borrower's Mortgage
Freddie Mac Single-Family Seller/Servicer Guide Glossary — P (part 3): Pro Rata Share – Purchase Proceeds
Pro Rata Share The proportion of the blanket Mortgage, second mortgage, or line of credit if applicable and the Cooperative Project's real estate taxes that are allocated to a specific Cooperative Unit. Project Documents The term Project Documents for a project and any Master Association refers to any and all documents that pertain to the following: Formation of the project Rights of the developer and limitations on the actions of the developer Mortgagee rights Operation and governance of the homeowners association (HOA) Assessments, voting rights of unit owners and insurance coverage The Project Documents include but are not limited to the condominium declaration or master deed, by-laws, articles of incorporation (if any), governing documents, covenants, conditions and restrictions, and other recorded agreements applicable to the project; as well as any documents of the Master Association or overall project, and applicable rules and regulations, public offering statement or offering plan, purchase agreement and similar documents. The provisions of the Project Documents are legally enforceable by the HOA. Proprietary Lease A contract or occupancy agreement between the Cooperative Corporation and Shareholder that sets the conditions for a Shareholder’s right to occupy a specific Cooperative Unit, also referred to as an occupancy agreement. PSPA Amended Senior Preferred Stock Purchase Agreement by and between Freddie Mac and the Treasury. Purchase Contract The Purchase Contract is the Seller’s agreement to deliver Mortgages on a mandatory or optional basis, including the pricing terms and the delivery period. Purchase Contracts are located in Loan Selling Advisor®. Types of Purchase Contracts include: Fixed-Rate Cash Contract, including: Mandatory, or Best Efforts ARM Cash Contract (mandatory only) Fixed-Rate Guarantor Contract WAC ARM Guarantor Contract MultiLender Swap Contract Purchase Contract Date of Acceptance The Purchase Contract Date of Acceptance is the date Freddie Mac accepts the Seller's offer as stated in a Purchase Contract. Freddie Mac inserts this date on the Purchase Contract. Purchase Contract Expiration Date The Purchase Contract Expiration Date is the date on which the Purchase Contract expires. Purchase Documents The Purchase Documents are the following: The Purchase Contract, including a Purchase Contract confirmation The Seller/Servicer Guide, including Bulletins Master Agreement Pricing Identifier Terms Purchase Agreements Any other agreement between the Seller and Freddie Mac, covering the purchase of a specific dollar amount of Mortgages and Seller’s obligation to deliver such Mortgages within a delivery period, that is designated to be a Purchase Contract by Freddie Mac Any agreement pursuant to which a Seller provides a guaranty or any form of credit enhancement in connection with the sale of Mortgages to Freddie Mac Servicer Success Scorecard accessible at https://sf.freddiemac.com/tools-learning/technology-tools/our-solutions/servicer-performance-profile(opens in new window) Any other document designated to be a Purchase Document by Freddie Mac Guide Plus Additional Provisions as amended from time to time Loan Selling Advisor®, including Cash and Guarantor Rate Sheets Any other additional terms applicable to the sale and/or Servicing of Mortgages, such as written waivers, amendments or supplements to the Guide that are issued to the Seller and/or Servicer by Freddie Mac including, but not limited to, terms that are made available through electronic means such as sources designated by Freddie Mac for distribution of the Guide Purchase Proceeds The amounts payable, which may be cash, UMBS®, MBS or ARM PCs, to a Warehouse Lender by Freddie Mac on a Seller’s behalf for Freddie Mac’s purchase, in whole or in part, of Pledged Mortgages.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — Q: QM
QM A qualified mortgage as defined in the ATR/QM Rule.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — R (part 1): Recapture – Required Net Yield (RNY)
Recapture A provision in certain IDA programs that requires repayment of the matched funds to the Agency providing the matching funds under certain specified circumstances. Recognition Agreement A contract between a Cooperative Corporation and mortgagee of a Cooperative Share Loan that defines such parties’ responsibilities and the remedies available to the Seller/Servicer in the event of default. Related Person A person that is any of the following: The Borrower's spouse, child or dependent An individual related to the Borrower by blood, marriage or adoption A guardian of the Borrower A person for whom the Borrower is a guardian The Borrower's fiancée or fiancé The Borrower's domestic partner An unrelated individual with close, family-like ties to the Borrower Related Third Party A third party (i.e., a Seller/Servicer counterparty such as a Mortgage Broker, Correspondent, loan origination system vendor, contract underwriter, consumer reporting agency, credit reporting company, appraisal management company, data center, settlement agent, TPP (as defined in Section 1401.1(b)), Selling Agent, Servicing Agent, Document Custodian, Warehouse Lender, Outsourced Vendor, mortgage insurer or reinsurer) that the Seller/Servicer engages to provide it with technology, origination, underwriting, processing, technical, interim financing, closing, loss mitigation, (re)insurance, servicing and other services and support that are generally designed to advance the Seller/Servicer’s origination and/or Servicing of Mortgages. Renovation Mortgage A Mortgage for the Permanent Financing for which the proceeds replace the Interim Construction Financing obtained by the Borrower to repair, restore, rehabilitate or renovate the Mortgaged Premises. REO Real estate owned, which is real property or Cooperative Shares acquired by Freddie Mac through foreclosure, deed-in-lieu of foreclosure or similar legal process by enforcing its rights under a Security Instrument. Representation and Warranty Unpaid Principal Balance The aggregate UPB as of the last day of each calendar month of all Mortgages and REO for which the Seller/Servicer is currently liable to Freddie Mac for the sale and/or Servicing representations, covenants and warranties in the Purchase Documents with respect to such Mortgages and REO. Required Net Yield (RNY) The Required Net Yield (RNY) is the amount of interest Freddie Mac receives from each Mortgage that it purchases. Freddie Mac publishes RNYs for various programs and commitment periods. These RNYs represent the interest that Freddie Mac must receive if purchasing a Mortgage for cash under the specific program and commitment period at a par price.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — R (part 2): Retail Mortgage – Rural Area
Retail Mortgage A Mortgage that is originated, underwritten and funded by a lender or its Affiliates. The Mortgage is closed in the name of the lender or its Affiliate and if it is sold to Freddie Mac, it is sold by the lender or the Affiliate that originated it. A Mortgage that a Mortgage Broker or Correspondent, who is not an Affiliate of the lender, completely or partially originated, processed, underwrote, packaged, funded or closed will not be considered, and should not be delivered as, a Retail Mortgage. (See the definition of Wholesale Home Mortgage.) Reviewed Financial Statements Financial statements reviewed in accordance with the AICPA's Statement on Standards for Accounting and Review Service (SSARS). Revised General QM Rule Revised General QM Rule refers to the CFPB QM rule in Regulation Z, 12 C.F.R. § 1026.43(e)(2) that became effective on March 1, 2021. RHS Rural Housing Service, an agency of the U.S. Department of Agriculture. Referred to on Form 65, Uniform Residential Loan Application, and Form 1077, Uniform Underwriting and Transmittal Summary, as “RD” (Rural Development). RHS Leveraged Second An RHS Leveraged Second is the Section 502 direct leveraged second loan originated by RHS pursuant to Section 502 of the Housing Act of 1949 (42 U.S.C. 1472) and the RHS Second Loan Regulations. The RHS Leveraged Second is not eligible for sale to Freddie Mac. Risk Class/Classification The category listed on the Feedback Certificate that defines the level of underwriting required, any special underwriting provisions and, if applicable, relief from certain warranties. Risk of Property Ownership The 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, poses 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. Routine Repairs These repairs are not considered to be critical and include work that is: Preventative in nature or part of normal capital replacements (e.g., focused on keeping the project fully functioning and serviceable); and Accomplished within the project’s normal operating budget or through special assessments that are within guidelines Rural Area Defined by the FHFA’s Duty to Serve regulation as: (1) A census tract outside of a metropolitan statistical area as designated by the Office of Management and Budget; or (2) A census tract in a metropolitan statistical area as designated by the Office of Management and Budget, that is: (A) Outside of the metropolitan statistical area’s Urbanized Areas as designated by the U.S. Department of Agriculture’s (USDA) Rural-Urban Commuting Area (RUCA) Code #1, and outside of tracts with a housing density of over 64 housing units per square mile for USDA’s RUCA Code #2; or (B) A colonia census tract that does not satisfy paragraphs (1) or (2)(A) of this definition.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — S (part 1): Scheduled Interest – Selling Agent
Scheduled Interest Scheduled Interest is the monthly interest scheduled to be paid under the amortization schedule applicable to the Mortgage. Scheduled Principal Scheduled Principal is the monthly principal scheduled to be paid under the amortization schedule applicable to the Mortgage. Second Mortgage A Second Mortgage is a Mortgage on real estate on which there is located a structure designed principally for residential use by one to four families and is subordinate only to the lien of the first Mortgage. Secondary Market Advisor A third-party vendor, also known as an SMA, that performs secondary market services on behalf of a Seller. An SMA must be authorized as a Selling Agent under Section 2403.2(a) to perform duties on behalf of the Seller in Loan Selling Advisor®. Section 184 Native American Mortgage A Mortgage guaranteed by HUD pursuant to the Indian Housing Loan Guarantee Program, Section 184 of the Housing and Community Development Act of 1992 and originated pursuant to the Section 184 Regulations and the terms of the Guide. The related ULDD valid value is Public And Indian Housing. Section 502 GRH Mortgage A Mortgage originated to qualified Borrowers living in rural areas that is guaranteed by RHS pursuant to Section 502 of the Housing Act of 1949 (42 U.S.C. 1472) and originated and serviced pursuant to the RHS Guaranteed Regulations and the terms of the Guide. The related ULDD valid value is USDA Rural Housing. Secured Party A lender, administrative agent, indenture trustee or other entity which facilitates an Advance Financing or Servicing Contract Rights Financing to a Servicer pursuant to Section 9701.5(c) or 1101.2, respectively, as identified in a Consent Agreement or Acknowledgment Agreement, and any modifications, supplements or amendments to the same. Security Coupon Security Coupon is the Coupon as that term is defined in the Glossary. Security Instrument The instrument (Mortgage, deed of trust, deed to secure debt) that secures a debt obligation and creates a valid lien on real estate; with respect to Cooperative Share Loans, it is the UCC-1 financing statement that creates a lien on the Cooperative Shares. Security Product Security Product is the Mortgage Product being pooled to form a UMBS®, MBS or ARM PC. Seller-Owned Converted Mortgage A Convertible ARM that is owned by a Seller/Servicer and that was converted to a fixed interest rate before the sale of the Mortgage to Freddie Mac. See also Converted Mortgage. Convertible ARMs are not eligible for sale to Freddie Mac. Seller-Owned Modified Mortgage A Mortgage that is owned by a Seller/Servicer and modified prior to sale to Freddie Mac. Seller/Servicer A Seller/Servicer is an institution approved to: Sell Mortgages to Freddie Mac, or Service Mortgages purchased by Freddie Mac, or Sell Mortgages to and service Mortgages purchased by Freddie Mac The term "Seller," as used in this Guide and the other Purchase Documents, refers to a Seller/Servicer acting in its capacity as a seller of Mortgages to Freddie Mac. The term "Servicer," as used in this Guide and the other Purchase Documents, refers to a Seller/Servicer acting in its capacity as a servicer of Mortgages for Freddie Mac. The term "Seller/Servicer" does not include or extend to a Subsidiary or other Affiliate of a Seller/Servicer. A Seller/Servicer must be an institution that meets all of the following conditions: It is a permanent organization and an ongoing concern It is properly authorized to do business in each jurisdiction in which it engages in origination or Servicing It is Organized under federal law, or Organized under the laws of one of the States, or A United States-domiciled branch or subsidiary of a foreign entity The complete requirements for Seller/Servicer eligibility can be found in Chapter 2101. Selling Agent A Secondary Market Advisor that has entered into an agreement with a Seller to perform certain functions on behalf of the Seller and has been approved by Freddie Mac to perform selling duties in Loan Selling Advisor® on behalf of the Seller pursuant to Section 2403.2(a).
Freddie Mac Single-Family Seller/Servicer Guide Glossary — S (part 2): Senior Management – Settlement/Closing Disclosure Statement
Senior Management A natural person who serves as one of the following positions for a Seller/Servicer or other entity: President Department heads in charge of managing or overseeing origination and Servicing Chief Executive Officer (CEO) Chief Operating Officer (COO) Chief Financial Officer (CFO) Chief Compliance Officer Chief Credit Officer Chief Information Officer (CIO), Chief Technology Officer (CTO) or Chief Information Security Officer (CISO) Chief Risk Officer (CRO) Servicer Success Scorecard A confidential monthly performance review for all Servicers which measures a Servicer's performance based on key criteria in two categories, investor reporting and remitting, and default management. Servicing Servicing is the performance of all applicable obligations described in the Purchase Documents, including tasks necessary to maintain Mortgages sold to Freddie Mac in a manner that protects Freddie Mac's interests. Servicing Agent A Servicing Agent is a Servicer that has received Freddie Mac's authorization to act on behalf of another Servicer in performing all or substantially all of the Servicer's Servicing obligations with respect to Freddie Mac-owned or guaranteed Mortgages. Servicing Contract The Servicing Contract is the unitary, indivisible master servicing contract comprising all the rights, duties, obligations, representations, warranties, covenants and agreements between a Servicer and Freddie Mac, as set forth in the Purchase Documents. Servicing Contract Rights The Servicing Contract Rights comprise the indivisible, conditional, non-delegable right and obligation of the Servicer to perform Servicing of the Mortgages for Freddie Mac in accordance with, subject to, and under the Servicing Contract. Servicing Spread The Servicing Spread is the amount of compensation for Servicing a Mortgage that Freddie Mac pays to the Servicer, which Freddie Mac authorizes the Servicer to retain out of the interest portion of the Borrower’s monthly payment from each Mortgage. The Servicing Spread is the amount by which the Note Rate exceeds the Accounting Net Yield applicable to that Mortgage. Servicing Tool Servicing Tool includes any platform, related computer, other hardware or electronic device application or operating system software, web site, interface and/or connectivity provided by or through Freddie Mac that a Servicer uses in connection with the performance of its Servicing obligations and includes a System within the meaning of Chapters 2401 and 2404. Settlement Cycle The Settlement Cycle is the period during which Freddie Mac broadcasts the Pool to the Federal Reserve; publishes pool disclosure statistics; and prepares the Funding Detail Report and Form 15A or Form 15C, Loan Purchase Statement, as applicable. This period begins on the morning after the Final Delivery Date and ends on the Settlement Date. In addition, in Loan Selling Advisor®, the terms Settlement Cycle, funding cycle and purchase cycle can be used interchangeably. Settlement Date For the Guarantor and MultiLender Swap programs, the Settlement Date is the date when Freddie Mac purchases the Mortgages and sells the UMBS®, MBS or ARM PCs to the Seller. For purposes of this Guide, the Settlement Date is the Funding Date. Mortgage delivery must be made in advance to meet the established Settlement Date. Settlement/Closing Disclosure Statement Except as provided below in connection with certain Servicing transactions, the Settlement/Closing Disclosure Statement means the closing disclosure required under the federal Truth-in-Lending Act ("TILA") for Mortgages subject to the TILA/RESPA Integrated Disclosure ("TRID") rules, whether or not the TRID rules apply to the transaction. With respect to an all-cash short sale or other Servicing transactions for which no settlement and/or closing disclosure is required by applicable law, the term Settlement/Closing Disclosure Statement means: (i) a closing disclosure under the TRID rules, or (ii) any other settlement statement or closing disclosure that the Servicer determines would have otherwise been required by applicable State or local law should the TILA disclosure not be required.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — S (part 3): Settlor – Suspicious Activity
Settlor The Settlor is the individual who creates a Living Trust. A Living Trust may have one or more Settlors. Shareholder An individual or entity that owns an interest (Cooperative Share) in a Cooperative Corporation, also referred to as a tenant-stockholder or tenant-shareholder. Small Financial Institution A financial institution with less than $304 million in assets, as defined by the FHFA. The list of small financial institutions meeting these requirements is provided by the FHFA. SOFR Index For ARMs, the Secured Overnight Financing Rate (SOFR) Index is the compounded 30-day Average SOFR as published by the Federal Reserve Bank of New York. Standard Documentation The minimum Documentation Level that is required for: A Loan Product Advisor® Mortgage that receives a Risk Class of either Accept with a feedback message indicating Standard Accept eligibility, or Caution and Non-Loan Product Advisor Mortgages Standard Remittance Cycle The remittance cycle for which Freddie Mac calculates the actual principal and forecasted scheduled interest based on the Servicer's loan-level reporting as of 2:00 a.m. Eastern Time on the day following the P&I Determination Date that is due on the second Business Day after the P&I Determination Date. In Loan Selling Advisor®, this term can be used interchangeably with Standard Remittance Option. State As used in this Guide, the term “State” includes the 50 States, the District of Columbia, the Commonwealth of Puerto Rico and the territories and possessions of the United States. Stated Income All qualifying income reported on the Mortgage application by the Borrower. Step-Rate Mortgage A Mortgage modified under HAMP with an interest rate scheduled to step up or increase over time. Streamlined Accept Documentation The minimum Documentation Level required for Accept Mortgages that receive a Risk Class of Accept with a feedback message indicating Streamlined Accept eligibility. Subsequent Transfer of Servicing A Subsequent Transfer of Servicing means any Transfer of Servicing any time after Freddie Mac purchases the related Mortgages. Subservicing Agreement An agreement between a Servicer and its Servicing Agent whereby the Servicing Agent agrees to perform all or substantially all of the Servicing obligations of the Servicer (i.e., the Master Servicer). Subsidiary For Wholesale Home Mortgages, a Subsidiary is a corporation that is controlled by a Seller through the Seller's ownership of sufficient shares of voting stock to control the appointment of the members of the board of directors of the Subsidiary. Supers Offering Circular The Supers Offering Circular is the offering circular in effect on the Date of Seller’s Offer that relates to the Mortgage being purchased and the Supers® being sold in the MultiLender Swap. The Supers Offering Circular is the Offering Circular for Supers, Giant MBS and Other Pass-Through Certificates. Each Supers Offering Circular incorporates any amendments or supplements to that offering circular, as well as supplements to the UMBS/MBS Offering Circular for each underlying UMBS, in effect on the Date of Seller’s Offer. Supers Pool Supplement A Supers Pool Supplement is a disclosure document that supplements the Supers Offering Circular and contains information about the UMBS® and/or Supers® in a Supers Pool as of its Settlement Date. Supers® A Supers is an MBS issued by Freddie Mac pursuant to the relevant Master Trust Agreement that receives principal and interest from its underlying assets, which are UMBS® or other Supers. Suspicious Activity Activity that a Seller or Servicer reasonably believes may involve actual or possible money laundering, terrorist financing, mortgage-related fraud or other financial crimes, and which is undertaken by any party involved in any stage of the origination, selling or Servicing of a Freddie Mac Mortgage.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — T (part 1): Texas Equity Section 50(a)(6) Mortgage – Transfer of Servicing
Texas Equity Section 50(a)(6) Mortgage A First Lien home equity refinance Mortgage originated pursuant to Section 50(a)(6) of Article XVI of the Texas Constitution secured by homestead property located in Texas and meeting the requirements of Section 4301.7 and other sections referenced in Section 4301.7. Third-Party Originator With respect to any Aggregator that sells a Wholesale Home Mortgage to Freddie Mac, any Correspondent or Mortgage Broker (or their authorized third parties) that performs all or some of the origination, processing, underwriting, packaging, funding and/or closing functions described in the Purchase Documents as obligations or requirements of such Aggregator. Tradeline The type of credit obligation (e.g., installment loans, revolving accounts and Mortgages) and its associated information, such as date opened, balance and periodic payment history, that is typically listed on a credit report. Traditional Appraisal Report Future Effective 11/02/2026 An appraisal assignment for which the scope of work includes an interior and exterior onsite inspection of the subject property completed by the appraiser who signs the appraisal report. Transaction Number The Transaction Number (also known as the AUS Transaction Number) is a randomly generated number that is assigned to a specific Loan Product Advisor® submission. For example, if an individual Mortgage is submitted to Loan Product Advisor five times, the same Key Number will be used, but each submission will generate a different Transaction Number. Transfer of Ownership Transfer of Ownership includes, but is not limited to, the conveyance of the Mortgaged Premises or any right, title or interest in the Mortgaged Premises, whether legal or equitable, voluntary or involuntary, by any of the following methods: Outright sale Deed Installment sale contract Land contract Contract for deed Leasehold interest with a term greater than three years Lease-option contract Land trust Transfer of a beneficial interest in an inter vivos trust Any other conveyance of real property interests, including those involving secondary financing, such as wraparound Mortgages As to a Cooperative Share Loan, the sale or other transfer of the Cooperative Interest Transfer of Servicing A Transfer of Servicing means, except as otherwise agreed in writing by Freddie Mac, a Servicer’s assumption of the Servicing Contract Rights as of the Effective Date of Transfer with respect to the specific Mortgages and REO related to the Servicing transfer (which assumption includes any liability associated with any representation, warranty, covenant or agreement of the Seller or any prior Servicer, as set forth in the Purchase Documents, and exclusive of any settlement or release of liability (but only to the extent expressly applicable) of the Seller or any prior Servicer).
Freddie Mac Single-Family Seller/Servicer Guide Glossary — T (part 2): Transferee Servicer – Two-Time Close
Transferee Servicer For Transfers of Servicing, the Transferee Servicer is the Servicer that assumes, or proposes to assume, the Servicing Contract Rights pertaining to a Transfer of Servicing. Transferor Servicer For Transfers of Servicing, the Transferor Servicer is the Servicer that assigns, or proposes to assign, the Servicing Contract Rights pertaining to a Transfer of Servicing, provided that the Transferor Servicer shall remain liable for any and all related Seller and Servicer liability owed to Freddie Mac as of the Effective Date of Transfer. Treasury The United States Department of the Treasury. Tri-Party Agreement Any of the following agreements that governs a Document Custodian's certification and safeguarding of Notes for Mortgages sold to Freddie Mac: The Document Custodial Agreement: Single-Family Mortgages (Form 1035), among Freddie Mac, the Seller/Servicer and a Document Custodian other than a Designated Custodian The Designated Custodial Agreement: Single-Family Mortgages (Form 1035DC), among Freddie Mac, the Seller/Servicer and The Bank of New York Mellon Trust Company, N.A., or The Designated Custodial Agreement: Single-Family Mortgages (Form 1035CS), among Freddie Mac, the Seller/Servicer and Computershare Trust Company, N.A. Trial Period The three-month period during which the Borrower makes payments that are an estimate of the anticipated modified payment amount, as one of the preconditions to modification. For Borrowers in bankruptcy, the Trial Period may be extended up to an additional two months. Trial Period Plan A temporary forbearance plan that sets forth in a written notice those terms and conditions with which the Borrower must comply during the Trial Period in order to obtain a permanent modification. Trial Period Plan Effective Date The date on which the first Trial Period payment is due under the terms of the Trial Period Plan. Two-Time Close For a Construction to Permanent Mortgage or Renovation Mortgage, a transaction structure where there are two separate closings for Interim Construction Financing and Permanent Financing. The Note and the Security Instrument for the Interim Construction Financing and the Permanent Financing are on a separate set of loan instruments.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — U: UCC-1 Financing Statement – UPB
UCC-1 Financing Statement A UCC-1 Financing Statement is a financing statement under the Uniform Commercial Code evidencing a loan or lease secured by personal property, which may be recorded according to applicable State law to evidence and provide notice of the loan or lease. In some instances, the UCC-1 Financing Statement may serve as a fixture filing, evidencing that the subject personal property may be considered a fixture of the real estate to which the personal property attaches. ULDD Data Point ULDD Data Point refers to the MISMO® Data Point Name in Appendix A, Freddie Mac XML Data Requirements ("Appendix A") of the Freddie Mac Implementation Guide for Loan Delivery Data ("Freddie Mac IG-LD"). UMBS® A UMBS is an MBS issued by Freddie Mac pursuant to the relevant Master Trust Agreement, representing a beneficial ownership interest in a specified Pool. UMBS are designed to qualify for “good delivery” in satisfaction of unspecified trades in the “to-be-announced” mortgage securities market. Unauthorized Servicing Transfer Any actual or purported transfer, assignment and/or assumption of Servicing, Servicing Contract Rights and/or the Servicing Contract by a purported Transferor Servicer and purported Transferee Servicer without obtaining Freddie Mac’s prior written approval. Underwriting Score The one Credit Score selected from all usable Credit Scores obtained for an individual Borrower that quantifies the credit reputation risk for that individual Borrower. The related ULDD Data Point name is Credit Score Value. Underwritten Settlor An Underwritten Settlor is a Settlor in the Settlor's individual capacity who is underwritten and qualified according to the requirements of the Guide and other Purchase Documents as if the Settlor were the Borrower. Uniform Instruments Uniform Instruments are the Fannie Mae/Freddie Mac and the Freddie Mac Notes, Security Instruments (available for all States) and riders to the Security Instruments identified in Exhibit 4A, Single-Family Uniform Instruments. UPB The unpaid principal balance of a Mortgage.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — V: VA; VA Mortgage
VA; VA Mortgage The VA is the U.S. Department of Veterans Affairs. A VA Mortgage is a Home Mortgage that is guaranteed by the VA under Section 1810, Chapter 37 of Title 38, United States Code as amended.
Freddie Mac Single-Family Seller/Servicer Guide Glossary — W: WAC ARM Guarantor Contract – Women-Owned Business Enterprise
WAC ARM Guarantor Contract A WAC ARM Guarantor Contract is an optional Purchase Contract entered into by the Seller to sell eligible ARMs to Freddie Mac under the WAC ARM Guarantor program. WAC ARM PC A WAC ARM PC is an MBS, with an investor payment delay of 75 days, that is backed by ARMs. The term “WAC ARM PC” includes an ARM PC. Warehouse Agreement A contract between a Warehouse Lender and a Seller pursuant to which the Warehouse Lender lends or advances funds to the Seller to finance its mortgage origination activities in exchange for a lien or other interest in Pledged Mortgages. Warehouse Lender The bank or other financial institution, which may be a Federal Home Loan Bank, that has entered into a Warehouse Agreement with the Seller to provide interim financing for Mortgages that are thereafter offered for sale to Freddie Mac. A Warehouse Lender is also referred to as a "Warehouse Provider" or "Interim Finance Provider" and the terms can be used interchangeably. Weighted Average Coupon (WAC) The Weighted Average Coupon (WAC) of any group of Mortgages is calculated by: Multiplying the purchased UPB of each Mortgage by the Note Rate of such Mortgage (resulting in a "product" for each Mortgage) Adding the products so obtained for all of the Mortgages Dividing the sum of the products by the purchased aggregate UPB of all the Mortgages in the group Freddie Mac's determination of the WAC is conclusive. Weighted Average Remaining Maturity (WARM) The Weighted Average Remaining Maturity (WARM) of any group of Mortgages is calculated by: Multiplying the UPB of each Mortgage by the number of months remaining to maturity of such Mortgage (resulting in a "product" for each Mortgage) Adding the products so obtained for all of the Mortgages Dividing the sum of all the products by the aggregate UPB of all the Mortgages in the group With respect to buyup and buydown options described in Section 6201.2(c), the WARM is the Weighted Average Remaining Maturity, stated in months, of the aggregate of all Mortgages purchased pursuant to any Guarantor or MultiLender Swap conversion or Cash Purchase Contract, as of the Date of Seller's Offer. Freddie Mac's determination of the WARM is conclusive. Wholesale Home Mortgage A Home Mortgage that a Mortgage Broker or Correspondent completely or partially originated, processed, underwrote, packaged, funded or closed, and sold or assigned to a non-Affiliate Seller who subsequently sold it to Freddie Mac. Women-Owned Business Enterprise A business: More than 50% of the ownership or control of which is held by one or more women; (ii) More than 50% of the net profit or loss of which accrues to one or more women; and (iii) A significant percentage of senior management positions of which are held by women.
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