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Selling Representation and Warranty Framework

The selling representation and warranty framework helps address Seller/Servicer concerns related to loan repurchase risk.

Under the framework, Freddie Mac will not exercise its remedies, including the issuance of a repurchase request, for breaches of certain selling representations and warranties described in
Single-Family Seller/Servicer Guide (Guide) Section 6.14(a) if a mortgage meets certain eligibility criteria.

Framework Versions 1 and 2

Guide Section 6.14 lists the requirements of Version 1 and Version 2 of the framework.

  • The original framework, as introduced in September 2012, is referred to as Version 1, with the requirements applying to mortgages with Freddie Mac settlement dates on and after January 1, 2013 and before July 1, 2014.
  • Version 2 refers to the framework as modified by the enhancements announced in May 2014 that are effective for mortgages with Freddie Mac settlement dates on and after July 1, 2014.

Under Version 2, a mortgage that meets certain eligibility requirements will be granted relief from certain selling representations and warranties, if one of the following conditions are met:

  • The mortgage has established an acceptable payment history, or
  • There is a satisfactory conclusion of a Freddie Mac quality control review.

Review the differences in requirements under Version 1 and Version 2 in these tables.

Beginning in the third quarter of 2014, Freddie Mac will provide Seller/Servicers with reports on mortgages that have been granted relief under Version 1 and Version 2 of the framework. The reports will be provided to the entity that is responsible for the selling representations and warranties.

It is important for Seller/Servicers to review Guide Section 6.14 to become familiar with the eligibility criteria and the effective dates to obtain relief under the framework. Guide Section 6.14 also describes the exclusions to this framework.

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Training & Education

Take advantage of our Learning Center's training opportunities and educational resources on the  Representation and Warranty Framework.

The framework is the result of collaborative work of Freddie Mac and Fannie Mae at the direction of the Federal Housing Finance Agency (FHFA).

Framework Versions

See a side-by-side comparison of Version 1 and Version 2.

Selling Representation and Warranty Framework Chart

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