LPA Documentation Matrix

® Loan Product Advisor Documentation Matrix Use the following information as a reference for documenting your Loan Product Advisor loans. For complete documentation information and specific program eligibility requirements, refer to the Freddie Mac Single-Family Seller/Servicer Guide (Guide). We recommend bookmarking the Guide link (https://guide.freddiemac.com/app/guide/) for easy access.* What Has Changed in this Reference? This reference is updated to coincide with new and significant changes to documentation requirements announced in Guide Bulletins. Recent changes include: Bulletin Topic Change Effective Date Announcement Retirement of A-minus Removed all references to A-minus mortgages January 1, 2022 Bulletin 2021-29 Mortgages from this resource. Date requirements for Year-to-date paystub s must be dated no more December 1, 2021 Bulletin 2021-29 the year-to-date than 30 days before the Application Received paystub Date in addition to the 120 days before the note date. Prorated real estate Revised requirements related to prorated real August 5, 2021 Bulletin 2021-16 tax credit estate tax credits for areas where real estate taxes are paid in arrears. 30-day accounts Removed the option to use 5% of the balance Settlement dates on Bulletin 2021-9 to include in the debt payment-to-income ratio. or after July 6, 2021 Updated to use the full amount of the outstanding balance to include in the debt payment-to-income ratio, or you must verify the borrower has sufficient funds to pay off the outstanding account balance. Note: Vertical revision bars " | " are also used in the margin of this reference to highlight these new requirements and significant changes. *The Guide on AllRegs is the official electronic version of the Single-Family Seller/Servicer Guide. September 2021 Freddie Mac Learning Loan Product Advisor Documentation Matrix Table of Contents Income and Employment Documentation ▪ General Requirements ▪ General Requirements for Documentation Used to Verify Employment and Income ▪ Employed Income o Primary Employment o Secondary Employment o Additional Employed Income o Military Income o Income Commencing After the Note Date ▪ Self-Employed Income ▪ Other Income Asset Documentation Credit and Liabilities General Underwriting Requirements Verification Requirements Requirements for Resubmission to Loan Product Advisor Requirements for Resubmission to Loan Product Advisor After the Note Date Additional Resources: Reminders for Loan Product Advisor Resubmissions after the Note Date AIM for Assets with Loan Product Advisor Job Aid AIM for Income with Loan Product Advisor Job Aid AIM for Self Employed with Loan Product Advisor Job Aid Collateral Representation and Warranty Relief with an Appraisal Job Aid COVID-19 Response Notice: Visit our COVID-19 Resources web page for temporary guidance related to credit underwriting and property valuations. September 2021 Freddie Mac Learning Page 2 Loan Product Advisor Documentation Matrix INCOME AND EMPLOYMENT DOCUMENTATION The analysis, verification, calculation, and determination of the stable monthly income amount is integral to the overall qualification of the borrower and determination of the borrower’s capacity to repay the mortgage and other monthly obligations. Refer to Guide Topic 5300 for complete requirements and guidance for the analysis, stability, history, continuance and documentation for all stable monthly income and asset qualification types. Topic Documentation Requirements (Streamlined and Standard Documentation Levels) General requirements Stable monthly income is the borrower’s verified gross monthly income from all acceptable and for stable monthly verifiable types that can reasonably be expected to continue for at least the next three years. income For each income type used to qualify the borrower, the Seller must determine that both the type (Guide Section 5301.1) and the amount of the income are stable, with a consistent level of earnings. Regardless of the underwriting path, the income qualification types used to qualify the borrower (whether or not specifically addressed in Topic 5300) and the documentation in the mortgage file must be evaluated for stable monthly income qualification requirements and must meet the requirements of Topic 5300. Income qualification types that do not meet these requirements or are not calculated correctly may invalidate the Loan Product Advisor Risk Class on the Feedback Certificate. The Seller must include a written analysis of the income qualification types and amount in the mortgage file. In addition, all documentation used to establish stable monthly income must be retained in the mortgage file. Refer to Guide Section 5301.1 for more requirements and guidance on: ▪ Analysis of stable monthly income amount ▪ General requirements for all stable monthly income ▪ Income stability and history ▪ Income continuance (including charts listing income and earning types and respective documentation requirements, if applicable) General requirements Employed income documentation and verification requirements for documentation ▪ YTD Paystubs (Effective December 1, 2021: Must be dated no more than 30 days before used to verify the Application Received Date) employment and ▪ W-2 Forms income ▪ Written VOEs (Guide Chapter 5302) ▪ Ten-day Pre-Closing Verification (10-day PCV) ▪ Third-party Verification Service Providers Tax return requirements ▪ Signed tax returns (and alternatives to signatures) ▪ IRS Transcripts ▪ Unreimbursed employee expenses *Also refer to Age of tax return requirements. Employed income Employed income calculation guidance and requirements calculation guidance For all income, the Seller must determine how the borrower is paid to accurately analyze and and requirements calculate the stable monthly income used for qualifying. The documentation in the mortgage file (Guide Section 5303.4) must support the Seller’s income analysis and calculation. If the documentation does not support the income used for qualifying purposes, further analysis is required, and additional documentation may be necessary to support the stability of the income and the amount of income used to qualify. ▪ For the calculation of base non-fluctuating employment earnings, refer to Guide Section 5303.4(a) ▪ For the calculation fluctuating employment earnings, refer to Guide Section 5303.4(b) September 2021 Freddie Mac Learning Page 3 Loan Product Advisor Documentation Matrix INCOME AND EMPLOYMENT DOCUMENTATION, continued Topic Documentation Requirements (Streamlined and Standard Documentation Levels) Primary and Base non-fluctuating employment earnings Secondary For determining stable monthly income, base non-fluctuating employment earnings are Employment: considered to be earnings with a pre-determined and agreed upon rate of pay and number of Earnings types - hours worked each pay period. requirements and ▪ The pay rate and number of hours worked must be reflected on an ongoing consistent basis guidance for each pay period and be fully supported by the year-to-date income. In addition, if the (Guide Section annual salary is reported on the income verification documentation, that may be considered 5303.2(b)) additional confirmation of base non-fluctuating earnings. ▪ Base non-fluctuating earnings may include: - Both exempt (salaried) and non-exempt earnings; however, the pay rate and number of hours worked must not fluctuate between pay periods. - Military base (basic) pay. For members of the United States Armed Forces, active-duty pay is considered base non-fluctuating earnings. - Part-time earnings, provided the number of hours worked each pay period are pre- determined and the same, as outlined above. Base non-fluctuating earnings do not include additional employed income (e.g., bonus, overtime, tips). Refer to Additional Employed Income section or to Guide Section 5303.3 for complete requirements and guidance. Fluctuating hourly employment earnings For the purpose of determining stable monthly income, fluctuating hourly employment earnings are considered to be wages that ar ebase on an hourly rate of pay and where the number of hours fluctuate each pay period. The required minimum 12-month history must be derived from either the borrower’s current hourly employment or a combination of current and prior hourly employment. Fluctuating hourly earnings are typically representative of non-exempt earnings. Do not include additional employed income (e.g., bonus, overtime, tips). Refer to Additional Employed Income section or to Guide Section 5303.3 for complete requirements and guidance. Employed Income Primary employment Primary employment earnings – documentation requirements: earnings: Obtain all the following: ▪ Base non- ▪ Year-to-date (YTD) paystub(s) documenting all YTD earnings, W-2 form(s) for the most fluctuating recent calendar year, and a 10-day pre-closing verification (10-day PCV) earnings, and OR, all the following: ▪ Fluctuating hourly ▪ Written verification of employment (VOE) documenting all YTD earnings and the earnings earnings for the most recent calendar year, and a 10-day PCV (Guide Sections 5303.2(a)(i) and (c)) Primary employment - history requirements In most instances, the borrower should have at least a two-year history of primary employment documented on Form 65, Uniform Residential Loan Application and verified in accordance with Topic 5300. September 2021 Freddie Mac Learning Page 4 Loan Product Advisor Documentation Matrix INCOME AND EMPLOYMENT DOCUMENTATION, continued Topic Documentation Requirements (Streamlined and

This PDF is a selection from a published volume from the National Bureau of Economic Research Volume Title: Housing and the Financial Crisis Volume Author/Editor: Edward L. Glaeser and Todd Sinai, editors Volume Publisher: University of Chicago Press Volume ISBN: 978-0-226-03058-6 Volume URL: http://www.nber.org/books/glae11-1 Conference Date: November 17-18, 2011 Publication Date: August 2013 Chapter Title: The Future of the Government-Sponsored Enterprises: The Role for Government in the U.S. Mortgage Market Chapter Author(s): Dwight Jaffee, John M. Quigley Chapter URL: http://www.nber.org/chapters/c12625 Chapter pages in book: (p. 361 - 417) 8 The Future of the Government- Sponsored Enterprises The Role for Government in the US Mortgage Market Dwight Jaffee and John M. Quigley 8.1 Introduction The two large government- sponsored housing enterprises (GSEs),1 the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), evolved over three- quarters of a century from a single small government agency, to a large and powerful duopoly, and ultimately to insolvent institutions protected from bankruptcy only by the full faith and credit of the US government. From the beginning of 2008 to the end of 2011, the two GSEs lost capital of $266 billion, requiring draws of $188 billion under the Treasured Preferred Stock Purchase Agreements to remain in operation; see Federal Housing Finance Agency (2011). This downfall of the two GSEs was primarily a question of “when,” not “if,” given that their structure as a public/private Dwight Jaffee is the Willis Booth Professor of Banking, Finance, and Real Estate at the University of California, Berkeley.

FOR IMMEDIATE RELEASE May 14, 2019 MEDIA CONTACT: Fred Solomon 703-903-3861 [email protected] Freddie Mac Sells $307 Million in NPLs Awards 3 SPO Pools to 2 Winners McLean, Va. - Freddie Mac (OTCQB: FMCC) today announced it sold via auction 1,789 non-performing residential first lien loans (NPLs) from its mortgage-related investments portfolio. The loans, totaling approximately $307 million, are currently serviced by NewRez LLC, doing business as Shellpoint Mortgage Servicing. The transaction is expected to settle in July 2019. The sale is part of Freddie Mac’s Standard Pool Offerings (SPO®). Bids for the upcoming Extended Timeline Pool Offering (EXPO), which is a smaller sized pool of loans, are due from qualified bidders by May 21, 2019. Freddie Mac, through its advisors, began marketing the transaction on April 11, 2019 to potential bidders, including non-profits and Minority, Women, Disabled, LGBT, Veteran or Service-Disabled Veteran-Owned Businesses (MWDOBs), neighborhood advocacy organizations and private investors active in the NPL market. For the SPO® offerings, the loans were offered as three separate pools of mortgage loans. The three pools consist of mortgage loans secured by geographically diverse properties. Investors had the flexibility to bid on each pool individually and/or any combination of pools. Given the delinquency status of the loans, the borrowers have likely been evaluated previously for or are already in various stages of loss mitigation, including modification or other alternatives to foreclosure, or are in foreclosure. Mortgages that were previously modified and subsequently became delinquent comprise approximately 57 percent of the aggregate pool balance.

THE 2019 STRATEGIC PLAN FOR THE CONSERVATORSHIPS OF FANNIE MAE AND FREDDIE MAC October 2019 Page Footer Division of Conservatorship THE 2019 STRATEGIC PLAN FOR THE CONSERVATORSHIPS OF FANNIE MAE AND FREDDIE MAC Table of Contents Executive Summary . 1 Introduction . 6 A History of the Federal Housing Finance Agency and the Conservatorships of Fannie Mae and Freddie Mac . 6 A New Conservatorship Strategic Plan . 9 I. Changes to the Market 9 II. Changes to the Regulator 10 III. Changes to the Enterprises 10 Executing the Strategic Plan: A New Scorecard With 3 Key Objectives . 11 I. Section 1: Foster a CLEAR National Housing Finance Markets 12 II. Section 2: Operate in a Safe and Sound Manner Appropriate for Conservatorship 13 III. Section 3: Prepare to Exit Conservatorship 15 Conclusion . 16 i THE 2019 STRATEGIC PLAN FOR THE CONSERVATORSHIPS OF FANNIE MAE AND FREDDIE MAC Executive Summary September 6, 2019, marked 11 years since the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation (Fannie Mae and Freddie Mac, respectively, and together the Enterprises) were placed into conservatorships in the middle of the financial crisis of 2008. A root cause of the

Your Step-by-Step Mortgage Guide From Application to Closing Table of Contents In this Guide, you will learn about one of the most important steps in the homebuying process — obtaining a mortgage. The materials in this Guide will take you from application to closing and they’ll even address the first months of homeownership to show you the kinds of things you need to do to keep your home. Knowing what to expect will give you the confidence you need to make the best decisions about your home purchase. 1. Overview of the Mortgage Process . Page 1 2. Understanding the People and Their Services . Page 3 3. What You Should Know About Your Mortgage Loan Application . Page 5 4. Understanding Your Costs Through Estimates, Disclosures and More . Page 8 5. What You Should Know About Your Closing . Page 11 6. Owning and Keeping Your Home . Page 13 7. Glossary of Mortgage Terms . Page 15 Your Step-by-Step Mortgage Guide your financial readiness. Or you can contact a Freddie Mac 1. Overview of the Borrower Help Center or Network which are trusted non- profit intermediaries with HUD-certified counselors on staff Mortgage Process that offer prepurchase homebuyer education as well as financial literacy using tools such as the Freddie Mac CreditSmart® curriculum to help achieve successful and Taking the Right Steps sustainable homeownership. Visit http://myhome.fred- diemac.com/resources/borrowerhelpcenters.html for a to Buy Your New Home directory and more information on their services. Next, Buying a home is an exciting experience, but it can be talk to a loan officer to review your income and expenses, one of the most challenging if you don’t understand which can be used to determine the type and amount of the mortgage process.

Offering Circular Supplement $913,163,000 (To Offering Circular Dated December 22, 2020) (Approximate) Freddie Mac Structured Pass-Through Certificates (SPCs) Series K-F104 Offered Classes: Classes of SPCs shown below Underlying Classes: Each Class of SPCs represents a pass-through interest in a separate class of securities issued by the Underlying Trust Underlying Trust: FREMF 2021-KF104 Mortgage Trust Mortgages: SOFR-based floating-rate, multifamily mortgages Underlying Originators: Arbor Agency Lending, LLC, Berkadia Commercial Mortgage LLC, Berkeley Point Capital LLC, d/b/a Newmark Knight Frank, Capital One, National Association, CBRE Capital Markets, Inc., Greystone Servicing Company LLC, JLL Real Estate Capital, LLC, NorthMarq Capital, LLC, Prudential Affordable Mortgage Company, LLC, Walker & Dunlop, LLC and Wells Fargo Bank, National Association Underlying Seller: Freddie Mac Underlying Depositor: Morgan Stanley Capital I Inc. Underlying Master Servicer: KeyBank National Association Underlying Special Servicer: KeyBank National Association Underlying Trustee: Wilmington Trust, National Association Underlying Certificate Administrator and Custodian: Wells Fargo Bank, National Association Payment Dates: Monthly beginning in April 2021 Optional Termination: The Underlying Trust is subject to certain liquidation rights, as described in this Supplement; the SPCs are not subject to a clean-up call right Form of SPCs: Book-entry on DTC System Placement Agents: The managers named below Offering Terms: The Placement Agents are offering the SPCs in negotiated transactions at varying prices, and in accordance with the selling restrictions set forth in Appendix A; it is expected that we will purchase all or a portion of XS Closing Date: On or about March 30, 2021 Initial Principal Balance or Class CUSIP Class Notional Amount(1) Coupon Number Final Payment Date AS.

Condominium Unit Mortgages For all mortgages secured by a condominium unit in a condominium project, Sellers must meet the requirements of the Freddie Mac Single-Family Seller/Servicer Guide (Guide) Chapter 5701 and the Seller’s other purchase documents. Use this reference as a summary of Guide Chapter 5701 requirements. You should also be familiar with Freddie Mac’s Glossary definitions. Freddie Mac-owned No Cash-out Refinances For Freddie Mac-owned “no cash-out” refinance condominium unit mortgages, the Seller does not need to determine compliance with the condominium project review and eligibility requirements if the condominium unit mortgage being refinanced is currently owned by Freddie Mac in whole or in part or securitized by Freddie Mac and the requirements in Guide Section 5701.2(c) are met. Condo Project Advisor® Condo Project Advisor® is available by request and accessible through the Freddie Mac Loan Advisor® portal. Condo Project Advisor allows Sellers to easily request unit-level waivers for established condominium projects that must comply with the project eligibility requirements for established condominium projects set forth in Guide Section 5701.5 as well as all other applicable requirements in Guide Chapter 5701. Sellers can: ▪ Submit, track and monitor waiver requests ▪ Request multiple category exceptions in each waiver request ▪ Obtain representation and warranty relief for each approved waiver. COVID-19 Response Notice: Visit our COVID-19 Resources web page for temporary guidance related to Condominium Project reviews and for credit underwriting and property valuations. Note: A vertical revision bar " | " is used in the margin of this quick reference to highlight new requirements and significant changes.

LIBOR Transition FAQs Single-Family Credit Risk Transfer Under the guidance of FHFA, Fannie Mae and Freddie Mac are providing jointly prepared answers to frequently asked questions related to the GSE’s transition away from LIBOR-Indexed products to SOFR-indexed products. The Enterprise section answers high-level questions applicable to all products followed by Q&A sections specific to Single-Family adjustable rate mortgages and PCs/UMBs, Credit Risk Transfer transactions, Multifamily adjustable rate mortgages and securities and Collateralized Mortgage Obligations. Summary of Changes The table below details the list of changes since the June 2020 version of the FAQs published on the Fannie Mae and Freddie Mac websites. Section Summary of change April 2021 Single-Family CRT Q11. Added to reflect IBA announcement Page 1 Single-Family Credit Risk Transfer (SF CRT) Q1. Will the GSEs adopt ARRC recommended fallback language in new issuance CRT deals? Yes. The GSEs support the ARRC recommended fallback language. Starting with the GSEs’ respective transactions, they adopted the recommended securitization fallback language, as listed below: Fannie Mae: CAS 2020-SBT1 transaction in March 2020 Freddie Mac: STACR 2020-HQA2 transaction in March 2020 Q2. Are the GSEs planning to issue non-LIBOR based SF CRT deals? Reducing LIBOR exposure for both the GSEs and investors is very important to us. Freddie Mac has moved its Credit Risk Transfer program away from the LIBOR based CRT issuance in October 2020. Fannie Mae is on track to issue SOFR-based Single-Family and Multifamily CRT product offerings in the future. Q3. What benchmark index will the GSEs use in non-LIBOR based SF CRT deals? The GSEs support the ARRC’s recommendation of SOFR as the replacement for LIBOR benchmark.

Disclosure Guide Version 3.3 (Effective 08-16-2021); Date last updated 06-22-2021 1 Disclosure Guide TABLE OF CONTENTS INTRODUCTION 3 TIMING AND FREQUENCY OF DATA 6 LOAN LEVEL FILE 9 SECURITY LEVEL FILE 30 SECURITY SUPPLEMENTAL FILE 43 EXCHANGE FILES 88 MULTICLASS & SINGLE CLASS TAX DISCLOSURE FILES 93 APPENDIX A 96 Version 3.4 (Effective 08-16-2021); Date last updated 06-22-2021 2 Introduction INTRODUCTION Version 3.4 (Effective 08-16-2021); Date last updated 06-22-2021 3 Introduction INTRODUCTION This guide is designed to serve as a reference tool for investors in Freddie Mac mortgage securities and vendors of Freddie Mac mortgage-related securities information. It provides timing and frequency of disclosure data transmitted directly from Freddie Mac or through independent information vendors, and file formats of the transmissions currently produced and distributed by Freddie Mac. This guide also provides technical specifications that include definitions, enumerations, datatypes, formats and maximum attribute lengths for all disclosure files. The file layouts are the same for daily issuance and monthly files, with Loan level and Security level data in separate files. This guide is divided into five distinct disclosure related sections: • Loan Level • Security Level • Security Supplemental Level • Exchange related files • Tax Disclosure files are created in text (txt) format with pipe delimiter separated values (except Tax related files). The text files will be compressed in a zipped (zip) format. Freddie Mac Offering Circulars and their related supplements provide more detailed information on Freddie Mac mortgage securities. For a copy of an Offering Circular, including the Offering Circular Supplement (“OCS”), please visit our website at www.freddiemac.com/mbs.

Freddie Mac Homeone Mortgage Insurance Providers May Have Additional Restrictions Not Listed Within This Document

Freddie Mac HomeOne Mortgage insurance providers may have additional restrictions not listed within this document. Please refer to each mortgage insurance company’s website for complete eligibility details. PRIMARY RESIDENCE – PURCHASE AND RATE/TERM REFINANCE 1 Minimum Underwriting Engine & Property Type Maximum LTV Maximum TLTV/HTLTV 2 Credit Score Required Response 1-Unit 97% 105%/97% Warrantable Condo 620 LPA - Accept PUD 1. See Loan Purpose section below 2. Maximum TLTV ratios for mortgages with secondary financing that are not Affordable Seconds is 97%. Maximum TLTV ratio for mortgages with Affordable Seconds is 105%. Maximum HTLTV ratio is 97%. See Subordinate Financing section below for eligibility requirements for Affordable Seconds (aka Community Seconds). PROGRAM SUMMARY HomeOne Mortgages are fixed rate, single family residence mortgages. PRODUCTS OFFERED Product Name Term Freddie Mac HomeOne 30-Year Fixed 30 years Freddie Mac HomeOne 25-Year Fixed 25 years Freddie Mac HomeOne 20-Year Fixed 20 years Freddie Mac HomeOne 15-Year Fixed 15 years LOAN AMOUNTS MAXIMUM Maximum standard conforming loan limits for 1-unit properties (high-cost area limits, except for standard AK, HI, and USVI exceptions, are not eligible under this program). ELIGIBLE BORROWERS • For purchase transactions, at least one borrower must be a first-time homebuyer who meets all of the following requirements: o Is purchasing the mortgaged premises o Will reside in the mortgaged premises as a primary residence o 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 o A displaced homemaker or a single parent 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.

on the same property, the borrower may be be may borrower the property, same the on and Urban Development Urban and under HAMP and there is a second mortgage mortgage second a is there and HAMP under U.S. Department of Housing Housing of Department U.S. the first mortgage was permanently modified modified permanently was mortgage first the If If (2MP): Program Modification Lien Second • owe up to $729,750 on the 1st mortgage. 1st the on $729,750 to up owe of gross (pre-tax) monthly income; and they they and income; monthly (pre-tax) gross of of residence. of mortgage payments are more than 31 percent percent 31 than more are payments mortgage of their homes and into more affordable places places affordable more into and homes their of their mortgage on or before January 1, 2009; 2009; 1, January before or on mortgage their Help for homeowners who are transitioning out out transitioning are who homeowners for Help • house as primary residence; they obtained obtained they residence; primary as house second lien loans. loans. lien second than the home is worth; they occupy the the occupy they worth; is home the than Funding to reduce or eliminate homeowners’ homeowners’ eliminate or reduce to Funding • Fannie Mae or Freddie Mac; they owe more more owe they Mac; Freddie or Mae Fannie into more affordable mortgages. mortgages. affordable more into their mortgage is not owned or guaranteed by by guaranteed or owned not is mortgage their Principal reduction to help homeowners get get homeowners help to reduction Principal • on it.

Multifamily Seller/Servicer Guide Chapter 43 Specific Servicing Responsibilities 43.1 Specific Servicing responsibilities; delivery of documents (06/29/17) This chapter sets forth the Servicer's responsibilities for transaction-related requirements in Servicing the Mortgage. • Delivery of documents and notices to Freddie Mac: electronic delivery When this Chapter requires electronic delivery of any document, the Servicer must submit all items required to be delivered to Freddie Mac by uploading the documents into the Document Management System (DMS) and using the “File Submission” link to notify: o For Structured Transactions, Tax Exempt Bond Credit Enhancements, Acquisition Rehabilitation/Lease-Up/Moderate Rehabilitation loan products, or Credit Facilities, “Structured Transactions” o For all other Mortgages, “Borrower Transactions” • Delivery of original documents to Freddie Mac. Unless otherwise stated, when this Chapter requires delivery of an original document with respect to any Mortgage, the Servicer must: o Upload the document into DMS, and o Deliver a hard copy to ▪ For Structured Transactions, Tax Exempt Bond Credit Enhancements, Acquisition Rehabilitation/Lease-Up/Moderate Rehabilitation loan products, or Credit Facilities, Freddie Mac Multifamily Asset Management, Structured Transactions ▪ For all other Mortgages, Freddie Mac Multifamily Asset Management, Borrower Transactions • Servicing responsibilities – insurance For non-SBL Mortgages, the following sections of Chapter 31 state the Servicer’s ongoing responsibilities with regard to insurance: Section 31.8 Flood insurance requirements Section 31.12 Ordinance and Law coverage Verification of required and continuing property and liability insurance Section 31.22 coverage Guide Bulletin Update 06/17/21 Chapter 43 – Page 1 The current official electronic version of the Guide is published by AllRegs® and accessible via either mf.freddiemac.com (for free) or the AllRegs web site of Ellie Mae, Inc.

A BRIEF HISTORY OF THE HOUSING GOVERNMENT-SPONSORED ENTERPRISES A Brief History of the Housing Government-Sponsored Enterprises The housing Government-Sponsored Enterprises (GSEs) have a long history. Understanding the role that these organizations played historically in the mortgage markets is important to understanding the financial crisis, its causes, and lessons for the future. The housing GSEs are the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), and the Federal Home Loan Bank System (FHLBank System), which currently consists of 12 Federal Home Loan Banks (FHLBanks). HOUSING FINANCE BEFORE FEDERAL INVOLVEMENT Before the Great Depression of the 1930s, housing finance was exclusively the realm of the private sector. Housing finance generally consisted of short term renewable loans. The features of these loans, which included high down payments (approximately half the home’s purchase price), short maturities (10 years or less), and large balloon payments, presented significant challenges to widespread home ownership.1 The primary source of mortgage funding came from life insurers, commercial banks, and thrifts.2 In the absence of a nationwide housing finance market, availability and pricing for mortgage loans varied widely across the country.3 THE GREAT DEPRESSION The Great Depression proved as traumatic to the nation’s housing market as it was to the U.S. economy. By 1932, the unemployment rate had risen to 23.6%,4 and by early 1933, the government estimated that 20% to 25% of the nation’s home mortgage debt was in default.5 FEDERAL RESPONSE TO THE DEPRESSION ERA HOUSING CRISIS The federal government began its response to the housing crisis in 1932, with the enactment of the Federal Home Loan Bank Act (the Bank Act).