Freddie Mac reviews its overall quality control (QC) program regularly and makes changes to help clients improve their origination, underwriting and in-house QC processes. We also make changes, as necessary, to align with our risk models and account for market developments.

As a result of our most recent review, and under the guidance of the Federal Housing Finance Agency, we will start charging a 5% fee (of UPB) for a five-year recourse offered as a repurchase alternative. This fee will be implemented beginning on August 1, 2020.

As outlined in Section 3602.2 of our Single-Family Seller/Servicer Guide, we may offer an alternative remedy to repurchase, such as recourse, for certain mortgages that do not meet our requirements. In each case, our QC team will notify client of the type and terms of the repurchase alternative.

As always, we will work closely with you on appropriate remedies when loan issues are identified and will continue to provide you with timely and meaningful data from our QC activities to help you address areas of concern.

We encourage you to use our Loan Advisor® tools to assist you in identifying and correcting loan deficiencies so you can be confident in the quality of the loans you sell to us.