About Us: Counterparty Operational Risk Evaluation

Freddie Mac's Counterparty Operational Risk Evaluation (CORE) team conducts reviews of Seller/Servicers, Document Custodians, Mortgage Insurers and Freddie Mac Exclusionary List vendors (each a “Counterparty,” collectively referred to as “Counterparties”) to assess the effectiveness of their internal controls and processes in managing risk. These reviews are part of Freddie Mac’s broader risk framework, which aligns with our Freddie Mac Single-Family Seller/Servicer Guide (Guide).

The insights gained from CORE reviews help identify areas where Freddie Mac can better support our business partners and strengthen their mortgage operations. Unlike a traditional audit, the CORE review is a collaborative assessment focused on risk management, compliance with Freddie Mac and regulatory guidelines and adherence to industry best practices.

CORE Review Process Overview

For a comprehensive guide to the review process, including review confirmation, information requests, follow-up steps and issue management, please refer to this document.