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Minimum Eligibility Requirements

OverviewTo be considered for approval as a Freddie Mac Seller/Servicer, your organization must meet the following minimum eligibility requirements as well as additional eligibility requirements that are listed in the application package.
Minimum
Eligibility
Requirements
  • Applicant must be a permanent organization and an ongoing concern, properly authorized to do business in each jurisdiction in which it engages in origination or servicing.
  • Applicant must be a viable organization able to originate and/or service investment quality loans.
  • Applicant must be organized under federal law, or organized under the laws of one of the 50 states, the District of Columbia, Puerto Rico, Guam, the U.S. Virgin Islands, or a U.S. domiciled branch or subsidiary of a foreign entity.
Minimum Net Worth Requirements
  • The applicant must have an acceptable net worth, as determined by Freddie Mac. In determining an applicant’s acceptable net worth, Freddie Mac may take into account, among other things, the applicant’s proposed duties and obligations to Freddie Mac. Please note, however, that as a condition to approving an application, Freddie Mac may impose certain restrictions, modifications or limitations, some of which may be based upon an applicant’s net worth. For more information, please refer to Chapter 4, Seller/Servicer Institutional Eligibility in Freddie Mac’s Single-Family Seller/Servicer Guide.. Freddie Mac’s Single-Family Seller/Servicer Guide is available on All Regs website and is accessible from a link on Freddie Mac's website located under the heading Access the Guide.
Initial Document Checklist
  • Applicant must provide audited financial statements or regulatory reports at the time of application, as well as other information before the application is considered. The complete list of information required is as follows:
    • Five most recent consecutive quarters of financial statements in a Microsoft Excel compatible format (PDF files will not be accepted) including balance sheet, income statement, and equity roll forward
    • Quarterly origination volume for the five most recent consecutive quarters in a Microsoft Excel compatible format
    • Most recent interim financial statements
    • Related-party accounts receivable balance for the latest interim financial statements, if applicable
    • Most current investor report cards
    • Current unpaid principal balance (UPB) of servicing portfolio and the UPB of delinquent loans
Other Requirements
  • An applicant that intends to sell loans to Freddie Mac that will be originated by a third party must maintain a written wholesale home mortgage program that contains steps to evaluate and approve correspondents/brokers and monitor the quality of the correspondent/broker-originated mortgage and performance of the correspondents/brokers. See Freddie Mac Best Practices.
  • An applicant that wishes to be approved as a "Seller and Servicer" or "Servicer Only" must demonstrate during the approval review process the ability to effectively service mortgage loans by maintaining adequate staff and procedures or by contracting with a Freddie Mac approved Servicing Agent.
  • Applicant must have Fidelity and Errors & Omissions insurance policies in the amounts specified in the Insurance Information Section.
Next StepsComplete a pre-application questionnaire to determine if your organization meets the minimum eligibility requirements. If your organization meets the minimum eligibility requirements you will receive a User ID and Password within 24 hours to begin your customized online application.

The decision to approve an institution to become an eligible Freddie Mac seller/servicer is within Freddie Mac's complete and sole discretion. At all times, Freddie Mac has the right to modify its eligibility criteria or to impose additional eligibility requirements. In addition, an institution is not to make any assumptions or rely upon any representation regarding approval until official, written notification from Freddie Mac of eligibility approval has been received by that institution.