3101.1: Freddie Mac Exclusionary List (12/11/17)

(a) Purpose of the Exclusionary List

Freddie Mac maintains the Freddie Mac Exclusionary List to protect the integrity of its Mortgage purchase and Servicing functions. The names of persons or entities whose conduct presents risks to Freddie Mac, as determined by Freddie Mac in its sole discretion, may be placed on the Exclusionary List, in which case such persons or entities are prohibited from doing business with Freddie Mac, either directly or indirectly.

(b) Use of the Exclusionary List

The Seller/Servicer must use the Exclusionary List only for the following purposes:

(i) Screen parties involved in the origination of the Mortgage

Prior to the sale of each Mortgage to Freddie Mac, the Seller must use the Exclusionary List to determine whether, as of the Note Date, a person or entity whose name is on the Exclusionary List was the Borrower on the Mortgage or has played a role in the origination of the Mortgage or in the underlying real estate transaction.
If a party whose name is on the Exclusionary List is the Borrower on the Mortgage or played a role in the origination of a Mortgage or the underlying real estate transaction, the Mortgage is not eligible for sale to Freddie Mac.

(ii) Screen parties involved in Freddie Mac sales, quality control and Servicing functions

The Seller/Servicer must use the Exclusionary List to ensure that none of the Seller/Servicer's own employees engaged in the sales, quality control or Servicing of Freddie Mac Mortgages or REO have their name on the Exclusionary List. This prohibition includes both the Seller/Servicer's own employees and any third parties to whom sales, quality control or Servicing functions regarding Freddie Mac Mortgages or REOs are outsourced or assigned.

Prohibited roles in sales functions include, without limitation, parties involved in the delivery of Freddie Mac Mortgages. Prohibited roles in quality control functions include, without limitation, those reviewing eligibility of Freddie Mac Mortgages and those involved in reporting adverse findings to Freddie Mac. Prohibited roles in Servicing functions include, without limitation:
Parties who report, remit or process Mortgage payments, or who manage Custodial Accounts or perform custodial fund accounting
Participants in any loss mitigation activities
Participants in the maintenance of an REO property owned by Freddie Mac or a property securing a Freddie Mac Mortgage
The Seller/Servicer is not required to screen any individual or entity that Freddie Mac selects, approves and/or directs the Seller/Servicer to use (e.g., providers of property valuations through BPOdirect®).

(c) Process for placement on the Exclusionary List

Freddie Mac will generally provide an individual or entity written notice of their proposed placement of their names on the Exclusionary List, along with an opportunity to submit a written response. However, Freddie Mac may determine, in its sole discretion, that circumstances require placement of a person or entity's name on the Exclusionary List immediately, without prior written notice. Examples of grounds for placement on the Exclusionary List include, without limitation:

Fraud or possible fraud
Misrepresentations, misstatements or omissions of facts
Theft or misappropriation of funds
Willful or reckless violation of statutory or regulatory requirements
Business practices that Freddie Mac determines present risks to Freddie Mac
Lack of business controls to ensure the integrity of the Mortgages sold to or serviced for Freddie Mac
Evidence which demonstrates a lack of integrity or business competence
Other grounds that in Freddie Mac's judgment may adversely affect Freddie Mac
Freddie Mac, in its sole discretion, will render a final decision regarding placement on the Exclusionary List after reviewing the response, if any, submitted by the proposed individual or entity.

(d) Seller warranties regarding the Exclusionary List

The Seller represents and warrants that, as of the Note Date, no person or entity whose name is listed on the Exclusionary List was the Borrower on the Mortgage or played a role in the origination or sale of a Mortgage to Freddie Mac, or in the underlying real estate transaction. Furthermore, the Seller represents and warrants that it will maintain sufficient controls to meet this warranty obligation.

(e) Waiver of Seller warranties regarding the Exclusionary List

Before the Funding Date, a Seller may contact Freddie Mac to request a waiver of the warranty requirements of Sections 3101.1(d) and 1301.8(a)(8) with respect to a particular Mortgage. The Seller should make such request to the Freddie Mac fraud mailbox at mortgage_fraud_reporting@freddiemac.com, or alternatively may make such request by fax or regular mail (see Directory 1).
As part of the request, the Seller must inform Freddie Mac of the nature and extent of the role played by the person or entity whose name is on the Exclusionary List in connection with the Mortgage and must provide other relevant information, upon request. If Freddie Mac reviews the request and subsequently elects to grant the waiver, Freddie Mac will provide the Seller with written notice of such election, in which case the warranty concerning the involvement of an excluded person or entity will not be applicable to the sale of the Mortgage. All other requirements of the Purchase Documents relating to the sale of the Mortgage will remain in full force and effect. Freddie Mac's election to review and its decision to purchase such a Mortgage are within its sole discretion.

(f) Servicer warranties regarding the Exclusionary List

The Servicer represents and warrants that no individual or entity whose name is on the Exclusionary List will play a role in any Servicing or quality control functions relating to a Mortgage or REO. The Servicer acknowledges that this prohibition includes both the Servicer's own employees and any third parties to whom Servicing or quality control functions regarding Freddie Mac Mortgages or REOs are outsourced or assigned, including, without limitation:

Parties who report, remit or process Mortgage payments, or who manage Custodial Accounts or perform custodial fund accounting
Participants in any loss mitigation activities
Individuals reviewing eligibility of Mortgages sold to Freddie Mac or who report adverse findings to Freddie Mac
Participants in the maintenance of an REO property owned by Freddie Mac or a property securing a Freddie Mac Mortgage.
Furthermore, the Servicer warrants that it will maintain sufficient controls to meet this warranty obligation.

(f). The Servicer should make such request to the Freddie Mac fraud mailbox at mortgage_fraud_reporting@freddiemac.com, or alternatively may make such request by fax or regular mail (see Directory 1).

As part of the request, the Servicer must inform Freddie Mac of the nature and extent of the role played by the person or entity whose name is on the Exclusionary List in the proposed transaction, and must provide other relevant information upon request. If Freddie Mac elects to grant the waiver, Freddie Mac will provide the Servicer with written notice of such election, in which case the warranty concerning the involvement of an excluded person or entity will not be applicable to such transaction. All other requirements of the Purchase Documents relating to the Servicing of the Mortgage will remain in full force and effect. Freddie Mac's decision regarding the waiver of such warranties is within its sole discretion.

(g) Waiver of Servicer warranties regarding the Exclusionary List

The Servicer must contact Freddie Mac to request a written waiver prior to performing a function or entering into a transaction that would violate the Servicer's representation and warranty set forth in Section 3101.1

(h) Reporting obligations of the Seller/Servicer

The Seller/Servicer must immediately report the discovery of any possible breach of warranties regarding the Exclusionary List contained in Section 3101.1 to the Freddie Mac fraud mailbox at mortgage_fraud_reporting@freddiemac.com. Alternatively, the Seller/Servicer can report such breaches by fax or regular mail (see Directory 1).

(i) Confidentiality and use of the Exclusionary List

The identities of the persons and entities on the Exclusionary List whose names are not publicly available, and the Exclusionary List is considered "Confidential Information" of Freddie Mac for purposes of Section 1201.8. The Seller/Servicer represents and warrants that it will keep the Exclusionary List confidential in accordance with the terms and conditions of Section 1201.8. The Seller/Servicer may use the Exclusionary List only as required in Section 3101.1(b), and may not use or disclose the Exclusionary List for any other purpose without Freddie Mac's written permission. The Seller/Servicer agrees to indemnify Freddie Mac for any loss, damage, or expense resulting from its failure to maintain the confidentiality of the Exclusionary List or information contained on the Exclusionary List.

(j) Access to the Exclusionary List

The Exclusionary List is updated at least monthly by Freddie Mac and is electronically available to Seller/Servicers through various Freddie Mac systems, including Loan Selling AdvisorSM, the Freddie Mac Service Loans application, Loan Product Advisor®, the Freddie Mac Learning Center and MultiSuite®. The Seller/Servicer must ensure that it uses only the most current version of the Exclusionary List, and must obtain an authorized ID and password to access the Exclusionary List. The Seller/Servicer may obtain additional information on how to access the Exclusionary List by calling 800-FREDDIE.

(k) Remedies

Freddie Mac's remedies for a breach of the warranties, obligations or requirements of the Seller/Servicer regarding the Exclusionary List include all remedies available to Freddie Mac under the Purchase Documents including, without limitation, suspension or termination of the Seller or Servicer, and repurchase of the Mortgage.