5701.7: Exempt From Review (11/19/18)

© Freddie Mac Single-Family Seller Servicer Guide

To be eligible under Exempt From Review:

1. The Mortgage must be:

Secured by a Condominium Unit in a 2- to 4-Unit Condominium Project, or
Secured by a Detached Condominium Unit, or
A Freddie Mac owned "no cash-out" refinance Condominium Unit Mortgage

2. The applicable requirements in the following table must be met:

2- to 4-Unit Condominium Projects	The Condominium Project meets the Glossary definition of a 2- to 4-Unit Condominium Project. (Note: The Glossary definitions of Established Condominium Project and New Condominium Project are not applicable.) The Condominium Project must not include Manufactured Homes
Detached Condominium Units	The Condominium Unit securing the Condominium Unit Mortgage meets the Glossary definition of a Detached Condominium Unit The Condominium Project must not include Manufactured Homes
Freddie Mac owned "no cash-out" refinance Condominium Unit Mortgages	If the Condominium Unit Mortgage being refinanced is currently owned by Freddie Mac in whole or in part or securitized by Freddie Mac then the Mortgage is exempt from project review provided the following requirements are met: The maximum loan-to-value (LTV)/total LTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratio is 80%. The requirements in Section 4301.4(c) are not applicable. The Condominium Project is not a Condominium Hotel, houseboat project, timeshare project or project with segmented ownership (all as described in Section 5701.3) If available, proof of the ULDD Data Point Related Investor Loan Identifier of the existing Condominium Unit Mortgage is provided in the Mortgage file The delivery requirements in Section 6302.16(b)(ii) are met

3. The general project eligibility requirements in Section 5701.2(b) must be met

Attached and semi detached units within projects containing Detached Condominium Units may not be delivered as Exempt From Review unless the attached or semi detached units are within a 2- to 4-Unit Condominium Project or meet the requirements for Freddie Mac owned "no cash-out" refinance Condominium Unit Mortgages.

Note: If the requirements for Exempt From Review in this Section 5701.7 are met, then the Seller is not required to comply with the requirements for any of the other project review types in Sections 5701.4, 5701.5, 5701.6 and 5701.9.