Bulletin 2025-16: Selling Updates

Bulletin 2025-16

Selling

Issued 12/03/2025

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TO: Freddie Mac Sellers

SUBJECT: SELLING UPDATES

This Guide Bulletin announces:

• 2026 conforming loan limit values
  • New conforming loan limit values for 2026 – January 1, 2026
• Information security
  • A governance framework for artificial intelligence and machine learning systems – March 3, 2026
• Seller/Servicer insurance
  • Revised Seller/Servicer insurance coverage limits, deductibles, documentation, reporting and compliance obligations – June 8, 2026
• Freddie Mac Systems
  • The introduction of Quality Control Advisor Plus℠ and updates related to Freddie Mac Gateway® – December 10, 2025
• Resale restrictions
  • Updated requirements for determining the value used for certain Mortgages secured by properties subject to resale restrictions – March 3, 2026
• Tax-exempt income
  • Additional specificity related to calculating tax-exempt income
• Additional Guide updates
  • Further updates as described in the Additional Guide updates section of this Bulletin

EFFECTIVE DATE

All of the changes announced in this Bulletin are effective immediately unless otherwise noted.

2026 CONFORMING LOAN LIMIT VALUES

Effective for Mortgages with Settlement Dates on or after January 1, 2026

As announced in our November 25(opens in new window), 2025 article, our baseline conforming loan limit values and designated High-Cost Area loan limit values will increase, effective January 1, 2026.

The loan limit values, effective for Mortgages with Settlement Dates on or after January 1, 2026, are as follows:

1Except for Mortgages secured by properties in Alaska, Hawaii, Guam or the U.S. Virgin Islands.

2Actual conforming loan limit values for specific counties in designated High-Cost Areas, as determined by FHFA, may be lower than the loan limits listed above and can be found by visiting the FHFA conforming loan limit values webpage(opens in new window).

The baseline conforming loan limit values for Mortgages secured by properties in Alaska, Hawaii, Guam or the U.S. Virgin Islands will be 50% higher than the baseline conforming loan limits listed above. Two counties in Hawaii (Maui and Kalawao) will be High-Cost Areas in 2026.

For Mortgages secured by properties in designated High-Cost Areas, notwithstanding the loan limit values shown in the chart above, Sellers must review the 2026 loan limit values for the specific county in which the property is located. FHFA provides this information on its website(opens in new window).

High-Cost Areas applicable to the First-Time HomebuyerCredit Fee Cap, as described in Guide Exhibit 19A, Credit Fee Cap Eligibility Criteria, are determined based on whether the Mortgaged Premises is located in a High-Cost Area as of the Application Received Date or the Note Date. Loan Selling Advisor® will determine whether the Mortgaged Premises is located in a High-Cost Area.

Loan Product Advisor® and Loan Selling Advisor will be updated on December 7, 2025 with the new loan limit values.

Guide impacts: Sections 4203.1 and 4603.2

ARTIFICIAL INTELLIGENCE AND MACHINE LEARNING

Effective March 3, 2026

We are updating the Guide to establish a comprehensive governance framework for the responsible development, deployment and oversight of artificial intelligence (AI) and machine learning (ML) systems. The updated sections include enhanced requirements and best practices to ensure transparency, accountability and ethical stewardship within AI/ML initiatives. The governance framework outlined in these sections will support organizations in aligning with regulatory standards, mitigating risks and fostering trust in AI-driven solutions.

Guide impacts: Sections 1302.2 and 1302.8

SELLER/SERVICER INSURANCE

Effective June 8, 2026

We are updating our requirements related to Seller/Servicer insurance coverage limits, deductibles, documentation, reporting and compliance obligations to clarify requirements and better align with market practices.

Guide impacts: Sections 2101.6 through 2101.9

QUALITY CONTROL ADVISOR PLUS AND FREDDIE MAC GATEWAY

Effective December 10, 2025

We are updating the Guide’s licensing framework to reflect our upcoming rollout of Quality Control Advisor Plus, a new and enhanced version of Quality Control Advisor®. The latter System (as defined in Section 2401.1(b)) will be available to Seller/Servicers until early 2026.

In addition, the Guide is being further revised to:

• Reflect the completed transition from Loan Advisor® Portal to Freddie Mac Gateway
• Highlight our branded business intelligence System, ECO: Evaluate | Compare | Optimize®
• Include license provisions pertaining to Freddie Mac’s Data Share API

Guide impacts: Sections 2402.2, 2402.8 and 2406.2

RESALE RESTRICTIONS

Effective for Mortgages with Application Received Dates on or after March 3, 2026, but Sellers are encouraged to implement immediately

Based on Seller feedback, we are updating our Guide requirements for determining the value used for certain Mortgages secured by properties subject to resale restrictions. For Mortgages secured by properties subject to resale restrictions that terminate upon foreclosure (or expiration of any applicable legally required foreclosure redemption period) or recordation of a deed-in-lieu of foreclosure, the value used to determine the LTV/total LTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratio will be as follows:

1The appraisal report must reflect the market value of the property without resale restrictions in accordance with Section 4406.4(c).

Guide impacts: Sections 4203.1 and 4406.5

TAX-EXEMPT INCOME

To provide additional specificity, we have revised Guide language related to calculating tax-exempt income and included examples. No changes to Guide requirements are included in this update.

Guide impact: Section 5305.1

ADDITIONAL GUIDE UPDATES

Duty to Serve High-Needs Areas update

Effective January 1, 2026

As a result of the updates published in Bulletin 2025-F, Freddie Mac is updating Exhibit 40, Duty to Serve High-Needs Areas, to reflect the areas based on FHFA’s updated Rural Areas and High Needs Rural Regions Data.

Guide impact: Exhibit 40

Flexibility for CHOICEReno eXPress® Mortgages

For CHOICEReno eXPress Mortgages, in accordance with Section 4607.7, the maximum financed renovation costs are based on whether the Mortgaged Premises is located in a Duty to Serve high-needs area listed in Exhibit 40. For CHOICEReno eXPress Mortgages with Application Received Dates on or before December 31, 2025 that are impacted by the amended Rural Areas and High Needs Rural Regions Data with Settlement Dates before April 1, 2026, the Seller may determine the maximum financed renovation costs based on whether the Mortgaged Premises was located in a designated Duty to Serve high-needs area listed on Exhibit 40 in effect as of August 13, 2025. For CHOICEReno eXPress Mortgages with Application Received Dates on or after January 1, 2026, the Seller must determine the maximum financed renovation costs based on whether the Mortgaged Premises is located in a designated Duty to Serve high-needs area listed on Exhibit 40 in effect as of January 1, 2026.

Fraud identification

Effective December 10, 2025

We are updating our requirements for fraud identification as follows:

• Adding property data collectors to the list of third parties that must be approved, evaluated and monitored to be consistent with Sections 5603.5 and 5603.6
• Identifying fraud risk trends to guide selection of discretionary samples to broaden the populations of loans that may be at higher risk for fraud
• Updating the frequency of updates to quality control policies and procedures to clarify that periodically means at least annually

Guide impact: Section 3201.1

Appraisal waivers

Based on industry feedback, we have updated Section 5602.3 to identify conditions that prevent the Seller from accepting an appraisal waiver offer. No requirements were changed as a result of this update.

Guide impact: Section 5602.3

Guide as data

Effective December 10, 2025

Based on feedback, we are adding language to Section 1101.2 that will allow Seller/Servicers to integrate and consume Guide content as data for internal business purposes, including usage within GenAI-enabled tools. This enhancement supports Freddie Mac’s ongoing efforts to make the Guide machine-readable, interoperable and digitally consumable.

Guide impact: Section 1101.2

Authorized changes for Security Instruments

We have updated Exhibit 5A, Authorized Changes to Notes, Riders, Security Instruments and the Uniform Residential Loan Application, to add an authorized change to permit originators to delete paragraph 30 from the Maryland Deed of Trust (Form 3021 07/2021 rev.06/2025) and the Maryland Short Form (Form 3021-SF 07/2021 rev. 06/2025) if it is not required.

Guide impact: Exhibit 5A

Retirement of HVE®

Effective December 10, 2025

HVE has been retired from external commercial availability as of July 31, 2025, and we are removing corresponding references from the Guide.

Guide impacts: Sections 2402.3, 2402.7 and Glossary

Concurrent Transfer of Servicing contact information

Effective December 10, 2025

We are updating the contact information for submitting agreements for Concurrent Transfer of Servicing.

Guide impacts: Form 960 and Directory 3

Guide chapter refactoring

To improve the ease of use of our Guide for Sellers, Chapters 6201, 6301, 6304 and 6305 have been refactored. No requirements were changed as a result of this new formatting, although cross-references to refactored Chapters 6201, 6301 and 6305 have been updated.

Guide impacts

For a full list of Guide impacts related to Guide refactoring, see the Guide Updates Spreadsheet section below.

GUIDE UPDATES SPREADSHEET

For a detailed list of the Guide updates associated with this Bulletin and the topics with which they correspond, access the Bulletin 2025-16 (Selling) Guide Updates Spreadsheet via the Download drop-down available at https://guide.freddiemac.com/app/guide/bulletin/2025-16.

CONCLUSION

If you have any questions about the changes announced in this Bulletin, please contact your Freddie Mac representative or call Customer Service at 800-FREDDIE.

Sincerely,

Kevin Kauffman

Senior Vice President, Single-Family Seller Engagement

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