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Question:

Has Freddie Mac updated their requirements regarding Seller/Servicer insurance coverage limits, deductibles, documentation, reporting, and compliance obligations?

Answer:

Yes. On December 3, 2025, Freddie Mac issued Bulletin 2025-16, which announced revised Seller/Servicer insurance coverage limits, deductibles, documentation, reporting, and compliance obligations that are effective on June 8, 2026.

Freddie Mac requires that a Seller/Servicer maintain, at all times and at its own expense, Fidelity Bond coverage and a Errors and Omissions (E&O) insurance policy. Freddie Mac outlines current Fidelity Bond and E&O limits, deductibles, documentation, reporting, and compliance obligations in the following sections of the Seller/Servicer Guide: 2101.6, 2101.7, 2101.8, and 2101.9

Updated requirements to the Guide may be found at: 2101.6 (updated), 2101.7 (updated), 2101.8 (updated), and 2101.9 (updated).

Updates include, but are not limited to, information surrounding requirements when using a parent institution’s coverage, acceptable insurer ratings (A- or better by an A.M. Best Company required), and changes to deductible and limit requirements.

MQMR encourages mortgage lenders to review the pending updated requirements to ensure compliance by June 8, 2026.