Freddie Mac Seller/Servicer Guide 4403.1: Mortgages with capitalized balances
Mortgages having principal balances that include capitalization of interest, taxes, hazard insurance premiums and/or late charges are not eligible for sale to Freddie Mac.
Freddie Mac publishes the full text of this section: Freddie Mac Seller/Servicer Guide 4403.1 on the Freddie Mac website. Zeitro Strata answers questions about it with the passage and page cited.
Guideline text quoted as published by the agency. The latest published version governs. This is not an underwriting decision.