comply with the acceptable exceptions found in Section 4702.4. ================================================================================ SECTION 5601.5 ================================================================================ Refer to Bulletin 2025-7, which announced the policy requirements for Uniform Appraisal Dataset (UAD) 3.6. Sellers may submit to the Uniform Collateral Data Portal® appraisal reports that use UAD 3.6 before the mandatory effective November 2, 2026 version of this section. Freddie Mac purchases Mortgages secured by residential properties with mixed-use characteristics. This section contains: Eligibility requirements Appraiser requirements (a) Eligibility requirements A residential property with mixed-use must meet the following requirements: The property must be a 1-unit Primary Residence The property must be located in a predominantly residential Neighborhood, be primarily residential in nature based on the characteristics of the property and be typical for the properties in the Market Area The mixed-use must represent a legal, permissible use of the property under the local zoning requirements If the property has a commercial use, the Borrower must be the owner and the operator of the business The dwelling may not be modified in a manner that has an adverse impact on its marketability as a residence The commercial use must not have an adverse effect on the habitability and safety of the property or site (b) Appraiser requirements The appraiser must provide the following when appraising a mixed-use property: An appraisal with an interior and exterior inspection A detailed description of any accommodations made for the commercial use of the subject property A discussion of any positive or adverse impacts of the commercial use and whether the cost to restore the property to solely residential use will affect its value A statement describing any market resistance to the commercial use and adjustments for any commercial features made to the comparable sales An opinion of market value based on the property’s residential nature Note: See Section 5701.8(b)(ii) for Condominium Unit live-work requirements. ================================================================================ SECTION 5601.6 ================================================================================ Refer to Bulletin 2025-7, which announced the policy requirements for Uniform Appraisal Dataset (UAD) 3.6. Sellers may submit to the Uniform Collateral Data Portal® appraisal reports that use UAD 3.6 before the mandatory effective November 2, 2026 version of Section 5605.4. When the Mortgaged Premises includes two or more parcels of real estate, the following requirements apply: The parcels must be adjoining. Exception: Parcels that would otherwise be adjoined but are separated by a road (e.g., a waterfront property where the parcel without the residence offers access to the water) are