Final answer:
Uniform covenants are standardized promises in all Fannie Mae/Freddie Mac mortgages, such as timely payments and taxes. Non-uniform covenants vary and address local laws or unique terms. These distinctions provide consistency while allowing for individual circumstances.
Step-by-step explanation:
In the context of Fannie Mae/Freddie Mac Uniform Security Instruments, uniform covenants are standardized promises that are found in all mortgage documents issued by these entities. They typically include requirements such as making timely mortgage payments, maintaining property insurance, and paying property taxes. Non-uniform covenants, on the other hand, are those covenants that can vary between different mortgages or deeds of trust. These may address specific local laws, restrictions, or unique terms negotiated by the borrower and lender. The primary purpose of this distinction is to ensure that certain core terms are consistent across all loans purchased by these government-sponsored entities, while still allowing for flexibility to cope with specific circumstances.
In the framework of Fannie Mae/Freddie Mac Uniform Security Instruments, uniform covenants encompass standardized commitments present in all mortgage documents issued by these entities. These include timely mortgage payments, property insurance upkeep, and tax payments. In contrast, non-uniform covenants vary between mortgages, accounting for local laws, restrictions, or negotiated terms. This ensures core consistency while accommodating specific circumstances in loans acquired by these government-sponsored entities.