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BORROWER STRUCTURE DUE DILIGENCE CHECKLIST(Revised 512015) INFORMATION TO BE PROVIDED BY BORROWER OR BORROWER SPONSOR AND REVIEWED BY SELLERS COUNSEL BEFORE SENDING TO THE APPLICABLE FREDDIE MAC BUSINESS
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Borrower structure due diligence is a process of reviewing and analyzing the legal and ownership structure of a borrower, including its shareholders, directors, and any related entities.
Lenders and financial institutions are typically required to file borrower structure due diligence when underwriting a loan or assessing credit risk.
Borrower structure due diligence can be filled out by collecting information about the borrower's ownership structure, legal entities, and key stakeholders, and verifying this information through official documents and sources.
The purpose of borrower structure due diligence is to assess the risk associated with lending to a particular borrower, by understanding its legal and ownership structure, and identifying any potential conflicts of interest or issues that may impact the loan.
Information such as the borrower's legal name, ownership structure, key stakeholders, related entities, and any potential conflicts of interest must be reported on borrower structure due diligence.
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