By The Single-Family Team, Freddie Mac

Freddie Mac uses a Voluntary Partial Cancellation (VPC) process to cancel servicing rights on a pool of targeted loans on our balance sheet in support of homeowner and balance sheet management objectives. Currently, loans that fall into this category have been identified manually—but that’s changed.

As of March 28, 2025, Freddie Mac has automated the steps to identify loans that are eligible for a VPC transfer by integrating them into Servicing Transfer Manager, the Freddie Mac GatewaySM tool that identifies and submits subsequent Transfer of Servicing (STOS) requests. This change may help mitigate risk and add efficiency by eliminating the multiple steps, back and forth emails and an external tool to populate and scrub the loans.

The first version of this automation focuses on creating functionality for flow transfers. To accomplish this enhancement, Freddie Mac has added a VPC Eligibility tab to Servicing Transfer Manager and created standard or customized profiles for the 11 impacted participants.

Servicers see exclusions and VPC-eligible loans and can export a Flow Report. For each loan, Servicers will designate with a “Y” or an “N” if the servicing of the loan should be transferred, along with any exclusion reasoning, and then upload the completed file for submission.

The automation offers several key benefits, including:

  • Reduction in manual emails
  • Ability to create multiple STOS-VPC transfers in Servicing Transfer Manager
  • Increased efficiency with eligible loans available earlier in the process
  • Automated reminders to submit loans
  • Transparency into Freddie Mac’s loan data
  • Expected pricing at time of transfer
  • Access to executed agreements

To prepare users for the new VPC functionality, there's an online help tool outlining how to use the new features. 

Based on readiness, Servicers need to switch from the read-only role to the required VPC External Analyst role, depending on the timeline for loans being transferred; upcoming communications will outline this process in more detail.

For more information, Servicers can reach out to their Freddie Mac representative or Customer Service (800-FREDDIE).