Payoff Draft Date 18 Mortgages FAQs

Servicing requirements were announced via Guide Bulletin 2025-14 on Wednesday, October 8, 2025. The mandatory adoption date for all Guarantor and MultiLender Purchase Contracts was announced in Guide Bulletin 2026-4 on April 1, 2026 and Guide Bulletin 2026-5 on April 8, 2026.

The Payoff Draft Date 18 requirement becomes mandatory for all mortgages delivered under Guarantor and MultiLender Purchase Contracts taken out and accepted on or after July 1, 2026.

Sellers that wish to adopt Payoff Draft Date 18 prior to the mandatory effective date of July 1, 2026, will be issued a selling term of business (TOB) allowing early adoption of the Payoff Draft Date 18 requirements.

The July 1, 2026 mandatory effective date (or TOB effective date if adopting sooner than July 1) is aligned with the Guarantor “contract accepted” date in Loan Selling Advisor^®. These mortgages will be identified by a prepayment remittance due day of “18” in the contract details data field. Mortgages in contracts accepted prior to July 1, 2026 will continue to be pre-populated with a “5” in the prepayment remittance due days data field in Loan Selling Advisor.

The existing TOB that supported the initial limited rollout will expire on the July 1, 2026 mandatory effective date.

Mortgages subject to Payoff Draft Date 18 requirements will reflect a prepayment remittance due day of “18” in the following locations in Loan Selling Advisor and the Selling APIs:

Loan Selling Advisor

• Guarantor Contract Details
• Import Guarantor Contract [Servicing Attributes]
• Export Data
• Guarantor Funding Details
• Guarantor Settlement Summary:
  • Form 15A Settlement Summary Fixed Rate Guarantor
  • Form 15C Settlement Summary Weighted Average Coupon ARM PC

APIs

• Guarantor Committing [Servicing Attributes]
• Guarantor Pricing [Eligibilities]
• Guarantor Settlement Purchase Statement

There are no changes to reporting requirements. Servicers will continue to report exception interest for payoffs, calculated from the 1^st calendar day of the month through the day before the payoff date. The Servicer must report payoffs to Freddie Mac by the following deadlines:

• Prepaid payoffs must be reported by the 2nd business day after the payoff date.
• Matured payoffs must be reported by the maturity date or within two business days after receiving the funds.
• Repurchases must be reported pursuant to the specified reporting timeframe after notification as detailed by the repurchase type.

No, you don’t need to do anything different. During the month of transition from “5” to “18”, Sellers may have contracts taken out prior to the effective date that settle after the effective date. This means the Seller could settle mortgages starting in July that have both “5” and “18” as the Pre-Payment Remittance Day value. Sellers should carefully plan when they take out contracts to align with the appropriate date. See the example provided below.

Payoff Draft Date 18 is only applicable to the following types:

• Matured
• Prepaid
• Repurchases (both voluntary and involuntary)

Payoff Draft Date 18 is not applicable to payoffs related to third-party foreclosure sales, short sales, charge-offs, make wholes and voluntary partial cancellation (VPC).

Compensating interest is the interest owed to Freddie Mac. It’s calculated by subtracting the exception interest from the monthly interest. The Servicer is required to remit a full month of interest to Freddie Mac, and must use its own funds to cover any difference between what was collected from the borrower at payoff and the amount due to Freddie Mac. The Servicer is prohibited from collecting compensating interest from the borrower.

Freddie Mac calculates a full month of interest on the payoff draft date by using one of the following methods:

There is no change. Freddie Mac will calculate the late draft payoff fee for late reported payoffs that result in a delayed payoff draft date. Refer to Guide Section 8303.5 for additional information.

For a Concurrent Transfer of Servicing (CTOS) or Subsequent Transfer of Servicing (STOS):

• The Payoff Draft Date 18 requirement is tied to the mortgage and will remain with the mortgage if it’s transferred through either CTOS or STOS.
• The Transferor Servicer must disclose the transfer population includes mortgages subject to the new Payoff Draft Date 18 requirement and identify such mortgages during the transfer process.
• The Transferee Servicer must ensure the impacted mortgages are reflected as Payoff Draft Date 18 Mortgages when onboarded in its servicing system.

For Voluntary Partial Cancellation (VPC):

• When mortgages delivered under the Payoff Draft Date 18 requirements transfer to a Servicer pursuant to a VPC, the subject mortgages will revert to the standard Guide payoff draft date that is five business days after the payoff date, and Freddie Mac won’t collect compensating interest.

Question #5 on the STM questionnaire will have a new checkbox for Payoff Draft Date 18 to ensure the Transferee Servicer is aware the population includes mortgages with the new payoff draft date requirement.

If a Seller/Servicer uses a Servicing Agent, the Servicing Agent will need to follow the Payoff Draft Date 18 requirements. If a Seller/Servicer uses one or more Servicing Agents, the Seller/Servicer must confirm the Servicing Agent(s) ability to manage these as required.

Within Loan Level Reports (LLR) a new column, “Payoff Draft Day,” has been added to the “Newly Funded Loans” and “Newly Transferred In Loans” reports to assist Servicers and Servicing Agents with identifying Payoff Draft Date 18 loans.

There are no ULDD or mortgage delivery instruction changes. Mortgages will inherit the Prepayment Remittance Due Days value on the contract based on the contract accept date.

There are currently no changes to the Guarantor Import and Committing API’s. We’ll update our specification document valid values to show the Freddie Mac standard value will be “18” on or after July 1, 2026 for all Guarantor Committing API requests.

Early funding mortgages delivered under Freddie Mac Guarantor and MultiLender Purchase Contracts with contract accepted dates on or after July 1, 2026 will be referred to as Payoff Draft Date 18 Mortgages. Early funding mortgages delivered under Freddie Mac Guarantor and MultiLender Purchase Contracts with contract accepted dates prior to July 1, 2026 will continue to be pre-populated with a “5” in the “prepayment remittance due days” data field in Loan Selling Advisor.