Best Practices for Selling Through Cash-Released XChange®
When selling through Cash-Released XChange, you can save time and avoid errors and inaccurate data by following these reminders, tips and best practices:
Escrow Deposit – If you’re collecting the first payment from a borrower, remember to add the escrow portion of the payment to the escrow deposit. If you must pay escrows that are due within 60 days of the Freddie Mac funding date, remember to reduce the escrow deposit by the payment amount. Just enter the escrow deposit in “Other Funds Collected at Closing.”
Learn more: See Chapter 2, Delivering Accurate Data in Loan Selling Advisor®, in the Servicing Transfer Instructions User Guide located under the Settlements tab in Loan Selling Advisor®.
Last Paid Installment (LPI) Date and Scheduled UPB – When we fund a loan to you after the 10th of the month and the borrower’s payment is due the 1st of the following month, you must:
- Collect the first payment from your borrower.
- Amortize the loan down by one principal payment.
- Push out the LPI to the following month.
You and your Servicer will therefore have enough time to provide your borrower 15 days’ notice that their Servicer has changed.
Learn more: See Chapter 2, Delivering Accurate Data in Loan Selling Advisor, in the Servicing Transfer Instructions User Guide located under the Settlements tab in Loan Selling Advisor®.
Imaged Document Delivery – Remember to deliver your imaged documents via Freddie Automated Servicing Transfer® (FAST)® within three business days of the Freddie Mac funding date to avoid a late fee of up to $500.
Learn more: See Single-Family Seller/Servicer Guide (Guide) Exhibit 28A.
Post-Fund Data Corrections and Servicing Gateway – You can find the Post-Fund Data Correction Tool is available in Servicing Gateway.