Investor Reporting

Getting Started

All Servicers have monthly account activities around their loan portfolio: Reporting, Drafting and Reconciliation

• Servicers must report principal and interest (P&I), unpaid balance (UPB), due date of last payment (DDLP) and last payment received date [LPRD] for each loan in their portfolio by the P&I Determination Date.
• Servicers will review a draft report and remit payment through Cash Manager.
• Servicers must reconcile any differences between their loan level reporting (LLR) and Freddie Mac’s reporting by comparing final MAS and the Loan Reconciliation Difference Reports. [Guide Section 8303.32]

There are some exceptions to standard loan level reporting, listed in the Seller/Servicer Guide 8301.14

Key Information

• Servicing Gateway Login - Access all Servicing Tools from one login, including Loan Level Reporting, Cash Manager, Servicing Performance Profile (SPP).
• Access Manager Use Access Manager to get login credentials to Servicing Gateway.
• 2024 Investor Reporting Schedule
• 2025 Investor Reporting Schedule
• Seller/Servicer Guide Exhibit 88 has a complete list of Servicing Tools

Loan Level Reporting

The Servicer must report the following to Freddie Mac monthly on or before the P&I Determination Date for each loan in their portfolio. Servicers may use Loan Level Reporting to generate these reports.

Monthly reporting and remittance requirements for Mortgages with partial principal forbearance (Guide Section 8303.4)

1. Reference
   • Exhibit 60 - Loan Level Reporting Data Description outlines the full data set that must be reported.
   • Exhibit 61 - Calculating Interest Due to Freddie Mac outlines the methodology to calculate interest for all types of mortgages.
   • Investor Reporting Best Practices Tutorial
2. Exception activities
   • inactivation,, reinstatement, principal balance correction, deed-in-lieu of foreclosure, FHA/VA foreclosure, transfer of REO, principal balance adjustment due to court order, i.e., cramdown
3. Other reporting activities
   • Guide Section 8303.13 Reporting a charge-off
   • Guide Section 8303.15 Loan-level transaction reporting
   • Guide Section 8303.17 Quarterly reporting requirements for SCRA interest rate capped Mortgages Effective
   • Guide Section 8303.21 Reporting inactivation of a Mortgage
   • Guide Section 8303.22 Newly-funded Mortgage reporting and drafting requirements
   • Guide Section 8303.23 Reinstatement
   • Guide Section 8303.24 Principal balance correction
   • Guide Section 8303.25 Deed-in-lieu of foreclosure reporting and remittance requirements
   • Guide Section 8303.26 FHA/VA foreclosure conveyance reporting and drafting requirements
   • Guide Section 8303.27 REO reporting and drafting requirements
   • Guide Section 8303.28 Additional monthly reporting requirements

Best practices

Daily reporting is encouraged, but not required.

The Servicer must report a loan-level transaction for each Mortgage serviced for Freddie Mac once a month no later than 2:00 a.m. Eastern Time on the day following the P&I Determination Date regardless of whether any activity has occurred on the Mortgage.

For each Mortgage, Servicers must report any revisions that occur after the P&I Determination Date by the end of the month plus one Business Day.

In addition, Servicers are required to monitor daily edit reports provided by Freddie Mac and correct edits promptly, as provided by Guide Section 8303.30.

Correcting Errors

Freddie Mac will send four Edit Error reports daily through Loan Level Reporting

• Edits to be Cleared
• System Cleared Edits
• Warning
• Loan Level Missing

The servicer must take action to correct the error, or if they cannot, call Freddie Mac to contact listed in Directory 7 for help.

If the Servicer reports a payoff to Freddie Mac in error, the Servicer must transmit a revision within the same Accounting Cycle in which the Servicer erroneously reported it. If the Servicer reports a payoff to Freddie Mac in error and the Servicer does not reverse it within the same Accounting Cycle, Freddie Mac will not be able to reactivate the Mortgage for the Servicer.

Resolving Loan-Level Edits

• Reporting Loan Level Transactions and Resolving Loan Level Edits Reference Guide (March 2021), Chapter 6: Resolving Loan-Level Edits gives extensive guidance on loan-level edits and how to troubleshoot and resolve them.
• Investor Reporting Best Practices outlines how to reconcile 406E, 600E, 700E, 715E, 910E, 915E

Investor Reporting Metrics

Freddie Mac evaluates Servicers on how efficiently they perform their work. Servicers can look at these reports through Servicing Performance in Servicing Gateway.

Investor Reporting metrics are around cash deficiency, average days to report payoffs, time to perform edits, and LLR compliance.

Full training on Investor Reporting and the entire Servicer Success Scorecard Performance Metrics.

Servicers with superior servicing performance are eligible for the SHARP awards.

Reporting Penalties

Freddie Mac offers the following penalties for loan level reporting.

Noncompliance fees (per Guide Section 8106.1)

• Failure to provide timely, complete and accurate reports (regardless of the mode of submission or transmission) subjects the Servicer to the Servicing reporting noncompliance compensatory fees.
• Investor Accounting reporting and Servicing reporting noncompliance compensatory fees are monitored and assessed separately.
• Freddie Mac reserves the right to change all fees and other remedies at any time and at its sole discretion.

Compensatory Fee (per Guide Sections 8303.36 and 8303.38)

• Submit complete and accurate Servicing reports, including the submission of error-free loan-level data within the required time frame
• Report mandated data elements, such as the Last Payment Received Date (LPRD) or other fields as listed in Exhibit 60, Loan-Level Reporting Data Description
• Provide information requested by Freddie Mac that is outside of the regular monthly reporting requirements of this chapter, or its failure to provide such requested information in a usable form within the required time frame
• When Servicer does not report some delinquent mortgage information through EDR within the first three business days of a month, as per Guide Section 9102.7. See Guide Section 8303.38 for fee schedule.

Other Fees

• Guide Section 8303.38: EDR noncompliance compensatory fees
• Guide Section 8303.39: Unreported transactions and loan simulation compensatory fee
• Guide Section 8303.40: Aged data errors compensatory fee
• Guide Section 8303.41: Next month late reported payoff noncompliance compensatory fee
• Guide Section 8303.42: Draft delay compensatory fee
• Guide Section 8303.43: Contract noncompliance and contract change compensatory fees

Drafting

Monthly drafting

Freddie Mac will draft, via an Automated Clearing House (ACH) transaction, monthly principal and interest and payoffs directly from the Servicer's designated Custodial Account.

Note: P&I Determination Date is the 15th calendar day of the month (or next Business Day if the 15th calendar day falls on a weekend or "federal holiday")

Monthly principal and interest will be drafted on the P&I Draft Date (the second Business Day after the P&I Determination Date) and will include:

• Current Accounting Cycle interest due (reported in the prior Accounting Cycle)
• Actual principal collected and reported to Freddie Mac after 2:00 a.m. Eastern Time on the day following the P&I Determination Date of the prior Accounting Cycle
• Actual principal collected during the current Accounting Cycle and reported to Freddie Mac no later than 2:00 a.m. Eastern Time on the day following the P&I Determination Date of the current Accounting Cycle
• Interest due on reinstated Mortgages

Freddie Mac will draft, directly from the Servicer's designated Custodial Account, the principal and interest for all Mortgages on the second Business Day following the P&I Determination Date.

• Guide Section 8303.7 outlines specific requirements about when funds must be available to Freddie Mac
• Guide Section 7101.5 outlines initial reporting and remitting requirements on Transfers of Servicing.

Drafting dates

The following chart summarizes the applicable draft dates for the exception activity the Servicer must remit to Freddie Mac monthly:

Drafting Exception or Liquidation Activity

Please consult Guide Section 8303.3 (c) Exception or liquidation activity for details aboutthe following circumstances

• Matured Payoff
• Prepaid Payoff
• Short Sales
• Make-whole Pre-foreclosure
• Charge-off
• Repurchase
• Convertible ARM
• Foreclosure, third party sale conventional

Drafting Payoff

A payoff is the repayment of a Mortgage due to full amortization or prepayment-in-full. The Servicer must report the payoff as of the Payoff Date or the date the Servicer receives the funds (as applicable), and may not alter it for any reason

A Servicer must have– available funds, available no later than 9:00 am (Eastern Standard/Daylight Time) on the applicable draft date. (per Guide Section 8303.7)

If sufficient funds are not available on the applicable draft date, Servicers may be assessed a draft delay noncompliance compensatory fee as referenced in Guide Section 8303.42.

The Servicer must complete the following steps to report a payoff of a Mortgage:

1. To report a prepayment-in-full, report the payoff by the second Business Day after the Payoff Date To report the payoff of a matured Mortgage, report the payoff by the earlier of the maturity date or within two Business Days of the date the Servicer receives the funds. For Mortgages registered on the MERS^® System, the Servicer must, by the second Business Day after the Payoff Date, update the MERS^® System to a loan status of "Paid in full" for Mortgages reported to Freddie Mac as matured or prepaid.
2. Do not report on this Mortgage in future Accounting Cycles.

Refer to Guide Section 8303.9 for rules on drafting payoff amount from custodial account

Reconciliation

Servicers are responsible for reconciling principal and interest and escrow in their respective custodial accounts.

Overview of Custodial Accounts and Investor Accounting

Reports that Freddie Mac Provides to Servicers

Freddie Mac provides Draft Reports to services in Cash Manager that provides a daily cumulative view of the amounts, including adjustments.

In addition, the report provides loan-level transaction details (e.g., principal and interest, liquidation amounts and adjustments).

A preliminary Draft Report will be available daily in the Freddie Mac Cash Manager and updated based on daily reporting.

A final version will be provided on the morning after the P&I Determination Date.

After Freddie Mac closes its Accounting Cycle, Freddie Mac will provide the Servicer the final MAS and the Loan Reconciliation Difference Reports through the Freddie Mac Loan Level Reporting tool.

Servicers can use Cash Manager to generate

• Detail Adjustment
• Negotiated Payoff
• Non-Sufficient Funds
• Liquidations Pending Charge-off Credit
• Delayed Draft Compensatory Fee

Reference Reporting Transactions and Resolving Loan-Level Edits

Principal and Interest

Servicers may use Form 59 to reconcile Principal and Interest Custodial Accounts and identify any variances.

Supporting documents

• Current cycle month’s bank statement (as last day of the month)
• The following months' bank statement or the monthly collections report with all deposits in transit clearly identified on the statement.
• The following months' bank statement or the monthly collections report with all outstanding debits clearly identified.
• Final MAS for the month being reconciled (from LLR)
• The last page of the delinquent interest report
• The last page of the prepaid interest report

Tutorial Principal and Interest Custodial Account Reconciliation

Escrow

Servicers may use Form 59E to reconcile any positive Escrow balances at the end of the Accounting Cycle.

Escrow Custodial Account Monthly Reconciliation Worksheet (per Guide Section 8303.32)

Tutorial Escrow Custodial Account Reconciliation

Setting up a custodial account and ADP

Single family offers some quick reference on custodial accounts and account reconciliation

• Understanding Custodial Accounts Reference Guide
• Principal and Interest Custodial Account Reconciliation

Visit the Guide for full details

• Guide Section 8302.3: Opening Custodial Accounts
• Guide Section 8302.4: Depository eligibility requirements
• Guide Section 8302.5: Insured depository risk level
• Guide Section 8302.6: Custodial Account designation requirements
• Guide Section 8302.7: Custodial Account documentation requirements
• Guide Section 8302.8: Honoring sight drafts
• Guide Section 8302.9: What funds to deposit to the Custodial Accounts
• Guide Section 8302.10:When to deposit funds to the Custodial Accounts
• Guide Section 8302.11: Changing or transferring Custodial Accounts
• Guide Section 8302.12: Administering and reconciling Custodial Accounts

Setting up ACH Drafting

Requirements to permit ACH drafting of monthly principal and interest payments and payoffs (Guide Section 8303.3)

• Have submitted a completed, executed and duly authorized Form 1132A, Authorization for Automatic Transfer of Funds from Principal and Interest Custodial Account Through the Automated Clearing House (ACH).
• Provide Freddie Mac with an updated Form 1132A for any change to the ACH instructions no later than 15 Business Days before the last Business Day of the first month in which Freddie Mac will initiate the first draft to set up or make certain changes to the draft account
• Deliver Form 1132A to Freddie Mac as an Electronic Record (as defined in Guide Section 1401.2), using a Portable Document Format (PDF) (or other Electronic Record format commonly used in the mortgage industry), that has been completed and contains the copy or representation of the pen and ink signature of the Servicer’s Authorized Employee (such copy or representation of the Authorized Employee’s signature shall be such Authorized Employee’s adopted Electronic Signature as defined in Guide Section 1401.2) and either:
  • Attached to an e-mail and delivered to Freddie Mac at the following e-mail address: [email protected]; or
  • Uploaded through the Freddie Mac eBill system

Servicing Gateway Reference

How to sign up for Servicing Gateway

Getting Access to Servicing Gateway

Services who already have access to servicing tools use the same credentials (user IDs and passwords) that were used prior to the launch to access the tools available through use the same user id and password, but you will only have to enter them once. Your access to our servicing tools remains unchanged.

For new users, the tools within Servicing Gateway are available in Freddie Mac Access Manager for administrators to provision access to any new users and to change access permissions for existing users.

For Servicers who do not use Access Manager, fill out/submit the associated access request forms, which are available on the respective tool web pages on sf.freddiemac.com.

How to Log into Servicing Gateway

Visit the Servicing Gateway web page (or any of the tool web pages) and click the “Login” button. Enter your credentials, then Servicing Gateway will display all the tools to which you have access. Servicers are encouraged to bookmark the URL (https://sg.freddiemac.com) for your convenience.

Tools available in Servicing Gateway

• Investor Reporting
  • Cash Manager
  • Loan Level Reporting
  • Servicing Transfer Manager
• Reporting Insights
  • Servicer Performance Profile
• Data Corrections
  • Post-Fund Data Correction Tool
  • Servicing Data Corrections
• Non-performing Loans
  • Attorney Data Reporting System
  • BPODirect^®
  • EDR
  • Default Fee Appeal System
  • Payments Automated Intelligent and Dynamic (PAID)
  • Real Estate Valuation and Pricing

Reporting and Drafting Calendars