New Timeline for Reporting Payoffs to Freddie Mac
July 31, 2012
Important Notice as of August 10, 2012
We've published an August 10 Multifamily Seller/Servicer Guide Bulletin that revises and expands the reporting requirements originally announced in July. Effective immediately, Servicers are required to report payoffs, third-party foreclosure sales, short payoffs and transfers to REO to Freddie Mac occurring at the end of a month to Freddie Mac no later than the last business day of that month. Please see the August 10 Guide Bulletin and related Guide Chapters for a complete description of the new requirements.
Servicers currently have up to two business days after a payoff or REO sale occurs to report the transaction to Freddie Mac. With the two day timeline for reporting, many times payoffs actually occur at the end of the month. This means that some payoffs are being reported during the following month.
Accurate and timely financial reporting is very important to Freddie Mac and its investors. In support of financial reporting accuracy, we are changing our reporting requirements immediately. Regardless of when the payoff or REO sale occurs during the month, Servicers must now report the payoff or REO sale to Freddie Mac by the last business day of the month in which the transaction occurred. Please note that this change also applies to reporting of foreclosure sales.
To assist you with this immediate change, we will contact you two business days before the end of the month to determine the timing of an expected REO sale or payoff. This will be a reminder to report the transaction before the end of the month.
You find all the details of this change in the July 31, 2012, Guide Bulletin for the Freddie Mac Multifamily Seller/Servicer Guide. Sections 50.10(b), 50.10(d), and 54.6(a) of the Guide have been revised.
If you have any questions, please contact your loan accounting representative.