Increase Liquid Assets and Fund More Mortgages with Cash Servicing-Released Execution
August 5, 2015
Freddie Mac's cash servicing-released execution enables you to increase your liquid assets and fund more mortgages – using either a mandatory or best efforts commitment. You can sell your mortgage asset and servicing asset in one transaction and receive a competitive all-in cash price that includes the servicing-released premium.
In recent months, we've made several enhancements to this execution, including expanding the number of program servicing buyers and adding imaged document delivery capabilities to make it easier for Community Lenders to sell cash servicing-released.
PNC Bank Joins Cash Servicing-Released Execution
PNC Bank has joined our cash servicing-released execution and is now accepting servicing commitments. In addition to PNC, other Servicers purchasing servicing through this execution include Central Mortgage Company, Homeward Residential, Nationstar Mortgage and U.S. Bank. Multiple servicing buyers help to ensure the most competitive execution possible for your servicing assets, anywhere in the country.
Imaged Document Delivery Now Available
Imaged document delivery enables you to deliver files to Servicers electronically, which provides greater efficiency, increased security, more timely delivery and no wasted effort making paper copies. The following cash servicing-released servicing providers offer imaged document delivery for eligible loans:
- Central Mortgage Company.
- Homeward Residential.
- Nationstar Mortgage.
- PNC Bank.
For more information on how to use this option, please contact the Servicers directly, using the contact information contained in Chapter 3 of the Servicing Transfer Instructions User Guide, on page 3-3.
Get Started Selling Loans for Cash Servicing-Released
If you’re not already selling loans cash servicing-released or just want to learn more about the program, register for our August 20 Fundamentals of the Servicing Released Sales Process webinar to find out how you can get the most out of Freddie Mac’s cash servicing-released execution.
Cash Servicing-Released Resources
- Cash Servicing-Released Web page.
- Find out how to get started selling loans for cash servicing-released.
- Contact your Freddie Mac representative or call Customer Support at 800-FREDDIE (Select Option 3).
Tips on Delivering Cash Servicing-Released Loans
Here are a few helpful tips for selling mortgages through the Freddie Mac Selling SystemSM Servicing-Released Sales Process (SRSP). Review the Servicing Transfer Instructions User Guide for more details:
- Tip #1: Prevent data and funding errors. Incorrect information can affect the funding amounts and could be inadvertently used by the Servicer during borrower set-up, which can lead to RESPA violations. Help ensure you deliver accurate data for all required fields by referring to the delivery requirements in Single-Family Seller/Servicer Guide Chapter 17.
- Tip #2: Ensure delivery of a scheduled UPB. When selling mortgages to Freddie Mac for cash, you must deliver a scheduled unpaid principal balance, as well as a valid due date of last paid installment. When delivering a mortgage through the SRSP, you may have to amortize down the UPB under certain circumstances. See examples in Servicing Transfer Instructions User Guide Chapter 1, pages 1-4 and 1-5.
- Tip #3: Consider if the mortgage has monthly escrow collections or buydown funds. For mortgages with monthly escrow collections or a temporary buydown subsidy, complete the section in the Selling System “Other Funds Collected at Closing.” The servicing-released adjustments entered in this section are automatically deducted/netted (on the funding date) from the amount disbursed to the Seller and are simultaneously wired to the Servicer. Learn more in Servicing Transfer Instructions User Guide Chapter 1, page 1-10.