Transition to the Service Loans Application Nears Completion
September 12, 2011
Since announcing our implementation of the Service Loans application last January, more than 95 percent of Freddie Mac Servicers have successfully migrated to the new application. We expect full adoption to be complete during the next few weeks.
Retiring MIDANET for Servicing
As full adoption of the Service Loans application nears completion, we are retiring MIDANET® for the PC (MIDANET) for servicing from the Single-Family Seller/Servicer Guide (Guide), effective October 1, 2011. As announced in our September 12 Guide Bulletin, this includes:
- Removing all references to MIDANET from applicable sections of Volume 2 of the Guide.
- Reorganizing Guide Chapters 76-79 to improve readability and eliminate redundancies.
- Replacing Guide Chapter 83, Additional Servicing Requirements for Maturing Balloon/Reset Mortgages, with new Guide Chapter A83. New Guide Chapter A83 updates and reorganizes the provisions of Guide Chapter 83, which is being retired.
Along with these updates, it is important to note that once Freddie Mac Servicers transition to the Service Loans application, they must use the application for all investor reporting, including default reporting, and may no longer use MIDANET.
Transition Leads to Servicing Improvement for Servicers
To support a smooth transition during the phased migration, we have been working hand-in-hand with Servicers on their adoption and, to date, we have set up over 7,000 users and provided training to more than 1,000 Servicers. Servicers using the application today benefit from a more intuitive servicing environment for investor reporting functions, including default reporting, that offers:
- An easy-to-navigate Web interface.
- Access from the convenience of any desktop.
- A user-friendly interface and drop-down menus for easier data entry.
As one application user commented, "The Service Loans application helps get loans submitted in a small fraction of the time it took compared to sending information through MIDANET."
Whether it is through improved technology or streamlined business processes, Freddie Mac is focused on ways to help you strengthen your daily servicing operations and improve the way you service mortgages on our behalf. The cornerstone of our improvements is the Web-based Service Loans application and we are beginning to look toward expanding the application's existing capabilities and providing you with additional servicing technology tools that will help build value and enhance our mutual goal of quality servicing.