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Recapture of Cash Premiums for Early Payoffs to Begin with September Invoice

July 9, 2013

Recapture of Cash Premiums for Early Payoffs to Begin with September Invoice

Consistent with industry practices, Single-Family Seller/Servicer Guide (Guide) Bulletin 2012-11 announced the addition of a Guide provision that permits recapture of premiums paid for mortgages that pay off within 120 days of sale to Freddie Mac. This provision applies to all early payoffs, regardless of whether due to refinancing, prepayment, or any other reason. We will implement this provision and begin recapturing premiums for mortgages with early payoffs on and after August 1, 2013, that were sold to Freddie Mac through the Cash window.

Details of the Early Payoff Premium Recapture will be included in your monthly Freddie Mac Seller account activity statement and netted with any other activity for that month. Recapture of premiums for mortgages sold for Cash will begin with August 2013 early payoffs and will appear on your September 2013 invoice.

Please contact your Freddie Mac representative with any questions.

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