Get Ready for Freddie Mac’s UCD Collection Solution
December 15, 2015
This summer, we announced that Freddie Mac and Fannie Mae (the GSEs) will be introducing separate collection solutions for lenders to start delivering the Uniform Closing Dataset (UCD) no later than the fourth quarter of 2016. At the direction of their regulator, the Federal Housing Finance Agency, the GSEs will mandate the delivery of the UCD no earlier than the second quarter of 2017 for all loans acquired by Freddie Mac or Fannie Mae. The UCD is a common industry dataset that allows information on the Consumer Financial Protection Bureau's Closing Disclosure to be communicated electronically.
Freddie Mac's collection solution will be an important offering in the Loan Advisor SuiteSM, which we announced this fall. With the UCD collection solution, you can easily send closing data to Freddie Mac in accordance with the UCD specification.
Today, we’re providing you with more information on Freddie Mac’s collection solution, including ways you can get ready now.
Customer Test Environment Up and Running
We've been working with an array of lenders – our Development Partners – to help us develop, refine, and implement our UCD collection solution. Once a Development Partner has implemented the UCD specification, they can then test the delivery of a UCD file in our customer test environment (CTE).
Our Development Partners have been providing us with valuable feedback as we continue to refine the offering to help it meet industry needs. We’re interested in working with more lenders in 2016 as we expand our program over time. If you’re interested in becoming a Development Partner for the UCD collection solution, please contact your Freddie Mac Account Executive or representative to learn more about the process.
By implementing now and testing the delivery of your UCD file in our CTE, you can get a jump start as you prepare for the mandatory delivery of the UCD no earlier than the second quarter of 2017. In addition, we’re providing assistance and resources for all our Development Partners, including a dedicated team supporting day-to-day needs.
Benefits of the UCD
Implementing the UCD will provide lenders and the industry with multiple benefits, including the following:
- Allows all parties to use a consistent approach and common language to convey closing information.
- Promotes better and more efficient data integration and exchange with all business partners.
- Enhances data integrity while improving understanding and clarity about the loan transaction.
In addition, the UCD will help investors verify that loan eligibility requirements have been met, providing greater certainty.
If you have questions about the UCD or our collection solution, please contact your Freddie Mac representative or send an email to UCD@FreddieMac.com. For more information on the UCD, check out our Web page.
This communication relates to the Uniform Mortgage Data Program®, an effort undertaken jointly by Freddie Mac and Fannie Mae at the direction of their regulator, the Federal Housing Finance Agency.