Guide Bulletin 2016-15: Big Changes Ahead for Investor Reporting
August 22, 2016
In today's Single-Family Seller/Servicer Guide (Guide) Bulletin 2016-15, we're announcing the Freddie Mac Investor Reporting Change Initiative. This initiative will convert our Single-Family investor reporting requirements to an industry standard and update remittance cycles by the second half of 2018. It also helps support the disclosure and buyout requirements of the upcoming Single Security initiative.
Once implemented, the changes below will provide you with simpler and more flexible reporting processes, greater operational efficiencies and a more complete view of investor reporting data.
Overview of Changes
The chart below highlights the changes we're making.
We'll engage with you throughout this initiative and provide you with the information and resources you need to accommodate any necessary operational or technological changes. We look forward to working with you and accomplishing these goals.
|Investor reporting cycle||16th to the 15th||1st to the end of month|
|Borrower activity period for investor reporting||16th to the 15th||1st to the end of month|
|Principal & Interest (P&I) reporting dates||5 business days after cutoff||Daily reporting is encouraged, but not required. The "P&I Determination Date" is the 15th calendar day of the month (or next business day if the 15th calendar day falls on a weekend or holiday). Servicers must report on all mortgages on or before this date.
Servicers should report any changes from the 16th calendar day to the end of the month + 1 business day. (See Attachment A to Guide Bulletin 2016-15)
|Corrections to previously reported activity||End of month – 4 business days||Daily through end of month + 1 business day
|Payoff remittance due date||5th business day after the payoff date or contractual due date||No change|
|Remittance cycle and due date (P&I)||Multiple remittance types (Gold/ARC; 1st Tuesday of the following month; other remittance schedules)||Single remittance type. Freddie Mac will directly draft from the Servicer two business days after the P&I Determination Date.
The current cycle interest due is based upon the UPB reported at the end of the prior cycle.
The principal drafted is the actual principal collected from the 16th calendar day of the prior month through the 15th calendar day of the current month (or next business day if the calendar day falls on a weekend or holiday).
(P&I and payoff)
|Funds are remitted via Global Payments Inc. (GPI).||Freddie Mac will draft directly from the Servicer's accounts on the due date.|
|Due Date of Last Paid Installment (DDLPI) reporting||DDLPI is reported via Electronic Default Reporting (EDR) and investor reporting, with EDR being considered the source record for determining delinquency.||DDLPI reported via investor reporting will be considered the source of record for determining delinquency.|
Visit and bookmark our Investor Reporting Change Initiative web page, your central hub for the latest details and frequently asked questions. Beginning in the fall of 2016, and as the initiative progresses, we'll post business requirements and training links. These requirements will include transitional steps you'll need to take for implementation.