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Aligned Disclosures: A Step Closer to Single Security

August 27, 2017

On August 28, 2017, Freddie Mac will begin using the aligned disclosure standards that will support the future Single Security for single-family securities we issue, including our Participation Certificates (Gold PCs).

The adoption of this disclosure format is a key step toward the launch of the Single Security or the Uniform Mortgage-backed SecurityTM (UMBSTM) scheduled for the second quarter of 2019.

Guide and Selling System Updates

With the adoption, the following changes will become effective as announced in Single-Family Seller Servicer Guide Bulletin 2017-7:

  • Updated MultiLender Swap posting information will include the prefix for each MultiLender PC Pool. Certain MultiLender PC Pool information will also be renamed.

On August 28, the Selling Mortgages to Freddie Mac Guarantor and MultiLender Swap User Guide will include examples of the new prefix field which can be viewed or exported.

  • Updated Guide Forms 15A, Settlement Summary – Fixed Rate Guarantor, and 15C, Settlement Summary – Weighted Average Coupon ARM PC will include the prefix.

The Selling System Settlement/Funding online tool will reflect the updates to Form 15A and 15C on August 28.

The Selling System® will also display the new prefix on applicable screens for Guarantor and MultiLender Swap Contracts. You can customize a report that will include the prefix information.

As a reminder, these are minor requirement and system changes and will not change the way you do business with us.

Another Single Security Milestone

The use of the disclosures format is another milestone for the Single Security initiative, which is designed to increase liquidity and fungibility in the $3.5 trillion to-be-announced MBS market.

In November 2016, Freddie Mac also began using the Common Securitization Platform for certain issuance and bond administration functions for its Gold and Giant PCs. The platform, which will carry out the core securitization and comingling functions for the Single Security, has been performing as expected.

Freddie Mac is taking these early steps to help our Seller/Servicers, investors, dealers and data vendors make a smooth transition to the Single Security in 2019.

As always, we will communicate changes related to the Single Security initiative in advance of implementation and business impacts so you can prepare.

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