Automatic Transfer of Funds from a Servicer’s Designated Custodial Account
July 13, 2018
In Single-Family Seller/Servicer Guide (Guide) Bulletin 2017-15 we announced information and updates to our servicing requirements to support our Investor Reporting Change Initiative.
Each month beginning in June 2019, Freddie Mac will draft – via ACH transaction – principal and interest payments and payoff proceeds directly from the Servicer’s designated P&I Custodial Account. To authorize Freddie Mac to draft these funds, Servicers must complete, execute and submit Form 1132A, Authorization for Automatic Transfer of Funds from a Principal and Interest Custodial Account Through ACH, to Freddie Mac.
To help you, we’ve established a staggered submission schedule based on the Servicer’s company name. Servicers with company names beginning with a number or the letters A-C should execute and submit Form 1132A to Freddie Mac via email to CashCollections@FreddieMac.com by August 31, 2018. If a Servicer cannot submit its Form 1132A during the assigned window, it must ensure Freddie Mac has received its Form 1132A no later than February 28, 2019.