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What to Remember for Balance Correction Requests Greater than $3,000.00

Loan Activity

A balance correction is needed when the ending gross unpaid principal balance (UPB) is higher than the beginning gross UPB previously reported to Freddie Mac. We refer to this as a negative principal reduction (NEG PR). Balance correction requests greater than $3,000 require Freddie Mac approval.

To obtain this approval, fill out the NEG PR template and return the completed template to your Investor Reporting representative no later than the 5th business day after the accounting cutoff. When requesting balance corrections, please describe in detail why the balance correction is needed. Contact your Investor Reporting representative to get a copy of the template.

Required Documentation. Please include a copy of:

  • The draft, check or payment form with your NEG PR request. 
  • The loan history, which is always required for a NEG PR request, due to the misapplication of capitalized interest, escrow funds, incorrect borrower's loan, and different borrower’s loan.
  • The loan history, displaying the application and reversal of payment, for a NEG PR request >25K.

3 Tips to Limit NEG PR Request Delays

  • Fill out the NEG PR template in its entirety.
  • Include minimum supporting documentation with your request.
  • Add supportive documentation to help Freddie Mac review your request efficiently.

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