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Freddie Mac’s Latest Checklists: MSR Transfers and Subservicing
Freddie Mac (FHLMC) has released two updated Servicing Portfolio Transfer Checklists designed to help mortgage lenders and servicers comply with updated requirements: one covers the transfer of mortgage servicing rights (MSRs), and the o...
Transfer of Mortgage Servicing Rights (MSRs)
- Purpose: Clarifies updated procedures and required documentation for transferring MSRs between servicers.
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Key Elements:
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Notifications: Includes guidance on obtaining Freddie Mac’s approval before initiating an MSR transfer.
- Due Diligence: Stresses verifying loan eligibility, completing necessary forms, and ensuring borrower data accuracy.
- Documentation: Highlights essential forms (e.g., Form 105) and proper execution of servicing contracts.
- Effective Date: Establishes the need for an agreed-upon transfer date to ensure a clear handover of responsibilities.
Subservicing
- Purpose: Lays out newly refined requirements for entering into and managing subservicing relationships.
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Key Elements:
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Approval Process: Covers the steps to obtain Freddie Mac’s approval of a designated Subservicer.
- Agreement Setup: Emphasizes formalizing duties, compensation, and performance standards in a subservicing agreement.
- Monitoring: Provides oversight guidelines to confirm compliance with Freddie Mac standards and accurate borrower communications.
Download the Subsequent Transfers of Servicing and the Subservicing checklist here.