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 other focuses on subservicing. Both documents aim to streamline processes, reduce compliance risk, and maintain a positive borrower experience.
Transfer of Mortgage Servicing Rights (MSRs)
Purpose: Clarifies updated procedures and required documentation for transferring MSRs between servicers.
Key Elements:
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.
Key Elements:
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.