7101.10: Transfer of funds (08/13/18)
- Kacey Olson
© Freddie Mac Single-Family Seller Servicer Guide
(a) General
The Transferor Servicer must transfer all account balances (including, but not limited to, Escrows, prepayments and buydown funds) must be transferred to the Transferee Servicer's depository in a manner that ensures such funds are, at all times, held in a custodial capacity on behalf of Freddie Mac in accordance with Section 8302.6. A final reconciliation of all monies relating to such transfer must be made by the Transferor Servicer on the Effective Date of Transfer.
(b) Escrow accounts
The Transferor Servicer must forward the entire balance of all Custodial Accounts related to Escrows, buydown funds, repair accounts and replacement reserves (net of documented advances) to the Transferee Servicer's depository on the Effective Date of Transfer.
(c) Interest
Delinquent interest advanced to Freddie Mac by the Transferor Servicer as of the Effective Date of Transfer net of prepaid interest must be reimbursed to the Transferor Servicer by the Transferee Servicer no later than the date the funds are due to Freddie Mac.
(d) Principal
Delinquent principal advanced to Freddie Mac by the Transferor Servicer as of the Effective Date of Transfer net of prepaid principal must be reimbursed to the Transferor Servicer by the Transferee Servicer no later than the Effective Date of Transfer.