8303.9: Payoff – matured or prepaid (03/02/16)

© Freddie Mac Single-Family Seller Servicer Guide

A payoff is the repayment of a Mortgage due to full amortization or prepayment-in-full. The Servicer must report the payoff as of the Payoff Date or the date the Servicer receives the funds (as applicable), and may not alter it for any reason.

The Servicer must complete the following steps to report and remit a payoff of a Mortgage:

1. To report a prepayment-in-full, report the payoff by the second Business Day after the Payoff DateTo report the payoff of a matured Mortgage, report the payoff by the earlier of the maturity date or within two Business Days of the date the Servicer receives the funds. For Mortgages registered on the MERS® System, the Servicer must, by the second Business Day after the Payoff Date, update the MERS System to a loan status of "Paid in full" for Mortgages reported to Freddie Mac as matured or prepaid.

2. Initiate two separate remittances in accordance with Sections 8302.14 and 8302.15 as follows:

(a) For a prepayment-in-full, the Servicer must remit the UPB due to Freddie Mac as reported in the previous cycle, plus or minus the exception interest in the Servicer's exception remittance so the proceeds are available to Freddie Mac by the fifth Business Day after the Payoff DateFor a payoff of a matured Mortgage, the Servicer must remit the UPB due to Freddie Mac as reported in the previous cycle, plus or minus the exception interest by the fifth Business Day after the earlier of the maturity date or the Servicer receives funds, in the Servicer's exception remittance

(b) In the Servicer's monthly remittance the Servicer must remit the monthly, interest or any reinstatement interest due to Freddie Mac as of the Accounting Cycle Cutoff in which the Servicer paid off the Mortgage based on the remittance due date

3. Do not report or remit funds on this Mortgage in future cycles

Refer to Sections 8303.4 and 8303.5 for information regarding an erroneously reported payoff or rescinded payoff.