/
8304.13: Reconciling Custodial Accounts (03/02/16)

8304.13: Reconciling Custodial Accounts (03/02/16)

Owned by Kacey Olson (Unlicensed)
Nov 23, 2018

© Freddie Mac Single-Family Seller Servicer Guide

The Servicer must reconcile all Custodial Accounts within 45 days of the Accounting Cycle Cutoff each month. The purpose of the Custodial Account reconciliation is to enable the Servicer to:

  • Identify, at the loan level, variances between the Servicer's receipts, cash disbursements and liabilities due to third parties and Freddie Mac's records
  • Identify and correct the root cause of the items causing the variance
  • Notify Freddie Mac of errors in Freddie Mac's records
  • Fund shortage variances no later than 90 days from the Accounting Cycle Cutoff even if the Servicer has not identified the root cause. However, Freddie Mac reserves the right to request that funding occur immediately.