7101.6: Endorsement of Notes and assignment of Security Instruments related to Transfers of Servicing (08/13/18)

Owned by Kacey Olson
Nov 23, 2018
2 min read

© Freddie Mac Single-Family Seller Servicer Guide

When a Mortgage is sold to Freddie Mac, the Seller must endorse the Note in blank in accordance with Section 6301.3. When a Transfer of Servicing occurs, the Transferor Servicer may not complete the blank endorsement or further endorse the Note, but must prepare and complete assignments according to the following requirements:

(a) Concurrent Transfer of Servicing for a Mortgage not registered with MERS® To prepare and complete assignment of the Security Instrument for a Concurrent Transfer of Servicing for a Mortgage not registered with MERS, the Transferor Servicer must:

  • Record any Intervening Assignments to complete the chain of assignments to it from the original mortgagee, in accordance with Section 6301.6(a)
  • Assign the Security Instruments to the Transferee Servicer, and record the assignment
  • Follow the document custodial procedures set forth in Section 7101.9 and deliver the assignment to the Transferee Servicer's Document Custodian to be verified in accordance with the requirements of Section 6304.2

See Section 6301.6(a) for additional information.

(b) Concurrent Transfer of Servicing for a Mortgage registered with MERS To prepare and complete an assignment of the Security Instrument for a Concurrent Transfer of Servicing of a Mortgage that is registered with MERS:

  • If the Transferee Servicer is a MERS Member, no further assignment is needed. The Transferor Servicer must notify MERS of the Transfer of Servicing.
  • If the Transferee Servicer is not a MERS Member, then for a Concurrent Transfer of Servicing:
    • The Transferor Servicer must prepare and record an assignment of the Security Instrument (on behalf of MERS) from MERS to the Transferee Servicer
    • The Transferor Servicer must follow the document custodial procedures set forth in Section 7101.9, and deliver the assignment to the Transferee Servicer's Document Custodian to be verified and certified in accordance with the requirements of Section 6304.2

See Section 6301.6(b) for additional information.

(c) Subsequent Transfer of Servicing for a Mortgage not registered with MERS To prepare and complete an assignment of a Security Instrument for a Mortgage related to a Subsequent Transfer of Servicing if that Mortgage is not registered with MERS, the Transferor Servicer must:

  • Recover and destroy any original unrecorded assignments to Freddie Mac that may have been prepared
  • Assign the Security Instrument to the Transferee Servicer and record the assignment
  • Follow the document custody procedures set forth in Section 7101.9, and deliver assignment(s) to the Transferee Document Custodian to be verified and certified in accordance with the requirements of Section 6304.2

If the most recent assignment of the Security Instrument is to Freddie Mac and was recorded, the Transferor Servicer may not prepare an assignment to the Transferee Servicer.