7101.8: Transfer of records (08/13/18)

Owned by Kacey Olson
Nov 23, 2018
3 min read

© Freddie Mac Single-Family Seller Servicer Guide

(a) Transfer of Mortgage and REO files No later than 30 days after the Effective Date of Transfer, the Transferor Servicer must deliver to the Transferee Servicer the following records for each Mortgage and REO for which Servicing is transferred:

(i) Mortgage file: The Mortgage file that the Servicer is required to maintain in accordance with Chapter 3302

  • If the Transferee Servicer does not have the same form of document and records maintenance (photographic, photostatic, microfilm, microfiche, electronic imaging, optical disk or laser disk storage) as the Transferor Servicer, then the Transferor Servicer must either convert the documents and records to the form of storage utilized by the Transferee Servicer or generate paper copies of all documents and records for the Transferee Servicer
  • Effective for Mortgages with Note Dates on or after July 1, 2013, Servicers may no longer make copies of original paper Mortgage file documents for any Mortgage file documents (excluding the paper original Mortgage file documents specified in Section 3302.2, which must always be maintained and stored as paper originals) using microfilm or microfiche. Servicers may copy original paper Mortgage file documents using scanning systems commonly used in the regular course of business at this time, and maintain copies of such documents as Portable Document Format (PDF), Tagged Image File (TIF) format, Joint Photographic Experts Group (JPEG) format or other electronic document formats commonly used in the regular course of business at this time.

(ii) Payment history: The complete history of Mortgage payments and, if applicable, Escrow disbursements (including the most recent Escrow analysis), with supporting documentation, from the Origination Date of the Mortgage

(iii) Correspondence and reports: Copies of all correspondence with and from, and reports to, the Borrowers and, as applicable, FHA, VA, RHS, MI, Freddie Mac and any government authority

(iv) Notice of transfer: A copy of the notice to the Borrowers regarding the Transfer of Servicing

(v) REO history: If REO is being serviced, the complete history of receipts, expenditures and management and marketing activities (including copies of any filed MI claims), with supporting documentation, from the date the REO was acquired

(b) Transfer of portfolio records No later than the Effective Date of Transfer, the Transferor Servicer must deliver to the Transferee Servicer the following records for the Mortgages and REO related to the Transfer of Servicing:

(i) Notices to third parties: The notices required in Section 7101.14, including documentation of MI approval and commitment to insure

(ii) Service contracts: Copies of tax and flood hazard determination service contracts, if applicable

(iii) Unpaid charges: A list of Escrowed charges due and unpaid as of the Effective Date of Transfer

(iv) Trial balances: Trial balances, as of the close of the last Business Day immediately preceding the Effective Date of Transfer, showing:

  • Transfers of Ownership, payoffs and other Servicing exceptions in process
  • Escrows, Escrow advances and prepayments
  • Where applicable, buydown accounts and balances
  • Delinquencies, foreclosures, bankruptcies and REO

(v) Automatic payments: A list of Mortgages subject to automatic drafting of monthly payments

(vi) Insurance policies: A list of Mortgages showing expiration dates of the insurance policies on the Mortgaged Premises, whether or not premiums for these policies were Escrowed by the Transferor Servicer

(vii) Other documents: Ledger records and definitions of codes used in ledger records, trial balances or any other documents required by Freddie Mac to be transferred to the Transferee Servicer

(c) Additional requirements for Subsequent Transfers of Servicing For a Subsequent Transfer of Servicing, the Transferor Servicer must deliver to the Transferee Servicer, no later than 30 days after the Effective Date of Transfer, the following documents in addition to those specified in Sections 7101.8(a) and (b):

  • Custodial Accounts:A copy of the depository's reconciliation, as of the close of the bank's last business day immediately preceding the Effective Date of Transfer, for each Custodial Account maintained in accordance with Chapter 8304
  • Freddie Mac reports:Copies of all Servicing and accounting reports filed with Freddie Mac for the three months immediately preceding the Effective Date of Transfer