REMINDER: IRCI – Freddie Mac Loan Sales

September 4, 2019

As a reminder, Freddie Mac is going to begin assessing compensatory fees for Master File Changes, Post-Funding Corrections and Data Corrections. For loans being sold to Freddie Mac, please ensure the fields referenced in the initial advisory are accurately delivered to avoid a fee of $500 per loan.

Details from the May 30 advisory:

Due to the new Investor Reporting Change Initiative (IRCI), all loans sold to Freddie Mac must be boarded to Cenlar’s loan servicing system within two business days after they are sold to Freddie Mac. This is a new process and may require programming changes at your organization. In addition to the timely boarding of loans, it is imperative that the following data fields are accurate when selling each loan:
• Due Date Last Paid Installment (DDLPI)
• Unpaid Principal Balance (UPB)
• Principal and Interest (P&I)
• Interest Rate (IR)
• Service Fee (SF)
Prior to the implementation of the IRCI, Freddie Mac did not analyze the DDLPI, P&I or Note Rates (IR) fields. Now that the IRCI changes have been implemented, if any of these data fields are incorrect, it will cause an edit which could negatively impact your Servicer Scorecard. If the loan is not sold correctly creating inaccurate information in the data fields referenced above, Freddie Mac will require a Master File change to correct the field and a compensatory fee of $500 per loan will be assessed. Also, prior to this change, Cenlar was able to adjust incorrect UPB balances reporting of the principal within Freddie Mac’s tolerance, but with the new IRCI logic, we are unable to do so.
Please note as stated in Bulletin 2019-6, Freddie Mac will not assess compensatory fees during the May through August reporting activity on the following:
• EDR noncompliance (see Section 8303.38)
• Unreported transactions and loan simulation (see Section 8303.39)
• Aged data errors (see Section 8303.40)
• Next month late reported payoff noncompliance (see Section 8303.41)
• Draft delay (Payoffs and nonsufficient funds) (see Section 8303.42)
• Contract noncompliance and contract change (see Section 8303.43)