Updates Regarding the Freddie Mac Investor Reporting Change Initiative (IRCI)

As we have previously communicated, Freddie Mac is converting its Single-Family Investor Reporting Requirements to more closely align with the industry standard. This change initiative involves a re-design of Freddie Mac’s reporting and accounting model from a monthly reporting model (using an accounting cut-off on the 15th of the month) to a daily reporting model with a month-end accounting cut off.   Below is a list of the key changes that will impact you:

  • Existing Freddie Mac-specific reports will be sundowned after the May 15, 2019 cutoff and be replaced with a new set of reports we believe will closely align with the existing reports.  We anticipate all new reports will be in production on or about June 1st.
  • Freddie Mac requires remittance funds be available in the P&I custodial account one business day prior to remittance.  As a result, beginning with the June remittance, Cenlar will only be able to provide same-day notice of the P&I advance amount. The advance requests will be provided by 11:00 am, EST.  Because this may cause some operational issues, we suggest you inform your Treasury area or other appropriate functional areas of this change. Estimated advance amounts can be calculated by averaging your company’s last 6 months of advance activity.
  • Freddie Mac’s First Tuesday remittance type is being retired as a result of IRCI. The last First Tuesday remittance, which is for the 5/15 accounting cutoff, has been moved up to 5/21/19 from 6/4/19. Subsequently, all loans will remit under the new standard remittance type.
  • The following reports are being modified as a result of this enhancement:  P101, P102, P10N, P10P, P110, P113, P129, P130, P139, P151, P187, S210, S213, S214, S215, S24N, S280, S50Y, S548, T690, T691, T69X, and T69W.

Below is a table showing the reports to be sundowned in May, and the corresponding report which approximates the same function.  During the transition period from May 16th to May 31st, there may be a lag time in the delivery of daily reports.

Title/ Function New
ZZFP Loan Level out of Balance EO3123 Test of Expected Cash Monthly at cutoff
Z9C3 Transmission
EO3155 Freddie Mac LLR-M Activity Monthly at cutoff
T652-1 Loan Reconciliation – Mthly Remit Summary EO3152 Freddie Mac
LLR Reporting Data
Monthly at cutoff
T652-3 Loan Payoff Detail Report EO3157 Freddie Mac Liquidation Reporting Daily based on activity
ZZFM Loan Accounting Data Cross Reference (Monthly Transmission Summary) EO3159 Freddie Mac Monthly Exception Processing Recap Monthly at cutoff
P40X Primary Cash Control (Cashbook) S-2H3-1 Freddie Mac IRCI Custodial and Adv/Repay Activity Daily

Samples of the new reports listed above can be found by signing into CenAccess here: https://www.cenaccess.com/training?id=fid10.

As we continue to evaluate the impact, there may be changes and we will continue to communicate information as it becomes available.  Should you have any questions regarding these changes, please contact your Client Manager or me. 

For more information about Freddie Mac’s initiative, please visit: http://www.freddiemac.com/singlefamily/service/investor_reporting_changes.html