Freddie Mac Single-Family Seller/Servicer Guide §7101.6 — Transfer of funds in Transfers of Servicing (09/10/25)
Freddie Mac Guide §7101.6 (Transfer of funds in Transfers of Servicing). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide §7101.6 — Transfer of funds in Transfers of Servicing (09/10/25) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Freddie Mac Guide 7101.6
(09/10/25) This section contains requirements related to: ■ Transfer of funds ■ Funds and correspondence received after Transfers of Servicing (a) Transfer of funds (i) General requirement for transfer of funds The Transferor Servicer must transfer all account balances (including, but not limited to, Escrows, prepayments and buydown funds) to the Transferee Servicer’s depository in a manner that ensures such funds are at all times held in a custodial capacity on behalf of Freddie Mac in accordance with Section 8302.1(c). A final reconciliation of all monies
Freddie Mac Guide 7101.6
101-32 relating to such transfer must be made by the Transferor Servicer on the Effective Date of Transfer. (ii) Escrow accounts The Transferor Servicer must forward the entire balance of all Custodial Accounts related to Escrows, buydown funds, repair accounts and replacement reserves (net of documented advances) to the Transferee Servicer’s depository on the Effective Date of Transfer. (iii) Delinquent interest Delinquent interest advanced to Freddie Mac by the Transferor Servicer as of the Effective Date of Transfer net of prepaid interest must be reimbursed to the Transferor Servicer by the Transferee Servicer no later than the date the funds are due to Freddie Mac. (iv) Delinquent principal Delinquent principal advanced to Freddie Mac by the Transferor Servicer as of the Effective Date of Transfer net of prepaid principal must be reimbursed to the Transferor Servicer by the Transferee Servicer no later than the Effective Date of Transfer. (b) Funds and correspondence received after Transfers of Servicing Within one Business Day of receipt, the Transferor Servicer must deliver to the Transferee Servicer any funds for or correspondence regarding any of the transferred Mortgages and REO related to the Transfer of Servicing if such funds or correspondence is received on or after the Effective Date of Transfer.
Freddie Mac Guide 7101.6
Required notices to Borrowers and Third Parties, Borrower issues and inquiries related to Transfers of Servicing (12/10/25) This section contains requirements related to: ■ Notice to Borrowers regarding Transfers of Servicing ■ Notices of Transfers of Servicing to third parties ■ Borrower issues and inquiries related to Transfers of Servicing (a) Notice to Borrowers regarding Transfers of Servicing
Freddie Mac Guide 7101.6
101-33 (i) Transferor Servicer’s notice to the Borrower The Transferor Servicer must provide timely notice to the Borrowers with Mortgages related to the Transfer of Servicing to ensure a smooth transition, avoid disruption in Mortgage payments and comply with applicable laws and regulations. The Transferor Servicer must provide written notice to each Borrower at least 15 days before the first payment is due to be received by the Transferee Servicer. (ii) Transferee Servicer’s notice to the Borrower The Transferee Servicer must provide to each Borrower written confirmation of the information in the Transferor Servicer’s notice to the Borrowers within 15 days before the date the first payment is due to be received by the Transferee Servicer. (iii) Notice requirements The notice must advise the Borrower of the following: 1. The Effective Date of Transfer 2. The name and address of the Transferee Servicer 3. The names and telephone numbers of the contact persons or departments of the Transferor Servicer and of the Transferee Servicer where the Borrowers’ inquiries relating to the Transfer of Servicing should be directed. (If toll-free numbers are not available, the letter must indicate that collect calls will be accepted.) 4. The date when the Transferor Servicer will no longer collect the Borrowers’ payments and when the Transferee Servicer will begin to collect them 5. Any previously escrowed optional Mortgage life or accident and health insurance for which the Transferee Servicer will not assume responsibility, with appropriate suggestions or instructions for the Borrower to continue such coverage 6. Procedures for maintenance of automatic draft payments, if applicable The notice may not amend the terms of a Mortgage other than those relating to where to send payments. (b) Notices of Transfers of Servicing to third parties The Transferor Servicer must obtain the following approvals and provide the following notices, as applicable: ■ Obtain MI approval and commitment to insure as required by Section 7101.2(d)(i)
Freddie Mac Guide 7101.6
101-34 ■ Advise all applicable property insurers, including the Federal Emergency Management Agency, of the Transfer of Servicing and of the name and address of the Transferee Servicer to modify the Mortgage clause required by Section 4703.6 ■ Provide the required notices to the FHA, RHS and/or VA, if applicable ■ Notify all other appropriate parties, including, but not limited to, mortgage life and/or accident and health insurers, tax verification/reporting and flood zone hazard determination services, tax authorities, condominium associations, homeowners associations, Cooperative Corporations (see Chapter 8801 for special Servicing requirements for Cooperative Share Loans), fee owners for leasehold Mortgages, other lienholders and public utilities levying assessments for which Escrow is collected (c) Borrower issues and inquiries related to Transfers of Servicing As of the Effective Date of Transfer, the Transferee Servicer must be able to: ■ Respond to Borrower inquires and provide current, accurate account information ■ Process all Servicing and accounting transactions within five days following the Effective Date of Transfer The Transferor and Transferee Servicers must ensure that their staff and facilities are adequately prepared to process Servicing and accounting transactions and to respond to Borrower inquiries during the transfer transition period, which may extend beyond the Effective Date of Transfer. If any Servicing or accounting problem cannot be resolved without the involvement of the Transferor Servicer, the Transferee Servicer, and not the Borrower, should initiate the contact with the Transferor Servicer. The Transferor and Transferee Servicers must make reasonable efforts to: ■ Resolve disputes to the Borrowers’ satisfaction when such disputes arise from legitimate Borrower misunderstanding of instructions in the notice of Transfer of Servicing ■ Waive late charges and, if applicable, ■ Make appropriate adjustments to payment and credit records made for misapplied or unapplied payments due to the Transferee Servicer but received by the Transferor Servicer
Freddie Mac Guide 7101.6
102-1 Chapter 7102: Voluntary Partial Cancellation (VPC) of Servicing Contract Rights
Freddie Mac Guide 7101.6
Definitions, eligibility and applicability for Voluntary Partial Cancellation (VPC) Transfers of Servicing (07/09/25) This section contains requirements related to: ■ Key terms and definitions for Voluntary Partial Cancellation (VPC) Transfers of Servicing ■ VPC Transfers of Servicing eligibility ■ VPC Transfer of Servicing and Flow VPC Transfer of Servicing (a) Key terms and definitions for VPC Transfers of Servicing For purposes of this Chapter 7102, the following terms have the prescribed meaning as set forth in Exhibit 30, Voluntary Partial Cancellation of Servicing Contract Rights Agreement (RPL & NPL) Incorporated Provisions, and Exhibit 31, Flow Voluntary Partial Cancellation of Servicing Contract Rights Agreement Incorporated Provisions, as applicable: ■ Flow VPC Agreement ■ Flow VPC Transfer(s) of Servicing ■ VPC Agreement ■ VPC Transfer(s) of Servicing (b) VPC Transfers of Servicing eligibility This Chapter 7102 is not a general offering and is only available to specific Servicers. This Chapter 7102 does not apply unless and until Freddie Mac and the Servicer execute and deliver a VPC Agreement or a Flow VPC Agreement, as applicable, in form and substance acceptable to Freddie Mac in its sole and absolute discretion implementing these terms and conditions. (c) VPC Transfer of Servicing and Flow VPC Transfer of Servicing (i) VPC Transfer of Servicing Consent and Agreement
Freddie Mac Guide 7101.6
102-2 If Freddie Mac consents to a VPC Transfer of Servicing, it will indicate its consent only by executing a VPC Agreement, which must also be executed by the Servicer, in form and substance acceptable to Freddie Mac in its sole and absolute discretion. All VPC Agreements must include the following language: “This VPC Agreement incorporates the provisions of Chapter 7102 and the provisions of Exhibit 30 by reference as a substantive contractual part of this VPC Agreement such that the Servicer expressly agrees that (i) Chapter 7102 is operative as to the Servicer and (ii) the Servicer is bound by the terms and conditions set forth in Chapter 7102 and Exhibit 30.” (ii) Flow VPC Transfer of Servicing Agreement requirements If Freddie Mac consents to a Flow VPC Transfer of Servicing, it will indicate its consent only by executing a Flow VPC Agreement, which must also be executed by the Servicer, in form and substance acceptable to Freddie Mac in its sole and absolute discretion. All Flow VPC Agreements must include the following language: “This Flow VPC Agreement incorporates the provisions of Chapter 7102 and the provisions of Exhibit 31 by reference as a substantive contractual part of this Flow VPC Agreement such that the Servicer expressly agrees that (i) Chapter 7102 is operative as to the Servicer and (ii) the Servicer is bound by the terms and conditions set forth in Chapter 7102 and Exhibit 31.”