Freddie Mac Single-Family Seller/Servicer Guide 8301.2 — Accounting and reporting methods, including electronic formats, media, remitting requirements and backup reporting

This section contains information related to: ■ Accounting reporting methods ■ Electronic reporting format ■ Reporting media ■ Other reporting and remitting requirements ■ Backup reporting

(a) Accounting reporting methods The Servicer must account for all Mortgages it services for Freddie Mac. Except in instances noted in subsection (ii), Servicers must use the net yield accounting reporting method to pass through principal and interest to Freddie Mac. (i) Net yield Under this method, the Servicer must report any principal payments collected in each Accounting Cycle and the forecasted scheduled interest for the next Accounting Cycle (forecasted scheduled interest and actual principal). Servicers must use the Accounting Net Yield (ANY) to determine the amount of interest due to Freddie Mac for each Mortgage it services for Freddie Mac. The Servicer may have to advance its own funds to ensure that Freddie Mac is able to draft the correct amount of interest. Note: Refer to Exhibit 60, Loan-Level Reporting Data Description, and Exhibit 61, Interest and Principal Due Freddie Mac, for additional details regarding the net yield accounting reporting method. (ii) Alternate method Freddie Mac allows the Servicer to use the alternate method of reporting only if one of the following conditions apply: ■ Applicable law prohibits the use of the net yield method ■ Freddie Mac has instructed the Servicer to use the alternate method of reporting Freddie Mac Mortgages The principal and interest the Servicer reports depends on actual payments collected (actual interest and actual principal). If the Servicer does not collect interest, the Servicer does not report interest to Freddie Mac. If the Servicer collects payments for more than one Accounting Cycle, the Servicer reports all of the interest collected and any applicable principal collected. Note: Refer to Exhibit 61 for interest calculation formulas used in the alternate method of accounting reporting. If the Servicer uses the alternate method of accounting reporting and Freddie Mac has not instructed the Servicer to do so, the Servicer must notify their Freddie Mac Investor Reporting Representative in writing or Customer Service at 800-FREDDIE in advance of the Accounting Cycle reporting for that period. Otherwise, Freddie Mac will assume that the Servicer is using the net yield interest method to report principal and interest to Freddie Mac.

(b) Electronic reporting format Freddie Mac uses a common, industry-wide electronic data interchange (EDI) for the investor reporting format. The American National Standards Institute’s (ANSI), Accredited Standards Committee (ASC) is the nationally recognized governing body for the development and maintenance of electronic data standards. Freddie Mac uses the standardized investor reporting format known as the Investor Reporting (203) transaction set that was developed by ASC. The Servicer may or may not be required to use EDI depending on the Servicer’s selection of a reporting medium as follows: ■ If the Servicer reports via Resolve® or the Freddie Mac Loan Level Reporting tool (see Exhibit 88, Servicing Tools), it is not required to use the EDI format ■ If the Servicer reports via another electronic communication path, as described in Section 8301.2(c)(2), it must use the EDI format ■ If a service bureau reports data to Freddie Mac on a Servicer’s behalf, the service bureau must use the EDI format Note: Refer to the Investor Reporting EDI Implementation Guide or call Customer Service at 800-FREDDIE for further information.

(c) Reporting media Freddie Mac requires Servicers to use of one of the following methods to report activity on the Mortgages serviced for Freddie Mac: 1. Resolve or the Freddie Mac Loan Level Reporting tool accessible via Freddie Mac Gateway (see Exhibit 88) 2. Internet-based communications method (referred to as Generic Connect Services (GCS)). GCS provides a variety of secure protocols that support a wide range of generic file transfer situations, such as bulk file transmissions transmitted by service bureaus or Servicers. Servicers that elect to use a service bureau to report activity on Mortgages serviced for Freddie Mac acknowledge and agree that Freddie Mac will send reports, data and information on these Mortgages that will include, but not be limited to, the daily Business-to-Business Response File and the Business-to-Business Draft File to the Servicer’s service bureau. In the event a Servicer changes its service bureau or begins to use a service bureau for data reporting, it must notify Freddie Mac of the change in accordance with Section 8301.4(d) at least 45 days prior to the effective date of the change. Investor accounting reports, such as the Servicer’s daily Edit Reports, Monthly Account Statement, System Cleared Edits and Loan Reconciliation Difference Report are available through the Loan Level Reporting tool. If the Servicer fails to comply with Freddie Mac’s reporting requirements, Freddie Mac will assess a reporting noncompliance compensatory fee in accordance with the requirements of Sections 8303.5(c) and 8303.5(d). See Section 8301.2(b) for additional information on reporting formats. For further information, call Customer Service at 800-FREDDIE.

(d) Other reporting and remitting requirements Freddie Mac will draft the principal and interest for a repurchase in accordance with the requirements in Section 8303.3(f). The Servicer must transfer funds into the designated Custodial Account prior to Freddie Mac’s draft of the repurchase proceeds. Note: Refer to Chapter 3602 for additional requirements for repurchases required by Freddie Mac or repurchases requested by the Servicer. The following are default management procedures that have reporting and drafting requirements specified in other sections of the Guide: Default management procedures Topic Guide section Repayment plans Section 9203.2(d) Loan modifications Section 9206.4(c) Short sales and make-whole preforeclosure sales Section 9208.3(a) Deeds-in-lieu of foreclosure Section 9209.6 Charge-offs Section 9210.2 Third-party foreclosure sales Section 9301.9(c)

(e) Backup reporting If Freddie Mac does not receive a loan-level transaction by the required reporting date for any reason, the Servicer must be able to provide Freddie Mac (see Directory 7) with corrected or replacement transmissions within 24 hours of Freddie Mac’s request, and the Servicer will be subject to accounting reporting noncompliance compensatory fees. Refer to Chapter 8303 for noncompliance compensatory fees.