Freddie Mac Single-Family Seller/Servicer Guide 8303.1 — Core concepts and Freddie Mac policies for reporting and drafting

This section contains requirements related to: ■ Definitions of terms specific to this chapter ■ Freddie Mac’s rights ■ Reporting and drafting ■ Freddie Mac drafting timelines ■ Availability of funds ■ Draft dates ■ Freddie Mac resources related to reporting and remittance

(a) Definitions of terms specific to this chapter The following additional terms are used in this chapter. The terms are italicized here and when they are used in the chapter. Defined terms for Mortgage Servicing and reporting A Active Mortgage A current or delinquent Mortgage for which the Servicer reports and Freddie Mac drafts payments and payoffs. B Biweekly Mortgage A Mortgage that is originated and delivered to Freddie Mac with a biweekly payment schedule in which the Borrower makes a principal and interest payment every two weeks pursuant to either the terms of the Note, a rider or a separate agreement. A Mortgage in which the Servicer and Borrower enter a biweekly payment plan in accordance with Section 8104.1(b) after the Mortgage has been sold to Freddie Mac is not considered a Biweekly Mortgage. C Compensating Interest For purposes of the requirements regarding Payoff Draft Date 18 Mortgages, “Compensating Interest” is interest due to Freddie Mac calculated by subtracting Exception Interest from Monthly Interest. The Servicer may not collect Compensating Interest from the Borrower. E Exception Interest Interest due to Freddie Mac calculated from the number of days from the first calendar day of the month up to, but not including, the exception date. The Exception Interest is calculated by multiplying the Ending UPB of the prior Accounting Cycle, multiplied by the Accounting Net Yield (ANY) divided by 365, multiplied by the number of days. Exception (or liquidation) activity Anything other than a regular monthly Principal and Interest Payment and partial prepayment. It includes: ■ Payoff – matured ■ Payoff – prepaid ■ Payoff – repurchase ■ Payoff – conversion (ARM converting to a fixed-rate Mortgage) ■ Payoff – short sale, charge-off or make-whole ■ Third party foreclosure sale (conventional and FHA/VA) ■ Transfer to REO ■ Deeds-in-lieu of foreclosure ■ FHA/VA foreclosure conveyance I Inactive Mortgage An Active Mortgage becomes an Inactive Mortgage in the Accounting Cycle in which it becomes 120 days delinquent (four payments past due). The Servicer must change the Reporting Status to inactive either by selecting “inactivation” in the Freddie Mac Loan Level Reporting tool (see Exhibit 88, Servicing Tools) or reporting Loan Level Reporting exception code 40 (Inactivation). If the Servicer does not inactivate a Mortgage in the Accounting Cycle in which it becomes 120 days delinquent, Freddie Mac will inactivate the Mortgage. Once a Mortgage is inactivated, no monthly principal and interest will be drafted unless the Mortgage is partially or fully reinstated. M Monthly Interest Interest due to Freddie Mac calculated for the month of payoff (i.e., the exception date). The monthly interest is calculated by multiplying the Ending UPB of the prior Accounting Cycle, multiplied by the ANY divided by 12. P Principal and Interest Activity The regular monthly Principal and Interest Payment due to Freddie Mac and any partial prepayment. This is also referred to as non-exception activity. Payoff Draft Date 18 Mortgage Mortgages delivered that reflect an “18” in the “prepayment remittance due days” data field in Loan Selling Advisor®. If the Payoff Date is on the first or second Business Day of the month and the payoff is successfully reported on the first or second Business Day of the month, Freddie Mac will draft funds on the 18th calendar day of that month (i.e., in the month in which payoff was successfully reported). If the Payoff Date is on or after the third Business Day of the month and the payoff is successfully reported on or after the third Business Day of the month, Freddie Mac will draft funds on the 18th calendar day of the month following the Payoff Date (i.e., in the month after the month in which the payoff was successfully reported. Note: If the 18th calendar day is a non-Business Day, funds will be drafted on the prior Business Day. R Reporting Status The information listed in Exhibit 60, Loan-Level Reporting Data Description, that the Servicer may report daily but must report to Freddie Mac at least monthly on or before the P&I Determination Date for all Active and Inactive Mortgages the Servicer services for Freddie Mac.

(b) Freddie Mac’s rights Freddie Mac reserves the right to assess compensatory and other fees in accordance with the requirements of this chapter if the Servicer fails to comply with Freddie Mac’s reporting and drafting requirements. The compensatory and other fees are set forth in Sections 8303.5.

(c) Reporting and drafting Reporting is the process of transmitting the Borrower’s payment status of all Freddie Mac’s Mortgages via one of the Freddie Mac-approved reporting media described in Section 8301.2(c). The Servicer’s transmissions must be usable, accurate and timely. Based on Servicer monthly reporting, Freddie Mac will draft principal and interest and payoff amounts that are due to Freddie Mac. The Servicer must report a loan-level transaction on a monthly basis for all Mortgages serviced for Freddie Mac. Freddie Mac considers a loan-level transaction to be reported when it has been transmitted by the Servicer without errors and received by Freddie Mac. If a Servicer does not report a loan-level transaction or does not clear all edits by the end of the Accounting Cycle, Freddie Mac will simulate a loan-level transaction and account for each unreported Mortgage as delinquent based on the last reported DDLPI. In addition, the Servicer is required to report liquidation activity to Freddie Mac as it occurs. (i) Monthly reporting activity Daily reporting is encouraged but not required. The Servicer must report a loan-level transaction for each Mortgage serviced for Freddie Mac once a month no later than 2:00 a.m. Eastern Time on the day following the P&I Determination Date regardless of whether any activity has occurred on the Mortgage. For each Mortgage, Servicers must report any revisions that occur after the P&I Determination Date by the end of the month plus one Business Day. In addition, Servicers are required to monitor daily edit reports provided by Freddie Mac and correct edits promptly, as provided by Section 8303.4(c). Failure to comply with Freddie Mac’s reporting requirements will result in the assessment of compensatory fees as set forth in Sections 8303.5(a) through 8303.5(i). (ii) Remittance cycle and Automated Clearing House (ACH) draft The Standard Remittance Cycle applies to all Mortgages serviced for Freddie Mac. Freddie Mac will initiate an ACH draft to collect monthly Principal and Interest Payments and payoffs directly from the Servicer’s designated Custodial Account in accordance with the requirements of this section. Monthly principal and interest will be drafted on the P&I Draft Date. The principal drafted will be the actual principal collected and reported after 2:00 a.m. Eastern Time on the day following the P&I Determination Date of the previous Accounting Cycle and the actual principal collected and reported to Freddie Mac no later than 2:00 a.m. Eastern Time on the day following the P&I Determination Date of the current Accounting Cycle. Principal reported to Freddie Mac after 2:00 a.m. Eastern Time on the day following the P&I Determination Date will be drafted on the P&I Draft Date of the next Accounting Cycle. The interest drafted will be the amount of forecasted scheduled interest reported in the prior Accounting Cycle. To authorize ACH drafting of monthly Principal and Interest Payments and payoffs or to make changes to ACH draft account instructions previously provided, the Servicer must: ■ Have submitted a completed, executed and duly authorized Form 1132A, Authorization for Automatic Transfer of Funds from Principal and Interest Custodial Account Through the ACH ■ Provide Freddie Mac with an updated Form 1132A for any change to the ACH instructions no later than 15 Business Days before the last Business Day of the first month in which Freddie Mac will initiate the first draft to set up or make certain changes to the draft account ■ Deliver Form 1132A to Freddie Mac as an Electronic Record (as defined in Section 1401.1(b)), using a Portable Document Format (PDF) (or other Electronic Record format commonly used in the mortgage industry), that has been completed and contains the copy or representation of the pen and ink signature of the Servicer’s Authorized Employee (such copy or representation of the Authorized Employee’s signature shall be such Authorized Employee’s adopted Electronic Signature as defined in Section 1401.1(b)) and either: ❑ Attached to an e-mail and e-mailed to Freddie Mac at [email protected]; or ❑ Uploaded through the Freddie Mac eBilling system Freddie Mac and the Servicer agree that the delivery of Electronic Records with Electronic Signatures are eligible Electronic Transactions (as defined in Section 1401.1(b)) and are governed by the applicable provisions of Chapter 1401. The employee authorized to execute Form 1132A on the Servicer’s behalf must be designated as an “Authorized Employee” on the Servicer’s: ■ Form 988SF, Certificate of Incumbency for a Bank, Savings Bank, Savings and Loan Association, Credit Union, Corporation or Limited Liability Company, or ■ Form 989SF, Certificate of Incumbency for Limited Partnerships, as applicable (see Section 2201.1 for additional information regarding the Certificate of Incumbency requirements) Freddie Mac will perform a call back to verify receipt of authorized Form 1132A ACH instructions and will also process a non-dollar transaction using the information provided on Form 1132A to verify the accuracy of the instructions. The account the Servicer designates on Form 1132A as the ACH draft account for the payment of monthly principal and interest and payoffs must be a Principal and Interest Custodial Account or a Principal and Interest Disbursement Clearing Custodial Account. The Servicer agrees to notify Freddie Mac immediately at [email protected] of any changes to the status of the Servicer’s designated Custodial Account. If funds in the Servicer’s designated Custodial Account are insufficient to cover the amount due, or if Freddie Mac is unable to draft principal and interest payments or payoff amounts from the Servicer’s Custodial Account for any reason, the Servicer may be assessed a delayed draft compensatory fee in accordance with Section 8303.5(h). (iii) Exception or liquidation activity The Servicer must report repurchases and prepaid payoffs by the second Business Day after the activity. Matured payoffs must be reported by the earlier of the maturity date or within two Business Days after the date the Servicer receives the funds, as provided by Section 8303.3(a). For Standard Payoff Remittances, if reported no later than the second Business Day after the activity or, in the case of matured payoffs, two Business Days after funds are received, Freddie Mac will draft payoff proceeds on the fifth Business Day after the Payoff Date. For Payoff Draft Date 18 Mortgage Payoff remittances: ■ If the Payoff Date occurred in the previous month (i.e., the previous Accounting Cycle) or is on the first or second Business Day of the month, and the payoff is successfully reported on the first or second Business Day of the month for matured or prepaid payoffs, or repurchases, Freddie Mac will draft funds on the 18th calendar day of the month in which payoff was successfully reported ■ If the Payoff Date is on or after the third Business Day of the month and the payoff is successfully reported on or after the third Business Day of the month for matured or prepaid payoffs, or repurchases, Freddie Mac will draft funds on the 18th calendar day of the month following the month in which the payoff was successfully reported If the Servicer fails to report the payoff of a Mortgage that has reached maturity, Freddie Mac will simulate a payoff transaction for the Mortgage as of the first calendar day of the month following the maturity date. The proceeds will post to the Draft Report and will be drafted on the second Business Day after Freddie Mac simulates the matured payoff transaction. However, if Freddie Mac elects not to draft a payoff transaction for a matured Mortgage, Freddie Mac, in its sole discretion, may exercise its right to require the Servicer to repurchase the Mortgage. The Servicer will be responsible for all accrued interest through the date of payoff and the Servicer will incur a compensatory fee if the funds are not available to Freddie Mac by the applicable Payoff Draft Date. In addition, Freddie Mac reserves the right to assess a delayed draft noncompliance compensatory fee (see Section 8303.5(h)) for all matured Mortgages for which the Servicer fails to report timely. The Servicer will receive an edit if the Servicer attempts to report a principal and interest activity in the next Accounting Cycle following the month of maturity. The table below summarizes reporting requirements for exception activities and when Freddie Mac will draft the payoff amounts. Summary of reporting and drafting requirements Transaction Exception date Liquidation transaction Reporting timeline* Payoff Draft Date Draft amount Matured payoff The earlier of the maturity date or receipt of funds by Servicer Payoff - Matured The earlier of the maturity date or within two Business Days of the receipt of funds by Servicer Standard Payoff Remittance: When reported within two Business Days after the exception date: five Business Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. If not reported in the month in which the Mortgage matures, Freddie Mac will simulate a payoff transaction at the end, plus one Business Standard Payoff Remittance: Proceeds Payoff Draft Date 18 Mortgages: Proceeds + Compensating Interest (Monthly Interest minus Exception Interest)** Summary of reporting and drafting requirements Transaction Exception date Liquidation transaction Reporting timeline* Payoff Draft Date Draft amount Day, of the Accounting Cycle following the maturity date, which will establish the payoff date as the first calendar day of the month following the maturity date. The proceeds will post to the Draft Report and will be drafted on the second Business Day after Freddie Mac simulates the matured payoff transaction. Payoff Draft Date 18 Mortgage Payoff Draft Date as defined above Prepaid payoff Payoff Date Payoff - Prepaid Second Business Day after Payoff Date Standard Payoff Remittance: When reported within two Business Days after the exception date: five Business Standard Payoff Remittance: Proceeds Payoff Draft Date 18 Mortgages: Proceeds + Compensating Interest (Monthly Summary of reporting and drafting requirements Transaction Exception date Liquidation transaction Reporting timeline* Payoff Draft Date Draft amount Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. Payoff Draft Date 18 Mortgage Payoff Draft Date as defined above Interest minus Exception Interest)** Short sales Receipt of funds by Servicer PayoffShortSale/Chargeoff/MakeWhole Second Business Day after receipt of funds by Servicer When reported within two Business Days after the exception date: five Business Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. Principal and interest to liquidate Mortgage debt. See Section 9208.3(a) for charge-off adjustments. Summary of reporting and drafting requirements Transaction Exception date Liquidation transaction Reporting timeline* Payoff Draft Date Draft amount Make-whole preforeclosure sale Payoff Date Payoff - ShortSale/Chargeoff/MakeWhole Second Business Day after receipt of funds When reported within two Business Days after the exception date: five Business Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. Principal and interest to liquidate Mortgage debt. See Section 9208.3(a) for charge-off adjustments. Charge-off Second Business Day after receipt of Freddie Mac approval Payoff - ShortSale/Chargeoff/MakeWhole Second Business Day after receipt of Freddie Mac approval When reported within two Business Days after the exception date: five Business Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. Principal and interest to liquidate Mortgage debt. See Section 9210.2 for charge-off adjustments. Summary of reporting and drafting requirements Transaction Exception date Liquidation transaction Reporting timeline* Payoff Draft Date Draft amount Repurchase 30th day from repurchase notification or approval of voluntary repurchase request Payoff - Repurchase 30th day from repurchase notification or approval of voluntary request Standard Payoff Remittance: When reported within two Business Days after the exception date: five Business Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. Payoff Draft Date 18 Mortgage Payoff Draft Date as defined above Standard Payoff Remittance: Principal and interest to liquidate Mortgage debt Payoff Draft Date 18 Mortgages: Principal and interest to liquidate Mortgage Debt + Compensating Interest (Monthly Interest minus Exception Interest)** Foreclosure, third-party sale conventional Foreclosure sale date Third Party Foreclosure Sale Second Business Day after receipt of funds The fifth Business Day after the reported transaction was successfully processed in Loan Level Reporting tool Principal and interest to liquidate the Mortgage debt *Payoffs reported more than two Business Days after the exception date are considered to be reported late and may be subject to compensatory fees. **See Section 8303.3(f) for details on exceptions for payoffs successfully reported on the first or second business day of a month. If the Servicer needs to delete a previously reported payoff, it must transmit a revision within the same Accounting Cycle in which it occurred. If the Servicer reports a payoff to Freddie Mac in error and the Servicer does not reverse it within the same Accounting Cycle, Freddie Mac will not be able to reactivate the Mortgage, and the Servicer must advance its own funds to its Custodial Account, which Freddie Mac will draft to liquidate the Mortgage. Freddie Mac requires the Servicer to report timely and accurately. If the Servicer reports late or submits inaccurate data, Freddie Mac incurs a loss. As a result, the Servicer may be subject to a Servicing reporting noncompliance compensatory fee or a late remittance compensatory fee. Refer to the following exhibits about reporting and remitting to Freddie Mac: ■ Exhibit 60 ■ Exhibit 61, Interest and Principal Due Freddie Mac These exhibits will provide the data elements and calculations necessary for each transaction. Note: See Section 8303.2(a) for specific requirements for reporting and remitting for Mortgages with partial principal forbearance.

(d) Freddie Mac drafting timelines (i) Monthly drafting Freddie Mac will draft, via an ACH transaction, monthly principal and interest and payoffs directly from the Servicer’s designated Custodial Account. Monthly principal and interest will be drafted on the P&I Draft Date (the second Business Day after the P&I Determination Date) and will include: ■ Current Accounting Cycle interest due (reported in the prior Accounting Cycle) ■ Actual principal collected and reported to Freddie Mac after 2:00 a.m. Eastern Time on the day following the P&I Determination Date of the prior Accounting Cycle ■ Actual principal collected during the current Accounting Cycle and reported to Freddie Mac no later than 2:00 a.m. Eastern Time on the day following the P&I Determination Date of the current Accounting Cycle ■ Interest due on reinstated Mortgages On a daily basis, Freddie Mac provides Servicers a Draft Report that provides a daily cumulative view of the amounts, including adjustments, that will be drafted during the Accounting Cycle. In addition, the report provides loan-level transaction details (e.g., principal and interest, liquidation amounts and adjustments). A preliminary Draft Report will be available daily in the Freddie Mac Cash Manager tool (see Exhibit 88) and updated based on daily reporting. A final version will be provided on the morning after the P&I Determination Date. To authorize ACH drafting of monthly principal and interest and payoffs, the Servicer must complete, execute and submit to Freddie Mac Form 1132A. See Section 8303.1(c) for additional information about Form 1132A delivery requirements. Note: See Sections 8303.3(a) through 8303.3(f) for drafting requirements for payoffs and liquidations. (ii) Foreclosure, REO and escrow The only funds the Servicer must remit by check or wire are REO (refer to Section 9701.4(e)) proceeds and Escrow refunds for taxes or property insurance premiums in connection with a foreclosure or REO. Principal and interest proceeds must be remitted via the automated cash remittance system as described in Chapter 8302.

(e) Availability of funds The Servicer must ensure funds are available no later than 9:00 am (Eastern Standard/Daylight Time) on the applicable draft date. If sufficient funds are not available on the applicable draft date, Servicers may be assessed a draft delay noncompliance compensatory fee as referenced in 8303.5(h).

(f) Draft dates The Servicer must make all funds due to Freddie Mac available for Freddie Mac to draft by the applicable draft date. If the applicable draft date is on a non-Business Day, the funds must be available to Freddie Mac on the preceding Business Day. Refer to Section 8303.1(e) for availability of remittances.

(g) Freddie Mac resources related to reporting and remittance The following are additional resources related to the topics in this chapter: ■ Exhibit 60 ■ Exhibit 61 ■ Exhibit 62, Interest Calculation: Amortization Method - Full Month's Interest ■ Exhibit 63, Interest Calculation: Amortization Method - Multiple Installments on Same Principal Balance ■ Exhibit 64, Interest Calculation: Amortization Method - Multiple Installments on Respective Principal Balances ■ Exhibit 82, Electronic Default Reporting Transmission Code List ■ Exhibit 88 The Servicer may also visit Freddie Mac Learning at https://sf.freddiemac.com/toolslearning/freddie-mac-learning/overview or call Customer Service at 800-FREDDIE for further information.

Refer to Bulletins 2026-G and 2026-11, which announced updates related to Freddie Mac’s new event-based default related reporting requirements. Beginning November 16, 2026, Servicers may implement the new requirements if they are operationally ready to do so. If a Servicer adopts the new event-based default related reporting standards before the mandatory effective date of September 27, 2027, it must comply with the associated Guide requirements that will be effective on September 27, 2027 and, upon such adoption, must discontinue monthly EDR reporting. This section contains requirements related to: ■ Definitions of terms specific to this chapter ■ Freddie Mac’s rights ■ Reporting and drafting ■ Freddie Mac drafting timelines ■ Availability of funds ■ Draft dates ■ Freddie Mac resources related to reporting and remittance

(a) Definitions of terms specific to this chapter The following additional terms are used in this chapter. The terms are italicized here and when they are used in the chapter. Defined terms for Mortgage Servicing and reporting A Active Mortgage A current or delinquent Mortgage for which the Servicer reports and Freddie Mac drafts payments and payoffs. B Biweekly Mortgage A Mortgage that is originated and delivered to Freddie Mac with a biweekly payment schedule in which the Borrower makes a principal and interest payment every two weeks pursuant to either the terms of the Note, a rider or a separate agreement. A Mortgage in which the Servicer and Borrower enter a biweekly payment plan in accordance with Section 8104.1(b) after the Mortgage has been sold to Freddie Mac is not considered a Biweekly Mortgage. C Compensating Interest For purposes of the requirements regarding Payoff Draft Date 18 Mortgages, “Compensating Interest” is interest due to Freddie Mac calculated by subtracting Exception Interest from Monthly Interest. The Servicer may not collect Compensating Interest from the Borrower. E Exception Interest Interest due to Freddie Mac calculated from the number of days from the first calendar day of the month up to, but not including, the exception date. The Exception Interest is calculated by multiplying the Ending UPB of the prior Accounting Cycle, multiplied by the Accounting Net Yield (ANY) divided by 365, multiplied by the number of days. Exception (or liquidation) activity Anything other than a regular monthly Principal and Interest Payment and partial prepayment. It includes: ■ Payoff – matured ■ Payoff – prepaid ■ Payoff – repurchase ■ Payoff – conversion (ARM converting to a fixed-rate Mortgage) ■ Payoff – short sale, charge-off or make-whole ■ Third party foreclosure sale (conventional and FHA/VA) ■ Transfer to REO ■ Deeds-in-lieu of foreclosure ■ FHA/VA foreclosure conveyance I Inactive Mortgage An Active Mortgage becomes an Inactive Mortgage in the Accounting Cycle in which it becomes 120 days delinquent (four payments past due). The Servicer must change the Reporting Status to inactive either by selecting “inactivation” in the Freddie Mac Loan Level Reporting tool (see Exhibit 88, Servicing Tools) or reporting Loan Level Reporting exception code 40 (Inactivation). If the Servicer does not inactivate a Mortgage in the Accounting Cycle in which it becomes 120 days delinquent, Freddie Mac will inactivate the Mortgage. Once a Mortgage is inactivated, no monthly principal and interest will be drafted unless the Mortgage is partially or fully reinstated. M Monthly Interest Interest due to Freddie Mac calculated for the month of payoff (i.e., the exception date). The monthly interest is calculated by multiplying the Ending UPB of the prior Accounting Cycle, multiplied by the ANY divided by 12. P Principal and Interest Activity The regular monthly Principal and Interest Payment due to Freddie Mac and any partial prepayment. This is also referred to as non-exception activity. Payoff Draft Date 18 Mortgage Mortgages delivered that reflect an “18” in the “prepayment remittance due days” data field in Loan Selling Advisor®. If the Payoff Date is on the first or second Business Day of the month and the payoff is successfully reported on the first or second Business Day of the month, Freddie Mac will draft funds on the 18th calendar day of that month (i.e., in the month in which payoff was successfully reported). If the Payoff Date is on or after the third Business Day of the month and the payoff is successfully reported on or after the third Business Day of the month, Freddie Mac will draft funds on the 18th calendar day of the month following the Payoff Date (i.e., in the month after the month in which the payoff was successfully reported. Note: If the 18th calendar day is a non-Business Day, funds will be drafted on the prior Business Day. R Reporting Status The information listed in Exhibit 60, Loan-Level Reporting Data Description, that the Servicer may report daily but must report to Freddie Mac at least monthly on or before the P&I Determination Date for all Active and Inactive Mortgages the Servicer services for Freddie Mac.

(b) Freddie Mac’s rights Freddie Mac reserves the right to assess compensatory and other fees in accordance with the requirements of this chapter if the Servicer fails to comply with Freddie Mac’s reporting and drafting requirements. The compensatory and other fees are set forth in Sections 8303.5.

(c) Reporting and drafting Reporting is the process of transmitting the Borrower’s payment status of all Freddie Mac’s Mortgages via one of the Freddie Mac-approved reporting media described in Section 8301.2(c). The Servicer’s transmissions must be usable, accurate and timely. Based on Servicer monthly reporting, Freddie Mac will draft principal and interest and payoff amounts that are due to Freddie Mac. The Servicer must report a loan-level transaction on a monthly basis for all Mortgages serviced for Freddie Mac. Freddie Mac considers a loan-level transaction to be reported when it has been transmitted by the Servicer without errors and received by Freddie Mac. If a Servicer does not report a loan-level transaction or does not clear all edits by the end of the Accounting Cycle, Freddie Mac will simulate a loan-level transaction and account for each unreported Mortgage as delinquent based on the last reported DDLPI. In addition, the Servicer is required to report liquidation activity to Freddie Mac as it occurs. (i) Monthly reporting activity Daily reporting is encouraged but not required. The Servicer must report a loan-level transaction for each Mortgage serviced for Freddie Mac once a month no later than 2:00 a.m. Eastern Time on the day following the P&I Determination Date regardless of whether any activity has occurred on the Mortgage. For each Mortgage, Servicers must report any revisions that occur after the P&I Determination Date by the end of the month plus one Business Day. In addition, Servicers are required to monitor daily edit reports provided by Freddie Mac and correct edits promptly, as provided by Section 8303.4(c). Failure to comply with Freddie Mac’s reporting requirements will result in the assessment of compensatory fees as set forth in Sections 8303.5(a) through 8303.5(i). (ii) Remittance cycle and Automated Clearing House (ACH) draft The Standard Remittance Cycle applies to all Mortgages serviced for Freddie Mac. Freddie Mac will initiate an ACH draft to collect monthly Principal and Interest Payments and payoffs directly from the Servicer’s designated Custodial Account in accordance with the requirements of this section. Monthly principal and interest will be drafted on the P&I Draft Date. The principal drafted will be the actual principal collected and reported after 2:00 a.m. Eastern Time on the day following the P&I Determination Date of the previous Accounting Cycle and the actual principal collected and reported to Freddie Mac no later than 2:00 a.m. Eastern Time on the day following the P&I Determination Date of the current Accounting Cycle. Principal reported to Freddie Mac after 2:00 a.m. Eastern Time on the day following the P&I Determination Date will be drafted on the P&I Draft Date of the next Accounting Cycle. The interest drafted will be the amount of forecasted scheduled interest reported in the prior Accounting Cycle. To authorize ACH drafting of monthly Principal and Interest Payments and payoffs or to make changes to ACH draft account instructions previously provided, the Servicer must: ■ Have submitted a completed, executed and duly authorized Form 1132A, Authorization for Automatic Transfer of Funds from Principal and Interest Custodial Account Through the ACH ■ Provide Freddie Mac with an updated Form 1132A for any change to the ACH instructions no later than 15 Business Days before the last Business Day of the first month in which Freddie Mac will initiate the first draft to set up or make certain changes to the draft account ■ Deliver Form 1132A to Freddie Mac as an Electronic Record (as defined in Section 1401.1(b)), using a Portable Document Format (PDF) (or other Electronic Record format commonly used in the mortgage industry), that has been completed and contains the copy or representation of the pen and ink signature of the Servicer’s Authorized Employee (such copy or representation of the Authorized Employee’s signature shall be such Authorized Employee’s adopted Electronic Signature as defined in Section 1401.1(b)) and either: ❑ Attached to an e-mail and e-mailed to Freddie Mac at [email protected]; or ❑ Uploaded through the Freddie Mac eBilling system Freddie Mac and the Servicer agree that the delivery of Electronic Records with Electronic Signatures are eligible Electronic Transactions (as defined in Section 1401.1(b)) and are governed by the applicable provisions of Chapter 1401. The employee authorized to execute Form 1132A on the Servicer’s behalf must be designated as an “Authorized Employee” on the Servicer’s: ■ Form 988SF, Certificate of Incumbency for a Bank, Savings Bank, Savings and Loan Association, Credit Union, Corporation or Limited Liability Company, or ■ Form 989SF, Certificate of Incumbency for Limited Partnerships, as applicable (see Section 2201.1 for additional information regarding the Certificate of Incumbency requirements) Freddie Mac will perform a call back to verify receipt of authorized Form 1132A ACH instructions and will also process a non-dollar transaction using the information provided on Form 1132A to verify the accuracy of the instructions. The account the Servicer designates on Form 1132A as the ACH draft account for the payment of monthly principal and interest and payoffs must be a Principal and Interest Custodial Account or a Principal and Interest Disbursement Clearing Custodial Account. The Servicer agrees to notify Freddie Mac immediately at [email protected] of any changes to the status of the Servicer’s designated Custodial Account. If funds in the Servicer’s designated Custodial Account are insufficient to cover the amount due, or if Freddie Mac is unable to draft principal and interest payments or payoff amounts from the Servicer’s Custodial Account for any reason, the Servicer may be assessed a delayed draft compensatory fee in accordance with Section 8303.5(h). (iii) Exception or liquidation activity The Servicer must report repurchases and prepaid payoffs by the second Business Day after the activity. Matured payoffs must be reported by the earlier of the maturity date or within two Business Days after the date the Servicer receives the funds, as provided by Section 8303.3(a). For Standard Payoff Remittances, if reported no later than the second Business Day after the activity or, in the case of matured payoffs, two Business Days after funds are received, Freddie Mac will draft payoff proceeds on the fifth Business Day after the Payoff Date. For Payoff Draft Date 18 Mortgage Payoff remittances: ■ If the Payoff Date occurred in the previous month (i.e., the previous Accounting Cycle) or is on the first or second Business Day of the month, and the payoff is successfully reported on the first or second Business Day of the month for matured or prepaid payoffs, or repurchases, Freddie Mac will draft funds on the 18th calendar day of the month in which payoff was successfully reported ■ If the Payoff Date is on or after the third Business Day of the month and the payoff is successfully reported on or after the third Business Day of the month for matured or prepaid payoffs, or repurchases, Freddie Mac will draft funds on the 18th calendar day of the month following the month in which the payoff was successfully reported If the Servicer fails to report the payoff of a Mortgage that has reached maturity, Freddie Mac will simulate a payoff transaction for the Mortgage as of the first calendar day of the month following the maturity date. The proceeds will post to the Draft Report and will be drafted on the second Business Day after Freddie Mac simulates the matured payoff transaction. However, if Freddie Mac elects not to draft a payoff transaction for a matured Mortgage, Freddie Mac, in its sole discretion, may exercise its right to require the Servicer to repurchase the Mortgage. The Servicer will be responsible for all accrued interest through the date of payoff and the Servicer will incur a compensatory fee if the funds are not available to Freddie Mac by the applicable Payoff Draft Date. In addition, Freddie Mac reserves the right to assess a delayed draft noncompliance compensatory fee (see Section 8303.5(h)) for all matured Mortgages for which the Servicer fails to report timely. The Servicer will receive an edit if the Servicer attempts to report a principal and interest activity in the next Accounting Cycle following the month of maturity. The table below summarizes reporting requirements for exception activities and when Freddie Mac will draft the payoff amounts. Summary of reporting and drafting requirements Transaction Exception date Liquidation transaction Reporting timeline* Payoff Draft Date Draft amount Matured payoff The earlier of the maturity date or receipt of funds by Servicer Payoff - Matured The earlier of the maturity date or within two Business Days of the receipt of funds by Servicer Standard Payoff Remittance: When reported within two Business Days after the exception date: five Business Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. If not reported in the month in which the Mortgage matures, Freddie Mac will simulate a payoff transaction at the end, plus one Business Day, of the Accounting Cycle following the maturity date, which will establish the Standard Payoff Remittance: Proceeds Payoff Draft Date 18 Mortgages: Proceeds + Compensating Interest (Monthly Interest minus Exception Interest)** Summary of reporting and drafting requirements Transaction Exception date Liquidation transaction Reporting timeline* Payoff Draft Date Draft amount payoff date as the first calendar day of the month following the maturity date. The proceeds will post to the Draft Report and will be drafted on the second Business Day after Freddie Mac simulates the matured payoff transaction. Payoff Draft Date 18 Mortgage Payoff Draft Date as defined above Prepaid payoff Payoff Date Payoff - Prepaid Second Business Day after Payoff Date Standard Payoff Remittance: When reported within two Business Days after the exception date: five Business Days after the exception date. When reported more than two Business Days* after the Standard Payoff Remittance: Proceeds Payoff Draft Date 18 Mortgages: Proceeds + Compensating Interest (Monthly Interest minus Exception Interest)** Summary of reporting and drafting requirements Transaction Exception date Liquidation transaction Reporting timeline* Payoff Draft Date Draft amount exception date: the second Business Day after the payoff transaction was successfully processed. Payoff Draft Date 18 Mortgage Payoff Draft Date as defined above Short sales Receipt of funds by Servicer PayoffShortSale/Chargeoff/MakeWhole Second Business Day after receipt of funds by Servicer When reported within two Business Days after the exception date: five Business Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. Principal and interest to liquidate Mortgage debt. See Section 9208.3(a) for charge-off adjustments. Make-whole preforeclosure sale Payoff Date Payoff - ShortSale/Chargeoff/MakeWhole Second Business Day after receipt of funds When reported within two Business Days after the exception date: five Business Principal and interest to liquidate Mortgage debt. See Section 9208.3(a) for Summary of reporting and drafting requirements Transaction Exception date Liquidation transaction Reporting timeline* Payoff Draft Date Draft amount Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. charge-off adjustments. Charge-off Second Business Day after receipt of Freddie Mac approval Payoff - ShortSale/Chargeoff/MakeWhole Second Business Day after receipt of Freddie Mac approval When reported within two Business Days after the exception date: five Business Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. Principal and interest to liquidate Mortgage debt. See Section 9210.2 for charge-off adjustments. Repurchase 30th day from repurchase notification or approval of voluntary Payoff - Repurchase 30th day from repurchase notification or approval of Standard Payoff Remittance: When reported within two Business Days Standard Payoff Remittance: Principal and interest to liquidate Mortgage debt *Payoffs reported more than two Business Days after the exception date are considered to be reported late and may be subject to compensatory fees. **See Section 8303.3(f) for details on exceptions for payoffs successfully reported on the first or second business day of a month. Summary of reporting and drafting requirements Transaction Exception date Liquidation transaction Reporting timeline* Payoff Draft Date Draft amount repurchase request voluntary request after the exception date: five Business Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. Payoff Draft Date 18 Mortgage Payoff Draft Date as defined above Payoff Draft Date 18 Mortgages: Principal and interest to liquidate Mortgage Debt + Compensating Interest (Monthly Interest minus Exception Interest)** Foreclosure, third-party sale conventional Foreclosure sale date Third Party Foreclosure Sale Second Business Day after receipt of funds The fifth Business Day after the reported transaction was successfully processed in Loan Level Reporting tool Principal and interest to liquidate the Mortgage debt If the Servicer needs to delete a previously reported payoff, it must transmit a revision within the same Accounting Cycle in which it occurred. If the Servicer reports a payoff to Freddie Mac in error and the Servicer does not reverse it within the same Accounting Cycle, Freddie Mac will not be able to reactivate the Mortgage, and the Servicer must advance its own funds to its Custodial Account, which Freddie Mac will draft to liquidate the Mortgage. Freddie Mac requires the Servicer to report timely and accurately. If the Servicer reports late or submits inaccurate data, Freddie Mac incurs a loss. As a result, the Servicer may be subject to a Servicing reporting noncompliance compensatory fee or a late remittance compensatory fee. Refer to the following exhibits about reporting and remitting to Freddie Mac: ■ Exhibit 60 ■ Exhibit 61, Interest and Principal Due Freddie Mac These exhibits will provide the data elements and calculations necessary for each transaction. Note: See Section 8303.2(a) for specific requirements for reporting and remitting for Mortgages with partial principal forbearance.

(d) Freddie Mac drafting timelines (i) Monthly drafting Freddie Mac will draft, via an ACH transaction, monthly principal and interest and payoffs directly from the Servicer’s designated Custodial Account. Monthly principal and interest will be drafted on the P&I Draft Date (the second Business Day after the P&I Determination Date) and will include: ■ Current Accounting Cycle interest due (reported in the prior Accounting Cycle) ■ Actual principal collected and reported to Freddie Mac after 2:00 a.m. Eastern Time on the day following the P&I Determination Date of the prior Accounting Cycle ■ Actual principal collected during the current Accounting Cycle and reported to Freddie Mac no later than 2:00 a.m. Eastern Time on the day following the P&I Determination Date of the current Accounting Cycle ■ Interest due on reinstated Mortgages On a daily basis, Freddie Mac provides Servicers a Draft Report that provides a daily cumulative view of the amounts, including adjustments, that will be drafted during the Accounting Cycle. In addition, the report provides loan-level transaction details (e.g., principal and interest, liquidation amounts and adjustments). A preliminary Draft Report will be available daily in the Freddie Mac Cash Manager tool (see Exhibit 88) and updated based on daily reporting. A final version will be provided on the morning after the P&I Determination Date. To authorize ACH drafting of monthly principal and interest and payoffs, the Servicer must complete, execute and submit to Freddie Mac Form 1132A. See Section 8303.1(c) for additional information about Form 1132A delivery requirements. Note: See Sections 8303.3(a) through 8303.3(f) for drafting requirements for payoffs and liquidations. (ii) Foreclosure, REO and escrow The only funds the Servicer must remit by check or wire are REO (refer to Section 9701.4(e)) proceeds and Escrow refunds for taxes or property insurance premiums in connection with a foreclosure or REO. Principal and interest proceeds must be remitted via the automated cash remittance system as described in Chapter 8302.

(e) Availability of funds The Servicer must ensure funds are available no later than 9:00 am (Eastern Standard/Daylight Time) on the applicable draft date. If sufficient funds are not available on the applicable draft date, Servicers may be assessed a draft delay noncompliance compensatory fee as referenced in 8303.5(h).

(f) Draft dates The Servicer must make all funds due to Freddie Mac available for Freddie Mac to draft by the applicable draft date. If the applicable draft date is on a non-Business Day, the funds must be available to Freddie Mac on the preceding Business Day. Refer to Section 8303.1(e) for availability of remittances.

(g) Freddie Mac resources related to reporting and remittance The following are additional resources related to the topics in this chapter: ■ Exhibit 60 ■ Exhibit 61 ■ Exhibit 62, Interest Calculation: Amortization Method - Full Month's Interest ■ Exhibit 63, Interest Calculation: Amortization Method - Multiple Installments on Same Principal Balance ■ Exhibit 64, Interest Calculation: Amortization Method - Multiple Installments on Respective Principal Balances ■ Exhibit 82, Electronic Default Reporting Transmission Code List ■ Exhibit 88 The Servicer may also visit Freddie Mac Learning at https://sf.freddiemac.com/toolslearning/freddie-mac-learning/overview or call Customer Service at 800-FREDDIE for further information.

Refer to Bulletins 2026-G and 2026-11, which announced updates related to Freddie Mac’s new event-based default related reporting requirements. Beginning November 16, 2026, Servicers may implement the new requirements if they are operationally ready to do so. If a Servicer adopts the new event-based default related reporting standards before the mandatory effective date of September 27, 2027, it must comply with the associated Guide requirements that will be effective on September 27, 2027 and, upon such adoption, must discontinue monthly EDR reporting. This section contains requirements related to: ■ Definitions of terms specific to this chapter ■ Freddie Mac’s rights ■ Reporting and drafting ■ Freddie Mac drafting timelines ■ Availability of funds ■ Draft dates ■ Freddie Mac resources related to reporting and remittance

(a) Definitions of terms specific to this chapter The following additional terms are used in this chapter. The terms are italicized here and when they are used in the chapter. Defined terms for Mortgage Servicing and reporting A Active Mortgage A current or delinquent Mortgage for which the Servicer reports and Freddie Mac drafts payments and payoffs. B Biweekly Mortgage A Mortgage that is originated and delivered to Freddie Mac with a biweekly payment schedule in which the Borrower makes a principal and interest payment every two weeks pursuant to either the terms of the Note, a rider or a separate agreement. A Mortgage in which the Servicer and Borrower enter a biweekly payment plan in accordance with Section 8104.1(b) after the Mortgage has been sold to Freddie Mac is not considered a Biweekly Mortgage. C Compensating Interest For purposes of the requirements regarding Payoff Draft Date 18 Mortgages, “Compensating Interest” is interest due to Freddie Mac calculated by subtracting Exception Interest from Monthly Interest. The Servicer may not collect Compensating Interest from the Borrower. E Exception Interest Interest due to Freddie Mac calculated from the number of days from the first calendar day of the month up to, but not including, the exception date. The Exception Interest is calculated by multiplying the Ending UPB of the prior Accounting Cycle, multiplied by the Accounting Net Yield (ANY) divided by 365, multiplied by the number of days. Exception (or liquidation) activity Anything other than a regular monthly Principal and Interest Payment and partial prepayment. It includes: ■ Payoff – matured ■ Payoff – prepaid ■ Payoff – repurchase ■ Payoff – conversion (ARM converting to a fixed-rate Mortgage) ■ Payoff – short sale, charge-off or make-whole ■ Third party foreclosure sale (conventional and FHA/VA) ■ Transfer to REO ■ Deeds-in-lieu of foreclosure ■ FHA/VA foreclosure conveyance I Inactive Mortgage An Active Mortgage becomes an Inactive Mortgage in the Accounting Cycle in which it becomes 120 days delinquent (four payments past due). The Servicer must change the Reporting Status to inactive either by selecting “inactivation” in the Freddie Mac Loan Level Reporting tool (see Exhibit 88, Servicing Tools) or reporting Loan Level Reporting exception code 40 (Inactivation). If the Servicer does not inactivate a Mortgage in the Accounting Cycle in which it becomes 120 days delinquent, Freddie Mac will inactivate the Mortgage. Once a Mortgage is inactivated, no monthly principal and interest will be drafted unless the Mortgage is partially or fully reinstated. M Monthly Interest Interest due to Freddie Mac calculated for the month of payoff (i.e., the exception date). The monthly interest is calculated by multiplying the Ending UPB of the prior Accounting Cycle, multiplied by the ANY divided by 12. P Principal and Interest Activity The regular monthly Principal and Interest Payment due to Freddie Mac and any partial prepayment. This is also referred to as non-exception activity. Payoff Draft Date 18 Mortgage Mortgages delivered that reflect an “18” in the “prepayment remittance due days” data field in Loan Selling Advisor®. If the Payoff Date is on the first or second Business Day of the month and the payoff is successfully reported on the first or second Business Day of the month, Freddie Mac will draft funds on the 18th calendar day of that month (i.e., in the month in which payoff was successfully reported). If the Payoff Date is on or after the third Business Day of the month and the payoff is successfully reported on or after the third Business Day of the month, Freddie Mac will draft funds on the 18th calendar day of the month following the Payoff Date (i.e., in the month after the month in which the payoff was successfully reported. Note: If the 18th calendar day is a non-Business Day, funds will be drafted on the prior Business Day. R Reporting Status The information listed in Exhibit 60, Loan-Level Reporting Data Description, that the Servicer may report daily but must report to Freddie Mac at least monthly on or before the P&I Determination Date for all Active and Inactive Mortgages the Servicer services for Freddie Mac.

(b) Freddie Mac’s rights Freddie Mac reserves the right to assess compensatory and other fees in accordance with the requirements of this chapter if the Servicer fails to comply with Freddie Mac’s reporting and drafting requirements. The compensatory and other fees are set forth in Sections 8303.5.

(c) Reporting and drafting Reporting is the process of transmitting the Borrower’s payment status of all Freddie Mac’s Mortgages via one of the Freddie Mac-approved reporting media described in Section 8301.2(c). The Servicer’s transmissions must be usable, accurate and timely. Based on Servicer monthly reporting, Freddie Mac will draft principal and interest and payoff amounts that are due to Freddie Mac. The Servicer must report a loan-level transaction on a monthly basis for all Mortgages serviced for Freddie Mac. Freddie Mac considers a loan-level transaction to be reported when it has been transmitted by the Servicer without errors and received by Freddie Mac. If a Servicer does not report a loan-level transaction or does not clear all edits by the end of the Accounting Cycle, Freddie Mac will simulate a loan-level transaction and account for each unreported Mortgage as delinquent based on the last reported DDLPI. In addition, the Servicer is required to report liquidation activity to Freddie Mac as it occurs. (i) Reporting activity Servicers must report loan-level transactions to Freddie Mac the same day as they are processed in their system but no later than 3:45 a.m. Eastern time the next Business Day. Each loan-level transaction must reflect the cumulative principal received and scheduled interest. If no payments are received by the P&I Determination Date, Servicers must report a loan-level transaction to Freddie Mac no later than 3:45 a.m. Eastern time of the Business Day immediately after the P&I Determination Date for any loan that has not already been reported during the month. Any revisions (e.g., payments received, corrections to loans with edits) that occur after the P&I Determination date must be reported the same day as they are processed in the Servicer’s system but no later than 10:45 p.m. Eastern time on the last day of the calendar month plus one Business Day. In addition, Servicers are required to monitor daily edit reports provided by Freddie Mac and correct edits promptly, as provided by Section 8303.4(c). Failure to comply with Freddie Mac’s reporting requirements will result in the assessment of compensatory fees as set forth in Sections 8303.5(a) through 8303.5(i). (ii) Remittance cycle and Automated Clearing House (ACH) draft The Standard Remittance Cycle applies to all Mortgages serviced for Freddie Mac. Freddie Mac will initiate an ACH draft to collect monthly Principal and Interest Payments and payoffs directly from the Servicer’s designated Custodial Account in accordance with the requirements of this section. Monthly principal and interest will be drafted on the P&I Draft Date. The principal drafted will be the actual principal collected and reported after 2:00 a.m. Eastern Time on the day following the P&I Determination Date of the previous Accounting Cycle and the actual principal collected and reported to Freddie Mac no later than 2:00 a.m. Eastern Time on the day following the P&I Determination Date of the current Accounting Cycle. Principal reported to Freddie Mac after 2:00 a.m. Eastern Time on the day following the P&I Determination Date will be drafted on the P&I Draft Date of the next Accounting Cycle. The interest drafted will be the amount of forecasted scheduled interest reported in the prior Accounting Cycle. To authorize ACH drafting of monthly Principal and Interest Payments and payoffs or to make changes to ACH draft account instructions previously provided, the Servicer must: ■ Have submitted a completed, executed and duly authorized Form 1132A, Authorization for Automatic Transfer of Funds from Principal and Interest Custodial Account Through the ACH ■ Provide Freddie Mac with an updated Form 1132A for any change to the ACH instructions no later than 15 Business Days before the last Business Day of the first month in which Freddie Mac will initiate the first draft to set up or make certain changes to the draft account ■ Deliver Form 1132A to Freddie Mac as an Electronic Record (as defined in Section 1401.1(b)), using a Portable Document Format (PDF) (or other Electronic Record format commonly used in the mortgage industry), that has been completed and contains the copy or representation of the pen and ink signature of the Servicer’s Authorized Employee (such copy or representation of the Authorized Employee’s signature shall be such Authorized Employee’s adopted Electronic Signature as defined in Section 1401.1(b)) and either: ❑ Attached to an e-mail and e-mailed to Freddie Mac at [email protected]; or ❑ Uploaded through the Freddie Mac eBilling system Freddie Mac and the Servicer agree that the delivery of Electronic Records with Electronic Signatures are eligible Electronic Transactions (as defined in Section 1401.1(b)) and are governed by the applicable provisions of Chapter 1401. The employee authorized to execute Form 1132A on the Servicer’s behalf must be designated as an “Authorized Employee” on the Servicer’s: ■ Form 988SF, Certificate of Incumbency for a Bank, Savings Bank, Savings and Loan Association, Credit Union, Corporation or Limited Liability Company, or ■ Form 989SF, Certificate of Incumbency for Limited Partnerships, as applicable (see Section 2201.1 for additional information regarding the Certificate of Incumbency requirements) Freddie Mac will perform a call back to verify receipt of authorized Form 1132A ACH instructions and will also process a non-dollar transaction using the information provided on Form 1132A to verify the accuracy of the instructions. The account the Servicer designates on Form 1132A as the ACH draft account for the payment of monthly principal and interest and payoffs must be a Principal and Interest Custodial Account or a Principal and Interest Disbursement Clearing Custodial Account. The Servicer agrees to notify Freddie Mac immediately at [email protected] of any changes to the status of the Servicer’s designated Custodial Account. If funds in the Servicer’s designated Custodial Account are insufficient to cover the amount due, or if Freddie Mac is unable to draft principal and interest payments or payoff amounts from the Servicer’s Custodial Account for any reason, the Servicer may be assessed a delayed draft compensatory fee in accordance with Section 8303.5(h). (iii) Exception or liquidation activity The Servicer must report repurchases and prepaid payoffs by the second Business Day after the activity. Matured payoffs must be reported by the earlier of the maturity date or within two Business Days after the date the Servicer receives the funds, as provided by Section 8303.3(a). For Standard Payoff Remittances, if reported no later than the second Business Day after the activity or, in the case of matured payoffs, two Business Days after funds are received, Freddie Mac will draft payoff proceeds on the fifth Business Day after the Payoff Date. For Payoff Draft Date 18 Mortgage Payoff remittances: ■ If the Payoff Date occurred in the previous month (i.e., the previous Accounting Cycle) or is on the first or second Business Day of the month, and the payoff is successfully reported on the first or second Business Day of the month for matured or prepaid payoffs, or repurchases, Freddie Mac will draft funds on the 18th calendar day of the month in which payoff was successfully reported ■ If the Payoff Date is on or after the third Business Day of the month and the payoff is successfully reported on or after the third Business Day of the month for matured or prepaid payoffs, or repurchases, Freddie Mac will draft funds on the 18th calendar day of the month following the month in which the payoff was successfully reported If the Servicer fails to report the payoff of a Mortgage that has reached maturity, Freddie Mac will simulate a payoff transaction for the Mortgage as of the first calendar day of the month following the maturity date. The proceeds will post to the Draft Report and will be drafted on the second Business Day after Freddie Mac simulates the matured payoff transaction. However, if Freddie Mac elects not to draft a payoff transaction for a matured Mortgage, Freddie Mac, in its sole discretion, may exercise its right to require the Servicer to repurchase the Mortgage. The Servicer will be responsible for all accrued interest through the date of payoff and the Servicer will incur a compensatory fee if the funds are not available to Freddie Mac by the applicable Payoff Draft Date. In addition, Freddie Mac reserves the right to assess a delayed draft noncompliance compensatory fee (see Section 8303.5(h)) for all matured Mortgages for which the Servicer fails to report timely. The Servicer will receive an edit if the Servicer attempts to report a principal and interest activity in the next Accounting Cycle following the month of maturity. The table below summarizes reporting requirements for exception activities and when Freddie Mac will draft the payoff amounts. Summary of reporting and drafting requirements Transaction Exception date Liquidation transaction Reporting timeline* Payoff Draft Date Draft amount Matured payoff The earlier of the maturity date or receipt of funds by Servicer Payoff - Matured The earlier of the maturity date or within two Business Days of the receipt of funds by Servicer Standard Payoff Remittance: When reported within two Business Days after the exception date: five Business Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. If not reported in the month in which the Mortgage matures, Freddie Mac will simulate a payoff transaction at the end, plus one Business Standard Payoff Remittance: Proceeds Payoff Draft Date 18 Mortgages: Proceeds + Compensating Interest (Monthly Interest minus Exception Interest)** Summary of reporting and drafting requirements Transaction Exception date Liquidation transaction Reporting timeline* Payoff Draft Date Draft amount Day, of the Accounting Cycle following the maturity date, which will establish the payoff date as the first calendar day of the month following the maturity date. The proceeds will post to the Draft Report and will be drafted on the second Business Day after Freddie Mac simulates the matured payoff transaction. Payoff Draft Date 18 Mortgage Payoff Draft Date as defined above Prepaid payoff Payoff Date Payoff - Prepaid Second Business Day after Payoff Date Standard Payoff Remittance: When reported within two Business Days after the exception date: five Business Standard Payoff Remittance: Proceeds Payoff Draft Date 18 Mortgages: Proceeds + Compensating Interest (Monthly Summary of reporting and drafting requirements Transaction Exception date Liquidation transaction Reporting timeline* Payoff Draft Date Draft amount Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. Payoff Draft Date 18 Mortgage Payoff Draft Date as defined above Interest minus Exception Interest)** Short sales Receipt of funds by Servicer PayoffShortSale/Chargeoff/MakeWhole Second Business Day after receipt of funds by Servicer When reported within two Business Days after the exception date: five Business Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. Principal and interest to liquidate Mortgage debt. See Section 9208.3(a) for charge-off adjustments. Summary of reporting and drafting requirements Transaction Exception date Liquidation transaction Reporting timeline* Payoff Draft Date Draft amount Make-whole preforeclosure sale Payoff Date Payoff - ShortSale/Chargeoff/MakeWhole Second Business Day after receipt of funds When reported within two Business Days after the exception date: five Business Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. Principal and interest to liquidate Mortgage debt. See Section 9208.3(a) for charge-off adjustments. Charge-off Second Business Day after receipt of Freddie Mac approval Payoff - ShortSale/Chargeoff/MakeWhole Second Business Day after receipt of Freddie Mac approval When reported within two Business Days after the exception date: five Business Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. Principal and interest to liquidate Mortgage debt. See Section 9210.2 for charge-off adjustments. Summary of reporting and drafting requirements Transaction Exception date Liquidation transaction Reporting timeline* Payoff Draft Date Draft amount Repurchase 30th day from repurchase notification or approval of voluntary repurchase request Payoff - Repurchase 30th day from repurchase notification or approval of voluntary request Standard Payoff Remittance: When reported within two Business Days after the exception date: five Business Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. Payoff Draft Date 18 Mortgage Payoff Draft Date as defined above Standard Payoff Remittance: Principal and interest to liquidate Mortgage debt Payoff Draft Date 18 Mortgages: Principal and interest to liquidate Mortgage Debt + Compensating Interest (Monthly Interest minus Exception Interest)** Foreclosure, third-party sale conventional Foreclosure sale date Third Party Foreclosure Sale Second Business Day after receipt of funds The fifth Business Day after the reported transaction was successfully processed in Loan Level Reporting tool Principal and interest to liquidate the Mortgage debt *Payoffs reported more than two Business Days after the exception date are considered to be reported late and may be subject to compensatory fees. **See Section 8303.3(f) for details on exceptions for payoffs successfully reported on the first or second business day of a month. If the Servicer needs to delete a previously reported payoff, it must transmit a revision within the same Accounting Cycle in which it occurred. If the Servicer reports a payoff to Freddie Mac in error and the Servicer does not reverse it within the same Accounting Cycle, Freddie Mac will not be able to reactivate the Mortgage, and the Servicer must advance its own funds to its Custodial Account, which Freddie Mac will draft to liquidate the Mortgage. Freddie Mac requires the Servicer to report timely and accurately. If the Servicer reports late or submits inaccurate data, Freddie Mac incurs a loss. As a result, the Servicer may be subject to a Servicing reporting noncompliance compensatory fee or a late remittance compensatory fee. Refer to the following exhibits about reporting and remitting to Freddie Mac: ■ Exhibit 60 ■ Exhibit 61, Interest and Principal Due Freddie Mac These exhibits will provide the data elements and calculations necessary for each transaction. Note: See Section 8303.2(a) for specific requirements for reporting and remitting for Mortgages with partial principal forbearance.

(d) Freddie Mac drafting timelines (i) Monthly drafting Freddie Mac will draft, via an ACH transaction, monthly principal and interest and payoffs directly from the Servicer’s designated Custodial Account. Monthly principal and interest will be drafted on the P&I Draft Date (the second Business Day after the P&I Determination Date) and will include: ■ Current Accounting Cycle interest due (reported in the prior Accounting Cycle) ■ Actual principal collected and reported to Freddie Mac after 2:00 a.m. Eastern Time on the day following the P&I Determination Date of the prior Accounting Cycle ■ Actual principal collected during the current Accounting Cycle and reported to Freddie Mac no later than 2:00 a.m. Eastern Time on the day following the P&I Determination Date of the current Accounting Cycle ■ Interest due on reinstated Mortgages On a daily basis, Freddie Mac provides Servicers a Draft Report that provides a daily cumulative view of the amounts, including adjustments, that will be drafted during the Accounting Cycle. In addition, the report provides loan-level transaction details (e.g., principal and interest, liquidation amounts and adjustments). A preliminary Draft Report will be available daily in the Freddie Mac Cash Manager tool (see Exhibit 88) and updated based on daily reporting. A final version will be provided on the morning after the P&I Determination Date. To authorize ACH drafting of monthly principal and interest and payoffs, the Servicer must complete, execute and submit to Freddie Mac Form 1132A. See Section 8303.1(c) for additional information about Form 1132A delivery requirements. Note: See Sections 8303.3(a) through 8303.3(f) for drafting requirements for payoffs and liquidations. (ii) Foreclosure, REO and escrow The only funds the Servicer must remit by check or wire are REO (refer to Section 9701.4(e)) proceeds and Escrow refunds for taxes or property insurance premiums in connection with a foreclosure or REO. Principal and interest proceeds must be remitted via the automated cash remittance system as described in Chapter 8302.

(e) Availability of funds The Servicer must ensure funds are available no later than 9:00 am (Eastern Standard/Daylight Time) on the applicable draft date. If sufficient funds are not available on the applicable draft date, Servicers may be assessed a draft delay noncompliance compensatory fee as referenced in 8303.5(h).

(f) Draft dates The Servicer must make all funds due to Freddie Mac available for Freddie Mac to draft by the applicable draft date. If the applicable draft date is on a non-Business Day, the funds must be available to Freddie Mac on the preceding Business Day. Refer to Section 8303.1(e) for availability of remittances.

(g) Freddie Mac resources related to reporting and remittance The following are additional resources related to the topics in this chapter: ■ Exhibit 60 ■ Exhibit 61 ■ Exhibit 62, Interest Calculation: Amortization Method - Full Month's Interest ■ Exhibit 63, Interest Calculation: Amortization Method - Multiple Installments on Same Principal Balance ■ Exhibit 64, Interest Calculation: Amortization Method - Multiple Installments on Respective Principal Balances ■ Exhibit 82, Electronic Default Reporting Transmission Code List ■ Exhibit 88 The Servicer may also visit Freddie Mac Learning at https://sf.freddiemac.com/toolslearning/freddie-mac-learning/overview or call Customer Service at 800-FREDDIE for further information.

■ Definitions of terms specific to this chapter ■ Freddie Mac’s rights ■ Reporting and drafting ■ Freddie Mac drafting timelines ■ Availability of funds ■ Draft dates ■ Freddie Mac resources related to reporting and remittance

(a) Definitions of terms specific to this chapter The following additional terms are used in this chapter. The terms are italicized here and when they are used in the chapter. Defined terms for Mortgage Servicing and reporting A Active Mortgage A current or delinquent Mortgage for which the Servicer reports and Freddie Mac drafts payments and payoffs. B Biweekly Mortgage A Mortgage that is originated and delivered to Freddie Mac with a biweekly payment schedule in which the Borrower makes a principal and interest payment every two weeks pursuant to either the terms of the Note, a rider or a separate agreement. A Mortgage in which the Servicer and Borrower enter a biweekly payment plan in accordance with Section 8104.1(b) after the Mortgage has been sold to Freddie Mac is not considered a Biweekly Mortgage. C Compensating Interest For purposes of the requirements regarding Payoff Draft Date 18 Mortgages, “Compensating Interest” is interest due to Freddie Mac calculated by subtracting Exception Interest from Monthly Interest. The Servicer may not collect Compensating Interest from the Borrower. E Exception Interest Interest due to Freddie Mac calculated from the number of days from the first calendar day of the month up to, but not including, the exception date. The Exception Interest is calculated by multiplying the Ending UPB of the prior Accounting Cycle, multiplied by the Accounting Net Yield (ANY) divided by 365, multiplied by the number of days. Exception (or liquidation) activity Anything other than a regular monthly Principal and Interest Payment and partial prepayment. It includes: ■ Payoff – matured ■ Payoff – prepaid ■ Payoff – repurchase ■ Payoff – conversion (ARM converting to a fixed-rate Mortgage) ■ Payoff – short sale, charge-off or make-whole ■ Third party foreclosure sale (conventional and FHA/VA) ■ Transfer to REO ■ Deeds-in-lieu of foreclosure ■ FHA/VA foreclosure conveyance I Inactive Mortgage An Active Mortgage becomes an Inactive Mortgage in the Accounting Cycle in which it becomes 120 days delinquent (four payments past due). The Servicer must change the Reporting Status to inactive either by selecting “inactivation” in the Freddie Mac Loan Level Reporting tool (see Exhibit 88, Servicing Tools) or reporting Loan Level Reporting exception code 40 (Inactivation). If the Servicer does not inactivate a Mortgage in the Accounting Cycle in which it becomes 120 days delinquent, Freddie Mac will inactivate the Mortgage. Once a Mortgage is inactivated, no monthly principal and interest will be drafted unless the Mortgage is partially or fully reinstated. M Monthly Interest Interest due to Freddie Mac calculated for the month of payoff (i.e., the exception date). The monthly interest is calculated by multiplying the Ending UPB of the prior Accounting Cycle, multiplied by the ANY divided by 12. P Principal and Interest Activity The regular monthly Principal and Interest Payment due to Freddie Mac and any partial prepayment. This is also referred to as non-exception activity. Payoff Draft Date 18 Mortgage Mortgages delivered that reflect an “18” in the “prepayment remittance due days” data field in Loan Selling Advisor®. If the Payoff Date is on the first or second Business Day of the month and the payoff is successfully reported on the first or second Business Day of the month, Freddie Mac will draft funds on the 18th calendar day of that month (i.e., in the month in which payoff was successfully reported). If the Payoff Date is on or after the third Business Day of the month and the payoff is successfully reported on or after the third Business Day of the month, Freddie Mac will draft funds on the 18th calendar day of the month following the Payoff Date (i.e., in the month after the month in which the payoff was successfully reported. Note: If the 18th calendar day is a non-Business Day, funds will be drafted on the prior Business Day. R Reporting Status The information listed in Exhibit 60, Loan-Level Reporting Data Description, that the Servicer may report daily but must report to Freddie Mac at least monthly on or before the P&I Determination Date for all Active and Inactive Mortgages the Servicer services for Freddie Mac.

(b) Freddie Mac’s rights Freddie Mac reserves the right to assess compensatory and other fees in accordance with the requirements of this chapter if the Servicer fails to comply with Freddie Mac’s reporting and drafting requirements. The compensatory and other fees are set forth in Sections 8303.5.

(c) Reporting and drafting Reporting is the process of transmitting the Borrower’s payment status of all Freddie Mac’s Mortgages via one of the Freddie Mac-approved reporting media described in Section 8301.2(c). The Servicer’s transmissions must be usable, accurate and timely. Based on Servicer monthly reporting, Freddie Mac will draft principal and interest and payoff amounts that are due to Freddie Mac. The Servicer must report a loan-level transaction on a monthly basis for all Mortgages serviced for Freddie Mac. Freddie Mac considers a loan-level transaction to be reported when it has been transmitted by the Servicer without errors and received by Freddie Mac. If a Servicer does not report a loan-level transaction or does not clear all edits by the end of the Accounting Cycle, Freddie Mac will simulate a loan-level transaction and account for each unreported Mortgage as delinquent based on the last reported DDLPI. In addition, the Servicer is required to report liquidation activity to Freddie Mac as it occurs. (i) Reporting activity Servicers must report loan-level transactions to Freddie Mac the same day as they are processed in their system but no later than 3:45 a.m. Eastern time the next Business Day. Each loan-level transaction must reflect the cumulative principal received and scheduled interest. If no payments are received by the P&I Determination Date, Servicers must report a loan-level transaction to Freddie Mac no later than 3:45 a.m. Eastern time of the Business Day immediately after the P&I Determination Date for any loan that has not already been reported during the month. Any revisions (e.g., payments received, corrections to loans with edits) that occur after the P&I Determination date must be reported the same day as they are processed in the Servicer’s system but no later than 10:45 p.m. Eastern time on the last day of the calendar month plus one Business Day. In addition, Servicers are required to monitor daily edit reports provided by Freddie Mac and correct edits promptly, as provided by Section 8303.4(c). Failure to comply with Freddie Mac’s reporting requirements will result in the assessment of compensatory fees as set forth in Sections 8303.5(a) through 8303.5(i). (ii) Remittance cycle and Automated Clearing House (ACH) draft The Standard Remittance Cycle applies to all Mortgages serviced for Freddie Mac. Freddie Mac will initiate an ACH draft to collect monthly Principal and Interest Payments and payoffs directly from the Servicer’s designated Custodial Account in accordance with the requirements of this section. Monthly principal and interest will be drafted on the P&I Draft Date. The principal drafted will be the actual principal collected and reported after 2:00 a.m. Eastern Time on the day following the P&I Determination Date of the previous Accounting Cycle and the actual principal collected and reported to Freddie Mac no later than 2:00 a.m. Eastern Time on the day following the P&I Determination Date of the current Accounting Cycle. Principal reported to Freddie Mac after 2:00 a.m. Eastern Time on the day following the P&I Determination Date will be drafted on the P&I Draft Date of the next Accounting Cycle. The interest drafted will be the amount of forecasted scheduled interest reported in the prior Accounting Cycle. To authorize ACH drafting of monthly Principal and Interest Payments and payoffs or to make changes to ACH draft account instructions previously provided, the Servicer must: ■ Have submitted a completed, executed and duly authorized Form 1132A, Authorization for Automatic Transfer of Funds from Principal and Interest Custodial Account Through the ACH ■ Provide Freddie Mac with an updated Form 1132A for any change to the ACH instructions no later than 15 Business Days before the last Business Day of the first month in which Freddie Mac will initiate the first draft to set up or make certain changes to the draft account ■ Deliver Form 1132A to Freddie Mac as an Electronic Record (as defined in Section 1401.1(b)), using a Portable Document Format (PDF) (or other Electronic Record format commonly used in the mortgage industry), that has been completed and contains the copy or representation of the pen and ink signature of the Servicer’s Authorized Employee (such copy or representation of the Authorized Employee’s signature shall be such Authorized Employee’s adopted Electronic Signature as defined in Section 1401.1(b)) and either: ❑ Attached to an e-mail and e-mailed to Freddie Mac at [email protected]; or ❑ Uploaded through the Freddie Mac eBilling system Freddie Mac and the Servicer agree that the delivery of Electronic Records with Electronic Signatures are eligible Electronic Transactions (as defined in Section 1401.1(b)) and are governed by the applicable provisions of Chapter 1401. The employee authorized to execute Form 1132A on the Servicer’s behalf must be designated as an “Authorized Employee” on the Servicer’s: ■ Form 988SF, Certificate of Incumbency for a Bank, Savings Bank, Savings and Loan Association, Credit Union, Corporation or Limited Liability Company, or ■ Form 989SF, Certificate of Incumbency for Limited Partnerships, as applicable (see Section 2201.1 for additional information regarding the Certificate of Incumbency requirements) Freddie Mac will perform a call back to verify receipt of authorized Form 1132A ACH instructions and will also process a non-dollar transaction using the information provided on Form 1132A to verify the accuracy of the instructions. The account the Servicer designates on Form 1132A as the ACH draft account for the payment of monthly principal and interest and payoffs must be a Principal and Interest Custodial Account or a Principal and Interest Disbursement Clearing Custodial Account. The Servicer agrees to notify Freddie Mac immediately at [email protected] of any changes to the status of the Servicer’s designated Custodial Account. If funds in the Servicer’s designated Custodial Account are insufficient to cover the amount due, or if Freddie Mac is unable to draft principal and interest payments or payoff amounts from the Servicer’s Custodial Account for any reason, the Servicer may be assessed a delayed draft compensatory fee in accordance with Section 8303.5(h). (iii) Exception or liquidation activity The Servicer must report repurchases and prepaid payoffs by the second Business Day after the activity. Matured payoffs must be reported by the earlier of the maturity date or within two Business Days after the date the Servicer receives the funds, as provided by Section 8303.3(a). For Standard Payoff Remittances, if reported no later than the second Business Day after the activity or, in the case of matured payoffs, two Business Days after funds are received, Freddie Mac will draft payoff proceeds on the fifth Business Day after the Payoff Date. For Payoff Draft Date 18 Mortgage Payoff remittances: ■ If the Payoff Date occurred in the previous month (i.e., the previous Accounting Cycle) or is on the first or second Business Day of the month, and the payoff is successfully reported on the first or second Business Day of the month for matured or prepaid payoffs, or repurchases, Freddie Mac will draft funds on the 18th calendar day of the month in which payoff was successfully reported ■ If the Payoff Date is on or after the third Business Day of the month and the payoff is successfully reported on or after the third Business Day of the month for matured or prepaid payoffs, or repurchases, Freddie Mac will draft funds on the 18th calendar day of the month following the month in which the payoff was successfully reported If the Servicer fails to report the payoff of a Mortgage that has reached maturity, Freddie Mac will simulate a payoff transaction for the Mortgage as of the first calendar day of the month following the maturity date. The proceeds will post to the Draft Report and will be drafted on the second Business Day after Freddie Mac simulates the matured payoff transaction. However, if Freddie Mac elects not to draft a payoff transaction for a matured Mortgage, Freddie Mac, in its sole discretion, may exercise its right to require the Servicer to repurchase the Mortgage. The Servicer will be responsible for all accrued interest through the date of payoff and the Servicer will incur a compensatory fee if the funds are not available to Freddie Mac by the applicable Payoff Draft Date. In addition, Freddie Mac reserves the right to assess a delayed draft noncompliance compensatory fee (see Section 8303.5(h)) for all matured Mortgages for which the Servicer fails to report timely. The Servicer will receive an edit if the Servicer attempts to report a principal and interest activity in the next Accounting Cycle following the month of maturity. The table below summarizes reporting requirements for exception activities and when Freddie Mac will draft the payoff amounts. Summary of reporting and drafting requirements Transaction Exception date Liquidation transaction Reporting timeline* Payoff Draft Date Draft amount Matured payoff The earlier of the maturity date or receipt of funds by Servicer Payoff - Matured The earlier of the maturity date or within two Business Days of the receipt of funds by Servicer Standard Payoff Remittance: When reported within two Business Days after the exception date: five Business Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. If not reported in the month in which the Mortgage matures, Freddie Mac will simulate a payoff transaction at the end, plus one Business Standard Payoff Remittance: Proceeds Payoff Draft Date 18 Mortgages: Proceeds + Compensating Interest (Monthly Interest minus Exception Interest)** Summary of reporting and drafting requirements Transaction Exception date Liquidation transaction Reporting timeline* Payoff Draft Date Draft amount Day, of the Accounting Cycle following the maturity date, which will establish the payoff date as the first calendar day of the month following the maturity date. The proceeds will post to the Draft Report and will be drafted on the second Business Day after Freddie Mac simulates the matured payoff transaction. Payoff Draft Date 18 Mortgage Payoff Draft Date as defined above Prepaid payoff Payoff Date Payoff - Prepaid Second Business Day after Payoff Date Standard Payoff Remittance: When reported within two Business Days after the exception date: five Business Standard Payoff Remittance: Proceeds Payoff Draft Date 18 Mortgages: Proceeds + Compensating Interest (Monthly Summary of reporting and drafting requirements Transaction Exception date Liquidation transaction Reporting timeline* Payoff Draft Date Draft amount Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. Payoff Draft Date 18 Mortgage Payoff Draft Date as defined above Interest minus Exception Interest)** Short sales Receipt of funds by Servicer PayoffShortSale/Chargeoff/MakeWhole Second Business Day after receipt of funds by Servicer When reported within two Business Days after the exception date: five Business Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. Principal and interest to liquidate Mortgage debt. See Section 9208.3(a) for charge-off adjustments. Summary of reporting and drafting requirements Transaction Exception date Liquidation transaction Reporting timeline* Payoff Draft Date Draft amount Make-whole preforeclosure sale Payoff Date Payoff - ShortSale/Chargeoff/MakeWhole Second Business Day after receipt of funds When reported within two Business Days after the exception date: five Business Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. Principal and interest to liquidate Mortgage debt. See Section 9208.3(a) for charge-off adjustments. Charge-off Second Business Day after receipt of Freddie Mac approval Payoff - ShortSale/Chargeoff/MakeWhole Second Business Day after receipt of Freddie Mac approval When reported within two Business Days after the exception date: five Business Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. Principal and interest to liquidate Mortgage debt. See Section 9210.2 for charge-off adjustments. Summary of reporting and drafting requirements Transaction Exception date Liquidation transaction Reporting timeline* Payoff Draft Date Draft amount Repurchase 30th day from repurchase notification or approval of voluntary repurchase request Payoff - Repurchase 30th day from repurchase notification or approval of voluntary request Standard Payoff Remittance: When reported within two Business Days after the exception date: five Business Days after the exception date. When reported more than two Business Days* after the exception date: the second Business Day after the payoff transaction was successfully processed. Payoff Draft Date 18 Mortgage Payoff Draft Date as defined above Standard Payoff Remittance: Principal and interest to liquidate Mortgage debt Payoff Draft Date 18 Mortgages: Principal and interest to liquidate Mortgage Debt + Compensating Interest (Monthly Interest minus Exception Interest)** Foreclosure, third-party sale conventional Foreclosure sale date Third Party Foreclosure Sale Second Business Day after receipt of funds The fifth Business Day after the reported transaction was successfully processed in Loan Level Reporting tool Principal and interest to liquidate the Mortgage debt *Payoffs reported more than two Business Days after the exception date are considered to be reported late and may be subject to compensatory fees. **See Section 8303.3(f) for details on exceptions for payoffs successfully reported on the first or second business day of a month. If the Servicer needs to delete a previously reported payoff, it must transmit a revision within the same Accounting Cycle in which it occurred. If the Servicer reports a payoff to Freddie Mac in error and the Servicer does not reverse it within the same Accounting Cycle, Freddie Mac will not be able to reactivate the Mortgage, and the Servicer must advance its own funds to its Custodial Account, which Freddie Mac will draft to liquidate the Mortgage. Freddie Mac requires the Servicer to report timely and accurately. If the Servicer reports late or submits inaccurate data, Freddie Mac incurs a loss. As a result, the Servicer may be subject to a Servicing reporting noncompliance compensatory fee or a late remittance compensatory fee. Refer to the following exhibits about reporting and remitting to Freddie Mac: ■ Exhibit 60 ■ Exhibit 61, Interest and Principal Due Freddie Mac These exhibits will provide the data elements and calculations necessary for each transaction. Note: See Section 8303.2(a) for specific requirements for reporting and remitting for Mortgages with partial principal forbearance.

(d) Freddie Mac drafting timelines (i) Monthly drafting Freddie Mac will draft, via an ACH transaction, monthly principal and interest and payoffs directly from the Servicer’s designated Custodial Account. Monthly principal and interest will be drafted on the P&I Draft Date (the second Business Day after the P&I Determination Date) and will include: ■ Current Accounting Cycle interest due (reported in the prior Accounting Cycle) ■ Actual principal collected and reported to Freddie Mac after 2:00 a.m. Eastern Time on the day following the P&I Determination Date of the prior Accounting Cycle ■ Actual principal collected during the current Accounting Cycle and reported to Freddie Mac no later than 2:00 a.m. Eastern Time on the day following the P&I Determination Date of the current Accounting Cycle ■ Interest due on reinstated Mortgages On a daily basis, Freddie Mac provides Servicers a Draft Report that provides a daily cumulative view of the amounts, including adjustments, that will be drafted during the Accounting Cycle. In addition, the report provides loan-level transaction details (e.g., principal and interest, liquidation amounts and adjustments). A preliminary Draft Report will be available daily in the Freddie Mac Cash Manager tool (see Exhibit 88) and updated based on daily reporting. A final version will be provided on the morning after the P&I Determination Date. To authorize ACH drafting of monthly principal and interest and payoffs, the Servicer must complete, execute and submit to Freddie Mac Form 1132A. See Section 8303.1(c) for additional information about Form 1132A delivery requirements. Note: See Sections 8303.3(a) through 8303.3(f) for drafting requirements for payoffs and liquidations. (ii) Foreclosure, REO and escrow The only funds the Servicer must remit by check or wire are REO (refer to Section 9701.4(e)) proceeds and Escrow refunds for taxes or property insurance premiums in connection with a foreclosure or REO. Principal and interest proceeds must be remitted via the automated cash remittance system as described in Chapter 8302.

(e) Availability of funds The Servicer must ensure funds are available no later than 9:00 am (Eastern Standard/Daylight Time) on the applicable draft date. If sufficient funds are not available on the applicable draft date, Servicers may be assessed a draft delay noncompliance compensatory fee as referenced in 8303.5(h).

(f) Draft dates The Servicer must make all funds due to Freddie Mac available for Freddie Mac to draft by the applicable draft date. If the applicable draft date is on a non-Business Day, the funds must be available to Freddie Mac on the preceding Business Day. Refer to Section 8303.1(e) for availability of remittances.

(g) Freddie Mac resources related to reporting and remittance The following are additional resources related to the topics in this chapter: ■ Exhibit 60 ■ Exhibit 61 ■ Exhibit 62, Interest Calculation: Amortization Method - Full Month's Interest ■ Exhibit 63, Interest Calculation: Amortization Method - Multiple Installments on Same Principal Balance ■ Exhibit 64, Interest Calculation: Amortization Method - Multiple Installments on Respective Principal Balances ■ Exhibit 82, Default Reporting Dataset Guidelines ■ Exhibit 88 The Servicer may also visit Freddie Mac Learning at https://sf.freddiemac.com/toolslearning/freddie-mac-learning/overview or call Customer Service at 800-FREDDIE for further information.