Investor Reporting Quick Reference

Investor Reporting Quick Reference
June 2009
Notice
The information in this publication is intended to provide general guidance to Freddie Mac Servicers. The
information is offered as an aid in, not a substitute for, complying with requirements set forth in the Single-Family
Seller/Servicer Guide (the Guide). Each Freddie Mac approved Servicer must comply with all applicable
provisions in the Guide, and all other purchase documents, as that term is defined in the Guide. This manual does
not constitute as one of the purchase documents.
The requirements and the guidelines in this publication are subject to changes by Freddie Mac at any time.
Publication number: 266
Initial Printing: March 1997
Last Updated: June 2009
Copyright© 2009 Federal Home Loan Mortgage Corporation. All rights reserved.
Table of Contents
Table of Contents
Getting Started
What to Report and Remit ................................................................................................................................................................. 1
When to Report and Remit ................................................................................................................................................................ 2
Remittance Options ........................................................................................................................................................................... 3
How to Report and Remit
Reporting ..................................................................................................................................................................................... 6
Remitting...................................................................................................................................................................................... 6
What to do After You Sell Freddie Mac a Mortgage.......................................................................................................................... 7
The Big Picture.................................................................................................................................................................................. 9
Reports Used for Investor Reporting................................................................................................................................................ 10
Need Help?
Contact Your Freddie Mac Loan Portfolio Specialist................................................................................................................. 13
Utilize our Educational Offerings................................................................................................................................................ 13
Call Us..................................................................................................................................................................................... 13
Resolving Data Discrepancies
The Basics....................................................................................................................................................................................... 15
Understanding the Daily Edit Reports ............................................................................................................................................... 15
The Loan Level Missing Report............................................................................................................................................... 16
The Edits to be Cleared Report............................................................................................................................................... 17
The System Cleared Edits Report............................................................................................................................................ 18
How to Use the Daily Edit Reports and Prioritize Which Edits to Resolve First.................................................................................. 19
Loan Edit Codes ............................................................................................................................................................................. 22
Basic Edits ............................................................................................................................................................................... 23
Edits for Exception Codes ........................................................................................................................................................ 25
Edits for Accounting Cycle........................................................................................................................................................ 34
Investor Reporting Quick Reference Page i Freddie Mac

June 2009
Table of Contents
Edits for Last Payment Received Date....................................................................................................................................... 37

Edits for Exception Date........................................................................................................................................................... 39
Edits for Interest Due................................................................................................................................................................ 41
Edits for Principal Due .............................................................................................................................................................. 42
Edits for Unpaid Principal Balance ............................................................................................................................................ 44
Edits for Prepayment Penalty and Note Holder.......................................................................................................................... 47
MIDANET for the PC
Software Version and Site Number
Version Number....................................................................................................................................................................... 48
Site Number............................................................................................................................................................................. 48
Commonly Used Function Keys............................................................................................................................................... 49
How to Access MIDANET Screens
Communications ....................................................................................................................................................................... 50
Loan Level Monthly Reporting.................................................................................................................................................. 51
Sending Us a Revision in MIDANET for the PC
What is a Revised Transaction?................................................................................................................................................. 54
When to Send a Revision.......................................................................................................................................................... 54
How to Send a Revised Transaction.......................................................................................................................................... 54
Reconciling Your Portfolio
The Basics....................................................................................................................................................................................... 55
Understanding the Monthly Reconciliation Reports
The Monthly Account Statement............................................................................................................................................. 56
The Seller/Servicer Remittance Analysis................................................................................................................................. 57
The Detailed Adjustment Report............................................................................................................................................. 59
The Loan Reconciliation Difference Report ............................................................................................................................ 60
How to Use the Monthly Reconciliation Reports............................................................................................................................... 66
Investor Reporting Quick Reference Page ii Freddie Mac

June 2009
Table of Contents
Custodial Accounts
Establishing and Maintaining Accounts.............................................................................................................................................. 67
Reconciling Accounts
Principal and Interest Accounts................................................................................................................................................. 68
Important Points About the Principal and Interest Custodial Account Reconciliation................................................................... 71
Escrow Accounts ..................................................................................................................................................................... 71
Important Points About the Escrow Account Reconciliation....................................................................................................... 73
Resolving Variances.................................................................................................................................................................. 73
Important Points About Variances............................................................................................................................................. 74
Custodial Account Reconciliation and Cash Management Checkpoints ...................................................................................... 75
Transfers of Servicing
What is a Transfer of Servicing?....................................................................................................................................................... 77
Concurrent Versus Subsequent ........................................................................................................................................................ 77
Who are the Players?....................................................................................................................................................................... 77
The Basics....................................................................................................................................................................................... 78
The Details ...................................................................................................................................................................................... 79
Investor Reporting Quick Reference Page iii Freddie Mac

June 2009
Table of Contents
Investor Reporting Quick Reference Page iv Freddie Mac

June 2009
Getting Started What to Report and Remit
Getting Started
Reporting and remitting are processes that require accuracy and proper timing. The brief descriptions here give you an outline of the
Servicers’ responsibilities. See the Single-Family Seller/Servicer Guide and the Where to Get More Information page at the end of this
section for more detailed information.
What to Report and Remit

Reporting and remitting are separate activities:
Reporting is the process of transmitting information to Freddie Mac based on the accounting activity (or non-activity) for each
mortgage in your Freddie Mac portfolio.
You must report to Freddie Mac all mortgages in your Freddie Mac portfolio.
You must report each loan in your Freddie Mac portfolio regardless of whether any activity occurred for the loan
during the reporting period.
Report data that accurately reflects activity applied to each loan in your Freddie Mac portfolio. There are two types
of mortgage/loan activity: non-exception and exception.
Non-exception activity is regular monthly activity of principal and interest payments made according to the terms
and conditions of the security instrument executed by the borrower. This activity includes first-time reporting on
newly funded mortgages, reporting regular principal and interest payments from borrowers on active mortgages,
and reporting on inactive mortgages.
Exception activity is any exception to regular monthly principal and interest payments that changes the mortgage
status. Examples of exception activity include paying off a mortgage in full, reinstating a mortgage from
foreclosure, or a third party sale foreclosure.
Remitting is the process of initiating a transfer of funds due Freddie Mac from your Freddie Mac custodial account.
Freddie Mac Document Investor Reporting Quick Reference

1 June 2009
Getting Started When to Report and Remit
When to Report and Remit

Reporting and remitting is divided into two major parts: monthly processing and interim processing:
Monthly processing is cyclical reporting and remitting completed every month at the same time.
Freddie Mac’s accounting cycle is a one-month period that begins on the 16th of each month and ends at the close of business on the
15th of the following month, or the previous business day if the 15th falls on a non-business day. The accounting cycle determines
the timing for monthly reporting. The timing for monthly remittances is determined by the remittance option selected when the
mortgage was sold to Freddie Mac. The remittance option is listed on the Funding Detail Report sent to you at the time of funding.
Servicers may select more than one remittance option in their portfolio.
Interim processing is event-driven reporting, and remitting that is completed throughout the month in response to certain mortgage
activities, such as payoffs and third-party foreclosure sales. Throughout the month, you must report exception activity for payoffs
within two business days of the activity date, and for third-party foreclosure sales you must report exception activity within five
business days of the activity date.
Example: A payoff that occurred on 1/5/xx must be reported by 1/7/xx.
The receipt-of-funds date determines the timing for interim reporting. The type of mortgage activity determines the timing for
interim remittances.

2 June 2009
Remittance Options
Freddie Mac must have access to funds by the remittance due date.
There is a one business-day lag between the day funds are called in, and the day funds are available to Freddie Mac. Therefore, you
must call in funds no later than 9:00 p.m. Eastern time on the business day prior to the remittance due date.
The five most commonly used remittance options are described below. See the Funding Detail report to determine the remittance
option for a mortgage.
If the remittance option is... Funds are due to Freddie Mac by... Remit funds for...
Accelerated Remittance Cycle (ARC) A contract-specified business day. If the date is not Actual principal reduction
specified, use the third business day following the (including curtailments and
accounting cutoff. prepayments)
Net yield interest
(including interest due on reinstated
mortgages)
Gold The third business day following the accounting cutoff.

First Tuesday The first Tuesday of the calendar month following the
accounting cutoff.
Original, including Class B Multifamily
mortgages
Super Accelerated Remittance Cycle A contract-specified calendar day between the 1st and Scheduled principal
(Super ARC) 15th calendar day of the month. The funds must be
available the preceding business day if the calendar day Scheduled interest
is a non-business day. Previous cycle’s curtailments
Super ARC remittances use the scheduled/scheduled collected
accounting procedure because funds are remitted before
the accounting cutoff.

3 June 2009
The following table lists the reporting due dates, remitting due dates, and exception codes used to report non-exception and exception
activities.
Monthly processing
Exception Activity Description Report activity Remittances are due…

Code within five business
days after the….
N/A Newly funded Mortgage we funded during the current Accounting cutoff By the contract-specified remittance
mortgage accounting cycle. option due date
Active Current or delinquent mortgage that has not

been inactivated and is not in foreclosure.
40 Inactivation Mortgage in which you have initiated and

notified us of foreclosure and are transferring
the loans to an inactive status.
N/A Inactive Mortgage you inactivated in a previous N/A

accounting cycle; no principal or interest due.
50 Reinstatement Mortgage inactivated in a previous accounting By the contract-specified remittance

cycle, brought current can include mortgages option due date
that have a completed workout or loan
modification.
72 FHA/VA foreclosure/ A claim has been filed with the FHA/VA on a No funds are due; you receive a credit
conveyance property that did not sell at foreclosure sale. for the interest advanced on the
contract-specified remittance option due
date.
70 Transfer to REO (real Mortgage property was acquired by us through

estate owned) foreclosure or deed-in-lieu of foreclosure.
80 Principal Balance Mortgage on which the ending UPB is higher By the contract-specified remittance
Correction than the beginning UPB. option due date
4 June 2009
Interim Processing
Exception Activity Description Report activity within…. Remittances are due…
Code
60 Payoff - Matured Mortgage was paid in full during the 2 business days after the Within 5 business days of receipt of
accounting cycle. receipt of funds funds
61 Payoff – Prepaid
65 Payoff – Repurchase You are repurchasing (buying back) a 30 days following the date of Within 5 business days of the exception
mortgage with our approval. our notification requiring or date
approving the repurchase
66 Payoff – ARM Borrower is exercising the conversion 5 business days after the
converting to a fixed option for convertible ARM sold under exception date (exception date
rate the repurchase program. may be no later than the
deadline specified in the
contract)
71 Third-Party Property was purchased by a third party 2 business days after the Within 5 business days of receipt of
foreclosure sale - at foreclosure sale. receipt of funds funds
Conventional
Note: the exception date is the
foreclosure sale
73 Third-Party
foreclosure sale –
FHA/VA mortgage

5 June 2009
Getting Started How to Report and Remit
How to Report and Remit

Reporting
Use Freddie Mac’s Mortgage Information Direct Access Network (MIDANET®) to report mortgage information. You may also use
MIDANET to receive confirmation from Freddie Mac that we have received your reports and to print reports that we send you.
MIDANET includes two automated reporting media: MIDANET for the Personal ComputerTM (MIDANET for the PC), and central
processing unit to central processing unit (CPU-to-CPU). Contact (800) FREDDIE for MIDANET installation instructions or see the
MIDANET for the PC section of this publication for basic information about using MIDANET for the PC.
The data that reflects the activity for a mortgage is referred to as a loan-level transaction. Use MIDANET to report loan-level
transactions to Freddie Mac monthly for each mortgage in your Freddie Mac portfolio. Freddie Mac can only process one transaction
per loan so you should summarize each mortgage’s monthly activity into one transaction. After you report, Freddie Mac sends daily
edit reports to notify you of any discrepancies or edits in your loan-level transactions. Resolve edits as necessary to report correctly for
the cycle. See the Resolving Data Discrepancies in this publication for information on resolving reporting discrepancies.
At the end of the month, after Freddie Mac processes a loan-level transaction for every mortgage you service for us, we create reports to
send you. These monthly reconciliation reports summarize the loan-level activity on your Freddie Mac portfolio for the accounting
cycle. You can use these reports to reconcile your Freddie Mac portfolio, including your custodial account. See Reconciling Your
Portfolio and Custodial Accounts for information on using the monthly reconciliation reports.
Remitting
Remit funds due Freddie Mac through Global Payments, Inc. (GPI), a third party vendor that collects funds on our behalf.
Seller/Servicers have two methods to remit funds, through touch-tone phone (follow the voice prompts), or transmit online via Investor
Accounting ManagerSM (IAM). When you become a Freddie Mac Servicer, we will provide you with a toll-free remittance number and
your identification number. See www.FreddieMac.com for more information regarding IAM.
There is a one business-day lag between the day funds are called in and the day funds are available to Freddie Mac. Therefore, you
must call in funds no later than 9:00 p.m. Eastern time on the business day previous to the remittance due date.

6 June 2009
Getting Started What to do After You Sell Us a Mortgage
What to do After You Sell Freddie Mac a Mortgage

Once Freddie Mac successfully processes the purchase transmission, the mortgage is funded and you receive funding documentation
and either Cash or a PC. You also receive a Loan Purchase Statement and Funding Detail report. The Funding Detail report provides
loan-level backup for the purchase summaries. For each sale you receive one or more Funding Detail reports.
The Funding Detail report is the most important document for ensuring your investor reporting system is in sync with Freddie Mac’s.
You must receive this report before reporting to us on a mortgage for the first time. Use the Funding Detail report to verify the
accuracy of mortgage data to avoid errors in loan setup and reporting. See the MIDANET for the PC section in this quick reference for
information on downloading data from the Funding Detail report to set up your investor reporting to Freddie Mac. Reporting and
remitting requirements for newly funded mortgages are determined by the funding date and the mortgage balance at the end of the
accounting cycle. Freddie Mac reporting and remitting requirements are described in the following table:
If the funding date is And the ending unpaid principal Report and remit…
between the… balance at the accounting cutoff…
1st and 15th of the month Is not different from the funded balance Nothing. You may elect to report for the first time either at the
accounting cutoff in the funding month or in the following month,
when the monthly interest is due.
Is different from the funded balance Principal due and zero interest. Reporting is mandatory since
principal is due.
16th and the end of the month Is not different from the funded balance One month’s interest, even if you do not receive a payment from
the borrower. Reporting is mandatory since interest is due.
Is different from the funded balance Principal reduction and one month’s interest.
Use the following formula to calculate the principal due to us:
Funded balance - Ending balance = Principal due

Use the following formula to calculate monthly interest due to us:
Beginning Unpaid Principal Balance (UPB) x Accounting Net Yield (ANY) ÷ 12 months = Monthly interest due

7 June 2009
Getting Started What to do After You Sell Freddie Mac a Mortgage
Monthly interest is always due in arrears for your Freddie Mac portfolio. This means interest is for the previous calendar month for any
accounting cycle’s reporting. Freddie Mac is not due any monthly interest if we did not own the mortgage during any part of the
previous month. When Freddie Mac purchases a mortgage we reimburse you for the portion of the month we did not own the
mortgage. Therefore, you are required to report and remit interest for the entire month regardless of what day of the month we fund the
mortgage. Monthly interest due to us is calculated on a 30-day month regardless of the actual number of calendar days in the month.
Apply a borrower’s mortgage payment to interest and principal by:
Calculating the interest portion based on the outstanding unpaid principal balance (UPB) as of the last paid installment date.
Applying the balance of the principal and interest payment as a principal reduction.
The following timeline illustrates the interest and principal you would report and remit for a May accounting cycle:
Report principal collected
4/16
4/1 5/1 5/15 6/1
April Interest
Report April’s interest at

May’s cycle

8 June 2009
Getting Started The Big Picture
The Big Picture

Put simply, here are the ongoing things you must do to report and remit to us for your Freddie Mac portfolio.
1 On a daily basis
Deposit mortgage payments into the principal and interest custodial account and escrow custodial account.
Report your loan-level transactions for prepaid and matured payoffs within two business days of receipt of funds. Report all other
liquidations within five business days of receipt of funds.
Remit your liquidations within four business days of receipt of funds. Freddie Mac should receive the remittance within five
business days of receipt of funds.
2 Within the first three business days of the month
Transmit your electronic default reporting (EDR) to us via MIDANET, even if you have no delinquent loans.
3 After the accounting cutoff (usually the 15th of the month)
Report your loan-level transactions within five business days.
Remit 3-day ARC and Gold remittances within two business days. Freddie Mac should receive the remittance within three business
days.
4 On the business day prior to the first Tuesday of the following month
Remit your First Tuesday remittances. Freddie Mac should receive the remittance by the First Tuesday due date.

9 June 2009
Getting Started Reports Used for Investor Reporting
Reports Used for Investor Reporting
Report Name Originator How Communicated Purpose

ARM Notification Freddie Mac sends to you when Investor Accounting Manager Provides detailed information
an adjustable-rate mortgage in about the rate adjustment.
your portfolio has a rate
adjustment.
ARM Trial Balance Freddie Mac sends to you at your Investor Accounting Manager Provides detailed information
request. about adjustable-rate mortgages
in your portfolio.
Detailed Adjustment Report Freddie Mac sends to you Investor Accounting Manager Lists manual adjustments to your
monthly, if applicable. account.
Detailed Remittance Report Freddie Mac sends to you at your Investor Accounting Manager ( Provides the amount due for
request. principal and interest for each
loan in your portfolio for an
accounting cycle.
Edits to be Cleared Report Freddie Mac sends to you daily MIDANET for the PC, Investor Lists loans with edits to resolve.
during the monthly reporting Accounting Manager You will need to transmit a
cycle. revised transaction for each loan
on this report.
Electronic Default Reporting You send to Freddie Mac MIDANET for the PC Provides us with information
(EDR) monthly. See your EDR Guide about loans in your portfolio that
for timing requirements. are in default or foreclosure.
Funding Detail Freddie Mac sends to you when MIDANET for the PC Provides detailed information that
you sell a mortgage to us. your system should mirror about
your sale of a mortgage to us.

10 June 2009

Loan Level Missing Report Freddie Mac sends to you daily MIDANET for the PC, Investor Lists loans that that to be reported
during the monthly reporting Accounting Manager or loans that have an unresolved
cycle (16th through the end of the edit on the Edits to be Cleared
month) once we process 75% of report.
your transactions.
Loan Level Transaction You send to Freddie Mac MIDANET for the PC, Provides us with information for
monthly or if there is exception MIDANET CPU-to-CPU a given cycle about activity on
activity for a mortgage. each loan in your portfolio.
Loan Level Trial Balance Freddie Mac sends to you at your Investor Accounting Manager ( Provides detailed information
request. about each loan in your portfolio.
Loan Reconciliation Difference Freddie Mac sends to you MIDANET for the PC, Investor Summarizes loan-level reporting
Report monthly at month end after we Accounting Manager edits for an accounting cycle.
complete our monthly processing. Used for reconciling your
custodial accounts(s).
Monthly Account Statement Freddie Mac sends to you MIDANET for the PC, Investor Provides a portfolio-level recap
monthly after we complete our Accounting Manager of the amount due to us. Used for
monthly processing. reconciling your custodial
accounts.
Consolidated Monthly Billing Freddie Mac sends to you Hard copy via mail Provides information about fees
Statement monthly, close to the 10th of the and penalties associated with the
month (to be remitted by the last servicing of your portfolio.
business day of the same month).
I Freddie Mac Document Investor Reporting Quick Reference

11 June 2009

Seller/Servicer Remittance Freddie Mac sends to you Investor Accounting Manager Compares what you remitted
Analysis monthly. through Global Payments, Inc.
(GPI) to what we expected you to
remit.
Servicer Performance Profile Freddie Mac sends to you MIDANET for the PC, Provides you with information on
monthly. FreddieMac.com how well you are meeting our
servicing guidelines,
requirements, criteria, and
standards.
System Cleared Edits Report Freddie Mac sends to you daily MIDANET for the PC, Investor Lists loans with edits that our
during the monthly reporting Accounting Manager system cleared and processed.
cycle.

12 June 2009
Getting Started Need Help?
Need Help?
Contact Your Freddie Mac Loan Portfolio Specialist
If you need help with your investor reporting, contact your Freddie Mac Loan Portfolio Specialist. To quickly identify your Freddie Mac Loan
Portfolio Specialist’s name and telephone number, contact (800) FREDDIE.
Utilize our Educational Offerings

Online publications and reference materials are available to provide you quick access to the most current information that will help and guide
you in doing business with Freddie Mac or consider attending one of Freddie Mac’s servicing workshops if you
Have general questions about investor reporting and remitting
Need to know how to reconcile your portfolio
Need to know how to interpret and use the various reports that we send you.
Freddie Mac classes are offered across the country throughout the year. The Learning Center is your online resource for everything Freddie
Mac Campus has to offer. You’ll locate training, information and reference materials on a wide variety of Servicing topics.
Call Us
If you need help with… Contact

Custodial Accounts (800) FREDDIE or your Freddie Mac Loan Portfolio Specialist
EDR or the Foreclosure/DIL Notification process (800) FREDDIE
Educational Resources The Learning Center at www.freddiemac.com/learn
Fee invoices or statements (800) FREDDIE

13 June 2009
Getting Started Need Help?
If you need help with… Contact

Investor Accounting (general reporting, remitting and reconciling) (800) FREDDIE or your Freddie Mac Loan Portfolio Specialist
Loan Repurchases Fees and Claims email Repurchases@FreddieMac.com
MIDANET (imports/exports, downloads or general questions) (800) FREDDIE
Transfers of Servicing Transfer of Servicing Team (703) 903-4209 or (703) 903-4113

14 June 2009
Resolving Data Discrepancies The Basics
Resolving Data Discrepancies
The Basics
When Freddie Mac receives your loan transactions, we notify you the next business day of any data discrepancies between what you reported and what
we expected. We compare the data you transmit to us each day against our database and notify you of any discrepancies via our daily edit reports. Each
discrepancy (or edit) is listed on our daily edit reports with an edit code that identifies and explains the discrepancy. All of our edit codes are listed and
explained in the Loan Edit Codes section of this booklet. Freddie Mac expects you to resolve the edits listed on your daily edit reports and ensure that
you have given us accurate information. There are four distinct things that you must do for each edit:
1 Review the edit, determine its cause, and, if needed, send Freddie Mac a revised transaction before the reporting due date.
2 Correct the cause of the data discrepancy and take preventive action to eliminate a repeat occurrence in the next reporting cycle.
3 Determine if your remittance to Freddie Mac needs to be adjusted, and remit funds if necessary.
4 Determine if your custodial account needs to be adjusted, and adjust it if necessary.
Understanding the Daily Edit Reports

The daily edit reports are available to Servicers through MIDANET for the PC and through Investor Accounting Manager application. See the
MIDANET for the PC section of this publication for details on accessing the reports on MIDANET for the PC. To access Investor Accounting
Manager, contact (800) FREDDIE.
You will receive from us the following three edit reports:

§ Edits to be Cleared report
§ System Cleared Edits report
§ Loan Level Missing report
Each report is described on the following pages.

15 June 2009
Resolving Data Discrepancies Understanding the Daily Edit Reports
The Loan Level Missing report
The Loan Level Missing report identifies all outstanding monthly loan-level transactions. It includes both loans that you did not report to Freddie Mac
and loans with unresolved edits on the Edits to be Cleared report. The Loan-Level Missing report is available daily only during the monthly reporting
cycle (between the 16th and the end of the month) the day after 75% of your monthly loan transactions are processed in our system. You will receive this
report daily until we close our cycle.
REPORT ID: LL03611R FREDDIE MAC PAGE: 1

ACCOUNTANT: 1E1209 LOAN LEVEL REPORTING RUN DATE: 03/20/XX
ACCT CYCLE: 03/02/XX SERVICER LOAN TRANSACTIONS MISSING REPORT TIME: 00:05:56
SERVICER
NUMBER LOANS MISSING CURRENT CYCLE TRANSACTIONS
123456 123456781 123456782* The total number of mortgages

itemized on this report
NUMBER OF MISSING LOANS FOR THIS SERV = 2
This is your Servicer number

* Indicates an edit exists for this
mortgage. You need to refer
to the Edits to be Cleared report
to identify the problem and
transmit a revision.
Mortgages without an *
have not yet been
reported, or were
reported with an
invalid loan number

16 June 2009
The Edits to be Cleared report
The Edits to be Cleared report identifies loan transaction edits that prevent Freddie Mac from processing the transaction until you take immediate action
to resolve the edit error. It is available to you on a daily basis throughout the month regardless of whether or not you have actual edits. If you have no
edits, the report displays a “No data in error” status message.
REPORT: PL02350R FREDDIE MAC PAGE: 1

ACCOUNTANT: 1-E1-209 LOAN LEVEL REPORTING RUN DATE: 03/23/XX
EDIT ERROR REPORT TIME: 23:30:07
EDITS TO BE CLEARED
CYCLE:XX0315 SERVICER : 123456 ABC BANK, F.S.B. PHONE: (555) 555-1212
FREDDIE UNPAID NET USER EDIT

MAC SERVICER DUE DATE PRINCIPLE
PRINCIPAL INTEREST PRINCIPAL YIELD EXCP EXCP PREPAYMENT NO ID CORR ERR
LOAN NMBR LOAN NUMBER LPI DUE DUE BALANCE RATE CODE DATE PENALTY TE IND CODE
GROUP # : 5632064
799822191 1629531 02/01/XX 0.00 203.76 30,093.22 8.125 00/00/00 303
TOTAL TRANSACTIONS IN ERROR: 1
The edit code(s) assigned

The total of all loans with The Accounting Net Yield to this transaction
outstanding edits that appear rate for this loan according
on this report to Freddie Mac system
The exception code reported

for this loan.

17 June 2009
The System Cleared Edits report
The System Cleared Edits report identifies loan transaction edits that our system resolved and continued processing. Our system adjusts and processes
principal due and interest due discrepancies less than $1,000 for non-exception transactions and of less than $5 for exception transactions. If the amount
of a discrepancy is not within Freddie Mac’s tolerance amount, our system will not process the information and an edit will appear on the Edits to be
Cleared report. You must take action to resolve data errors in your system that created edits on the System Cleared Edits report so that edits do not
reoccur. The report is available to you on a daily basis throughout the month regardless of whether or not you have actual edits. If you have no edits, the
report will display a “No data in error” status message.
REPORT: PL02310R FREDDIE MAC PAGE: 1

ACCOUNTANT: 1-E1-209 LOAN LEVEL REPORTING RUN DATE: 01/01/XXXX
EDIT ERROR REPORT TIME: 04:00:42
SYSTEM CLEARED EDITS
CYCLE: XX0315 SERVICER: 123456 ABC BANK, F.S.B. PHONE: (555) 555-1212
FREDDIE UNPAID NET USER EDIT

MAC SERVICER DUE DATE PRINCIPAL INTEREST PRINCIPAL YIELD EXCP EXCP PREPAYMENT NO ID CORR ERR
LOAN NMBR LOAN NUMBER LPI DUE DUE BALANCE RATE CODE DATE PENALTY TE IND CODE
GROUP # : 1078543
94719748 20-104624-4
03/01/XX 1,010.72 7.31 0.00 7.450 61 03/7/XX 0.00 0 600
EXPECTED 7.51
TOTAL TRANSACTIONS IN ERROR: 1
The edit code(s)

An amount will appear in this assigned to this
The total of all mortgages the line for principal, interest, UPB The exception code transaction
system cleared that appear on or prepayment penalty when reported for this mortgage
this report the amount you reported was
changed by our system.
There may also be a change

for exception code or exception
date.

18 June 2009
Resolving Data Discrepancies How to Use the Daily Edit Reports and Prioritize Which Edits to Resolve First
How to Use the Daily Edit Reports and Prioritize Which Edits to Resolve First
Freddie Mac systems display all applicable edit codes on each edit report even if resolution of a particular edit resides with us. We provide you with all
applicable edit codes so that you are aware of the action being taken for each loan. When using the edit reports and resolving edits, refer to the Edit
Codes section of this quick reference for helpful information about each edit code.
Perform activities 1-4 listed below to prioritize which edits you should clear first. Your Freddie Mac Loan Portfolio Specialist or (800) FREDDIE will
work with you to create an action plan for resolving the data discrepancies. You should complete steps 1-4 during cyclical monthly reporting, between
the accounting cycle cutoff and the end of the calendar month. You should complete steps 2-4 for interim reporting throughout the month.
Step Process to Prioritize and Resolve Edits

1 Review the Loan Level Missing report to get an overall picture of what you need to research and resolve to ensure all loans are accurately
reported. The Loan Level Missing report includes all loans Freddie Mac did not process, including system-rejected loans and loans not
reported. The Loan Level Missing report provides each individual Freddie Mac loan number, and a total count of all outstanding loans.
§ If a loan appears without an asterisk (*), Freddie Mac did not receive a transaction for the loan, or you reported the loan with an invalid
Freddie Mac loan number. Contact your Freddie Mac Loan Portfolio Specialist if you have questions.
§ If a loan appears with an asterisk (*), Freddie Mac received a loan transaction for the loan but the transaction was rejected. The loan will
appear on the Edits to be Cleared report. You must resolve all edits that appear on the Edits to be Cleared report.
Analyze the Loan Level Missing report and determine the number of missing loans and the steps needed to ensure each loan is successfully
2 reported to us. If your Loan Level Missing report shows:
§ A large number of loans that have not been reported (no asterisk), then determine the date your loans were reported or are to be reported
and contact your Freddie Mac Loan Portfolio Specialist.
§ A small number of loans that have not been reported (no asterisk), then research each loan and ensure each loan is reported.
§ Loans that have been reported, but have edit errors (asterisk), then go to Step 2.

19 June 2009

3 Review the Edits to be Cleared report to look for the cause of the discrepancies. Determine whether there is a single common cause that
explains why many of the loans appear on the report or whether each transaction requires research to determine the cause of the discrepancy.
In some cases, you may have more than one edit for a loan. Review all the edits in combination to determine the cause and resolution.
§ If there are multiple loans appearing on the Edits to be Cleared report with the same error code or transaction type, then
1 Research a sampling of the loans on the report to determine if they share a common cause.
2 Determine the cause of the data discrepancy.
3 If the edit is caused by an error on your system, correct the cause of the data discrepancy and send us a revised transaction with the
corrected information.
4 If the edit is caused by an error on our system, notify your Freddie Mac Loan Portfolio Specialist or (800) FREDDIE immediately
and send them a copy of the supporting documentation so that we can correct the error.
5 Take preventive action to eliminate repeat occurrences.
§ If the loans appearing on the Edits to be Cleared report have various types of error codes or transaction types, then
q Resolve the discrepancies for each transaction type and send a revised transaction according to the following priority:
1 Payoffs and foreclosure transaction edits within 1 business day.

2 FHA/VA HUD Conveyances and REO transaction edits within 2 business days.
3 All other transaction edits within 2 business days.
q If an edit is caused by an error on our system, notify your Freddie Mac Loan Portfolio Specialist or (800) FREDDIE immediately and
send them a copy of the supporting documentation so that we can correct the error.

20 June 2009

4 Review the System Cleared Edits report to determine if you agree with the final transaction that we processed. If the transaction was
§ Incorrectly reported but accurately adjusted by our system, then correct the cause of the error by the next accounting cutoff to prevent
re-occurrences.
§ Accurately reported but incorrectly adjusted by our system, then notify your Freddie Mac Loan Portfolio Specialist or (800)
FREDDIE immediately and then send them a copy of all supporting documentation.

21 June 2009
Resolving Data Discrepancies Loan Edit Codes
Loan Edit Codes

Use the following list of the most common loan edits as a guide to help you resolve reporting discrepancies on the edit reports. The list provides the edit
number, possible causes of reporting discrepancies, possible action to resolve the reporting discrepancies, and the applicable transactions type.
Codes beginning with… Are edits to…

1 Basic information
2 Exception codes
3 The accounting cycle
4 The due date of last paid installment
5 The exception date
6 Interest due
7 Principal due
8 The unpaid principal balance
9 The prepayment penalty and note holder

22 June 2009
Resolving Data Discrepancies Loan Edit Codes / Basic Edits
Basic Edits
Edit Code Explanation of Code Possible Cause of Edit Possible action(s) to Resolve Edit… Apply to this
Number transaction type
100 NA Error in our system database. None. Freddie Mac will resolve this error. NA
All
101 Invalid Freddie Mac loan There was a data entry error when the § Correct the loan number and send a revision.
number. loan was set up on your system or
keyed into MIDANET.
A payoff for a newly funded loan None. Our system will reflect and accept the loan on
occurred before the first accounting the 15th business day of the month.
cycle cutoff.
A loan processed by Freddie Mac in a Stop reporting this loan number.

previous cycle as an REO, payoff, third
party sale, or an FHA/VA conveyance § If the loan had been processed as an REO and was
and was not removed from your redeemed, forward the funds to our REO
servicing system. department.
§ If the loan had been processed as a payoff in error

or as an FHA/VA conveyance and was redeemed,
contact your Freddie Mac Loan Portfolio Specialist.

23 June 2009
Resolving Data Discrepancies Loan Edit Codes / Basic Edits
105 Incorrect Servicer number Data Entry Correct the Servicer number and send a revis ion. All
for the loan.
Loan transferred to another Servicer or § Determine the appropriate accounting cycle for the
loan failed to transfer to you. loan to be transferred.
§ Coordinate reporting and remitting with the other
Servicer involved.
§ Submit amended Form 981, if necessary.
§ Inform your Freddie Mac Loan Portfolio Specialist

of the status.
Payoff or foreclosure transaction Contact your Freddie Mac Loan Portfolio Specialist to
correctly reported by transferee ensure the transaction will be processed once our
between the TOS effective date and database is updated to reflect the transfer of servicing.
end of month. Our system will not
reflect the transfer of servicing until
month end.
107 Invalid Servicer number. A Servicer number was reported with Correct the Servicer number and send a revision. All
the transaction that is not defined in
our system.
109 Transaction received after The transaction was received after Ensure correct transaction is processed in the next All
cycle closed. Any Freddie Mac closed the cycle. accounting cycle.
outstanding edit that is not
resolved by our system
finaling date becomes a
109E edit until the first of
each month.
24 June 2009
Resolving Data Discrepancies Loan Edit Codes / Edits for Exception Codes
Edits for Exception Codes
200 Invalid exception action Only the following transaction codes may be Send a revision with the appropriate transaction All
code. reported: code.
blank = Non-exception
40 = Inactivation
50 = Reinstatement
60 = Payoff - matured
61 = Payoff - prepaid
65 = Payoff - repurchase
66 = Payoff - conversion
70 = REO
71 = Foreclosure - Conventional Third
Party Sale
72 = Foreclosure - FHA/VA
Conveyance
73 = Foreclosure - FHA/VA Third
Party Sale
80 = Balance Correction
201 Exception code specifies Reported transaction code 72 or 73 for a § Determine the correct loan product (FHA/VA or Foreclosure – All
wrong loan type. conventional foreclosure or code 71 for an conventional) and send a revision.
FHA/VA foreclosure. § Contact your Freddie Mac Loan Portfolio
Specialist and provide supporting
documentation if you believe we are in error.

25 June 2009
202 Invalid loan status. The loan is currently in an incorrect status to § Validate that you reported the correct activity or § Inactivation
process the transaction type that you reported. sale result via EDR or the Foreclosure/DIL
Notification. § Reinstatement
o If the activity reported is incorrect, send § Foreclosure - All

another EDR transmission to correct it. § REO
o If the sale result reported is incorrect,
contact the Non-Performing Loans
department.
§ Validate that the correct exception code was
reported and send a revision if necessary.
203 Loan already inactivated. Reported an inactivation transaction for a loan § Validate the transaction code. Inactivation
that was inactivated in a previous cycle. § Once inactivated in a prior cycle, report the loan
as a non-exception until the loan is reinstated,
paid off, sold at a third-party foreclosure sale, or
transferred to REO.
204 Loan is not currently You are reinstating a loan that we have as Validate the transaction code and retransmit a Reinstatement
inactivated. active. revision.
206 Timely P&I and Alternate Loan is either Timely P&I or uses the Alternate § Validate the type of loan on your system. Inactivation
Method loans can not be Method of accounting and should not be § You must report scheduled principal and interest
inactivated. inactivated. on a timely P&I loan until the loan is paid off,
sold at a third-party foreclosure sale, or
transferred to REO.
§ Report a non-exception transaction for alternate
method loans.
207 Field must be numeric. Data entry error. Verify figures and send a revision, if applicable. All
208 Code 80 Needed for You reported a UPB higher than the previous § Validate the transaction. Non-exception
balance correction. cycle UPB on a loan that does not allow § Contact your Freddie Mac Loan Portfolio
negative amortization, and the transaction is Specialist or (800) FREDDIE if the loan is a loan
not reported as a balance correction. modification.

26 June 2009
209 Inactive Timely P&I or Error in our system database. None. Freddie Mac will resolve this error. Non-exception
Alternate Method loan
must be reinstated.
210 Balance Correction not You reported a UPB lower than the previous Validate the transaction we processed. Balance correction
needed cycle UPB and the transaction is reported as a
balance correction.
211 Reported as a repurchase You reported an exception code 65 for a loan If the loan… § Repurchase
but not approved as a we have not approved for repurchase. § Payoff-
repurchase. § Has been approved for repurchase or is a
delinquent recourse loan, then send Freddie Mac Repurchase
Loan Portfolio Specialist a copy of the
repurchase letter or the Freddie Mac approved
Form 105. We will adjust our system and the edit
error.
§ Is an ACARM that you cannot process as a
normal conversion, then notify your Freddie
Mac Loan Portfolio Specialist or (800) FREDDIE.
We will adjust our system and the edit error will
clear.
§ Is a modification/refinance that you must report
as a repurchase, then notify your Freddie Mac
Loan Portfolio Specialist or (800) FREDDIE. We
will adjust our system and the edit error will
clear.
§ Has not been approved for repurchase, then
report he loan as a non-exception for the current
cycle. Send a letter requesting repurchase if
repurchase is desired for the following cycle.
212 Reported repurchase but You reported a repurchase transaction, but we Verify the exception code and send a revision. Payoff - Repurchase
we approved a waiver. waived the repurchase requirement.

27 June 2009
213 Reported conversion for a A convertible ARM exception code was § If the loan is a convertible ARM that follows the Payoff - Conversion
fixed rate loan that is not reported for a loan that we do not identify as a repurchase path, send the support
convertible. convertible product. documentation to your Freddie Mac Loan
Portfolio Specialist or (800) FREDDIE. We will
adjust our system and process a payoff to clear
the edit.
§ Verify the exception code and send a revised
transmission, if necessary.
214 Loan was previously The loan was previously reported and § Correct the loan number and send a revision. All except
reported and processed as processed as an REO or FHA/VA HUD § Stop reporting this loan number. inactivation
an REO or FHA/VA HUD conveyance. o If the loan had been processed as an REO
conveyance. and was redeemed, forward the funds to the
REO department.
o If the loan had been processed as a payoff
in error or as an FHA/VA conveyance and
was redeemed, contact your Freddie Mac
Loan Portfolio Specialist or (800) FREDDIE.
215 Loan reinstatement by The loan has been moved from foreclosure to Determine the correct status of the loan. Non-exception
default management. delinquent or active status, therefore we expect § If the loan was incorrectly taken out of
a reinstatement transaction. foreclosure, submit a revised electronic default Balance Correction
reporting (EDR) transaction to us. We will then for inactive loans
update the loan status and eliminate the edit
error.
§ If the loan in no longer in foreclosure, a
reinstatement transaction must be reported.

28 June 2009
220 Verify transaction; You reported an FHA/VA conveyance or third § Validate that you have reported the correct Foreclosure -
redemption may exist. party sale and the accuracy of the exception FHA/VA foreclosure code. FHA/VA
code and the existence of a redemption period § Verify that no redemption period exists. If one Conveyance,
should be verified. does, revise the transaction to a non-exception. FHA/VA Third Party
Continue to report the loan as a non-exception Sale
until the redemption period expires or the
property is redeemed.

29 June 2009
224 Sale result is not REO. You have not previously reported the sale Report the REO sale result via the Foreclosure/DIL REO
result as REO via the Foreclosure/DIL Notification.
Notification.
You reported the sale result as something Contact the Non-Performing Loans department for
other than an REO. assistance with correcting the reported sale result or
send a revision with the correct exception code.
225 Sale result is not Third You have not previously reported the sale Report the third party sale result via the Foreclosure -
Party. result as a third-party sale via the Foreclosure/DIL Notification. Conventional third-
Foreclosure/DIL Notification. party sale, FHA/VA
third-party sale
You reported the sale result as something Contact the Non-Performing Loans department for
other than a third party sale. assistance with correcting the reported sale result or
226 Sale result is Deed-in-lieu, You have reported the sale result, via the If the deed-in-lieu sale result is… § Foreclosure - All
loan has not been placed in Foreclosure/DIL Notification, as deed-in-lieu. § REO
REO. § Correct, then contact your Freddie Mac Loan
Portfolio Specialist or (800) FREDDI.
§ Incorrect, then contact our Non-Performing
Loans department.

30 June 2009
227 Sale result is not FHA/VA You have not previously reported the sale Report the third party sale result via the Foreclosure -
conveyance. result as an FHA/VA conveyance via the Foreclosure/DIL Notification. FHA/VA
Foreclosure/DIL Notification. Conveyance
You reported the sale result as something Contact the Non-Performing Loans Department for
other than an FHA/VA conveyance. assistance with correcting the reported sale result or
231 Reported convertible ARM You reported a matured loan as a convertible We processed this transaction as a matured payoff. Payoff
repurchase for matured ARM repurchase. Verify this is correct.
loan.
232 Reported matured loan, but You transmitted an incorrect exception code. Retransmit the loan with the correct exception code. Payoff
the loan has an
outstanding repurchase.
You tried to submit a matured payoff when a Contact our Fees and Claims unit to request the
required repurchase was expected. repurchase to be waived to allow the matured payoff
to be processed.
233 Reported the loan as You transmitted an incorrect exception code. Retransmit the loan with the correct exception code. Payoff
prepaid but the loan has an ___________________________________ ________________________________________
outstanding repurchase __ __
request.
You tried to submit a prepaid payoff when a Contact our Fees and Claims unit to request the
required repurchase was expected. repurchase to be waived to allow the prepaid payoff
to be processed.

31 June 2009
234 Payoff reported as a You reported the loan as a repurchase Contact our Fees and Claims unit to request the Payoff
repurchase but the although the repurchase is still in the appeal appeal be removed from this loan.
repurchase is in appeal. process and we did not expect you to report
the loan as a repurchase.

32 June 2009
235 Reported the loan as a You transmitted an incorrect exception code. Retransmit the loan with the correct exception code. Payoff
convertible ARM
repurchase but the loan
has an outstanding
repurchase.
You tried to submit a convertible ARM Contact our Fees and Claims unit to request the
repurchase when a required repurchase was repurchase to be waived to allow the convertible
expected. payoff to be processed.
236 Loan is in REO status; can You reported a payoff for a loan that is in REO Verify the loan status and if the REO status is Payoff
not process payoff. status. § Correct, then retransmit as an REO transaction.
§ Incorrect, then contact our Non-Performing
Loans department.
237 Loan reported as a prepaid You reported a matured loan as a prepaid We processed this transaction as a matured payoff, Payoff
payoff, but loan has payoff. as shown on the System Cleared Edits report. Verify
matured. that the loan is a matured payoff.
240 Reported matured; You reported a loan as matured, but the Contact our Fees and Claims unit to have the Payoff
repurchase is in appeal. required repurchase is in appeal. repurchase waived so the loan can be processed as a
matured payoff.
241 Reported prepaid; You reported a loan as prepaid, but the Contact our Fees and Claims unit to have the Payoff
repurchase is in appeal. required repurchase is in appeal. repurchase waived so the loan can be processed as a
prepaid payoff.

33 June 2009
Resolving Data Discrepancies Loan Edit Codes / Edits for Accounting Cycle
Edits for Accounting Cycle
300 The accounting cutoff date Your transaction contained an invalid cycle Retransmit the transaction with the correct accounting All
is an invalid date. date. cycle date.
301 The reporting cycle is not The incorrect accounting cycle was Retransmit the transaction with the correct accounting Payoff
the current cycle or the next transmitted with the loan-level transaction. cycle date.
cycle.
302 The transaction for the next The transaction for the next cycle is The edit will clear itself once the current cycle All
accounting cycle has been transmitted before Freddie Mac processes transaction is transmitted and processed.
received, but there is no the current cycle transaction for that loan
th
transaction for the current (i.e., a payoff for the 16 is transmitted
cycle. prior to your monthly transmission for the
cycle).
303 Partial duplicate/possible A loan transaction has been previously § Determine the correct transaction you need to All
correction. processed and a second transaction has transmit to us.
been received but it is not marked as a § Retransmit as a revision, if applicable.
revision.
Note that you may receive this edit code

although the error is corrected.
305 Transaction received before A loan transaction has been received prior Verify the transaction is accurate. Our system will § Inactivation
the accounting cutoff. to the cutoff. (Only payoffs and process the loan after the accounting cutoff. § Reinstatement
foreclosures can be reported before the
accounting cutoff.) § REO
§ Non-exception
§ Balance
Correction
306 Freddie Mac database will You reported a revision for a loan we have This is just a warning not an edit. If your revision All
be revised. already accepted. caused any edit codes they need to be addressed.

34 June 2009
307 NA Freddie Mac database warning. None. We will address this warning. All
308 Exact error—transaction You retransmitted a loan transaction for a Resolve the original edit codes and send a revision. All
ignored. loan that has an edit, but the values are the
same as the original transaction that was in
error.
309 Duplicate error—transaction You reported the same loan number twice Verify the transaction we processed and send a All
dropped. in your transmission or you reported a revision if necessary.
revised transaction for a loan that had an
edit and the revised transaction has
different values than the original
transaction in error.
310 Exact duplicate—transaction You transmitted duplicate transactions for No action is necessary, although you should All
ignored. the same loan number. The transactions determine why a transaction was reported twice.
are exactly the same.
311 Incorrect accounting cycle. The accounting cycle for the transaction is Correct the accounting cycle and send a revision. § Inactivation
not the current accounting cycle. § Reinstatement
§ REO
§ Non-exception
§ Balance
correction

35 June 2009
312 Next cycle transaction A transaction for the current cycle has Inform your Freddie Mac Loan Portfolio Specialist or § Payoff
already processed. already been processed and either a payoff (800) FREDDIE that you need to revise the current § Foreclosure -
or a foreclosure for the next cycle already cycle’s transaction. The Freddie Mac Loan Portfolio third party sale
exists. We can not allow any changes to Specialist will delete the next cycle payoff or
the current cycle transaction. foreclosure, then:
§ If the current transaction was marked as a revision
we will process it.
§ If it was not marked as a revision, send a revised
transaction.
§ Retransmit the following cycle’s transaction.
313 NA Freddie Mac database warning. None. We address this warning. All
314 Next cycle transaction You reported a transaction with an § Verify the accounting cycle and exception date All
reported, but should be exception date that is before the current § Report the transaction as a revision for the current
current cycle. accounting cutoff, but with a future accounting cycle.
accounting cycle date.

36 June 2009
Edits for Last Payment Received Date
400 DDLPI is an invalid date. Data entry error. § Verify the DDLPI and retransmit. § Foreclosure - All
§ Payoff - All
§ REO
401 DDLPI is not a delinquent The reported DDLPI is not a delinquent § Verify the DDLPI and retransmit. § Inactivation
date. date.
§ Foreclosure -
Conventional
third-party sale,
FHA/VA third-
party sale
404 Reported DDLPI does not The reported DDLPI does not match the § If Default Management reported the incorrect § Foreclosure -
match DDLPI reported by DDLPI that was reported via EDR. DDLPI, then send a new EDR transaction and we FHA/VA
default management. will adjust our system to clear the edit. Conveyance
§ If the wrong DDLPI was reported on the investor § REO
reporting transaction, then send us a revised
transaction.
410 Last payment received date You did not report the loan LPRD with the § If this edit appears on the System Cleared Edits § Foreclosure -
(LPRD) missing. transmission. report, then ensure the correct last payment FHA/VA
received date is reported next cycle. Conveyance
§ If you receive this edit with another edit on the § REO
Edits to be Cleared report, then correct the last
payment received date and the other edit, and send
a revision.

37 June 2009
Resolving Data Discrepancies Loan Edit Codes / Edits for Last Payment Received Date
411 The LPRD is invalid. Data entry error. § If this edit appears on the System Cleared Edits § Reinstatement
report, then ensure the correct last payment
received date is reported next cycle. § Non-exception
§ If you receive this edit with another edit on the

a revision.
412 The LPRD is prior to the Data entry error. § If this edit appears on the System Cleared Edits § Reinstatement
origination date. report, then ensure the correct last payment

a revision.
413 The LPRD is greater than the Data entry error. § If this edit appears on the System Cleared Edits § Reinstatement
current date. report, then ensure the correct last payment

a revision.

38 June 2009
Resolving Data Discrepancies Loan Edit Codes / Edits for Exception Date
Edits for Exception Date
500 Exception action date is an Data entry error. Correct the exception date and send a revision. § Payoff
invalid date. § Foreclosure - All
§ REO
501 Exception date is required. We require that you report an Correct the exception date and send a revision. § Payoff - All
exception date for all payoff, § Foreclosure - All
foreclosure and REO transactions.
§ REO
502 Exception date is not You reported an exception date for a Validate the transaction Freddie Mac processed. § Inactivation
applicable. transaction that does not require an § Reinstatement
exception date.
503 Exception date is in the The exception date for the transaction Correct the exception date and send a revision. § Payoff - All
future. cannot be in the future. § Foreclosure - All
§ REO
504 Exception date after the The exception date falls in a future Verify the exception date and the accounting cycle and § REO
current cycle. accounting cycle. send a revision.
505 Exception date is not The exception date does not equal the § If the foreclosure sale date reported via the § Foreclosures -
equal to the foreclosure foreclosure sales date that was Foreclosure/DIL Notification was incorrect, then Conventional Third
sale date. reported via the Foreclosure/DIL contact our Non-Performing Loans department for Party Sale
Notification. assistance with correcting the sale date. § FHA/VA Third
§ If the exception date reported was incorrect, then send Party Sale
a revised transaction.
506 Exception date is before You reported an exception date that is Verify the exception date and send a revision if necessary. § Payoff - All
current cycle. before the current cycle. § Foreclosure - All
§ REO

39 June 2009
Resolving Data Discrepancies Loan Edit Codes / Edits for Exception Date
507 Exception date is not in You reported an exception date which Verify the exception date and cycle date and send a § Payoff - All
reported cycle. is within the next cycle, but a cycle revision. § Foreclosure - All
date for the current cycle.
508 Exception date is prior to You reported a payoff date that is prior § If the exception date reported is Payoff - All
purchase date. to the date we purchased the loan.
§ Correct and the purchase date is incorrect, then
notify us and we will adjust the purchase date.
§ Incorrect and the purchase date is correct, then send
a revised transaction with the correct exception date.
509 Interest was not edited This edit error is issued when an § When correcting the exception date or DDLPI, the § Payoff - All
due to an incorrect exception date or DDLPI error occurs. interest must be recalculated. § Foreclosure - All
exception date or DDLPI.
§ REO
510 Exception date is prior to You reported an exception date that is § Verify the exception and purchase dates. § Foreclosure
purchase date. prior to the date we purchased the § REO
loan. § If the exception date reported is
§ Correct and the purchase date is incorrect, then

notify us and we will adjust the purchase date.
§ Incorrect and the purchase date is correct, then send
a revised transaction with the correct exception date.
512 Foreclosure sale date is Foreclosure sale date reported via the Verify the foreclosure sale. § Foreclosure - All
before the foreclosure Foreclosure/DIL Notification is before § REO
begin date. the foreclosure begin date reported via If the foreclosure sale date reported is
EDR.
§ Correct and the begin date is incorrect, then send
another EDR transmission to correct the date.
§ Incorrect and the begin date is correct, then contact
our Non-Performing Loans department.

40 June 2009
Resolving Data Discrepancies Loan Edit Codes / Edits for Principal Due
Edits for Interest Due
600 Interest due is calculated The reported interest does not match § Verify the Accounting Net Yield Rate (ANY) including § All
incorrectly. our calculated interest. the note rate and servicing fee rate.
If your ANY is
§ Correct, then notify your Freddie Mac Loan Portfolio
Specialist or (800) FREDDIE.
§ Incorrect, then correct your database and send a
revision.
601 Interest due cannot be We require interest for all If the transaction is § Reinstatements
zero. reinstatement transactions (partial § Not a valid partial reinstatement, then verify the interest
reinstatements can have a zero reported and send a revision.
reported interest amount).
§ A valid partial reinstatement, then we will clear the edit.
602 Interest can not be zero We require interest on all exception Verify the transaction we processed, the ANY and send a § Non-exception
on an active loan. transactions. We require interest on revision. § Balance
all non-exception transactions unless Correction
the loan has been inactivated in a
previous cycle, or uses the Alternate
Method of accounting, or is a new
purchase loan funded between the
st th
1 -15 of the current calendar month.
605 Delinquent interest may You reported a transaction for a loan You need to verify if any delinquent interest is due and send § Reinstatement
be due on Alternate reported under our Alternate Method a revision if necessary. § Payoff- All
Method loans. program where delinquent interest may
be due. § Foreclosure - All

41 June 2009
Resolving Data Discrepancies Loan Edit Codes / Edits for Interest Due
606 Interest due must be zero Interest can not be reported on a loan Validate whether the loan should be reinstated or not. Non-exception for an
for an inactive loan. that is inactive. inactive loan.
If a payment
§ Has been received, then you must reinstate the loan.
§ Has not been received, then send a revision as a non-
exception with zero principal and interest due.
Edits for Principal Due
700 Principal due is calculated Last cycle’s ending balance minus the Validate the principal due, the ending balance and the All
incorrectly. current cycle’s reported ending participation percentage. Send a revision.
balance multiplied by the participation
percentage does not equal the
principal due reported.
701 Principal due is less than You reported negative principal § Validate the principal reduction reported and the Reinstatement
zero but negative reduction on a loan that does not allow product type.
amortization is not negative amortization. § If the loan allows for negative amortization, contact
allowed. your Freddie Mac Loan Portfolio Specialist or (800)
FREDDIE and provide supporting documentation.
§ If the loan does not allow for negative amortization
and the principal reduction is
o Correct, then send a revision to reinstate the
loan with zero principal due and report a balance
correction next cycle.
o Incorrect, then send a revised reinstatement.

42 June 2009
Resolving Data Discrepancies Loan Edit Codes / Edits for Principal Due
702 Principal due must be zero. You reported principal reduction on an If a payment § Inactivation
inactivation, REO or FHA/VA § Foreclosure -
conveyance transaction. § Has been received, then send a revision as a non-
exception. FHA/VA
Conveyance
§ Has not been received, then send a revised
transaction with no principal reduction. § REO
703 Principal due is less then You reported negative principal due § Validate the principal reduction reported and the Non-exception
zero on a loan that does without a balance correction code on a product type.
not allow negative loan that does not allow negative § If the loan allows for negative amortization, contact
amortization. amortization. your Freddie Mac Loan Portfolio Specialist and
provide supporting documentation.
§ If the loan does not allow for negative amortization
and the principal reduction is
o Correct, then send a revision with the balance
correction code.
o Is incorrect, then send a revision.
705 Principal due must be zero You reported principal reduction for an If a payment Non-exception for an
for an inactive loan. inactive loan. inactive loan
§ Has been received, then you must reinstate the loan.
§ Has not been received, then no action is required.
706 Negative principal in You reported a transaction with a No action is required if we approve the negative principal Non-exception or
excess of $3,000. negative principal amount greater than reduction. Contact (800) FREDDIE or your Freddie Mac Balance Correction
$3,000. Loan Portfolio Specialist for approval.
If we do not approve the negative principal reduction

request, you may be requested to transmit a revision.

43 June 2009
Resolving Data Discrepancies Loan Edit Codes / Edits for Unpaid Principal Balance
Edits for Unpaid Principal Balance
801 Ending UPB must not be You reported a zero ending UPB for a Verify the correct ending balance and transaction code § Non-exception
zero. transaction that does not allow it. You and send a revision. § Balance Correction
must use a payoff or third party sale
exception code if the ending balance is § Inactivation
zero. § Reinstatement
§ REO
§ Foreclosure -
FHA/VA
Conveyance
802 Ending UPB must be zero. You reported an ending UPB greater Verify the correct ending balance and transaction code § Payoff
than zero on a transaction that and send a revision. § Foreclosure -
liquidates the loan. Conventional Third
Party Sale, FHA/VA
Third Party Sale
803 Ending UPB increased but You reported an ending UPB greater Validate the UPB reported. Reinstatement
negative amortization is than the previous cycle’s ending UPB
not allowed. for a loan that does not allow negative If the UPB is
amortization.
§ Correct, then send a revised reinstatement with no
principal reduction and report a balance correction
next cycle.
§ Incorrect, then send a revised reinstatement with the
correct UPB.

44 June 2009
804 Ending UPB is not equal You reported an exception transaction Verify the correct ending balance and transmit a revision.
to previous cycle’s ending with an ending UPB that differs from
UPB. last cycle’s UPB
If a payment Inactivation
§ Was received, then send a non-exception.
§ Was not received, then send a revision with the

corrected UPB.
If a payment § Foreclosure-
FHA/VA
§ Was received, and the loan was
§ Conveyance
o Inactive, then send a revision as a reinstatement.
§ REO
o Active, then send a revision as a non-exception.
§ Was not received, then send a revision with the

corrected UPB.
805 Reported UPB is not equal You reported a change in UPB on an Verify the UPB that we processed. You must transmit a Non-exception for an
to previous UPB. inactive loan. revision for a reinstatement if a payment was received. inactive loan
806 Neg Am balance not You reported a principal balance Verify that you reported the correct transaction and send Balance Correction
adjusted due to balance correction for a loan that allows a revision if necessary.
correction (code 80). negative amortization.
807 Ending UPB must not be You reported an ending UPB less than Verify the correct UPB and send a revision. § Non-exception
less than zero. zero. § Balance Correction
§ Reinstatement
808 NA Error in our system database. None. We will resolve these edits. NA
809 NA Error in our system database. None. We will resolve these edits. NA

45 June 2009
810 Payoff balance is greater You reported a payoff balance which is If you reported the incorrect payoff balance, then transmit Payoff
than purchase balance. greater than the purchase balance. a revision with the correct UPB.
If we have the incorrect purchase balance or negative

principal reduction has been previously applied on the
loan, you need to send your Freddie Mac Loan Portfolio
Specialist or (800) FREDDIE the supporting
documentation.

46 June 2009
Resolving Data Discrepancies Loan Edit Codes / Edits for Prepayment Penalty and Note Holder
Edits for Prepayment Penalty and Note Holder
900 Prepayment penalty must You reported a prepayment penalty on Contact your Freddie Mac Loan Portfolio Specialist if the § Payoff - All
be zero. a loan that does not allow one. note allows a prepayment penalty. § Foreclosure
901 Note holder field has an You must report one of the following Verify the correct note holder and send a revision. § Inactivation
invalid code. in the note holder field: § Reinstatement
0 = Freddie Mac § Payoff - All

1 = Seller/Servicer § Foreclosure
2 = Third Party
902 Note holder is required You must report one of the following Verify the correct note holder and send a revision. § Inactivation
and field is blank. in the note holder field: § Reinstatement
0 = Freddie Mac § Payoff - All

1 = Seller/Servicer
§ Foreclosure
2 = Third Party
903 NA Freddie Mac database warning. None. We will address this warning. All
905 Prepayment premium not You reported a prepayment penalty Send a revision without a prepayment penalty. Payoff - All
due. that is not due to us.
906 Prepayment penalty You reported a negative amount for Verify the correct prepayment penalty and transmit a Payoff - Prepaid
cannot be a negative the transaction. revision.
amount.
908 Prepayment premium must You need to verify the prepayment Verify the amount and retransmit if different. Contact Multifamily and selected
be verified. penalty you reported. your Freddie Mac Loan Portfolio Specialist if it was single family payoffs
correct.

47 June 2009
MIDANET for the PC Software Version and Site Number
MIDANET for the PC

You need the Disk Operating System (DOS) to run MIDANET® for the PC.
Software Version and Site Number
A MIDANET® for the PC site is a personal computer (PC) on which one registered set of MIDANET for the PC software is installed. Each site is
identified by a site number. The site number is a unique identifier for each set of MIDANET software. It serves as the address for transmitting and
receiving data. Each copy of MIDANET for the PC has software version and site numbers. They are displayed on the copyright screen, as shown
M I D A N E T - Federal Home Loan Mortgage
below. Our customer service staff may ask you for your version and site numbers
Corporation if you call (800) FREDDIE with questions regarding MIDANET for the PC.
Version 98.01.27
Site 9999132
Version Number
Copyright Federal Home Loan Mortgage Corporation 1998
a licensed proprietary work; all rights reserved. The first and second digits of the version number identify the year of the most
recent major software enhancement. The third and fourth digits are the release
The following is CONFIDENTIAL INFORMATION – limited
distribution to authorized persons only. This software number, beginning with 01, for the most recent software update for the current
is protected under the U.S. Copyright Act of 1976. year. The fifth and sixth digits indicate the download number, beginning with 01,
Unauthorized duplication, distribution, or use is
strictly prohibited. for the most recent software update for the current year and release number.
When you log on to MIDANET for the PC, the MIDANET system will check
MIDANET and Freddie Mac are service marks of the
your version number to ensure you are using the most recent version of the
Federal Home Loan Mortgage Corporation. software. The MIDANET system will not let you access our network if you are
not using the most recent version of the software. Call (800) FREDDIE if this
happens to you.
Site Number
The first four digits of the site number are the first four digits of your Seller/Servicer number. The last three digits are unique to your set of MIDANET for
the PC software and identify it from other sets of MIDANET software within your institution. We strongly recommend that you not share your
MIDANET for the PC software with others in your office. More than one PC will have the same site number if you share software, and our system only
recognizes one occurrence of a site number. This means that if you copy the same set of software onto more than one PC, only one site will receive

48 June 2009
MIDANET for the PC Software Version and Site Number
downloads, such as software updates and reports, from us. We will give you as many copies of the MIDANET for the PC software as you need free of
charge so you do not have to share software.
Commonly Used Function Keys:

F3: Displays the Help panel(s) for the current screen.
F9: Returns to the previous menu or screen
F10: Returns to the Main menu

49 June 2009
MIDANET for the PC How to Access MIDANET Screens
How to Access MIDANET Screens
Communications
Description Keystroke Sequence from Main Menu
Communications Options Setup 4, 6
Transmit Freddie Mac Data 4, 2
Receive Other Data 4, 1
n Contracts/Purchase Statements
n Funding Detail
n Confirmation Messages
n Reports in Freddie Mail
Process Transmission Confirmations 4, 3
View Transmission/ File Status 4, 5, 1
Print Transmission Log (prints entire log; to print a particular transmission, 4, 5, 2

do a screen print)
Delete Transmission Log 4, 5, 3
Maintain Transmitted Files 4, 4

50 June 2009
Loan-Level Monthly Reporting

Enter Loan-Level Data, Detail Entry
n Load Funding Detail Data 7, 1, 3
n Cycle Loan-Level Data 7, 1, 2
n Add / Revise / Update / Browse / Delete Loan-Level Data 7, 1, 1
n Package / Unpackage / Loan-Level Data (Enter “Y” in the “Mark For 7, 1, 1

Transmit” field)
Enter Loan-Level Data, Batch Entry
n Add / Update / Browse / Delete Loan-Level Data Formats 7, 2, 4
n Import Loan-Level Data 7, 2, 1
n Print Loan-Level Import Reports 7, 2, 2
n Export Loan-Level Data 7, 2, 3
Print Loan-Level Reports 7, 4
Transmit Loan-Level Data (Mark “X” for each file to transmit) 4, 2
Process Confirmation Messages
n Receive Confirmation Messages 4, 1
n View Confirmation Messages 4, 3

51 June 2009
Loan-Level Monthly Reporting

Edit Reports
n Print / Browse / Delete Edit Reports, if you communicate activity to us 5, 6, then select (P)rint, (B)rowse, or (D)elete with the arrow key*
daily through MIDANET
n Print / Browse / Delete Edit Reports, if you do not communicate 4, 1, Press F10 to Main Menu, 5, 6, then select (P)rint, (B)rowse, or
activity to us daily through MIDANET (D)elete with the arrow key*
Purchase Statements
n Receive Purchase Data 4, 1
n Print Cash Purchase Forms (15) 7, 8, 1
n Print Guarantor Purchase Forms (15A/B) 7, 8, 2
n Print WAC ARM Purchase Forms (15C) 7, 8, 3
n Print Mortgage Funding Detail Reports 7, 8, 4
n Process Export Purchase Data 7, 8, 5, 1
n Process Purchase Data Formats 7, 8, 5, 2
Perform Status Reset (Puts all of a cycle’s data in a “packaged” status. 7, 5

Do this if we request that you resend all of your cycle data.)
Monthly Delete (Deleted data cannot be retrieved.) 7, 6
Compress Data (To maintain clean files.) Enter 5,1,1 (Enter “X” for each file to compress)

52 June 2009
*Reports are displayed by name in chronological order starting from the newest report to the oldest report. Contact your Freddie Mac Loan Portfolio Specialist if a notice is
displayed on page one of the report you selected indicating the number of edits you have made to the report exceeds our threshold. Your Freddie Mac Loan Portfolio
Specialist will send you a complete report by mail. We cannot retrieve deleted data..

53 June 2009
Sending Freddie Mac a Revision in MIDANET for the PC

What is a Revised Transaction?
During loan-level monthly reporting, our system views a loan transaction that is marked as a revision as the transaction that you truly intend to report, even
if you reported (or will report) other transactions for the same loan in the same accounting cycle. The primary difference between a revision and a non-
revision is that a revised transaction, if it passes all edits, will automatically replace any loan transaction previously applied to our system.
When to Send a Revision

Any time a transaction is reported more than once for the same loan for the same accounting cycle, mark the transaction that you intend for us to process
as a revision.
Send us a revised transaction

n When clearing an edit reflected on the Edits to be Cleared Report (Edits reflected on the System Cleared Edits report have already been adjusted
and applied to our system. Send us a revision to these edits only if what we processed was incorrect.)
n When replacing a loan transaction previously reported and accepted by our system
How to Send a Revised Transaction

To send us a revision, you must use the Revise function and not the Add function when prompted by MIDANET for the PC.

54 June 2009
Reconciling Your Portfolio The Basics
Reconciling Your Portfolio
The Basics
Freddie Mac provides you with several reports to use in managing your Freddie Mac portfolio. The reports provide information about your account,
what you reported to us, what we processed, what remittances we received from you, and what amounts were due to us. These reports help you
reconcile your investor reporting and custodial principal and interest account, and help you manage your overall Freddie Mac performance.
Understanding the Monthly Reconciliation Reports

We provide you with the following reports:
§ The Monthly Account Statement
§ The Seller/Servicer Remittance Analysis
§ The Detailed Adjustment Report
§ The Loan Reconciliation Difference Report
Freddie Mac provides the monthly reconciling reports during the reporting cycle (referred to as preliminary reports) and, at month end (referred to as final
reports).
þ Preliminary reports: If you report and resolve all data discrepancies within five business days before the end of the month, you may access
preliminary reports via Investor Accounting Manager on FreddieMac.com. Use these preliminary reports to begin reconciling your monthly loan
activity and custodial account, or use them to make revisions to prior loan transactions.
þ Final reports: Final reports are available after we close out our monthly accounting cycle (usually near the end of the month). Use these reports to
reconcile your investor reporting and your custodial account activity for the month. You will receive a final report even if you previously accessed a
preliminary report.
The monthly reconciliation reports are available to you through MIDANET for the PC and Investor Accounting Manager. See MIDANET for the PC
for details on accessing the reports on MIDANET for the PC.
The monthly reconciliation reports are described on the following pages.

55 June 2009
Reconciling Your Portfolio Understanding the Monthly Reconciliation Reports
The Monthly Account Statement

The Monthly Account Statement is a summary report that reflects your total amount due to us as of the accounting cycle cutoff. The report includes
beginning and ending balances, total amounts due from all loans processed for your Servicer number, the total remittances made available to us during the
cycle, and any adjustments we made to your account including charge-off credits, loan modification credits, and other billings. You can access a
preliminary Monthly Account Statement via Investor Accounting Manager. The Monthly Account Statement is available at month end via MIDANET
for the PC and through Investor Accounting Manager.
Amount
SERVICER: 123456 AS OF 03/15/XX The interest due on each line will include both the monthly TIME: 21:42:27 carried
and exception interest for the transaction forward
BEGINNING BALANCE 68,725.00 from
PRINCIPAL INTEREST PREPAY previous
TRANSACTION APPLIED DUE DUE PENALTY TOTAL P&I cycle
The sum of the
NON EXCEPTIONS 22,686.00 43,211.00 0.00 65,897.00
principal due,
interest due and
prepayment
penalties
PREPAID PAYOFF (61) 96,725.00 399.80 0.00 97,124.80
The total of all

funds made
available to us
during the cycle
ADD TOTAL PRINCIPAL & INTEREST 119,411.00 43,610.80 0.00 163,021.80 163,021.80
LESS REMITTANCES MADE The total of adjustments posted and 153,610.00

other billings to your account. The
detailed breakdowns for this number will
also appear on the Detail Adjustment
ADD ADJUSTMENTS MADE BY FREDDIE MAC Report. 0.00
ENDING BALANCE 78,136.80

Total liability to reconcile as of the accounting cutoff equals the
beginning balance plus P&I beginning balance plus P&I, minus
remittances plus or minus adjustments. Reconcile your
custodial account balance to this total liability.

56 June 2009
The Seller/Servicer Remittance Analysis

The Seller/Servicer Remittance Analysis, also referred to as the Cash Statement, is a summary report available via Investor Accounting Manager that
recaps your daily remittances via Global Payments, Inc. (GPI), your beginning and ending cumulative balances, the dates your remittances are available to us,
the Amount Due (calculated on the investor reporting transactions we process for you), and your cumulative overage/shortage balance. A preliminary report
is available via IAM between the 16th business day of the monthe until five business days before the end of the month. It will list the same information as
a final report except it will not display any billings, adjustments made by us, or earned income credits. A final Seller/Servicer Remittance Analysis is
available the first week in the calendar month following the accounting cutoff.

57 June 2009
Servicer Number: Freddie Mac Last Updated: 11/30/XXXX 12:00:00 AM

Servicer Name: Seller/Servicer Remittance Analysis Final
Servicer Contact Name:
10/16/XXXX through 11/15/XXXX
Amount Received Amount Due Amounts Freddie Mac

Date P&I, Adj, Int. P/O, TP FCL. Corrections P&I, Int. P/O, TP FCL Adj. Adj. Code Balance Int. expects you to remit,
Advanced Advanced Reimbursemen
t
categorized by non-
100,000.00 payoff amounts
Oct 16 0.00 0.00 0.00 0.00 0.00 0.00 100,000.00 0.00 (principal and interest,
Amounts you remitted Oct 17 0.00 0.00 0.00 0.00 100,000.00 0.00 0.00 0.00 curtailments, reductions
Oct 18 15,000.00 0.00 0.00 15,000.00 0.00 0.00 0.00 0.00
are categorized by Oct 19 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 in negative amortization,
non-payoff Oct 20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 reinstatement interest,
remittances (principal Oct 21 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 interest advanced by
Oct 22 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
and interest, Oct 23 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 REO); payoffs,
curtailments, Oct 24 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 repurchases, and third
reductions in negative Oct 25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 party sale foreclosures;
Oct 26 0.00 0.00 0.00 0.00 120,000.00 0.00 (120,000.00) 37.80
amortization, and adjustments we
Oct 27 0.00 0.00 0.00 0.00 0.00 0.00 (120,000.00) 37.80
reinstatement interest, Oct 28 0.00 0.00 0.00 0.00 0.00 0.00 (120,000.00) 37.80 made which are
interest advanced by Oct 29 0.00 120,000.00 0.00 0.00 0.00 0.00 0.00 0.00 identified by code and
REO, adjustment); Oct 30 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 also appear on the
payoffs, repurchases, Oct 31 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Detailed Adjustment
and third-party sale Nov 1 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
report.
foreclosures; and Nov 2 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Nov 3 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
corrections.
Nov 4 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Nov 5 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Nov 6 0.00 0.00 0.00 300,000.00 0.00 0.00 (300,000.00) 94.52
Nov 7 300,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Nov 8 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
The ending daily cash
Nov 9 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Nov 10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0 0 balance as of the last day
Nov 11 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 of the cash cycle.
Nov 12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Nov 13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Nov 14 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Nov 15 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Totals 315,000.00 120,000.00 0.00 315,000.00 220,000.00 0.00 0.00 207.92
Total Interest Reimbursement Due to Freddie Mac calculated at (Prime Rate 8.5% plus 3%) / 365 …………......207.92

58 June 2009
The Detailed Adjustment Report
The Detailed Adjustment report is a report that itemizes all of the adjustments posted to your account. Examples of adjustments reflected on this report
are RTC minority principal and interest billings, Servicemembers Civil Relief Act (SCRA) credits, charge off adjustments, discounts on convertible
adjustable-rate mortgages, and loan modifications. Use this report to identify adjustments posted to your account on the Monthly Account Statement and
the Seller/Servicer Remittance Analysis. We report Freddie Mac fees and penalties to you separately on the Servicer Billing Statement since they are
considered a cost of servicing and an expense, not part of your Freddie Mac portfolio. You will receive the Detailed Adjustment report via Investor
Accounting ManagerSM at the end of the month after we process a transaction for every mortgage you service for Freddie Mac.
Freddie Mac
Detailed Adjustment Report
Servicer 123456
Cycle 03/15/XXXX
FM Adjustment Adjustment Adjustment

Loan # Amount Description Post Date
775386898 -43.19 Interest Adjustment

775723258 1,483.00 Interest Adjustment A description of the
adjustment.
1,439.81
The Freddie Mac Loan
number (if applicable).
No loan number will
show if a loan number The last amount will
is not applicable. be the total of all the The dollar amount of
adjustments. This each adjustment.
number appears on the
adjustment line of the
Monthly Account
Statement.

59 June 2009
The Loan Reconciliation Difference Report
The Loan Reconciliation Difference report summarizes loan-level transaction reporting edits for a particular accounting cycle. The report is divided into
four sections, each containing different loan transaction scenarios: Loan Transactions Applied by Freddie Mac, Loan Transactions Applied by Servicer,
Invalid Freddie Mac Loan Number Reported, and Incorrect Servicer Number Reported. The Loan Reconciliation Difference report is available at
month end via MIDANET for the PC and via Investor Accounting Manager.

60 June 2009
XXXXXXXX Freddie Mac Page:

Accountant: 2A2123 Loan Level Reporting Date: 03/30/XXXX
Loan Reconciliation Difference Report Time: 11:27:55
Section 1, Loan Transactions Applied by
Cycle: XX0315 Servicer: 123456 ABC Bank FINAL
Freddie Mac, contains
Section 1: Loan Transactions Applied by Freddie Mac
þ Transactions where we processed data
Servicer FM Principal Interest Prepayment UPB Exceptions R USR TRN DI Error that differed from what you reported
Ln Number Ln Number Due Due Premium Code Date V ID STA FF Date Code
þ Transactions we added manually because
402884 467418801 698.62 0.00 0.00 27,659.31 00/00/00 REJ * 03/20/XXXX 600
402884 467418801 698.62 193.07 0.00 27,659.31 FM- LNH 03/20/XXXX
they were not reported to us
DIFFERENCE 0.00 193.07 0.00 ANY = 08.176 % AGE = 0
REPORT: XXXXXXXX Freddie Mac Page: 1

Accountant: 2A2123 Loan Level Reporting Date: 03/30/XXXX
Loan Reconcilliation Difference Report Time: 11:27:55
Section 2, Loan Transactions Applied by
Cycle: XX0315 Servicer: 123456ABC Bank FINAL
Servicer, contains
Section 2: Loan Transaction s Applied by Servicer
þ Revised transactions you reported that
Servicer FM Principal Interest Prepayment UPB Exceptions R USR TRN DI Error
Ln Number Ln Number Due Due Premium Code Date V ID STA FF Date Code we processed
402884 467418801 143.84 1,032.16 0.00 147,748.29 REJ * 03/20/XXXX 600 þ Transactions reported more than once
402884 467418801 143.84 1,047.57 0.00 147,748.29 Y LNH 03/20/XXXX
DIFFERENCE 0.00 15.41 0.00 AGE = 0 within an accounting cycle
REPORT: XXXXXXXX Freddie Mac Page:

Accountant: 2A2123 Loan Level Reporting Date:
Loan Reconcilliation Difference Report Time:
Cycle: XX0315 Servicer: 123456 ABC Bank
Section 3: Invalid Freddie Mac Loan Number Reported Section 3, Invalid Freddie Mac Loan
Servicer FM Principal Interest Prepayment UPB Exceptions R USR TRN DI Error Number Reported, contains
Ln Number Ln Number Due Due Premium Code Date V ID STA FF Code Date
þ Transactions you reported with an
166867 525612222 143.84 1,032.16 0.00 147,748.28 REJ 101 03/20/XXXX invalid Freddie Mac loan number
REPORT: XXXXXXXX Freddie Mac Page:
Accountant: 2A2123 Loan Level Reporting Date:
Loan Reconcilliation Difference Report Time:
Cycle: XXXX0315 Servicer: 123456 ABC Bank
Section 4: Incorrect Servicer Number Reported
Servicer FM Principal Interest Prepayment UPB Exceptions R USR TRN DI Error TRNS Section 4, Incorrect Servicer Number
Ln Number Ln Number Due Due Premium Code Date V ID STA FF Code Date
Reported, contains
166862 123456789 184.00 1,200.14 0.00 211,000.00 REJ 105 03/20/XXXX
þ Transactions you reported with an
61 incorrect Servicer number June 2009
Indicates who performed the action.

Blank = Servicer
FM = Freddie Mac
SS = Servicer. This indicator appears
when a revision is transmitted that
deletes a previous transmission. Tells you the action performed.
SL = Freddie Mac. This indicator REJ = Transaction rejected
appears when we simulate a loan ACC = Transaction previously accepted
transaction because an accepted (always precedes a DEL).
A “Y” in this ADD = Transaction added by a Freddie
transaction is not in the system when the
column indicates Mac Freddie Mac Loan Portfolio
system closes.
that you reported Specialist
Any values other than those above
this transaction as DEL = Deleted transaction
indicate a Freddie Mac Freddie Mac
a revision. DUP = Duplicate transaction
Loan Portfolio Specialist.
LNH = Final transaction accepted by our
system.
An asterisk (*) in this

REPORT:
ACCOUNTANT:
LL00800R
2E1001
FREDDIE MAC
LOAN LEVEL REPORTING
PAGE:
DATE:
1
05/27/99
column indicates a
CYCLE: 99/05/15
LOAN RECONCILIATION DIFFERENCE REPORT
SERVICER: 123456 ABC BANK, FSB
TIME: 13:07:55
FINAL
transaction was used
SECTION 2: LOAN TRANSACTIONS APPLIED BY SERVICER
to calculate the
SERVICER FM PRINCIPAL INTEREST PREPAYMENT UPB EXCEPTION R USR TRN DI TRANS ERR
LN NUMBER LN NUMBER DUE DUE PREMIUM CODE DATE V ID STA FF DATE CODE principal and interest
difference.
1111111111111 121212121 0.00 126.98 0.00 24,575.92 00/00/00 REJ * 05/18/99 600
1111111111111 121212121 0.00 133.12 0.00 24,575.92 00/00/00 FM ACC 05/18/99
1111111111111 121212121 0.00 133.12 0.00 24,575.92 00/00/00 SS DEL 05/19/99
1111111111111 121212121 0.00 133.12 0.00 24,575.92 00/00/00 Y LNH 05/19/99
DIFFERENCE 0.00 6.14 0.00 ANY = 6.50000% AGE = 30
The edit code(s)

assigned to this
The difference between the amount
transaction.
of the final transaction accepted by The length of time the loan has had an
our system (indicated by “LNH” in edit outstanding in consecutive cycles.
the TRN STA column) and the For example, an age of 30 means this
amount of the transaction used to loan has appeared on the Loan
calculate the principal and interest Reconciliation Difference report for
difference (indicated by an asterisk two consecutive cycles.
Freddie Mac Document
in the DIFF column). Investor Reporting Quick Reference
62 June 2009
The Four Sections of the Loan Reconciliation Difference Report

Section 1: Loan Transactions Applied by Freddie Mac
Section 1 lists transactions we adjusted, for which we did not receive or accept transactions or revised transactions from you. These transactions appear
on the Edits to be Cleared daily edit report. There may be more than one line for each mortgage because each transaction is listed separately.
Transactions appearing in Section 1 are typically valid reconciling items and result in remittance differences.
Section 1 - Loan Transactions Applied by Freddie Mac

Transaction Scenario Possible Impacts to You Example of Scenario on Report
Amount
Edits without Freddie Mac processed data that is P&I Reconciliation - Most likely a reconciling item.
Loan Due User ID Rev Status Diff
Revisions different from what you reported. Note
Remittance - An adjustment to your cash remittance 1 100 REJ *
that the principal and interest difference
is most likely needed. 1 150 FM - LNH
identified is the difference between what
Diff 50
we processed and the transaction you Custodial Account Reconciliation - Most likely a
reported. The edit appears on the System reconciling item.
Cleared Edits report if our system
processed the transaction.
Amount
Edits with Freddie Mac processed data that is P&I Reconciliation - Most likely a reconciling item.
Revisions different from what you reported, and you
Remittance - An adjustment to your cash remittance 1 100 Y REJ *
reported a revised transaction that we did
is most likely needed. 1 150 REJ
not process. Note that the principal and
1 175 FM - LNH
interest difference identified is the Custodial Account Reconciliation - Reconciling item
Diff 75
difference between what we processed may either be the difference identified, or the
and the revised transaction you reported. difference between what we processed and the non-
revised transaction (if one exists).
Amount
Loans not You did not report a transaction for a loan, P&I Reconciliation - Most likely a reconciling item,
reported by and we ultimately added the transaction. unless offset by a transaction identified in another
1 100 FM- ADD
Servicer Transactions in this section may offset section.
1 100 FM - LNH
transactions appearing in Section 3, Remittance - An adjustment to your cash remittance Diff 100
Invalid Loan Number Reported. Note that is most likely needed, unless offset by a transaction
the principal and interest difference identified in another section.
identified is for the entire amount we
processed on the loan transaction. Custodial Account Reconciliation - Most likely a
reconciling item, unless offset by a transaction
identified in another section.
63 June 2009
Section 2: Loan Transactions Applied by Servicer
Section 2 lists mortgages for which you transmitted more than one transaction and we accepted one of the transactions. There will be more than one line
for each mortgage because each transaction is listed separately. You must look individually at each loan appearing in Section 2 to determine whether a
reconciliation or cash difference exists.
Section 2 - Loan Transactions Applied by Servicer

Servicer You reported a non-revised transaction, P&I Reconciliation - Most likely a reconciling item if the Amount
Revisions which was accepted. A revised revision was truly the intended transaction. Loan Due UserID Rev Status Diff
Rejected transaction was also reported, but was not 1 100 LNH
Remittance - An adjustment to your cash remittance is
processed. Although Freddie Mac 1 180 Y REJ *
needed if the revision was the intended transaction and the
processed a transaction that you reported, Diff - 80
revised principal and interest amount was remitted.
it was probably not the intended
transaction. Note that the principal and Custodial Account Reconciliation - May or may not be a
interest difference identified is the custodial account reconciling item, depending on whether
difference between the transaction we the revised principal and interest was deposited into the
processed and your revision that we did custodial account before the cutoff.
not process.
Servicer You reported a revised transaction, which P&I Reconciliation - Not a reconciling item as long as the Amount
Revisions was accepted. Although we processed revision was truly the intended transaction. Loan Due UserID Rev Status Diff
Accepted the intended transaction, a custodial 1 100 REJ *
Remittance - No adjustment to your cash remittance is
account reconciling difference may still 1 140 Y LNH
needed if the revision was the intended transaction and the
occur. Note that the principal and interest Diff 40
revised principal and interest amount was remitted.
difference identified is the difference
between the revised transaction we Custodial Account Reconciliation - May or may not be a
processed and the other transaction (if custodial account reconciling item, depending on whether
one exists) you reported. the revised principal and interest was deposited into the
custodial account before the cutoff.
Servicer You reported more than one transaction, P&I Reconciliation - May or may not be a reconciling item Amount
Duplicates and neither is a revision. We processed depending on which transaction you truly intended. Loan Due UserID Rev Status Diff
one of these transactions. Although 1 100 REJ *
Remittance - No adjustment to your cash remittance is
Freddie Mac processed a transaction you 1 120 LNH
needed as long as the amount remitted matches the
reported, it may not have been the Diff 20
transaction you intended.
intended transaction. Note that the
principal and interest difference identified Custodial Account Reconciliation - May or may not be a
is the difference between the transaction custodial account reconciling item, depending on which
we processed and your other transaction transaction was intended and what amount was deposited
which was not processed. into the custodial account prior to the cutoff.

64 June 2009
Section 3: Invalid Freddie Mac Loan Number Reported
Section 3 lists loan numbers you reported that our system did not recognize as valid. These loan numbers appear on the Edits to be Cleared daily edit
report with error code 101E. There will be one line for each mortgage.
Section 3 - Invalid Freddie Mac Loan Number Reported

Invalid Reported You reported a transaction with an P&I Reconciliation - May or may not be a reconciling item Amount
Freddie Mac invalid loan number. Note that no depending on whether 1) an incorrect loan number was Loan Due UserID Rev Status Diff
Loan Number principal and interest difference is reported for a valid loan or 2) data was reported on a truly 1 100 REJ
processed for the loan. invalid or previously liquidated loan. 2 120 REJ
3 175 REJ
Remittance - No adjustment to your cash remittance is needed
as long as the data we accepted matches the data for the
invalid loan number.
Custodial Account Reconciliation - May or may not be a
reconciling item depending on whether money was deposited
into the custodial account for a truly invalid loan. (Example:
funds for another investor’s loan deposited into the Freddie
Mac custodial account.)
Section 4: Incorrect Servicer Number Reported

Section 4 lists loan numbers that were reported with an incorrect Servicer number. These loan numbers appear on the Edits to be Cleared daily edit
report with error code 105E. There will be one line for each mortgage.
Section 4 - Incorrect Servicer Number Reported

Loans Reported You reported a loan transaction for a P&I Reconciliation - Most likely a reconciling item if you are Amount
in Error - loan that does not match the actually servicing the loan but we have a different Servicer of Loan Due UserID Rev Status Diff
Incorrect Servicer of record on our system. record (possibly due to a transfer of servicing, or reporting to 1 100 REJ
Servicer Number Note that no principal and interest us under multiple Servicer numbers). 2 120 REJ
difference is shown processed the 3 175 REJ
Remittance - Our share of principal and interest needs to be
loan. forwarded to the Servicer of record. If you already remitted to
us, the funds need to be recouped.
Custodial Account Reconciliation - Most likely a reconciling
item since funds will be in the custodial account on the 15th
with no corresponding Freddie Mac liability.

65 June 2009
Reconciling Your Portfolio How to Use the Monthly Reconciliation Reports
How to Use the Monthly Reconciliation Reports

For detailed information about how to use the monthly reconciliation reports and how to reconcile your custodial accounts, please refer to Freddie Mac’s
educational materials and workshops. For more information,
þ Contact (800) FREDDIE
þ Check out our education site on GoldWorks
þ Visit the Learning Center at http://www.FreddieMac.com/learn
þ Contact your Freddie Mac Loan Portfolio Specialist
In general, use the

n Monthly Account Statement to reconcile your custodial account
n Seller/Servicer Remittance Analysis to analyze your remittances and cash balance
n Detailed Adjustment report to prepare your remittances and reconcile your custodial account
n Loan Reconciliation Difference report to identify adjustments you need to make to your reporting, remitting, or custodial account(s)

66 June 2009
Custodial Accounts Establishing and Maintaining Accounts
Custodial Accounts
Freddie Mac requirements for the custodial account process are detailed in Chapters 76-79 of the Single-Family Seller/Servicer Guide (the Guide).
The following tips, checklists, and information are designed to help Servicers effectively manage their Freddie Mac custodial accounts.
Establishing and Maintaining Accounts

§ Immediately establish custodial accounts for both principal and interest (P&I) and escrow (T&I) payments for Freddie Mac loans.
§ Establish demand deposit accounts or interest-bearing deposit accounts (such as money market deposit accounts or savings accounts). Do not
deposit or invest funds into money market mutual funds.
§ Properly title accounts.
§ House accounts at an eligible depository.
§ Hold only Freddie Mac principal and interest in the P&I account.
§ Use escrow accounts for escrow funds held on behalf of the borrower. Examples of funds held on behalf of a borrower that you should deposit into
an escrow account include: partial payments, taxes and insurance, suspense, buydown subsidy, forbearance, repair and replacement, and restoration.
§ Keep funds segregated at all times.
§ Apply bi-weekly mortgage payments and deposit the funds into the P&I account as payments are received, provided the bi-weekly arrangement was
part of the original mortgage note when the loan was sold to Freddie Mac (i.e., the due date per the note is every two weeks).
§ Establish disbursement clearing accounts for P&I and escrow, if needed.
§ Restrict investments to federal funds and limited time deposits.
§ File new Letter Agreements and Signature Cards with Freddie Mac when changing names, accounts, or depository institutions.
§ Notify Freddie Mac’s Institutional Eligibility-Custodial Department of all changes to accounts, including title changes, however minor, of the institution
where you hold your custodial account.

67 June 2009
Custodial Accounts Reconciling Accounts / P&I Accounts
Reconciling Accounts
Freddie Mac expects you to perform custodial account reconciliations monthly within 45 days of the accounting cutoff. Keep your reconciliation up-to-
date and maintain it as a stand alone and complete package from other documents. We expect you to fund all variances, identified or unidentified, within
90 days of the accounting cycle in which the variance originates. Always maintain a properly funded account where sufficient funds are available for the
next remittance due Freddie Mac. In other words, your account must never have a negative balance, even if your bank allows it.
Each month, Freddie Mac randomly selects Servicers to send in copies of three cycles of P&I and Escrow reconciliations. This custodial account review
ensures Freddie Mac funds are safeguarded and provides definitive guidance to manage your cash flow activities. Keep your reconciliation up-to-date
and maintain it as a separate package from other documents. You must send support documentation for every line item on the worksheet when you are
requested to submit your custodial account reconciliations. It may be easier and faster to include the support documentation with your reconciliation.
Principal and Interest Accounts

Reconcile the P&I account balance (as of the accounting cycle cutoff) to the total liability due Freddie Mac
(as of the cutoff) from the Monthly Account Statement. Use Form 59, Principal and Interest Custodial
Account Reconciliation Worksheet, which can be found in the Single-Family Seller/Servicer Guide and
in our publication, Understanding Custodial Accounts, which is available on the Learning Center.
The diagram on the following page identifies the documentation you need to:
§ Complete Form 59
§ Send to us with your reconciliation when we request it

68 June 2009
1b From the following month’s bank statement

1a From your bank statement
or the monthly collections report. Outstanding
for the cycle being reconciled.
debits are withdrawals initiated as of the cutoff
that are debited the first business day after the
accounting cutoff being reconciled. Explanation
of the withdrawal is also required.
1c From the following month’s bank statement

4a The cumulative total of or the monthly collections report. Deposits in
prepaid interest. From the page transit are collections as of the accounting cycle
of your prepaid report that shows cutoff that are reflected on the bank statement as
totals. deposited the following business day after the
accounting cutoff being reconciled (two business
days if you are using a lock box).
4b The cumulative total of prepaid
principal. From the page of your
prepaid report that shows 2 The ending balance from the final Monthly
scheduled/scheduled totals. Account Statement for the cycle being reconciled
(per MIDANET or Investor Accounting
4c The total of minority principal Manager).
and interest. From the Minority 3a and 3b The cumulative totals of delinquent
Principal and Interest bill that is due interest on active and inactive mortgages. From
to be remitted by the 15th of the the page of your delinquent report that shows
following month . totals.
3c The cumulative total of delinquent principal

6b The total cumulative variance, for scheduled/scheduled loans. From the page
from the previous cycle’s Form 59. of your delinquent report that shows totals.

69 June 2009
The following table provides an overview of how to reconcile the principal and interest custodial account. All of the worksheets used to reconcile the
principal and interest custodial account are available in the Guide and in our Understanding Custodial Accounts publication available on the Learning
Center.
Step Procedure Refer to the section in the

Understanding Custodial
Accounts workshop manual
1 Calculate the overall cumulative variance and the current cycle variance by completing the Principal Reconciling Principal and Interest
and Interest Custodial Account Reconciliation Worksheet (Form 59). Custodial Accounts
2 Calculate the amount of the cash disbursements variance by completing the Cash Disbursements to Reconciling Cash Disbursements
Amount Remitted Worksheet. There will be a cash disbursements variance if you withdrew funds
from your principal and interest custodial account for any reason other than remitting the funds to us
through Global Payments Incorporated (GPI).
3 Calculate the amount of the cash receipts variance by completing the Cash Receipts to Current Reconciling Cash Receipts
Amount Due Worksheet. There will be a cash receipts variance if the amount of your deposits for the
cycle does not equal the Total Amount Due us for the cycle.
4 To ensure you are reconciling to the correct figure, complete the following calculation: Reconciling Principal and Interest
Cash Receipts Worksheet total Custodial Accounts
- Cash Disbursements Worksheet total
= Current Cycle Variance (6c)
5 Identify the transactions that are causing any cash disbursements variance, and determine what action Reconciling Cash Disbursements
you need to take for each transaction.
6 Identify the transactions that are causing any cash receipts variance, and determine what action you Reconciling Cash Receipts
need to take for each transaction.
7 Identify the transactions that are causing any cumulative variance. We expect you to fund all Reconciling Principal and Interest
variances, identified or unidentified, within 90 days of the accounting cycle in which the variance Custodial Accounts
originates.

70 June 2009
Important Points About the Principal and Interest Custodial Account Reconciliation
þ An outstanding debit is a withdrawal (other than a GPI System remittance) that was initiated as of the accounting cutoff that has not been debited from
the bank account. An outstanding debit may include debits such as NSF checks or recovery of advances initiated but not withdrawn as of the
accounting cutoff, and shown as a separate line item on the bank statement. Outstanding debits may occur infrequently. You will not have an
outstanding debit due to a remittance via GPI because the funds are made available to us at the same time the funds are withdrawn from your
custodial account.
þ Deposits in transit are collections as of the last business day of the cycle for transactions reported in the current cycle that are not reflected in the
custodial account bank balance as of the cutoff date. There is a timing difference between when the deposit is initiated and when it is reflected on the
bank statement (i.e., a one-day lag, a two-day lag if you use a lock box).
þ Delinquent and prepaid totals should be cumulative totals, not current cycle only.
þ Minority principal and interest totals should be taken from the Minority Principal and Interest Due Report for the current cycle (remitted the following
month). This only applies to loans where we have negotiated the purchase of the minority participation of previously purchased Freddie Mac loans.
þ A consolidated reconciliation must be completed if you maintain more than one principal and interest account.
þ Form 59 captures the actual custodial account position as of the accounting cutoff. Use a variance summary log to identify any difference between the
adjusted liability and the adjusted bank balance.
Escrow Accounts
Reconcile the escrow account balance to the total positive loan-level escrow liability per the trial balance as of the
same date. We suggest you use our Escrow Custodial Account Reconciliation Worksheet, Form 59E, which can
be found in our Single-Family Seller/Servicer Guide and in our Understanding Custodial Accounts
publication. The escrow custodial account, like the principal and interest custodial account, must be reconciled as
of the accounting cycle cutoff. Many Servicers choose to also reconcile at month end. Our minimum requirement
is that the escrow account be reconciled as of the accounting cutoff.
The diagram on the following page identifies the documentation you will need to
n Complete the Escrow Custodial Account Reconciliation Worksheet
n Send to us with your reconciliation when we request it

71 June 2009
Custodial Accounts Reconciling Accounts / Escrow Accounts
1a From your bank statement for 1b From the following month’s bank
the cycle being reconciled. statement or the monthly collections report.
Outstanding debits are withdrawals initiated
as of the cutoff
2c From the total page of the trial
that are debited the first business day after
balance that supports the total
the accounting cutoff being reconciled.
suspense liability. Suspense funds are
Explanation of the withdrawal is also
partial payments or unapplied funds
required.
held in escrow until a full payment is
applied to the principal and interest
1c From the following month’s bank
account.
statement or the monthly collections
2d From a screen print of the loan report. Deposits in transit are collections
history or report that verifies the total as of the accounting cycle cutoff that are
suspense liability (the escrow balances of deposited the first business day after the
any loans funded by us as of the accounting
accounting cutoff, but not included in cutoff being reconciled (two business days
your trial balance totals on line 2a) at the if you are using a lock box).
time of the accounting cutoff for the
accounting cutoff being reconciled. 2a From the total page of the trial
balance that supports the total
2e From the total pages of the trial escrow liability.
balances that support the amounts of
any other funds that are held on the 2b From the total page of the trial
behalf of a borrower. Examples of balance that supports the total escrow
other funds include buydown or liability. If the escrow balance total on the
replacement reserves. The balance of trial balance nets negative escrow
this type of account must equal the total balances against positive escrow
of buydown funds deposited at the time balances, you must add the total amount
we purchased a mortgage, minus the of negative escrow back to the netted
monthly buydown amount, times the 3b The total cumulative variance, from figure to capture the total positive escrow
number of payments applied since our the previous cycle’s Escrow Custodial liability.
purchase. Account Reconciliation Worksheet.
72 June 2009
Custodial Accounts Reconciling Accounts / Escrow Accounts
Important Points About the Escrow Custodial Account Reconciliation

þ You must advance funds from your corporate account into the escrow custodial account whenever a deficiency occurs in an individual account.
You cannot use one borrower’s overage to cover another borrower’s shortage. Make a daily advance for escrow balances that fall below zero on
individual loans. As a borrower brings their escrow balance into the positive, you may repay the advance.
þ You must reconcile to the total positive escrow balance. If the trial balance nets the positive and negative escrow, the amount of the negative escrow
needs to be added back to the netted figure to arrive at the total positive escrow liability.
þ An escrow custodial account must be opened even if you do not plan to escrow loans. The account is set up to receive any funds held on the
borrowers’ behalf to include, but not exclusively, partial payments, suspense funds, reserves, buydown funds, or insurance claim proceeds.
þ Perform a consolidated reconciliation if you have more than one escrow account.
þ Use suspense or unapplied categories to allocate partial payments held in escrow.
Resolving Variances
As described in our Understanding Custodial Accounts publication, we suggest you use a variance summary log to identify the individual transactions that
make up a principal and interest or escrow custodial account variance.
When logging a variance on the variance summary log

n Carry an amount to be deposited into a custodial account as a positive dollar amount.
n Carry an amount to be withdrawn from a custodial account as a negative dollar amount.
Variances do not necessarily reflect errors in managing the borrower’s funds, and can be the result of timing differences. Check to see if the variances are
the result of any of the following:
n Deposit adjustments
n Repurchases
n Investment interest
n Unfunded escrow advances
n Debits to the bank account that are not for Freddie Mac remittances
n Initial monthly interest for newly funded loans not deposited in full
73 June 2009
Custodial Accounts Reconciling Accounts / Variances
n Items on the Detailed Adjustment Report not yet adjusted to your custodial account
n Transfer of servicing discrepancies
n Unrecovered corporate advances
n Amortization differences
n Delinquent and prepaid totals miscalculated
n Recovery of your servicing fee that was deposited with a borrower’s gross payment
n Discrepancies caused by reporting errors (reported versus deposited)
n Posting errors
Important Points About Variances
þ We expect you to fund all variances, identified or unidentified, within 90 days of the accounting cycle in which the variance originates.
þ An overage or shortage on your Seller/Servicer Remittance Analysis is already incorporated into the ending balance of your Monthly Account
Statement which, in turn, is reconciled to your bank statement. Your Seller/Servicer Remittance Analysis ending balance, although important, has
no bearing on the principal and interest reconciliation process. Do not refer to your Seller/Servicer Remittance Analysis when identifying your
principal and interest variance.
þ When you are requested to submit your custodial account reconciliations, you must send in supporting documentation for every variance.
o Repurchases: A copy of the cycle’s MIDANET payoff report with the loan highlighted.
o Newly funded loans: The loan history and a copy of the MIDANET non-exception report or schedule reflecting the new loan(s).
o Investment interest: A copy of the bank statement with the amount highlighted.
o Amortization differences: The last page of the schedule/report reflecting amortization differences.
o Unidentified variances: A bank statement showing verification of the deposit/withdrawal correcting the variances. Any variance, even if
unidentified, must be funded within 90 days.
o Escrow posting errors: A copy of the loan history that verifies the escrow balance at the time of the accounting cutoff.

74 June 2009
Custodial Accounts Checkpoints
Custodial Account Reconciliation and Cash Management Checkpoints

Below is a list of checkpoints that will help to ensure your custodial account reconciliations and cash management practices are in compliance with our
requirements. Most of these items apply to both P&I and escrow accounts, unless otherwise noted.
This list is not all inclusive and should not be the only control measure used to ensure proper performance. Please refer to the Freddie Mac Single-
Family Seller/Servicer Guide (the Guide), Chapters 76 through 79 for more detailed information on depository eligibility, account set-up and monthly
activity management.
1. Ensure all funds are held in Freddie Mac titled DDA accounts or interest bearing accounts, maintained at eligible depositories. You must,
at a minimum, maintain one P&I account and one escrow account for servicing of Freddie Mac loans. Even if escrow funds will not be
collected from borrowers, the escrow account must be established in the event you receive funds held on behalf of the borrower, such as
insurance claims proceeds, partial payments, or buydown funds.
2. Ensure updated/current Letter Agreements (Forms 1057 or 1059 for P&I accounts and forms 1058 and 1060 for Buydown and Escrow
Accounts) and signature cards are on file at Freddie Mac.
3. Ensure Freddie Mac funds are never commingled with other funds, and that Freddie Mac P&I funds are segregated from escrow funds
held on behalf of the borrower.
4. Ensure payments are deposited into the appropriate Freddie Mac DDA or interest bearing accounts no later than the first business day
after receipt of payment (2 business days if you are using a Lock Box Agent or other service to collect payments).
5. Ensure deposits are made daily as payments are received, and that the bank account continually maintains a positive balance.
6. Ensure all custodial accounts are reconciled monthly as of the accounting cutoff. Each reconciliation (P&I and escrow) must be prepared
as a consolidated reconciliation.
7. Ensure reconciliations are prepared within 45 days of the accounting cutoff.
8. Ensure reconciliations compare the funds on deposit as of the accounting cutoff to the total liability for that same period. (See Guide -
Form 59, Principal and Interest Custodial Account Reconciliation Worksheet, and the Monthly Account Statement. You also will
find both P&I and escrow reconciliation worksheets in our Understanding Custodial Accounts publication and the Guide.
75 June 2009
Custodial Accounts Reconciling Accounts / Checkpoints
9. Ensure accounts are adequately funded by addressing and adjusting for reconciliation variances within 90 days.
10. Ensure all other billings and advances are made timely and that sufficient funds are on deposit in the account for upcoming remittances due
so that a positive balance is always maintained.
11. Ensure escrow advances are deposited daily, as necessary to cover deficiencies in individual borrower escrow balances. (If payment of a
vendor charge will cause an individual borrower escrow balance to fall below a zero balance, the Servicer must advance funds into the
escrow account sufficient to prevent a negative borrower escrow balance. You may not use the escrow collections from one mortgage to
offset the deficiency of another.)
12. Ensure systems and reports are available monthly to provide the necessary portfolio-level and loan-level information needed to reconcile
the custodial accounts and resolve variances timely.
13. Ensure monthly delinquent interest advanced and prepaid interest cumulative totals are calculated at the pass-through rate (accounting net
yield).
14. Ensure documentation is available to support all deposits to, and withdrawals from, Freddie Mac custodial accounts.
15. Ensure differences from your Loan Reconciliation Difference report are adjusted for when compared to your loan-level P&I deposits.
16. Ensure reconciliations and supporting documentation are maintained in stand-alone packages, at an on-site accessible location, for a
minimum of one year.
17. Ensure payments are applied in accordance with the requirements of the Security Instrument and the Guide.
18. Ensure payments deficient by more that $25 are held on deposit in the escrow account as suspense funds until the full P&I payment is
received. As an alternative, deficient payments may be returned directly to the borrower with explanation.
19. Ensure investments are in compliance with Section 79.8 of the Guide.
20. Ensure management quality controls are in place to review and sign off on all reconciliations, whether prepared internally or by other
servicing/accounting agents.

76 June 2009
Transfers of Servicing What is a Transfer of Servicing?
Transfers of Servicing
What is a Transfer of Servicing?

Simply put, a transfer of servicing moves the responsibility of servicing a Freddie Mac mortgage from one Seller/Servicer to another. The transfer can by
assignment, sale, conveyance or other means. The move affects all servicing duties and responsibilities (as set forth in the purchase documents) for
mortgages and real estate owned (REO) properties owned in whole or in part by us. We determine, at our discretion, whether to approve each transfer
of servicing. The Servicer receiving mortgages must be eligible to receive a transfer of servicing.
Concurrent Versus Subsequent

There are two types of transfers of servicing, differentiated by when the transfer takes place: concurrent and subsequent.
§ If a transfer occurs at the time of sale of a mortgage(s) to Freddie Mac, it is referred to as a concurrent transfer of servicing.
§ If a transfer occurs after the sale of the mortgage(s) to Freddie Mac, it is regarded as a subsequent transfer of servicing. A subsequent transfer can
include an entire portfolio of mortgages, or individual mortgages.
Who are the Players?

There are three parties involved: the transferor, the transferee, and Freddie Mac.
§ You are the transferor if you transfer, or propose to transfer, the servicing of all or part of your mortgage portfolio.
§ You are the transferee if you acquire, or propose to acquire, the servicing of all or part of a mortgage portfolio.

77 June 2009
Transfers of Servicing The Basics
The Basics
What Happens When Example
A subsequent transfer of servicing is negotiated Transferor will transfer loans 111234567, 221234567, 331234567,
between Servicers 441234567, and 551234567. All loans were sold under the Gold
remittance option.
Transferor submits transfer request information 30 Business days prior to effective January 14 Transferor submits transfer request information to Freddie Mac:
to Freddie Mac: Form 981, a $500 processing fee, transfer date Form 981, a $500 processing fee, and a list of mortgages to be
and a list of mortgages to be transferred transferred (via MIDANET  for the PC)
Transferor receives confirmation of receipt of list The same day that Freddie Mac receives January 14 Transferor receives confirmation of Freddie Mac’s receipt of the
of loans the list of loans to be transferred list of loans
If loan or transfer errors are found, transferor One business day after Freddie Mac January 18 Transferor receives loan exception report via Freddie Mail with
receives exception reports via Freddie Mail receives list of loans to be transferred loan 551234567 in error because it paid off on January 5
Transferor and transferee receive approval Seven to ten business days after Freddie January 27 Transferor and transferee receive approval notification from
notification or denial letters from Freddie Mac Mac receives transfer request Freddie Mac.
Transferor reports loan-level monthly activity Within five business days of the February Transferor reports loan-level monthly activity for loans
for newly transferred mortgages accounting cutoff 17 111234567, 221234567, 331234567, and 441234567 for the
February accounting cycle (January 15 through February 15).
Transferee begins reporting and remitting for On or after the effective transfer date (first February Loan number 441234567 pays off on February 18. Transferee
payoffs and third-party sale foreclosures with business day after the accounting cutoff) 18 reports within five business days through MIDANET  for the
exception dates after the effective transfer date PC and remits through Global Payments Incorporated (GPI).
Transferor remits cash through Global Payments Gold, ARC or First Tuesday remittance February Since all four active loans are Gold loans, transferor remits cash
Incorporated (GPI) for amounts due on date 18 due, through Global Payments Incorporated (GPI), at 9 a.m. on
mortgages February 18.
Transferee reports delinquency information for First through eighth business day of the By Loan 111234567 is 60 days delinquent. Transferee reports this
newly transferred mortgages calendar month after transfer is effective March 9 delinquency information via MIDANET  for the PC.
Transferee reports loan-level monthly activity Within five business days of the By Transferee reports loan-level monthly activity for the first time
for newly transferred mortgages accounting cutoff March 22 for loans 111234567, 221234567, and 331234567.
Transferee remits cash through Global Payments Gold, ARC or First Tuesday remittance March 18 Since all three of the loans are Gold loans, transferee remits cash
Incorporated (GPI) for amounts due on newly date due, through Global Payments Incorporated (GPI), at 9 a.m. on
transferred mortgages March 18.

78 June 2009
Transfers of Servicing The Details
The Details
Here are the seven simple stages involved in a loan-level subsequent transfer of servicing. For complete Freddie Mac requirements, please refer to
Chapter 56 of the Single-Family Sellers’ and Servicers’ Guide.
What Happens and Who Does It

Stage Timeframe Transferor Transferee Freddie Mac
(transferring mortgages) (acquiring mortgages)
At least 60-90 § Negotiates transfer with transferee. § Verifies eligibility to receive § Receives Form 981 and processing
calendar days prior § Submits list of loans to be transferred transferring mortgages, paying fee, and begins approval process.
to effective transfer via MIDANET  for the PC or CPU-to- attention to special products and § Receives list of loans to be
date CPU. tier ranking. transferred via MIDANET  for the
§ Signs Form 981 and obtains § Negotiates transfer with transferor. PC and send confirmation of receipt
1. transferee’s signature. of file to transferor.
§ Signs Form 981.
Initiating § Mails Form 981 and $500 transfer
processing fee to Freddie Mac.
Transfer Requests for transfers of single-
family mortgages should be
submitted to:
Freddie Mac
8200 Jones Branch Drive
McLean, VA 22102-3110
MS 387
Attn: Transfers of Servicing

79 June 2009

Within 1 business If errors are found, receives exception § Verifies list of loans to be
day after receipt of reports via Freddie Mail, listing loan errors transferred.
the list of loans to be or transfer errors. § If errors are found, transmits
transferred exception reports to transferor via
Freddie Mail.
2.
Processing Within 1- 2 days Provides any missing or inaccurate loan Provides any missing or inaccurate § Contacts transferor and transferee
after receipt of the information to Freddie Mac via information to Freddie Mac or to the for inaccurate/missing information
Request list of loans to be MIDANET  for the PC. transferor. on forms.
transferred
Within 7- 14 days Receives approval notification via Freddie Receives approval notification via Transmits or mails approval notifications.
after receipt of Form Mail or a letter. Freddie Mail or a letter.
981, fee, and list of Or
loans to be Or Or
transferred Contacts Servicers to amend their
Receives information to amend the Receives information to amend the request.
transfer. transfer.
Or
Or Or
Mails denial letter.
Receives denial letter. Receives denial letter.

80 June 2009

No later than Provides notice to all borrowers in Receives records for transferring
effective date of accordance with the Real Estate loans from transferor.
transfer on first Settlement Procedures Act (RESPA) and
business day after other applicable laws. Provides notice to all borrowers in
3. accounting cutoff accordance with the Real Estate
Delivers records for transferring loans to Settlement Procedures Act (RESPA)
Exchanging and other applicable laws.
transferee.
Mortgage
Document custodian delivers mortgage Document custodian receives
Data notes and required documentation to mortgage notes and required
transferee’s document custodian. documentation from transferor’s
document custodian.
No later than 30 days Delivers to transferee/ Receives from transferor

after effective § Mortgage and REO § Trial balances
transfer date
§ Notice of transfer § Correspondence and reports
§ Unpaid charges § Service contracts
§ Insurance policies § Automatic payments
§ Payment history § Other documents
§ Notice to third parties
2nd or 3rd business Receive data from IAM regarding new Receive data from IAM regarding new
day of the month loans transferred. loans transferred.
following the
effective date of TOS
4. On or after the first Begins reporting and remitting for Processes payoffs and third-party sale
business day after payoffs and third-party sale foreclosures reported by transferee.
Reporting the accounting cutoff foreclosures on newly transferred Posts cash due amounts to transferee. (If
Exception loans. the transferor reports payoffs and
Data foreclosures with a sale date, Freddie Mac
will process the exceptions and not
transfer the mortgages.)

81 June 2009

Within 5 business Reports loan-level monthly activity for Receives loan-level monthly activity from
5. days of the the cycle prior to the effective transfer transferor and posts cash due to
accounting cutoff date. transferor.
Monthly
Loan-Level Gold, ARC or First Remits cash amounts due, through Posts cash received under transferor’s
Reporting Tuesday remittance Global Payments Incorporated (GPI), for Seller/Servicer number.
date newly transferred loans.
(Pre-
Transfer Last business day of Freddie Mac’s system updates with
Data) the month transferee Seller/Servicer number.
6. 1st-8th business day Reports delinquency information for Receives delinquency reporting
of the following newly transferred loans. information from transferee.
Reporting month
Delinquency
Data
7. Within 5 business Reports loan-level monthly activity Receives loan-level monthly activity from
days of the for newly transferred loans. transferee and posts cash due to
Monthly accounting cutoff transferor.
Loan-Level
Reporting
(Post-
Transfer At remittance option Remits cash amounts due, through Posts cash received under transferee’s
Data) cash due date (Gold, Global Payments Incorporated (GPI), Seller/Servicer number.
ARC, or First for newly transferred loans.
Tuesday)

82 June 2009

Investor Reporting Quick Reference

Загружено:

Сведения о документе

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Investor Reporting Quick Reference

Загружено:

Авторское право:

Доступные форматы

Investor Reporting Quick Reference

Publication number: 266

Initial Printing: March 1997

Last Updated: June 2009

Investor Reporting Quick Reference Page i Freddie Mac

Edits for Last Payment Received Date....................................................................................................................................... 37

Investor Reporting Quick Reference Page ii Freddie Mac

Investor Reporting Quick Reference Page iii Freddie Mac

Investor Reporting Quick Reference Page iv Freddie Mac

What to Report and Remit

Freddie Mac Document Investor Reporting Quick Reference

When to Report and Remit

Freddie Mac Document Investor Reporting Quick Reference

Gold The third business day following the accounting cutoff.

Freddie Mac Document Investor Reporting Quick Reference

Exception Activity Description Report activity Remittances are due…

Active Current or delinquent mortgage that has not

40 Inactivation Mortgage in which you have initiated and

N/A Inactive Mortgage you inactivated in a previous N/A

50 Reinstatement Mortgage inactivated in a previous accounting By the contract-specified remittance

70 Transfer to REO (real Mortgage property was acquired by us through

Freddie Mac Document Investor Reporting Quick Reference

How to Report and Remit

Freddie Mac Document Investor Reporting Quick Reference

What to do After You Sell Freddie Mac a Mortgage

Use the following formula to calculate the principal due to us:

Funded balance - Ending balance = Principal due

Freddie Mac Document Investor Reporting Quick Reference

Apply a borrower’s mortgage payment to interest and principal by:

Report principal collected

Report April’s interest at

Freddie Mac Document Investor Reporting Quick Reference

The Big Picture

Freddie Mac Document Investor Reporting Quick Reference

Reports Used for Investor Reporting

Report Name Originator How Communicated Purpose

Freddie Mac Document Investor Reporting Quick Reference

Report Name Originator How Communicated Purpose

I Freddie Mac Document Investor Reporting Quick Reference

Report Name Originator How Communicated Purpose

Freddie Mac Document Investor Reporting Quick Reference

Utilize our Educational Offerings

If you need help with… Contact

EDR or the Foreclosure/DIL Notification process (800) FREDDIE

Educational Resources The Learning Center at www.freddiemac.com/learn

Fee invoices or statements (800) FREDDIE

Freddie Mac Document Investor Reporting Quick Reference

If you need help with… Contact

Loan Repurchases Fees and Claims email Repurchases@FreddieMac.com

MIDANET (imports/exports, downloads or general questions) (800) FREDDIE

Transfers of Servicing Transfer of Servicing Team (703) 903-4209 or (703) 903-4113

Freddie Mac Document Investor Reporting Quick Reference

Resolving Data Discrepancies

Understanding the Daily Edit Reports

You will receive from us the following three edit reports:

Each report is described on the following pages.

Freddie Mac Document Investor Reporting Quick Reference

The Loan Level Missing report

REPORT ID: LL03611R FREDDIE MAC PAGE: 1

123456 123456781 123456782* The total number of mortgages

This is your Servicer number

Freddie Mac Document Investor Reporting Quick Reference

The Edits to be Cleared report

REPORT: PL02350R FREDDIE MAC PAGE: 1