Freddie Mac Single-Family Seller/Servicer Guide 7101.7 — Required notices to Borrowers and Third

Freddie Mac Single-Family Seller/Servicer Guide 7101.7 — Required notices to Borrowers and Third

Parties, Borrower issues and inquiries related to Transfers of Servicing (12/10/25) This section contains requirements related to: ■ Notice to Borrowers regarding Transfers of Servicing ■ Notices of Transfers of Servicing to third parties ■ Borrower issues and inquiries related to Transfers of Servicing (a) Notice to Borrowers regarding Transfers of Servicing (i) Transferor Servicer’s notice to the Borrower The Transferor Servicer must provide timely notice to the Borrowers with Mortgages related to the Transfer of Servicing to ensure a smooth transition, avoid disruption in Mortgage payments and comply with applicable laws and regulations. The Transferor Servicer must provide written notice to each Borrower at least 15 days before the first payment is due to be received by the Transferee Servicer. (ii) Transferee Servicer’s notice to the Borrower The Transferee Servicer must provide to each Borrower written confirmation of the information in the Transferor Servicer’s notice to the Borrowers within 15 days before the date the first payment is due to be received by the Transferee Servicer. (iii) Notice requirements The notice must advise the Borrower of the following: 1. The Effective Date of Transfer 2. The name and address of the Transferee Servicer 3. The names and telephone numbers of the contact persons or departments of the Transferor Servicer and of the Transferee Servicer where the Borrowers’ inquiries relating to the Transfer of Servicing should be directed. (If toll-free numbers are not available, the letter must indicate that collect calls will be accepted.) 4. The date when the Transferor Servicer will no longer collect the Borrowers’ payments and when the Transferee Servicer will begin to collect them 5. Any previously escrowed optional Mortgage life or accident and health insurance for which the Transferee Servicer will not assume responsibility, with appropriate suggestions or instructions for the Borrower to continue such coverage 6. Procedures for maintenance of automatic draft payments, if applicable The notice may not amend the terms of a Mortgage other than those relating to where to send payments. (b) Notices of Transfers of Servicing to third parties The Transferor Servicer must obtain the following approvals and provide the following notices, as applicable: ■ Obtain MI approval and commitment to insure as required by Section 7101.2(d)(i) ■ Advise all applicable property insurers, including the Federal Emergency Management Agency, of the Transfer of Servicing and of the name and address of the Transferee Servicer to modify the Mortgage clause required by Section 4703.6 ■ Provide the required notices to the FHA, RHS and/or VA, if applicable ■ Notify all other appropriate parties, including, but not limited to, mortgage life and/or accident and health insurers, tax verification/reporting and flood zone hazard determination services, tax authorities, condominium associations, homeowners associations, Cooperative Corporations (see Chapter 8801 for special Servicing requirements for Cooperative Share Loans), fee owners for leasehold Mortgages, other lienholders and public utilities levying assessments for which Escrow is collected (c) Borrower issues and inquiries related to Transfers of Servicing As of the Effective Date of Transfer, the Transferee Servicer must be able to: ■ Respond to Borrower inquires and provide current, accurate account information ■ Process all Servicing and accounting transactions within five days following the Effective Date of Transfer The Transferor and Transferee Servicers must ensure that their staff and facilities are adequately prepared to process Servicing and accounting transactions and to respond to Borrower inquiries during the transfer transition period, which may extend beyond the Effective Date of Transfer. If any Servicing or accounting problem cannot be resolved without the involvement of the Transferor Servicer, the Transferee Servicer, and not the Borrower, should initiate the contact with the Transferor Servicer. The Transferor and Transferee Servicers must make reasonable efforts to: ■ Resolve disputes to the Borrowers’ satisfaction when such disputes arise from legitimate Borrower misunderstanding of instructions in the notice of Transfer of Servicing ■ Waive late charges and, if applicable, ■ Make appropriate adjustments to payment and credit records made for misapplied or unapplied payments due to the Transferee Servicer but received by the Transferor Servicer

Source: Freddie Mac Single-Family Seller/Servicer Guide 7101.7 — Required notices to Borrowers and Third · source URL · snapshot 4c94f67729042dd6