Freddie Mac Single-Family Seller/Servicer Guide 8301.3 — Calculating Mortgage interest due to Freddie Mac, net yield interest and Servicing fee

Freddie Mac Single-Family Seller/Servicer Guide 8301.3 — Calculating Mortgage interest due to Freddie Mac, net yield interest and Servicing fee

Effective 2025-09-10 · Freddie Mac's stamp for this section

This section contains requirements related to: ■ Calculating Mortgage interest due to Freddie Mac ■ Net yield interest ■ Servicing fee (a) Calculating Mortgage interest due to Freddie Mac In the current Accounting Cycle, the Servicer must report the forecasted scheduled interest for the next Accounting Cycle due to Freddie Mac. The next cycle forecasted scheduled interest is calculated by multiplying Freddie Mac’s share of the current Accounting Cycle interest-bearing Ending UPB, after applying all principal payments received from the Borrower, by the net yield divided by the applicable period of time. The Servicer must use the following principles when calculating Mortgage interest due to Freddie Mac: ■ Forecasted scheduled interest is reported in the Accounting Cycle prior to the Accounting Cycle it is due to Freddie Mac ■ Interest is due in arrears ■ Freddie Mac will draft the forecasted scheduled interest in the Accounting Cycle after it is reported ■ Interest is due for full calendar months based on a 12-month, 360-day year ■ Interest is due for partial months based on the actual number of days 365-day year ■ To calculate forecasted scheduled monthly interest for: • Newly funded Mortgages, the Servicer must use the funded balance, which is the beginning gross UPB • For all other Mortgages, the Servicer must use either the current Accounting Cycle Ending UPB or, in the case of a modified loan, the interest-bearing UPB reported at the end of the current Accounting Cycle For an ARM that allows Negative Amortization, the amount by which the monthly interest calculated at the Note Rate exceeds the Borrower’s scheduled monthly payment to the Servicer is a Negative Amortization increase and is accounted for in the calculation of principal due to Freddie Mac. (b) Net yield interest The Servicer must calculate the interest due to Freddie Mac by using the Accounting Net Yield (ANY) stated on Form 15, Loan Purchase Statement, and the Funding Detail Report or as stated in the Transfer of Servicing records referenced in Section 7101.5 The yield is dependent upon the method of pricing chosen at the time the Mortgage was sold to Freddie Mac. Generally, the yield equals the Note Rate minus the Servicing Spread. Refer to Chapters 6101 and 6102 for pricing methods and product descriptions. (c) Servicing fee The Servicing fee, referred to as the Servicing Spread, is the compensation the Servicer earns for Servicing Freddie Mac-owned Mortgages. Refer to Chapter 8105 for detailed information on Servicing fees and Section 8503.2(f) for Servicemembers Civil Relief Act-capped Mortgages.

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