Freddie Mac Single-Family Seller/Servicer Guide 8302.2 — Depository and Custodial Account requirements

Freddie Mac Single-Family Seller/Servicer Guide 8302.2 — Depository and Custodial Account requirements

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

This section contains information related to: ■ Disbursement clearing accounts ■ Depository eligibility requirements ■ Insured depository risk level ■ Changing or transferring the drafting account (a) Disbursement clearing accounts A disbursement clearing account is a bank account the Servicer maintains for the deposit of funds due to Freddie Mac or paid to third parties, such as insurance premiums or property taxes. (i) Principal and Interest Disbursement Clearing Custodial Account A Principal and Interest Disbursement Clearing Custodial Account is only necessary if the Servicer chooses to maintain the account from which Freddie Mac drafts funds as a separate account. The Servicer may not clear Freddie Mac’s funds through an operating account or a general account through which the Servicer processes non-Freddie Mac Automated Clearing House transfers. If the Servicer chooses to open and use a Principal and Interest Disbursement Clearing Custodial Account, the Servicer must meet the following requirements: 1. Open, maintain and designate the account in accordance with the requirements of Sections 8302.1(b) through 8302.1(d), 8302.2(b) and 8302.2(c) 2. Deposit only funds due to Freddie Mac 3. Ensure that the disbursement clearing account is adequately funded prior to the applicable draft date (ii) Escrow Disbursement Clearing Account Freddie Mac does not require the Servicer to maintain a separate Escrow Disbursement Clearing Account for Escrow Funds. However, if the Servicer elects to deposit Escrow Funds into an Escrow Disbursement Clearing Account, the Servicer: ■ May deposit Escrow Funds for Freddie Mac’s Mortgages into an Escrow Disbursement Clearing Account common to all Mortgages the Servicer services ■ Must ensure that it transfers the Escrow Funds from the Escrow Custodial Account to its Escrow Disbursement Clearing Account no more than one Business Day prior to the disbursement of any Escrow Funds ■ Must ensure that the Escrow Disbursement Clearing Account is adequately funded prior to the disbursement of any Escrow Funds An Escrow Disbursement Clearing Account is not subject to Custodial Account designation or documentation requirements, as set forth in Sections 8302.1(c) and 8302.1(d). (b) Depository eligibility requirements To ensure the safety of funds in Custodial Accounts, Freddie Mac has specific eligibility requirements that a depository must meet. An Eligible Depository for the Custodial Accounts must be one of the following: ■ A Federal Reserve Bank ■ A Federal Home Loan Bank ■ An FDIC-Insured Depository ■ An NCUSIF-Insured Depository An FDIC-Insured Depository or an NCUSIF-Insured Depository must also meet Freddie Mac’s acceptable risk threshold and minimum tier rating requirements specified in Section 8302.2(c). Depositories for Escrow and Buydown Custodial Accounts must meet Freddie Mac’s depository eligibility requirements and are also required to meet Freddie Mac’s acceptable risk threshold as stated in Section 8302.2(c). (c) Insured depository risk level An FDIC-Insured Depository or an NCUSIF-Insured Depository for Principal and Interest Custodial Accounts must maintain an acceptable risk threshold based upon Freddie Mac’s confidential tolerance standards calculated using various key metrics. Servicers will be notified if its depository has fallen below the acceptable risk threshold. In addition to the acceptable risk threshold, an FDIC-Insured Depository or an NCUSIFInsured Depository must meet the following requirements: ■ Be rated as “well capitalized” by its federal or State regulator; and ■ Have a financial rating that meets at least one of the following criteria: 1. Institutions with assets of $30 billion or more must have either a: ■ Short-term issuer rating by S&P of “A-3” (or better) or, if no short-term issuer rating is available by S&P, a long-term issuer rating of “BBB-” (or better) by S&P; or ■ Short-term bank deposit rating by Moody’s of “P-3” (or better) or, if no shortterm bank deposit rating is available by Moody’s, a long-term bank deposit rating of “Baa3” (or better) by Moody’s 2. Institutions with assets of less than $30 billion must have either a: ■ 125 (or better) Bank safety rating issued by IDC Financial Publishing, Inc.; or ■ C+ (or better) KBRA Financial Intelligence (KFI) Score issued by Kroll Bond Rating Agency, LLC The Servicer must monitor these ratings based on the frequency used by the ratings agency for publishing and updating rating changes to determine the continued eligibility of a depository institution. Freddie Mac may require that funds be transferred out of an Eligible Depository—even if the institution satisfies Freddie Mac’s financial rating criteria—or more quickly than indicated above if Freddie Mac decides that it is in its best interests or the interests of PC, MBS and/or UMBS® investors to do so. A depository institution that is a subsidiary of a holding company or an affiliate of another depository may, on a case-by-case basis, have its rating affected by the rating of its holding company or affiliate. FDIC regulations may require related depository institutions to guarantee the obligations of the troubled depository institutions. As a result, the related depository institution may be subject to a risk of regulatory action, and Freddie Mac may deem it to be ineligible even if it meets Freddie Mac’s acceptable risk level. The Servicer may want to consider this when selecting or monitoring its depository. (d) Changing or transferring the drafting account A Servicer must comply with the requirements in Sections 8304.3(b), (c) and (d) in order to change or transfer the Principal and Interest Custodial Account from which Freddie Mac drafts its monthly principal and interest payments and payoff amounts. The Servicer may also visit Freddie Mac Learning at https://sf.freddiemac.com/toolslearning/freddie-mac-learning/overview to access training resources or call Customer Service at 800-FREDDIE.

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