Servicing Transfer Instructions User Guide. December 2017

Transcription

1 Servicing Transfer Instructions User Guide December 2017

2 SERVICING TRANSFER INSTRUCTIONS USER GUIDE TABLE OF CONTENTS CHAPTER 1 INTRODUCTION... 1 Prologue... 1 Overview... 1 Loan Selling Advisor Delivery Tips... 4 How to Prevent Data and Funding Errors for s Sold Through the SRSP... 4 How to Deliver a Scheduled UPB and Valid DDLPI... 4 How to Enter Monthly Escrow Collections... 6 How to Enter Escrow and Buydown Funds (Formerly known as the Escrow Deposit) Completing Borrower Mailing Address Information Understanding Your Freddie Mac Settlement Statements What is Net Funding? Funding Adjustments Accrued Interest/Interest Adjustment Servicing Spread Adjustment Tax Service Fee Transaction Fee Settlement Statements Access Settlement Statements How to Export the Servicer Assigned Loan Identifier Next Steps Delivery to the Servicer CHAPTER 2 IDENTIFY THE SERVICER... 1 How to Identify the Servicer in Loan Selling Advisor... 1 CHAPTER 3 PACKAGE AND DELIVER DOCUMENTS... 1 The Servicing Delivery File... 1 Servicer Mailing and Delivery Information... 1 Packaging Instructions... 2 How to Package Single Loan Files... 2 Servicing Transfer Instructions User Guide December 2017 Table of Contents

3 How to Package Multiple/Bulk Loan Files... 3 Imaged Documents... 3 CHAPTER 4 OUTSTANDING DOCUMENTS... 1 Outstanding Documents... 1 How to Forward Documents... 1 CHAPTER 5 NOTIFICATION TO INTERESTED PARTIES AND GOOD-BYE LETTERS... 1 Notification to Interested Parties... 1 Notice to Insurance Companies... 1 Flood and Catastrophe Insurance... 1 Hazard Insurance (Fire and Extended Coverage)... 2 Optional Insurance... 3 Private Insurance... 3 Title Insurance... 4 Execute Other Documents... 4 Issue a Good-bye Letter... 5 Optional Information for the Good-Bye Letter... 7 CHAPTER 6 ASSIGNMENTS... 1 Instructions for the Assignment... 1 CHAPTER 7 MERS MORTGAGES... 1 MERS Registered s... 1 CHAPTER 8 IRS FORM 1098 REPORTING REQUIREMENTS... 1 Requirements for completing IRS Form CHAPTER 9 RESOLVE SETTLEMENT/FUNDING ERRORS... 1 How to Resolve Settlement/Funding Errors... 1 Other Funds Collected at Closing Amount (formerly known as Escrow Deposit)... 1 Loan Acquisition Scheduled UPB Amount (formerly known as the Unpaid Principal Balance)... 2 Payments and Refunds... 3 Forward or Request Funds... 3 Payments Due the Servicer or Refunds Due the Seller... 4 Servicer Contacts for Reconciliations... 4 CHAPTER 10 LATE FEES... 1 Late or Incorrect Delivery to the Servicer... 1 Servicing Transfer Instructions User Guide December 2017 i Table of Contents

4 CHAPTER 11 FINAL DOCUMENTS... 1 How to Forward Final Documents... 1 CHAPTER 12 REPAYMENT OF THE SERVICING RELEASED PREMIUM... 1 Repayment of the Servicing Released Premium (SRP) to the Servicer... 1 Payoffs... 1 Repurchases... 1 SRP Repayment Schedule... 2 Servicer Contact for SRP Reimbursement... 2 CHAPTER 13 SERVICER CONTACT INFORMATION... 1 Servicer Call Trees for Sellers and for Borrowers... 1 Arvest Central Company Seller Call Tree... 1 Arvest Central Company Borrower Call Tree... 1 Homeward Residential, Inc., Seller Call Tree... 3 Homeward Residential, Inc., Borrower Call Tree... 2 Nationstar LLC Seller Call Tree... 4 Nationstar LLC Borrower Call Tree... 4 PNC Seller Call Tree... 5 PNC Borrower Call Tree... 5 U.S. Bank Home Seller Call Tree... 5 U.S. Bank Home Borrower Call Tree... 6 CHAPTER 14 CHECKLISTS AND FORMS... 1 Loan Selling Advisor Document Checklist... 2 Loan Selling Advisor Final Document Checklist... 4 Borrower Mailing and Billing Address Certification Form... 5 Payment/Refund Transmittal Form... 6 Servicing Transfer Instructions User Guide December 2017 ii Table of Contents

5 Chapter Introduction 1 Prologue These materials are designed for Freddie Mac customers who are approved to sell mortgages through the Freddie Mac Loan Selling Advisor Servicing-Released Sales Process (SRSP). The materials contain general information, delivery tips and the Servicing Transfer Instructions. The materials are organized as follows: Chapter Number Contents 1 1. Overview of the Servicing-Released Sales Process 2. Loan Selling Advisor delivery tips for preventing delivery and funding errors 3. Access funding reports and understand the net funding breakdown 4. How to export the Servicer assigned loan identifier 5. Next Steps Delivery to the Servicer 2-13 Servicing Transfer Instructions 14 Checklists and Forms Overview Freddie Mac Loan Selling Advisor is a web-based system for selling s. Loan Selling Advisor functions as an all-in-one solution for pricing, contracting and loan delivery. It offers a variety of selling options and lets you manage your contract and loan pipelines, provides access to funding reports and more. When s are sold for cash under the Servicing-Released Sales Process, Freddie Mac arranges for a Servicer, as identified by Freddie Mac, to accept a Transfer of Servicing from the Seller at the time the Seller sells the to Freddie Mac. Sellers must be pre-approved to sell loans for cash under the Servicing-Released Sales Process (SRSP). The Freddie Mac funding date, also referred to in this user guide as the sale date, is the date from which title to the servicing rights transfers from the Seller to the Servicer (Servicer). The Seller s rights, to any portion of the servicing fees or any other fees or income relating to servicing of the loan(s) terminate at the close of business on the sale date.

6 Introduction Sellers participating in the SRSP must comply with requirements as set forth in the Freddie Mac Single-Family Seller/Servicer Guide ( Guide ). The Guide contains Freddie Mac's requirements for s secured by 1- to 4-unit properties. For specific information relating to general sale, delivery and servicing requirements for s sold under the Servicing-Released Sales Process, refer to: Guide Chapter 6302: Delivery Instructions Guide Chapter 6101: Requirements for selling fixed-rate s to Freddie Mac under fixed-rate Cash Contracts, and specifically Guide Section , Requirements for the Servicing-Released Sales Process. Guide Exhibit 28A: Loan Servicing Purchase and Sale Agreement for the Servicing-Released Sales Process. The Loan Servicing Purchase and Sale Agreement ("Agreement") is by and between a Seller participating in the Freddie Mac Loan Selling Advisor Servicing-Released Sales Process ("Seller") and a Servicer approved by Freddie Mac to service Loans sold to Freddie Mac through the Servicing-Released Sales Process ("Servicer"). When you sell s under the SRSP you agree to comply with the terms of Exhibit 28A. Chapter 1: Introduction Page 1-2

7 Introduction The diagram below illustrates a high-level process flow of the Servicing-Released Sales Process. Take out Contract Take out a Cash Servicing Released Contract in Loan Selling Advisor under a Mandatory option or Best Efforts option Freddie Mac Loan Delivery Complete delivery of loan data through Loan Selling Advisor Allocate loan(s) to the contract, if applicable Clear all critical edits Forward Note and other documents required for certification (custodial documents) to Freddie Mac's Designated Custodian Clear certification edits Note is certified The loan status in Loan Selling Advisor will change through the delivery stages of New, Ready to Fund, Settlement Locked and Funded. Freddie Mac Settlement On the Funding Date/Sale Date: Receive cash wire from Freddie Mac Cash wire Includes funding adjustments and net funding as noted in Guide Section Includes the Servicing Released Premium Access cash settlement statements in Loan Selling Advisor Funding Details Report Loan Purchase Statement View/confirm Servicer identification in Loan Selling Advisor servicing rights transfer from the Seller to the Servicer Delivery to the Servicer Seller at its own expense, shall deliver within three (3) business days after the Sale Date, the following: Loan Information Servicing delivery file Other Documents Chapter 1: Introduction Page 1-3

8 Introduction Loan Selling Advisor Delivery Tips The information below will assist you in delivering certain Servicing-Released loan data. Follow these instructions to prevent delivery and funding errors between Freddie Mac, the Transferee Servicer, (hereafter referred to as Servicer) and the Seller. How to Prevent Data and Funding Errors for s Sold Through the SRSP Data delivery requirements for mortgages sold through the SRSP are the same as for all mortgages sold to Freddie Mac. Delivering accurate data for all required fields will prevent data and funding errors. It is imperative that Sellers adhere to the delivery requirements in Guide Chapter If you deliver inaccurate information in Loan Selling Advisor, it can affect the amount Freddie Mac funds the Seller and funding adjustments due the Servicer such as escrow funds, interest adjustment, etc. Likewise, the erroneous information can be used by the Servicer to set up the borrower s servicing account which can result in untimely servicing set up and lead to RESPA violations. The information below highlights certain Servicing-Released data delivery fields where we see frequent data delivery errors. Following the instructions below will prevent funding errors and post settlement reconciliation with the Servicer. How to Deliver a Scheduled UPB and Valid DDLPI When selling mortgages to Freddie Mac for cash, you must deliver a scheduled unpaid principal balance (UPB). Furthermore, when delivering a mortgage through the SRSP, you may have to amortize down the UPB under certain circumstances as described below. Example: When the Freddie Mac funding date occurs after the 10 th of the month in which the interest is paid to, you may have to amortize down the loan. The table below provides detailed steps on data delivery requirements for the Loan Acquisition Scheduled UPB Amount and the Last Paid Installment Due Date and Servicer packaging requirements. How to Deliver a Scheduled UPB and Update the Last Paid Installment Due Date If the You must Here s what you need to do: Freddie Mac Funding Date is 04/11/2017 and the Last Paid Installment Due Date is 04/01/2017 and the Note date is 03/01/2017 Amortize down the loan by the amount of principal due in the month following funding, whether or not the payment(s) was collected. Go to the Loan Acquisition Scheduled UPB Amount field and modify it by amortizing down the loan by one payment (include the April 2017 P&I payment), even if the payment was not collected Chapter 1: Introduction Page 1-4

9 Introduction How to Deliver a Scheduled UPB and Update the Last Paid Installment Due Date If the You must Here s what you need to do: (cont d) Freddie Mac Funding Date is 04/11/2017 and the Last Paid Installment Due Date is 04/01/2017 and the Note date is 03/01/2017 Freddie Mac Funding Date is 04/10/2017, the Last Paid Installment Due Date (known as DDLPI) 04/01/2017 and the Note Date is 03/01/2017 Advance the Last Paid Installment Due Date (formerly known as DDLPI) When amortizing down a mortgage with escrow collections, you must include the escrow portion of the payment(s) applied Include a payment history in the transfer of servicing file to the Servicer If no payments or curtailments have been received, no adjustments are needed. Go to the Last Paid Installment Due Date field and enter a date of 05/01/ Go to the section titled Other Funds Collected at Closing Details 2. Select Escrow Funds 3. Add the dollar value of the escrow portion of the payment to the Other Funds Collected at Closing Amount field The delivery file to the Servicer must contain a legible loan payment history (attached in the order shown on the Document Checklist) that includes: 1. The amount of the applied payment 2. Date the payment was applied dates applied 3. Current UPB, etc. Enter the Loan Acquisition Scheduled UPB Amount as the same amount shown the Note and enter the DDLPI Date also as shown on your lending documents of 4/01/2017. Also refer to Guide section and Loan Selling Advisor s page level help, Calculate Loan Acquisition Scheduled UPB Amount. Chapter 1: Introduction Page 1-5

10 Introduction The illustration below displays Loan Selling Advisor s loan page that contains the data points for the Loan Acquisition Scheduled UPB Amount and the Last Paid Installment Due Date (also referred to as the DDLPI). Note: Loan Selling Advisor calculates the scheduled UPB (a feature available in the Loan Pipeline) however; this feature does not advance the DDLPI date in accordance with the Servicing-Released Transfer requirements. If you use this tool, you must return to the Create/Modify loan pagepage and edit the Last Paid Installment Due Date. Note: For more information on funding adjustments and reconciliation of funding adjustments, refer to Sections 1.4 and 3.2 of Guide Exhibit 28A and Guide Section How to Enter Monthly Escrow Collections Loan Selling Advisor will price escrowed and non-escrowed loans differently based on the price offered by the Servicer. When you create a contract in Loan Selling Advisor, you must indicate whether the Escrow Coverage includes Taxes and Insurance (an escrowed loan) or if the loan is Not Escrowed. The contract price you receive will be based on the escrow coverage option selected. Chapter 1: Introduction Page 1-6

11 Introduction In some instances, the borrower may request the collection of partial escrows. Partial escrow collections are allowed through the SRSP however, there is no pricing benefit. The two contract pricing options for Escrow Coverage are Taxes and Insurance (fully escrowed) or Not Escrowed (no escrows). For mortgages with full or partial escrow collections, the Seller must complete all required escrow information. The procedure below illustrates how to enter escrow loan data in Loan Selling Advisor s create and/or modify loan page. Chapter 1: Introduction Page 1-7

12 Introduction 1. From the create/modify loan page, go to the Origination Details section. 2. Go to the Escrow Indicator field and click the drop-down menu to select True for loans with full or partial escrow collections. If the mortgage is not escrowed, select False and continue with the entry of the remaining delivery data fields. 3. If you selected True, the Current Escrow Information link will display. Click the link to advance to the escrow breakdown data fields. 4. Scroll down to the Escrow Details section. Chapter 1: Introduction Page 1-8

13 Introduction 5. Scroll down to the Escrow Details section, and click the drop down menu to select the type of escrow collection and then enter the amount of the monthly collection in dollars and cents using two decimals spaces. (Do not enter any information in this section if the mortgage is not escrowed.) If the loan has partial escrows collections, enter only the Escrow Item Type and the Escrow Monthly Payment Amount for the escrow item that will be included in the borrower s monthly PITI payment. For mortgages with monthly escrow collections, also refer to the section titled How to Enter Escrow and Buydown Funds (formerly known as the Escrow Deposit). Note: It is the Seller s responsibility to ensure the information entered in the Escrow Details section is correct. The Servicer uses this information to set up the borrower s monthly PITI payment. Therefore, if you enter the data incorrectly, it Chapter 1: Introduction Page 1-9

14 Introduction will result in incorrect billing to the borrower. How to Enter Escrow and Buydown Funds (Formerly known as the Escrow Deposit) When the mortgage has monthly escrow collections or a temporary buydown subsidy, the Seller must complete the information required in the section titled Other Funds Collected at closing. The amounts entered in this section, known as Servicing-Released adjustments, are automatically deducted/netted (on the funding date) from the amount disbursed to the Seller and are simultaneously wired to the Servicer. The procedure below illustrates how to enter data in Other Funds Collected at Closing Details section of Loan Selling Advisors create and/or modify loan page. 1. From the create/modify loan page, go to the Other Funds Collected at Closing Details section. 2. Click the check box next to Other Funds Collected at Closing Type 3. Click the drop down menu for Other Funds Collected at Closing Type and select Escrow Funds or Buydown (for the unapplied temporary buydown subsidy). Do not select Advanced PITI Payment or Principal Curtailment. 4. Go to the Other Funds Collected at Closing Amount and enter the applicable amount. Refer to the table below to assist you in calculating the dollar value required in this field. Enter Other Funds Collected at Closing Type Other Funds Collected At Closing Type Other Funds Collected At Closing Amount Escrow Funds $ Total escrows collected at closing as per the HUD I - Less any aggregate adjustments - Less escrow disbursements due and payable within 60 Days of the Freddie Mac funding date + Plus the taxes and insurance portion of an applied payment (for example, when the mortgage is amortized down by a payment.) = Total If the disbursement is due to an escrow collection authority within 60 days of the Freddie Mac funding date, the seller must: Pay the amount due Chapter 1: Introduction Page 1-10

15 Introduction Enter Other Funds Collected at Closing Type Other Funds Collected At Closing Type Other Funds Collected At Closing Amount Contact the Servicer to inform them of the reimbursement due the Seller Provide the Servicer with clear evidence (paper trail) reflecting the amount paid and satisfied Provide a fully executed Payment/Refund Transmittal to the Servicer Buydown Funds Enter the dollar value of the unapplied temporary buydown subsidy as per the HUD I The example below illustrates a loan with Escrow collections and Temporary Buydown Subsidy funds. The identified funds type and amounts are due the Servicer and are used to establish the borrower s loan record and for set up of the borrower s escrow and/or Temporary Buydown Subsidy account(s). Note : When an escrow disbursement is payable within 60 days of the Freddie Mac funding date, the Seller is responsible for disbursing funds to the appropriate collection authority. When this occurs, the Seller must provide the Servicer with documentation evidencing that the full payment was made to the collection authority. Completing Borrower Mailing Address Information The Borrower Mailing Address Certification Form is required when the primary borrower s mailing address is different from the subject property address, for instance, when: The subject property is a second home The subject property is an investment The primary borrower is stationed away from the subject property Follow the steps below to complete the required information. 1. From the create/modify loan page, go to the Borrower Mailing Address (Borrower 1) section Chapter 1: Introduction Page 1-11

16 Introduction 2. If the primary Borrower s Mail to Address is not the Same as Property Indicator (the subject property address), select False and complete the remaining information in this section including the country code 3. If the Borrower Mail to Address is the Same as Property Indicator (the subject property address), select True and leave the remaining information in this section blank. The Servicer will use the information contained on the Borrower Mailing Address Certification when forwarding correspondence, billing statements and miscellaneous information to the borrower. If you forgot to complete this section before the loan status changed to Settlement Locked, you must complete the Borrower Mailing and Billing Address Certification (located in the Chapter 14, Checklists and Forms) and place it in the servicing delivery file in the order as shown on the Document Checklist. Understanding Your Freddie Mac Settlement Statements Freddie Mac disburses payment to the Seller (via a cash wire) on the Freddie Mac funding date for mortgages purchased. The cash disbursement includes the cash price, Servicing-Released premium (SRP), if applicable, in addition to funding adjustments and net funding. What is Net Funding? Net funding is the process by which Freddie Mac funds mortgages sold for cash. Under the Servicing-Released Sales Process, Freddie Mac will net applicable adjustments due the Servicer from the total amount due the Seller. Freddie Mac will transfer all applicable disbursements due both the Seller and the Servicer on the Freddie Mac funding date. Funding Adjustments Funding adjustments are comprised of the escrow funds (formerly known as the escrow deposit), interest adjustment, Servicing Spread, tax service fee, transaction fee and Temporary Buydown Subsidy funds. The amount of funding adjustments will be identified on the funding date as follows: The Seller enters in Loan Selling Advisor the amounts held as escrow funds and Temporary Buydown Subsidy funds for each sold Servicing-Released and Chapter 1: Introduction Page 1-12

17 Introduction Loan Selling Advisor calculates the interest adjustment, Servicing Spread, tax service fee and transaction fee Refer to Guide Section for additional information regarding delivery requirements for s sold Servicing-Released under Mandatory Cash Contracts or Best Efforts Contracts. The accuracy of the escrow funds and Temporary Buydown Subsidy funds, as submitted by the Seller, is the responsibility of the Seller. Freddie Mac does not edit or validate the amounts of the Escrow funds and Temporary Buydown Subsidy funds. Funding adjustments calculated by Loan Selling Advisor include: Interest Adjustments Servicing Spread Adjustment (if applicable) Tax Service Fee Transaction Fee On the Funding Date, Freddie Mac deducts the amount of the funding adjustments from the sales proceeds paid by Freddie Mac for the purchase of each sold Servicing-Released by the Seller under a Mandatory or Best Efforts cash contract. Freddie Mac forwards the deducted amount of the funding adjustments to the Servicer. Any reconciliation, correction or adjustment to the amount of escrow funds or Temporary Buydown Subsidy funds transferred to the Servicer is the responsibility of the Seller and the Servicer. Freddie Mac will not adjust, calculate, refund or pay any amounts with respect to the escrow funds or Temporary Buydown Subsidy funds after the Funding Date. Accrued Interest/Interest Adjustment The Seller is due accrued interest for each sold to Freddie Mac unless the Freddie Mac funding date is the first (1 st ) of the month. When the Servicer is due interest, it is referred to as an Interest Adjustment. This amount is calculated by Loan Selling Advisor and is paid as follows: When the Freddie Mac funding date occurs in the month prior to the DDLPI date, the Servicer is due the interest adjustment. When the Freddie Mac funding date occurs in the same month as the DDLPI date, the Seller is due the accrued interest. Servicing Spread Adjustment The Servicing Spread adjustment is compensation for servicing mortgages for Freddie Mac. This amount is calculated by Loan Selling Advisor and paid as follows: When the Freddie Mac funding date occurs in the month prior to the DDLPI date, the Servicer is due the servicing spread adjustment. When the Freddie Mac funding date occurs in the same month as the DDLPI date, the Seller is due the servicing spread adjustment. Chapter 1: Introduction Page 1-13

18 Introduction Tax Service Fee A tax service fee is charged by the Servicer for preparation of the initial escrow analysis for all loans. The tax service fee due each participating Servicer is $80 and is subject to change without notice at the Servicer s discretion. The tax service fee is a funding adjustment as noted in Guide Section and is automatically transferred by Freddie Mac from the Seller to the Servicer on the funding date. Transaction Fee The transaction fee is a fee due the Servicer for the initial costs associated with setting up the. The fee due each participating Servicer is $150 and is subject to change without notice at each Servicer s discretion. The transaction fee is a funding adjustment as noted in Guide Section and is automatically transferred by Freddie Mac from the Seller to the Servicer on the Freddie Mac funding date. Settlement Statements Sellers can confirm loan funding and the total amounts disbursed to the Seller and the Servicer by accessing Settlement Statements in Loan Selling Advisor. The statements become available on the Freddie Mac funding date as follows: Loan Purchase Statement Funding Details Report in Loan Selling Advisor Access Settlement Statements Follow the steps below to view your settlement statements. 1. From the main menu, select Settlements, and then select View Settlement Statements. The View Settlement Statements: Search page displays. 2. Enter your search criteria. 3. Click View Contracts. The View Settlement Statements page displays. Chapter 1: Introduction Page 1-14

19 Introduction 4. Select the contract you want to access by clicking the check box for specific contracts or Select Page for all the contracts displayed on the page you are viewing. 5. Click the View Purchase Statements tab to view the Loan Purchase Statement or click the View Funding Details tab to view the Funding Details Report. The reports will display in Adobe Acrobat format. The example below depicts the Loan Purchase Statement and provides a funding breakdown using the first loan displayed on the statement: Chapter 1: Introduction Page 1-15

20 Introduction Name Add or Subtract Amount Principal Purchased $398, Accrued Interest + $ * Total Fees + $ 2,989.92* Premium (Discount) - ($ 14,698.40) * Servicing-Released Proceeds Summary This amount is added or deducted to/from the Total Disbursement depending on the base price: - $ 2,729.39* If the base price is below 100%, this is the Discount and the amount is deducted (a minus). If the base price is above 100%, this is a Premium and the amount is added, (a plus). Servicing-Released adjustments for: Escrow Funds Collected at Closing, Interest Adjustment, Servicing Spread Adjustment, Tax Fee and Transaction Fee Total Disbursement = $378,714.42** (Amount wired to the Seller) *If this amount is enclosed in parentheses, it is deducted from the Total Disbursement. **Deductions for Servicing-Released adjustments as displayed in the Servicing-Released Proceeds Summary section AND includes a credit for the Servicing-Released Premium. For more information, Chapter 1: Introduction Page 1-16

21 Introduction refer to Guide Chapter 6101 and Exhibit 28A. The amounts in the Servicing-Released Proceeds Summary are wired to the Servicer on the settlement/funding date. How to Export the Servicer Assigned Loan Identifier The Servicer assigned loan identifier is available in Loan Selling Advisor beginning on the Freddie Mac funding date. This field is better known as the Servicer Delivered Servicer Loan Identifier. While the identifier cannot be viewed in Loan Selling Advisor, it can be exported. Sellers can export the Servicer Delivered Servicer Loan Identifier to: Include in the loan sale notification letters or correspondence with the borrower and interested parties Assist you and the borrower in tracking the loan with the Servicer You can access this data field from Loan Selling Advisor s Export Data function by selecting Data Sets, and then selecting Export Delivery Data. The data field is available within the Summary Data MISMO 3.0 export data set (shown below), and can be added to a customized data set. Next Steps Delivery to the Servicer As noted in Guide Exhibit 28A, Loan Servicing Purchase and Sale Agreement for the Servicing-Released Sales Process, the Freddie Mac funding date/sale date triggers the delivery time-line to the Servicer. Within three (3) Business Days after that date, the Seller at its own expense must furnish the Servicer with the following: Loan Information. Available computer or like records requested by Servicer reflecting pertinent information on the Loans as of the Origination Dates of such Loans, including but not limited to comprehensive tax and insurance information identifying payee, payee address, next payment due date, and policy number. File. Provide a complete loan file to Servicer or as directed by Freddie Mac. Seller must also retain a copy of the complete loan file and maintain that copy in accordance with the requirements of Chapter Other Documents. Seller shall deliver to Servicer any and all further documents reasonably required by Servicer in order to fully transfer to Servicer all of Seller's rights, title and interest in and to the Servicing Rights and escrow funds transferred hereunder. Late Fee. If the Seller fails to comply with their obligations after the Sale Date as noted in Section of Guide Exhibit 28A, Servicer may, in its sole discretion, charge Seller a late fee of up to $500. Also refer to the section titled Late and Incorrect Delivery to the Servicer for additional information on late fees. Chapter 1: Introduction Page 1-17

22 Introduction The remaining Chapters of this User Guide, otherwise known as the Servicing Transfer Instructions, contain the details, instructions and information you will need to successfully sell mortgages and deliver the required data to the Servicer under the SRSP. Chapter 1: Introduction Page 1-18

23 Chapter Identify the Servicer 2 How to Identify the Servicer in Loan Selling Advisor The assignment of the Servicing to a Servicer is final in Loan Selling Advisor on the Freddie Mac funding date. When preparing the mortgage documentation for delivery to the Servicer, you must ensure you are delivering the documents to the correct Servicer. Servicers selected by Freddie Mac to participate in the Servicing-Released Sales Process are identified in Loan Selling Advisor by a six-digit number. The Servicer identification numbers are: Identify the Servicer Servicer Name Servicer Identification Number Arvest Central Company CMC Funding, Inc Homeward Residential, Inc Nationstar LLC PNC Bank, NA U.S. Bank Home The Servicer Identification Number displays in the contract details screen. Use the following steps to access the contract details screen to identify the Servicer: 1. Log into Loan Selling Advisor 2. From the main menu, select Contracts, and then select View Contract Pipeline. The View Freddie Mac Pipeline page displays. 3. Enter the contract number in the Investor Contract Identifier field. 4. Click List Contracts Chapter 2: Identify the Servicer 2-1

24 5. The Contract Results display. Click on the contract number to advance to the contract details screen. 6. The Cash Contract Details screen displays. The Servicer Identification Number is in the Loan Details section. Chapter 2: Identify the Servicer 2-2

25 Note: Sellers may remove a Servicing Buyer s eligibility to purchase servicing rights for mortgages sold to Freddie Mac under the Servicing-Released Sales Process. Refer to Guide Section for information on Screening out Transferee Servicers. Note: Servicer may remove a Seller s eligibility to transfer Servicing rights to such servicer for mortgage sold to Freddie Mac under the Servicing-Released Sales Process. Refer to Guide Section for information on Servicer s rights to screen out the Seller. Chapter 2: Identify the Servicer 2-3

26 Chapter Package and Deliver Documents 3 How to Deliver to the Servicer The servicing delivery file must be sent to the Servicer not more than 3 business days after Freddie Mac Funding Date. Each servicing delivery file must include: 1. A fully executed Loan Selling Advisor Document Checklist. The Document Checklist is located in Chapter 14, Checklists and Forms. The checklist identifies all documents, where applicable, that must be included in the Servicing delivery file. This is also known as the stacking order and must be adhered to when delivering the file to the Servicer. The Servicing delivery file contains a combination of loan origination, loan closing and miscellaneous Freddie Mac documents. 2. Original or imaged origination and closing documents as applicable, copies of all documents sent for recording, copies of any documents held by Freddie Mac s Designated Custodian (such as Note, Riders & Power of Attorney) along with miscellaneous Loan Selling Advisor delivery documents. Servicer Mailing and Delivery Information The Servicing delivery file must be forwarded to the Servicer not more than 3 business days after Freddie Mac Funding Date. Refer to the table below for information on delivery addresses and contact information. Servicer Contract Information for New Loan Set Ups Servicer Name Mailing Address for Forwarding Servicing File New Loan Set Up Contact New Loan Set Up Phone Number/ Accepts Imaged Documents Arvest Central Company CMC Funding, Inc. Arvest Central Company, Attn: File Delivery, 801 John Barrow Road, Suite 1, Little Rock, AR Specialized Loan Servicing ATTN: CMC Funding Doc Control 8742 Lucent Blvd. Suite 100 Highlands Ranch, CO acmcfiledelivery@arv est.com sellerhelp@cmcfundi ng.com acmcfiledelivery@arvest. com Yes Yes See section titled Imaged Documents. This is the preferred method. See section titled Imaged Documents.

27 Servicer Contract Information for New Loan Set Ups Servicer Name Mailing Address for Forwarding Servicing File New Loan Set Up Contact New Loan Set Up Phone Number/ Accepts Imaged Documents Homeward Residential, Inc. Nationstar LLC Ocwen Financial Corporation 5720 Premier Park Drive, Building 3 West Palm Beach, FL Nationstar, Attn: Doc Admin, 8950 Cypress Waters Blvd., Coppell, TX LSU_Shared@ocwen 1.com Flow Acquisitions Department LSU_Shared@ocwen1.c om Servicing.Acquisitions@n ationstarmail.com Yes See section titled Imaged Documents. Yes See section titled Imaged Documents. PNC Bank, National US Bank Home PNC Bank, National Records/Image Center 8177 Washington Church Rd. B6-YM Dayton, OH US Bank Home, Attn: Jessica Green, Freddie Mac Acquisitions, CN-KY-APAC, 4801 Frederica Street, Owensboro, KY Chris Vocke Acquisitions & Transfers/Flow Servicing Dept. Jessica Green Chris Vocke FlowServicing@pncmortg age.com Chris.Vocke@pnc.com Jessica Green jessica.green@usbank.c om Yes See section titled Imaged Documents. Yes See section titled Imaged Documents. Packaging Instructions After the loan documents have been arranged in the Document Checklist order, the Seller must prepare the file for delivery to the Servicer. Follow the instruction below on how to package and deliver single and multiple loan files. How to Package Single Loan Files 1. Documents must be placed in a legal size file folder and fastened to the interior, right side of the folder. 2. Documents must be placed in the order listed Loan Selling Advisor Document Checklist. 3. A fully executed Loan Selling Advisor Document Checklist must be placed at the top of the stacking order and must include all required Seller contact information. 4. Mark the outside of the folder with Freddie Mac Servicing-Released Loan Selling Advisor. This will flag the Servicer s receiving office on where to forward the loan for set up and prioritization. 5. Ensure the file is labeled and contains the borrower s name and subject property address. Chapter 3: Package and Deliver Documents 3-2

28 How to Package Multiple/Bulk Loan Files 1. Documents must be placed in a legal size file folder and fastened to the interior, right side of the folder. 2. Documents must be placed in the order listed Loan Selling Advisor Document Checklist. 3. A fully executed Loan Selling Advisor Document Checklist must be placed at the top of the stacking order and must include all required Seller contact information. 4. Place bulk files in standard, two (2) cubic foot boxes with lids. 5. Using a wide tip marker, number each box clearly on the bottom left corner of the box top. 6. Each box of files must contain an inventory list of the enclosed loans files and the box number it pertains to. Imaged Documents Certain Servicers are offering the document imaging option for file delivery. If you are interested in using this option, contact the Servicer directly. If the Servicer approves the Seller for document imaging, the Servicer will provide Seller with their document imaging requirements and instructions. The participating Servicers are shown in the table below. Servicer Name Nationstar LLC Arvest Central Company CMC Funding, Inc. Homeward Residential, Inc. PNC Bank, National US Bank Home Servicer Name Nationstar LLC Imaged Documents Contact Information Final.Docs@nationstarmail.com acmcfiledelivery@arvest.com Account Management Team sellerhelp@cmcfunding.com Tracy Hillsgrove Phone: Tracy.Hillsgrove@Ocwen.com Chris Vocke Chris.Vocke@pnc.com Jessica Green jessica.green@usbank.com Acceptable Formats TIF and PDF image formats. Additionally, Nationstar will accept single document images (one image file per loan document), or multi-document images (all loan docs merged into one image file). Please contact Nationstar using the above address for detailed electronic image delivery instructions. Chapter 3: Package and Deliver Documents 3-3

29 Arvest Central Company CMC Funding, Inc. Homeward Residential, Inc. PNC Bank, National US Bank Home PDF image formats are accepted. Contact CMC Account Management for further instructions at Contact Tracy Hillsgrove for complete instructions. Contact Chris Vocke for complete instructions. Contact Jessica Green for complete instructions. Chapter 3: Package and Deliver Documents 3-4

30 Chapter Outstanding Documents 4 Outstanding Documents Missing documents can cause a delay for the Servicer in setting up the borrower s loan record for monthly billing purposes. Such delays could result in RESPA violations. Therefore, it is imperative that the documents identified on the Document Checklist are included in the servicing delivery file. Refer to Document Checklist, located in Chapter 14 of this user guide, for more information on required documents. How to Forward Documents When the Servicer receives an incomplete servicing file delivery from the Seller, the Servicer will notify the Seller of the delivery deficiencies. The Seller must respond to the notification by forwarding the following to the Servicer: All outstanding documents within 24 hours of notification by Servicer A fully executed Document Checklist identifying the documents forwarded The table below provides address and contact information for forwarding outstanding documents. Forward Outstanding Documents Servicer Name Address Contact Arvest Central Arvest Central Company acmcpostclosing@arvest.com Company 801 John Barrow Road, Suite 1 Little Rock, AR Attn: Final Docs CMC Funding, Inc. Specialized Loan Servicing ATTN:CMC Funding Doc Control 8742 Lucent Blvd., Suite 100 Highlands Ranch, CO Operations@cmcfunding.com Homeward Residential, Inc. Nationstar LLC PNC Bank, National US Bank Home Ocwen Financial Corporation 5720 Premier Park Drive, Building 3 West Palm Beach, FL Nationstar LLC Attn: Doc Admin 8950 Cypress Waters Boulevard, Coppell, TX PNC Bank, National 3232 Newmark Drive MS B6-YM Miamisburg, OH US Bank Home Attn: Jessica Green, CN-KY-APAC 4801 Frederica Street, Owensboro, KY Tracy Hillsgrove Phone: Tracy.hillsgrove@ocwen.com Final.Docs@NationstarMail.com FlowServicing@pncmortgage.com Or Chris Vocke Jessica Green Phone: Fax: jessica.green@usbank.com

31 A fully executed Document Checklist is required when forwarding outstanding documents. The Document Checklist is located in Chapter 14 of this user guide. Refer to Chapter 3, Package and Deliver Documents, for more information on the how to package and deliver the servicing delivery file. Chapter 4: Outstanding Documents 4-2

32 Chapter 5 Notification to Interested Parties and Good-bye Letters Notification to Interested Parties On the Freddie Mac funding date or in accordance with RESPA and applicable laws, the Seller must provide a written notice to all interested parties of the transfer of Servicing rights from the Seller to the Servicer. Notification letter must be sent to: The Mortgagors Insurance Carriers o Title o Fire and Extended Coverage o Flood Catastrophe o Private Real Estate Tax Authorities Notice to Insurance Companies On the Freddie Mac funding date, the Seller must provide a written notice to all interested insurance companies and/or their agents of the transfer of Servicing rights from the Seller to the Servicer. Flood and Catastrophe Insurance Final evidence of life-of-loan, transferable flood insurance must meet the requirements set forth in the Guide, Section If the property is in a flood zone, but flood insurance has been waived, the mortgage file must include documentation, which explains the basis of the waiver (FEMA Letter of Map Amendment or FEMA Letter of Map Revision). The assignment of existing flood certifications is handled differently amongst the Servicers. Refer to the table below for Servicer specific requirements: Name of Servicer Arvest Central Company CMC Funding, Inc. Homeward Residential, Inc. Flood Certification Assignment Requirements Requirements If the Flood Certification is with CoreLogic, Lereta, LLC or LPS: Seller must reassign the flood certificate to Arvest Central Company. If the Flood Certificate is not with CoreLogic, Lereta, LLC or LPS: Arvest Central Company will order a new certificate. Accepts any major flood determination provider. If the Flood certificate is with CoreLogic, the Seller must reassign the flood certificate to Ocwen Loan Servicing, LLC. If the Flood certificate is not with CoreLogic, Ocwen will order a new certificate.

33 Name of Servicer Nationstar LLC PNC Bank, National Flood Certification Assignment Requirements Requirements Flood Certifications with CoreLogic seller must reassign the flood certificate to Nationstar. If the Flood certificate is not with CoreLogic, Nationstar will order a new certificate. If the Flood Certification is with LPS (Service Link), seller must reassign the Flood Certificate to PNC. If the Flood Certification is with CoreLogic, seller must reassign the Flood Certificate to PNC. US Bank Home If the Flood Certification is not with LPS (Service Link) or CoreLogic, PNC will order a new certificate with Service Link. US Bank Home will automatically order a new certification, therefore no reassignment by the Seller is necessary Hazard Insurance (Fire and Extended Coverage) Evidence of hazard insurance must be forwarded in the form of a current policy or a hazard insurance binder and paid receipt. For purchase transactions, the Seller must provide evidence that the policy has been paid in full for the first year. For refinance transactions or transfer of an existing policy, the Seller must provide a balance sufficient to pay the policy in full at time of renewal. The insurance policy must comply with the requirements for evidence of insurance set forth in Section of the Guide. Optional Insurance Optional insurance coverage such as mortgage life insurance is not transferable from the Seller to the Servicer. If the borrower elected optional insurance coverage, the Seller must make arrangements to bill the borrower directly for this coverage on or before the Freddie Mac Funding Date. Private Insurance Private mortgage insurance is required in most instances where the LTV exceeds 80 percent unless otherwise required in the Guide and/or the Seller s other Purchase Documents. Annual Insurance. The Seller must collect and pay the first annual premium. If the premium is paid at closing, the HUD-I must reflect the premium paid in advance by the lender. If paid after closing, the Seller must provide the Servicer with clear evidence that the first annual premium was paid in full. The lender may either provide a copy of the check sent to the mortgage Insurer or a copy of the paid receipt. Monthly Insurance. The Seller must collect two months of mortgage insurance payments at closing. If the premium is paid at closing, the HUD I must reflect the payments paid in advance by the lender. If paid after closing, the Seller must provide the Servicer with clear evidence that two months worth of payments were paid to the Chapter 5: Notification to Interested Parties and Good-bye Letters 5-2

34 Insurer. The lender may either provide a copy of the check sent to the Insurer or a copy of the paid receipt. Zero Initial Monthly Premium Insurance. The Seller must collect a zero initial premium at closing. Title Insurance The title insurance must name the Servicer and its successors and assigns as an insured in the Seller s policy of title insurance for the loan (unless the Seller s policy of the title insurance for the loan defines insured as any owner of indebtedness secured by the insured mortgage). Execute Other Documents The Seller must provide written notification of the transfer of the Servicing rights to any collection authority entitled to receive escrow or impounds associated with the mortgage. Such notifications must instruct the collection authority to deliver all future notices, tax bills, insurance statements and related correspondence to the Servicer and must provide the applicable contact information and address shown below: Required Contact Information for Loan Sale Notification Letters Servicer Name Tax Authority Hazard Insurance Flood Insurance Private Insurance Arvest Central Company CMC Funding, Inc. Homeward Residential, Inc. Arvest Central Company, 801 John Barrow Road, Suite 1 Little Rock, AR 72205, Attn: Tax Department, acmctaxgroup@arv est.com CMC Funding, Inc. P.O. Box Ft. Worth, TX Ocwen Loan Servicing, LLC P.O. Box West Palm Beach, FL Arvest Central Company, ISAOA/ATIMA, P.O. Box Fort Worth, TX acmcinsurancecover age@arvest.com CMC Funding, Inc. ISAOA C/O SLS PO Box Doraville, GA Ocwen Loan Servicing, LLC, Its Successors and/or Assigns, P. O. Box 6723 Springfield, OH (866) updateinsurance@oc wen.com Arvest Central Company, Its Successors and/or Assigns, 801 John Barrow Road, Suite 1, Little Rock, AR 72205, acmcinsurancec overage@arvest. com CMC Funding, Inc. ISAOA C/O SLS PO Box Doraville, GA Ocwen Loan Servicing, LLC, Its Successors and/or Assigns P. O. Box 6723 Springfield, OH (866) Arvest Central Company, 801 John Barrow Road, Suite 1, Little Rock, AR 72205, acmcinsuranceco verage@arvest.co m CMC Funding, Inc Lucent Blvd Highlands Ranch, CO Ocwen Loan Servicing, LLC 3451 Hammond Avenue, Waterloo, IA Chapter 5: Notification to Interested Parties and Good-bye Letters 5-3

35 Required Contact Information for Loan Sale Notification Letters Servicer Name Tax Authority Hazard Insurance Flood Insurance Private Insurance Nationstar LLC PNC Bank, National US Bank Home Nationstar LLC Attn: Tax Department, 8950 Cypress Waters Blvd., Coppell, TX PA Customers: Tax Department P.O. Box Ft. Worth, TX Fax: Non-PA Customers: PNC Bank, National Mail stop B6YM13017 PO Box 1804 Dayton Ohio Fax: U.S. Bank Home, Attn: Tax Department, 4801 Frederica Street, Owensboro, KY Nationstar LLC Its Successors and/or Assigns, P.O. Box 7729, Springfield, Ohio (866) PNC Bank, National ISAOA/ATIMA PO Box 7433 Springfield, OH U.S. Bank National Its Successors and/or Assigns, c/o U.S. Bank Home, P.O. Box 7298, Springfield, OH Nationstar LLC Its Successors and/or Assigns, P.O. Box 7729, Springfield, Ohio PNC Bank, National ISAOA/ATIMA PO Box 7433 Springfield, OH U.S. Bank Home, Attn: Kathie Wolfe Insurance Dept., P.O. Box 20005, Owensboro, KY Nationstar LLC Attn: Insurance Department, 8950 Cypress Waters Blvd., Coppell, TX PNC Bank, National Attention Insurance Dept. PO Box 8736 B6-YM Dayton, OH U.S. Bank Home, Attn: Sarah Johnson Insurance Dept., P.O. Box 20005, Owensboro, KY For more information on Loan Sale Notification Letters refer to Exhibit 28A, 4.1. Issue a Good-bye Letter A Good-bye letter (sometimes known as Notice to Mortgagor) must be issued to the borrowers informing them of the transfer of servicing from the Seller to the Servicer. The form and content of the Good-bye letter must comply with the Real Estate Settlement Procedures Act (RESPA); RESPA s implementing Regulation X, and other applicable laws and regulations. The Seller must provide each mortgagor with a written notice at loan closing or such other time as required by RESPA and other applicable laws and regulations. For questions, refer to Section 4.1(b) of Guide Exhibit 28A, Loan Servicing Purchase and Sale Agreement for the Servicing-Released Sales Process. Chapter 5: Notification to Interested Parties and Good-bye Letters 5-4

36 The table below provides the Servicer-specific information to be included in the Goodbye letter: Servicer s Payment Address for Standard Mail with a Statement Servicer Name Payment Address Arvest Central Arvest Central Company, P.O. Box 8025, Little Rock, AR Company CMC Funding, Inc. CMC Funding, Inc., P.O. Box , Atlanta, GA Homeward Ocwen Loan Servicing, LLC, P.O. Box , Dallas, TX Residential, Inc. Nationstar Nationstar LLC, Attn: Payment Processing, 8950 Cypress Waters LLC Boulevard, Coppell, TX PNC Bank, National US Bank Home PNC Bank, National, B6-YM , Attn: Payment Processing, P.O. Box 1820, Miamisburg, OH US Bank Home, Attn: Payment Processing, 4801 Frederica Street, Owensboro, KY Servicers Payment Address for Standard Mail without a Statement Payment Address Arvest Central Company, P.O. Box 8025, Little Rock, AR Servicer Name Arvest Central Company CMC Funding, Inc. CMC Funding, Inc., P.O. Box , Atlanta, GA Homeward Ocwen Loan Servicing, LLC, P.O. Box , Dallas, TX Residential, Inc. Nationstar N/A LLC PNC Bank, PNC Bank, National P.O. Box 6534, Carol Stream, IL National US Bank Home N/A Servicer s Payment Address for Express Overnight Mail with a Statement Servicer Name Payment Address Arvest Central Arvest Central Company, 801 John Barrow Road, Suite 1, Little Rock, AR Company CMC Funding, Inc. CMC Funding, Inc., Attn: Cashiering Department, 8742 Lucent Blvd, Suite 300, Highlands Ranch, CO Homeward Ocwen Loan Servicing, LLC, Box W. Mockingbird Lane, Suite 100, Residential, Inc. Dallas, TX Nationstar Nationstar LLC, Attn: Payment Processing, 8950 Cypress Waters LLC Boulevard, Coppell, TX PNC Bank, PNC Bank, National P.O. Box 6534, YM Attn: Payment National Processing Carol Stream, IL US Bank Home US Bank Home, Attn: Payment Processing, 4801 Frederica Street, Owensboro, KY Chapter 5: Notification to Interested Parties and Good-bye Letters 5-5

37 Servicer s Payment Address for Express Overnight Mail without a Statement Servicer Name Payment Address Arvest Central Central Company, 801 John Barrow Road, Suite 1, Little Rock, AR Company CMC Funding, Inc. CMC Funding, Inc., Attn: Cashiering Department, 8742 Lucent Blvd, Suite 300, Highlands Ranch, CO Homeward N/A Residential, Inc. Nationstar Nationstar LLC, Attn: Payment Processing, 8950 Cypress Waters LLC PNC Bank, National US Bank Home Servicer Name Arvest Central Company Boulevard, Coppell, TX PNC Bank, National 3232 Newmark Drive B6-TM Attn: Payment Processing, Miamisburg OH US Bank Home, Attn: Payment Processing Dept., 4801 Frederica Street, Owensboro, KY Customer Service Information Phone Number and Forward General Automatic Payment Hours of Operation Correspondence Customer Service Address same as above Monday - Friday (CST) 8:00 AM 8:00 PM Saturday (CST) 8:00 AM 2 PM CMC Funding, Inc Monday Friday (MT) 6:00AM to 6:00PM Homeward Residential, Inc. CMC Funding, Inc. P.O. Box Littleton, CO Ocwen Loan Servicing, LLC Monday Friday (EST) Attn: Research 8:00 AM to 9:00 PM Department P. O. Box Saturday (EST) West Palm Beach, FL 8:00 AM to 5:00 PM Drafting ACH Forms are located in the coupon books sent to borrowers. acmcservicing@arvest. com Contact Customer Service Center to request necessary forms. Contact Customer Service or enroll online at: ocwencustomers.com Nationstar LLC Sunday (EST) 9:00 AM to 9:00 PM Nationstar LLC Monday Thursday (CT) Attn: Customer Service 8:00 AM-8:00 PM Department Friday (CT) 8950 Cypress Waters 8:00 AM-6:00 PM Boulevard, Saturday (CT) Coppell, TX :00 AM-2:00 PM Visit us online at or contact the Customer Service Department to request. PNC Bank, National Monday- Thursday 8:00a.m. -9:00 p.m. and Friday 8:00 a.m. -5:00 p.m. PNC Attn: Customer Service Department B6-YM , PO Box 1820 Dayton, OH Chapter 5: Notification to Interested Parties and Good-bye Letters 5-6

38 US Bank Home U.S. Bank Home Monday - Friday 8:00 AM to 5:00 PM CST Attn: Customer Service 4801 Frederica Street, Owensboro, KY Contact Customer Service Center to request necessary forms. Optional Information for the Good-Bye Letter The table below contains optional information to include in Good-bye letter: Servicer s Website Address Servicer Name URL Arvest Central Company CMC Funding, Inc. Homeward ocwencustomers.com Residential, Inc. Nationstar MyNationstarMTG.com LLC PNC Bank, National US Bank Home usbankhomemortgage.com Will the borrower receive monthly billing statements or a coupon booklet? Servicer Name Coupon Booklet/Monthly Statements Arvest Central Coupon Booklet Company CMC Funding, Inc. Monthly statements Homeward Monthly Statements Residential, Inc. Nationstar Monthly Statements LLC PNC Bank, Fixed Rate Coupon; ARM Billing Statement National US Bank Home Monthly statements If the first payment mailing address is different from subsequent payments, when will the borrower receive the new mailing address information? Servicer Name Mailing Address Arvest Central N/A Company CMC Funding, Inc. N/A Homeward N/A Residential, Inc. Nationstar N/A LLC PNC Bank, With first monthly statement/coupon book and welcome letter National US Bank Home With the first monthly statement/coupon book Chapter 5: Notification to Interested Parties and Good-bye Letters 5-7

39 Contact information for Questions on Escrows or Erroneous Billing Servicer Name Contact Arvest Central Customer Service Company CMC Funding, Inc. Customer Service Homeward Customer Service Residential, Inc Nationstar Customer Service LLC PNC Bank, National US Bank Home Customer Service Customer Service Chapter 5: Notification to Interested Parties and Good-bye Letters 5-8

40 Chapter Assignments 6 Instructions for the Assignment Each servicing delivery file must contain a copy of the assignment sent for recording. Failure to provide evidence of an assignment sent for recording (in the Servicer s name) may result in late fees due the Servicer and Freddie Mac. After the assignment is recorded, the Seller must forward the original, recorded assignment together with the Loan Selling Advisor Final Document Checklist to the Servicer s Final Recorded Documents Division. Refer to the table below for Servicer specific assignment preparation information. Servicer s Name as it Must Appear on the Assignment Do not use abbreviations other than permitted by the Servicer Servicer Name Arvest Central Arvest Central Company Company CMC Funding, Inc. CMC Funding, Inc. Homeward Homeward Residential, Inc. Residential, Inc. Nationstar Nationstar LLC LLC PNC Bank, PNC Bank, NA National US Bank Home U.S. Bank National Servicer s State of Incorporation Servicer Name Name of State Arvest Central Arkansas Company CMC Funding, Inc. North Carolina Homeward Delaware Residential, Inc. Nationstar New Jersey LLC PNC Bank, Delaware National US Bank Home United Sates of America

41 County of Incorporation Servicer Name County Name Arvest Central Pulaski Company CMC Funding, Inc. Guilford Homeward New Castle Residential, Inc. Nationstar N/A LLC PNC Bank, N/A National US Bank Home N/A Servicing Address Servicer Name Address Arvest Central 801 John Barrow Road, Suite 1,Little Rock, AR Company CMC Funding, Inc. 814 A1A North, Suite 303, Ponte Vedra Beach, FL Homeward 1525 South Belt Line Road, Coppel, TX Residential, Inc. Nationstar 8950 Cypress Waters Boulevard, Coppell, TX LLC PNC Bank, 3232 Newmark Drive, Miamisburg, OH National US Bank Home 4801 Frederica Street, Owensboro, KY Optional Address to be Included in Assignment Endorsement Servicer Name Address Arvest Central Use Servicing Address Company CMC Funding, Inc. Use Servicing Address Homeward Use Servicing Address Residential, Inc. Nationstar Use Servicing Address LLC PNC Bank, Use Servicing Address National US Bank Home Use Servicing Address Questions on Assignment Endorsements Servicer Name Name and Contact Information Arvest Central Kasey L. Emmerling Company and Servicing Transfer Instructions December 2017 Chapter 6: Assignments 6-2

42 CMC Funding, Inc. Homeward Residential, Inc. Nationstar LLC PNC Bank, National US Bank Home Andrew Fuerstenberger Debra Bergman Joni Mays Debra Wiese Chapter 6: Assignments 6-3

43 Chapter MERS s 7 MERS Registered s MERS registered mortgages, and mortgages originated with MERS as the original e of Record, are accepted by the following Servicers. Information for MERS Registered s or MERS s Member Org ID Servicer Name Arvest Central Company CMC Funding, Inc Homeward Residential, Inc Nationstar LLC PNC Bank, National US Bank Home Subservicer Member Org ID Servicer Name Arvest Central N/A Company CMC Funding, Inc Homeward Residential, Inc Nationstar LLC PNC Bank, National US Bank Home Servicer Name Arvest Central Company CMC Funding, Inc. Homeward Residential, Inc. Nationstar LLC PNC Bank, National US Bank Home N/A N/A N/A Primary Contact Information Contact Information acmcmers@arvest.com Loanservicing@cmcfunding.com Debra.bergman@ocwen.com MERS questions/inquiries send to: mersresearch@nationstarmail.com Michael Lewandowski PNCMORTGAGE@PNC.COM Anthony Wright

44 Chapter 8 IRS Form 1098 Reporting Requirements Requirements for completing IRS Form 1098 The IRS Form 1098, Interest Statement, is an Internal Revenue Service (IRS) form that details the amount of interest and mortgage-related expenses paid on a mortgage during the tax year. The Seller and the Servicer must comply with all IRS Form 1098 reporting requirements. Example of IRS Form 1098: Instructions relating to IRS Form 1098 are the General Instructions for Certain Information Returns and the applicable Instructions for Form Both can be found at or call TAX-FORM ( ). Chapter 8: Form 1098 Reporting Requirements 8-1

45 Chapter 9 Resolve Settlement/Funding Errors How to Resolve Settlement/Funding Errors Errors in the amount disbursed to the Seller or funding adjustments wired to the Servicer occur due to erroneous data entered in Loan Selling Advisor. Data delivered in Loan Selling Advisor affecting amounts due the Seller or the Servicer can be reconciled post funding between the Seller and the Servicer for: Other Funds Collected at Closing Amount (formerly known as Escrow Deposit) Unpaid Principal Balance discrepancies Any reconciliation, correction or adjustment to the Other Funds Collected at Closing Amounts transferred to the Servicer is the responsibility of the Seller and the Servicer. The Seller and Servicer must adjust and reconcile these amounts after the Freddie Mac Funding Date. Freddie Mac will not adjust, calculate, refund or pay any amounts with respect to the Other Funds Collected at Closing Amounts after the funding date. For each loan for which Servicer informs the Seller of the need to adjust and reconcile the funding adjustments, the Seller must research the discrepancy and transfer to the Servicer by wire, any additional funds required within three (3) business day s notification by the Servicer. If the Seller fails to transfer any and all funds due the Servicer within three (3) business days notice from the Servicer, then the Servicer may in its sole discretion, charge the Seller a late fee of up to $500. Other Funds Collected at Closing Amount (formerly known as Escrow Deposit) For incorrect amounts entered in Loan Selling Advisor under the section titled Other Funds Collected at Closing Details, the reconciliation is conducted between the Seller and the Servicer. Refer to the table below for instructions on how to resolve these error(s): How to resolve settlement/funding errors for: Other Funds Collected at Closing Amount If Then A refund is due the Seller The Seller must provide the Servicer with Documentation to support a request for refund Seller s wire Instructions A fully executed Payment/Refund Transmittal Form (located in Chapter 14 of this user guide) A refund is due the Servicer The Seller must: Wire the amount due to the Servicer Fax a fully executed Payment/Refund Transmittal to the Servicer Servicing-Released Transfer Instructions User Guide December 2017

46 Loan Acquisition Scheduled UPB Amount (formerly known as the Unpaid Principal Balance) When the Loan Acquisition Scheduled UPB Amount is delivered incorrectly, the Seller must immediately report the error to the Servicer. Errors in delivering an incorrect Loan Acquisition Scheduled UPB may result in: A credit due the Seller for the UPB and SRP A credit due the Servicer for the UPB and SRP Repurchase of the mortgage by the Seller Contact the Servicer directly to report the error using the contact information shown below. Name of Servicer Arvest Central Company Report Loan Acquisition Scheduled UPB Errors Contact Information acmcacquisitions@arvest.com CMC Funding, Inc. LoanServicing@cmcfunding.com Homeward Residential, Inc. Nationstar LLC PNC Bank, National US Bank Home Use mailbox for all inquiries: Servicing.Acquisitions@nationstarmail.com Melissa Sims: melissa.sims@pnc.com Jessica Green: Chapter 9: Resolve Settlement/Funding Errors 9-2

47 The Servicer will coordinate the resolution with Freddie Mac and will notify the Seller on the course of action to be taken. A resolution resulting in a system change (sometimes known as a master file change) will be subject to a compensatory fee from the Seller, as noted in Guide Section A resolution resulting in a repurchase will be subject to fees and other requirements as noted in Guide Exhibit 28A and Chapter 3602 and Section The illustration below depicts the section of Loan Selling Advisor s loan screen that contains the data point for the Loan Acquisition Scheduled UPB Amount and the Last Paid Installment Due Date (also referred to as the DDLPI). Note: Loan Selling Advisor calculates the scheduled UPB (a feature available in the loan pipeline) however; this feature does not advance the DDLPI date in accordance with the Servicing-Released Transfer requirements. If you use this tool, you must return to the Create/Modify loan screen and edit the Last Paid Installment Due Date. Note: For more information on funding adjustments and reconciliation of funding adjustments, refer to Sections 1, 4 and 3.2 of Guide Exhibit 28Aand Guide Section Payments and Refunds This section provides information and instructions on how to forward funds due the Servicer and how to request refunds due the Seller. Forward or Request Funds The post settlement reconciliation of funds due the Seller or the Servicer is conducted between the Seller and the Servicer. If funds are due either party, it is the Seller s responsibility to complete the Payment/Refund Transmittal Form and forward it to the Servicer. Furthermore, for each loan for which the Servicer informs Seller of the need to adjust and reconcile the Funding Adjustments, the Seller must research the discrepancy and transfer to the Servicer by wire transfer any additional funds required. Freddie Mac will not adjust, calculate, refund or pay any amounts with respect to the Escrow deposits or temporary subsidy buydown funds after the Funding Date. Payments Due the Servicer or Refunds Due the Seller Payments due the Servicer include: Chapter 9: Resolve Settlement/Funding Errors 9-3