When it comes to an optimized portfolio, proactivity pays. Servicers that keep their data clean and compliant can better leverage it to make smarter decisions and produce more precise results—both of which ultimately benefit the homeowner. Freddie Mac also values and prioritizes accurate, comprehensive data, which helps us manage portfolio risk, meet our obligations to investors and enhance our analytic efforts.

But we also recognize that loan transfers, technology issues and other challenges can put a wrench in your reconciliation efforts, resulting in edits, a higher number of delinquencies and lack of transparency during loan transfers. 

Through June 30, 2026, Freddie Mac is waiving compensatory fees for servicing data correction requests, allowing Servicers the opportunity to identify and resolve discrepancies. This initiative, designed to improve portfolio health and manage risk, is part of Servicing Excellence, our commitment to deliver more to—and expect more from—our Servicers.

Existing Requirements Are Reinforced with Added Support

We included a requirement for timely identification and resolutions of data discrepancies in Single-Family Seller/Servicer Guide (Guide) Bulletin 2025-2. Servicers must reconcile the Freddie Mac investor reporting records to their internal system records, including due date of last paid installment (DDLPI), interest-bearing unpaid principal balance (UPB), Deferred UPB, note rate, net yield, principal and interest (P&I) constant and total number of loans. 

This is in line with the existing Guide requirement in Section 8301.2, which states “reporting current information for each Mortgage that accurately reflects the Borrower's loan activity and loan history.” Our enhanced focus on portfolio reconciliation offers a unique opportunity. We’re encouraging and supporting Servicers to resolve issues that are preventing them from achieving top performance, including edits that may eventually translate to delinquent loans. 

Better data benefits everyone. It allows Freddie Mac to make more informed credit decisions and provides homeowners with more accurate loss mitigation solutions. Since it also impacts yearly performance, maintaining an optimized portfolio increases the chances of winning a Servicer Honors and Rewards Program (SHARP)sm award, our annual rewards and recognition program that’s based on the Servicer Success Scorecard.

Related to this are the changes to the Servicer Performance Profile (SPP) on April 30, 2025, including introducing new metrics and editing existing categorizations and definitions for Default Management Metrics and Supplemental Metrics. These changes are designed to help you reduce the number of loans progressing further into delinquency, manage risk through better loan tracking and measurement and achieve higher performance. Portfolio reconciliation works in lockstep with the SPP updates.

Diligence Today Drives Stronger Outcomes Tomorrow

Among the handful of tangible benefits of our portfolio reconciliation, this fee amnesty period may provide you with obvious savings in data correction compensatory fees—$500 per loan. You can also expect a reduction in edits that otherwise would consequently become aged, impacting their investor reporting SPP Aged Edit metric and resulting in additional compensatory fees. To prevent these outcomes, we hope you’ll take full advantage of this opportunity to correct data discrepancies during the fee amnesty period.

Another area in which maintaining optimized data is particularly beneficial is reducing the uncertainty and lack of transparency associated with servicing transfers. In today’s world, Transferee Servicers may not discover data discrepancies until after they’ve received the loans, leaving them to address them on the back end. Proactive portfolio reconciliation positions the Transferee Servicer with the ability to request the relevant information from the Transferor Servicer during the due diligence process, providing line of sight into any existing data errors and augmenting transparency and validation.

Pristine data can also help you:

  • Identify delinquency risks: More easily predict which homeowners are at risk of default and intervene early with the most effective workout options.
  • Personalize homeowner outreach: Create tailored communication and assistance with data-driven insights, which may increase engagement and satisfaction.
  • Improve operational efficiency: Save time and money and reduce errors by using data to decrease manual processes.

Get Started on Your Enhanced Data Journey

The fee amnesty period began March 1, 2025, and runs through June 30, 2026. During this period, compensatory fees are waived for Servicing Data Correction requests; however, after June 30, 2026, these compensatory fees for data corrections will return. Freddie Mac will routinely request specific Servicers to submit their completed portfolio reconciliation based on an internal selection methodology. Servicers’ Form 75 and related documentation will be periodically reviewed and evaluated for compliance.

You’re encouraged to begin adopting the reconciliation process as soon as possible. Once discrepancies are identified, you should rectify them quickly either through a data correction request to Freddie Mac or an adjustment on your systems. You’re also encouraged to retain all documentation evidencing your actions to resolve the issues. Take advantage of this opportunity to work with us and turn good data into great results.