Freddie Mac Single-Family Seller/Servicer Guide 8304.3 — Transferring or changing Custodial Accounts

Freddie Mac Single-Family Seller/Servicer Guide 8304.3 — Transferring or changing Custodial Accounts

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

This contains information related to: ■ Freddie Mac's right to remove accounts from specified depositories ■ The Servicer’s right to change or transfer accounts ■ Requirements for changing or transferring accounts ■ Liability for Custodial Account transfer costs (a) Freddie Mac's right to remove accounts from specified depositories Freddie Mac reserves the right to determine, at Freddie Mac’s sole discretion, that the Servicer may no longer deposit or hold Principal and Interest Payments and Escrow Funds in a particular depository. Freddie Mac’s exercise of its rights under this section means that it may expressly prohibit a Servicer from maintaining Custodial Accounts with a particular depository. If Freddie Mac determines that a depository no longer meets Freddie Mac’s requirements, Freddie Mac will give the Servicer written notice to remove the Custodial Accounts. The Servicer must comply with all requirements of the notice and take the following actions: ■ Close the Custodial Accounts within the time frame as specified in the notice ■ Open new Custodial Accounts in accordance with the requirements of Section 8304.3(c) in an Eligible Depository other than the depository specified in the notice (b) The Servicer’s right to change or transfer accounts The Servicer may choose to change Custodial Accounts or transfer them to another Eligible Depository. If the Servicer chooses to do so, it must adhere to the requirements of Section 8304.3(c). (c) Requirements for changing or transferring accounts Changes to or transfers of Custodial Accounts may result from any of the following circumstances: ■ The ineligibility of a depository according to the requirements of Section 8304.2(e) ■ A written notice from Freddie Mac to remove the account according to the requirements of Section 8304.3(a) ■ The Servicer’s choice to change or transfer the account according to the requirements of Section 8304.3(b) ■ A change to the depository’s name, account number or bank routing number (i) Custodial Account The Servicer must meet the requirements of Sections 8302.1(b) through 8302.1(d), 8302.2(b) and 8302.2(c) to change or transfer any Custodial Account. (ii) Remittance drafting account In addition to meeting the requirements above, if there is any change or transfer that affects the Custodial Account the Servicer chose as a remittance drafting account, the Servicer must also: 1. Contact Freddie Mac (see Directory 1) 2. Submit the documentation required by Section 8302.1(d) at least 15 Business Days before the Servicer plans to use the new account or modified bank routing instruction 3. Continue to use the existing account or bank routing instructions until Freddie Mac gives the Servicer written authorization to use the new account or modified bank routing instructions 4. Transfer funds from the former Custodial Account to the new Custodial Account when the Servicer receives Freddie Mac’s written notice that Freddie Mac has processed the new remittance instructions If Freddie Mac drafts and funds are not available because the Servicer changed its drafting account without receiving Freddie Mac’s written authorization, the Servicer will be subject to an interest reimbursement compensatory fee as set forth in Section 8303.5(g). (d) Liability for Custodial Account transfer costs Freddie Mac will not be liable to the Servicer for any costs, fees, penalties, loss of interest income or any other expenses directly or indirectly resulting from the transfer of any Custodial Account from one depository to another. Refer to Sections 8304.2(e) through 8304.3(b). This applies whether Freddie Mac requires the Servicer, or the Servicer chooses, to transfer the Custodial Account.

Source: Freddie Mac Single-Family Seller/Servicer Guide 8304.3 — Transferring or changing Custodial Accounts · source URL · snapshot 4c94f67729042dd6