Freddie Mac rolling out servicing transfer technology for cash sales
Freddie Mac will make automation it has been testing in conjunction with servicing-released cash sales available to the broader market next month.
The new Freddie Automated Servicing Transfer technology, which the government-sponsored enterprise has been testing with six servicers, will be available through Freddie's Cash Released Xchange automation.
Freddie designed FAST to address the needs of smaller mortgage lenders who had difficulty transferring servicing data and documents to multiple servicers.
"What we're telling the sellers now is, 'all you need to do is get access to a portal, and you just send us the documents,'" Hakan Beygo, senior director of single-family secondary execution strategies at Freddie Mac, said in an interview.
The portal uses optical character recognition and custom rules to meet each participating servicer's requirements.
"What FAST will do is extract that data from documents. Then it will conduct data comparisons and data remediation in line with each servicer's rules," said Beygo. "Servicers also will tell us what rules they want to apply to remediate any data discrepancy or change."
If there is a situation where the technology identifies data disparities and a servicer doesn't have a rule to address them, the document will go through a manual review, he said. There is a process available for paper document submission if needed.
Mortgage lenders and servicers using Cash Released Xchange can start using FAST on or after Aug. 1, according to a recent Freddie Mac selling update. It becomes a requirement for Cash Released Xchange users starting Oct. 1.