AWACSMortgage compliance intelligence from Flightline

Freddie Mac · Guide Bulletin 2026-14 · Published

Freddie Mac Servicing Updates: Daily Reporting, Condo Flood Insurance, Default Legal Firm Screening and Others

Servicers must report loan-level transactions daily from February 1, 2027, screen default law firms and entities working for them against the Exclusionary List, and, from December 6, 2026, ensure HOAs of condos with over 25% commercial space keep private flood coverage. Servicers no longer report EDR code 35 or submit settlement statements via PDFC for Transfers of Ownership.

Action requiredEffective Dec 6, 2026Checks passed· adjusted automaticallyRead the bulletin ↗ (opens in a new tab)

Loan impact

From the bulletin text · needs review

Applies to: Freddie Mac-serviced Mortgages for daily investor reporting and default legal firm screening, condo projects with more than 25% commercial space for flood insurance; relief applies to EDR code 35 reporting and Transfers of Ownership submissions.

Addressed to
Freddie Mac Servicers
Investor
Freddie MacFrom the publisher, not quoted from the text
Programs
ConventionalFrom the publisher, not quoted from the text
Effective
Dec 6, 2026
Applicability confidence
Needs review: some rows could not be matched to a quote from the source

What changed

From the bulletin text · Sections 8301.4, 8303.4, 4703.3, 9501.1, 9301.4, 9401.2, Exhibit 82, 8406.2, 9203.4, 9206.2, 4606.10, 4607.17, 7101.2, 8104.1, 2402.2
RequirementPreviouslyNow
Daily loan-level investor reportingNewSection 8301.4, 8303.4Not statedReport loan-level transactions same day processed, no later than 3:45 a.m. ET next Business Day
Condo master flood insurance for projects with >25% commercial spaceTightenedRequiredSection 4703.3Not statedNFIP General Property Form insufficient; HOA must maintain private flood policy (alone or with GPF) equal to RCBAP-level coverage
Default legal firm Exclusionary List screeningChangedRequiredSection 9501.1Previously: Individuals reviewed against the Freddie Mac Exclusionary ListServicers must ensure the firm, or any entity performing work for the firm, is not on the Exclusionary List
EDR default action code 35 reportingRemovedSection 9301.4, 9401.2, Exhibit 82Not statedResolve reports code 35 on Servicer's behalf; Servicers no longer required to report it
Settlement statement submission for Transfers of OwnershipRemovedSection 8406.2Not statedSettlement statement not submitted via PDFC; must be retained in Mortgage file
Texas 50(a)(6) workout compliance issue processClarifiedSection 9203.4, 9206.2Not statedInstructions for exception requests, Borrower complaint escalation and documentation when workout terms may not comply with Texas Constitution
CHOICEReno eXPress offering name in Servicing requirementsClarifiedSection 4606.10, 4607.17, 7101.2, 8104.1Previously: GreenCHOICE MortgagesCHOICEReno eXPress Mortgages
Gateway System-Specific LicenseClarifiedSection 2402.2Not statedLicense includes FreddieHome

What to do

AWACS interpretation · not source language

What to review: Start with the default legal firm screening, which now covers the firm and any entity working for it and applies right away, and the condo master flood requirement for buildings with more than 25% commercial space, which starts December 6, 2026; then plan for the previously announced daily loan-level reporting that begins February 1, 2027, and note that servicers no longer have to report EDR code 35 from November 16, 2026, no longer have to send settlement statements through PDFC for Transfers of Ownership (they still keep them in the Mortgage file), and should pick up the Texas 50(a)(6) process, CHOICEReno eXPress name and FreddieHome license updates.

Servicing

Starting now, make sure each default legal firm, and any entity doing work for that firm, is not on the Freddie Mac Exclusionary List, in line with Section 3101.1, instead of screening only individuals.

Servicing

Starting December 6, 2026, for attached condo buildings with more than 25% commercial space, confirm the homeowners association keeps a private flood policy, alone or together with a General Property Form policy (or equivalent coverage), that matches the coverage required for RCBAP-eligible condos.

QC implications

  • Sample default legal firm due diligence files to check that the firm and every entity working for it were screened against the Freddie Mac Exclusionary List, not just individuals.
  • For condo loans in attached buildings with more than 25% commercial space, test whether master flood coverage from December 6, 2026 includes a private flood policy that meets RCBAP-equivalent coverage, since General Property Form coverage alone is not enough.
  • For Transfers of Ownership, check that the settlement statement is kept in the Mortgage file, even though it no longer has to be sent through PDFC.
  • Once February 1, 2027 arrives, check that loan-level transactions were reported the day they were processed and no later than 3:45 a.m. Eastern Time the next Business Day.

Source and record

Version 1 · archived

Checks

  • Source verified: Passed

    The document ID, link and publication date match the official source.

  • Quotes match the source: Passed, adjusted automatically

    Every quoted passage appears word for word in the official document.

    • A detail the source does not support was removed or adjusted

  • Requirements backed by the source: Passed, adjusted automatically

    Anything marked required is backed by the requirement language and dates in the source.

    • A detail the source does not support was removed or adjusted
    • An independent check could not confirm a requirement; it is shown as review, not action
    • An independent check could not confirm which loans a change applies to; those conditions were removed
    • An independent check could not confirm a detail; it was downgraded, never upgraded

  • In scope: Passed

    The document is about residential mortgage lending.

  • Format and labels: Passed

    The record follows the AWACS format and uses its standard labels.