Are you ready for FHLMC Form 75?

On February 12, 2025, FHLMC released Bulletin 2025-2, changing the rules for servicing
updates moving forward. The bulletin lists important changes for portfolio reconciliation,
foreclosure, servicing transfers, and more. Unless otherwise listed, all these changes go
into effect immediately, so it is vital to be ready to pivot to the new policies.

Our focus is on the newly announced Form 75 as it will be required in less than < 90
days and will pose significant challenge for those not already performing a robust data
attribute reconciliation process

FHLMC Form 75

Effective June 1, 2025

FHLMC is updating Guide Section 8303.5 to require servicers to provide reconciled internal
records on a monthly basis. As part of this submission, they must now reconcile each data
element included in the monthly FHLMC Trial Balance report.

Servicers must prepare a monthly reconciliation for each unique seller and be able to
provide FHLMC with a completed copy of Form 75, with supporting documentation, on
request for up to one year from the date of a related reconciliation worksheet.

From March 1, 2025, through June 30, 2026, FHLMC will waive all fees for contract change
and contract noncompliance, however starting July 1, 2026, any data corrections identified
through this process will be subject to contract noncompliance and contract change
compensatory fees.

Potential impact on mortgage servicers

Routine reconciliation of loan servicing portfolio attributes is critical to ensuring the
accuracy of the associated cashflows. Data discrepancies increase reporting exceptions
that over time, become harder to resolve and ultimately result in financial loss.

Effective reconciliation and remediation of data discrepancies at the attribute level is
challenging for any organization that has not already established a solid foundation of
pristine data that can be trusted. Manual data validation processes, multiple conflicting
system sources, and a lack of automated capability to predictively identify anomalies will
make the completion of this form significantly challenging.

Added to this, the expedited June 1, 2025 delivery deadline leaves servicers with minimal
time to prepare.

PMSI has got you covered!

At PMSI, our unrelenting commitment to data integrity drives everything we do. Our clients
are in a distinctively advantageous position to comply with this new change.

We have prioritized portfolio attribute reconciliation as a best practice and have been
systematically performing it since 2019. As part of our standard practice, we routinely
reconcile > 90 portfolio attributes to identify and resolve errors generated upstream before
they are reported to all GSE investors.

Leveraging dedicated machine learning and specialized, curated data, PMSI reporting
services are perfectly positioned to help mortgage servicing clients proactively respond to
all evolving requirements whether they stem from FHLMC, FNMA, or GNMA.

With less than 90 days remaining, will you be ready to deliver Form 75, and also be
confident in the accuracy of your data?

Contact PMSI today to explore how we can help your organization stay ahead of
the curve!