Residential mortgage servicers are obligated to indemnify Freddie Mac for loss of funds in custodial accounts or delays in access to the funds in custodial accounts, even when they comply with all of their obligations to Freddie Mac, based on Freddie Mac Bulletin 2023-10, issued on April 12, 2023. The Bulletin is an apparent response to recent bank failures, and – in less of a surprise – also includes new standards for eligible banks and rules for titling and use of clearing accounts. The Bulletin is immediately effective, however, and therefore may require prompt action, depending on whether or a not a servicer’s accounts already meet the new requirements.
