Now supports Freddie Mac’s Investor Reporting Change Initiative
Black Knight has added support for Freddie Mac’s Investor Reporting Change Initiative (IRCI) to its MSP servicing system.
The firm says it proved to be the largest enhancement initiative in its 57-year history, impacting 8 million loans for 55 clients; MSP is used to service 35 million first lien mortgages nationwide.
“We were honored to take a leadership role in collaborating with Freddie Mac and all of our impacted clients to help ensure the success of this vital MSP enhancement,” said Black Knight President Joe Nackashi. “Black Knight is proud to support the IRCI and help create a simpler, more flexible investor reporting process that will benefit our clients with greater operational efficiencies and support their compliance initiatives.”
IRCI was announced in 2016 and implemented in May 2019 and is required for Freddie Mac mortgage sellers/servicers with the aim of bringing the GSE’s single-family investor reporting requirements closer to an industry standard and update its remittance cycles.
These changes were designed to streamline the reporting process, improve operational efficiencies, and provide Freddie Mac mortgage sellers/servicers with a more complete view of investor reporting data.
Multiple system changes
To meet the new investor requirements, some of the primary system changes included converting the reporting cycle; changing to a single remittance type; introducing daily Loan Level Reporting (LLR); modifying the reporting of interest on the LLR to a forecasted interest model; changing the remittance method for principal and interest and payoffs; determining mortgage status and delinquency based on the Due Date of the Last Paid Installment (DDLPI) reported by Investor Reporting; and introducing a new partial reinstatement process.
Outside of Investor Reporting, IRCI changes impacted all areas of servicing, requiring review of business processes beyond technology remediation.
“By enhancing the MSP servicing system to support the IRCI, Black Knight is helping its servicer clients see the benefit of increased efficiencies that come with streamlining the investor reporting process,” said Freddie Mac Loan Servicing Director John Felix.
