Black Knight Inc. has announced new enhancements to its MSP servicing system in support of Freddie Mac’s new Investor Reporting Change Initiative (IRCI). The IRCI, required for Freddie Mac mortgage sellers/servicers, was implemented in May 2019 to help bring Freddie Mac’s single-family investor reporting requirements closer to an industry standard and update its remittance cycles.
Black Knight said that 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.
“The Freddie Mac team extends our thanks and appreciation to Black Knight for the collaboration, dedication and hard work put forth by everyone on the IRCI initiative,” said John Felix, Loan Servicing Director, Freddie Mac. “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. This was truly a team effort, and we look forward to our continued partnership.”
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 have impacted all areas of servicing, requiring a review of business processes beyond technology remediation.
“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 Joe Nackashi, President, Black Knight. “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.”
Prior to the initiative being formally announced, Black Knight said that its representatives first met with Freddie Mac to understand the GSE’s requirements and direction. The team then formed a working group to review the IRCI requirements with clients, and discuss/validate the system business requirements in preparation for an MSP enhancement.
An Investor Client Collaboration Site was created to offer Black Knight clients online access to documentation for the forthcoming enhancement, white papers, meeting materials, and timelines. In addition, training was held on-site at Black Knight headquarters in Jacksonville, Florida; regional training in Dallas, San Diego, and Puerto Rico; and two-day, instructor-led webinars.
MSP is used to service 35 million first lien mortgages nationwide, and services both first mortgages and home equity lines and loans on a single, comprehensive platform. Servicers use the MSP system to help manage all areas of servicing including loan boarding, payment processing, escrow administration, and default management.