Reporting Action Code 40 on a Freddie Mac Loan

Reporting Action Code 40 on a Freddie Mac Loan

What happens  after a user enters an action/exception code of 40? Will Servicing Director stop the “net yield reporting”?

How would the P&I reconciliation report be affected if client wants to reactivate? Do they delete the 40 code before they send the next month’s report?


A user sets Action Code 40 when approval is received from Freddie Mac to make the loan status inactive. Once the loan is inactive status, the following months Interest Remittance will be $0.00.

As long as a loan stays delinquent, the code will stay 40 and no interest will be remitted.  In addition, the loan will not report again in future months unless the status changes.

If a date reinstated is added to Default Tracking, the loan will get an action code 50, on the next Months reporting and the past due interest will be reinstated.

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000050561

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