The Bank of New York Mellon has been selected by Freddie Mac to serve as its Designated Custodian for documents related to its single-family mortgage business.
After a transition period, Freddie Mac will cease to act as its own custodian for single family mortgage documents.
As part of the agreement, The Bank of New York Mellon will receive, review and certify, as required, the documents for single-family mortgages delivered to Freddie Mac and provide other custodial services for documents in its custody. The Bank of New York Mellon will begin providing such custodial and certification services in October 2009.
“As the country’s leading player in providing mortgage custody and loan level support services, we have the capacity and expertise to handle Freddie Mac’s custody needs as it works on mortgage solutions with its lenders,” said Patrick Tadie, executive vice president and head of global structured credit at The Bank of New York Mellon. “This mandate from one of the country’s major buyers of mortgage loans reflects our leadership role in and dedication to supporting the government space.”
The Bank of New York Mellon provides document custody services for mortgage loan files from its service centers in New York, Texas and California, as well as locations in Europe and Asia-Pacific. Freddie Mac’s documents will be held in custody at the Bank’s center in Texas.
Freddie Mac, bailed out by the US government in 2008, continues to trade around USD1.
L.D.