Accounting Net Life Cap

Definition:
 

WAC ARM Guarantor: For WAC ARM PCs, the PC Lifetime Ceiling is the weighted average of the Lifetime Ceilings of the underlying Mortgages, minus the Required Spread and the Minimum Contract Servicing Spread.

The related ULDD Data Point name is Ceiling Rate Percent and and it also known as the Payment Change Date.

Accounting Net Margin

Definition:
 

Cash:  The net margin is the gross margin minus the minimum contract servicing spread.  It is used to calculate the new ANY for ARMs sold under the Cash program.  You will find the net margin for a mortgage on the Funding Details Report.

Guarantor:  The net margin is indirectly used in WAC ARM Guarantor calculations, as it is equal to the PC margin and the required spread.

Accounting Net Yield (ANY)

Definition:
 

The ANY is the net yield rate that the Servicer uses to report and remit interest to Freddie Mac each month. The ANY for each Mortgage is equal to the Note Rate less the Servicing Spread of the Mortgage.
The ANY for Mortgages purchased through RNY Cash or ARM Cash equals the Required Net Yield (RNY) except for Mortgages sold to Freddie Mac at a discount.

How to Calculate:
  Note/Coupon rate - servicing spread fee.

Base Price

Definition:
 

Base Contract price; includes the Freddie Mac Cash Price and if applicable:

  • Servicing Released Premium (SRP) applicable only for mortgages sold through the Cash, Servicing Released Sales Process)
  • For Best Efforts, Cash contracts, fees for contract extensions and/or relocks (if applicable).

BUBD Ratio

Definition:
 

For each basis point by which the Required Spread is bought down, the Seller must remit, in accordance with Section 6303.1 (b), an amount equal to a fixed percentage, or buydown ratio, of the UPB of the Mortgage. The applicable buydown ratio will depend on the lowest Note Rate of Mortgages (ARMs) within the WAC ARM Guarantor Contract and the Weighted Average Remaining Maturity (WARM) of all loans within the contract.


Buydown Collected at Closing

Definition:
 

The amount provided to subsidize the Borrower's interest rate on the Mortgage for the remaining time during which the lower interest rate applies.

How to Calculate:
  This amount carries over from the selling system data point known as Other Funds Collected at Closing Amount.  Refer to the Servicing Released Sales Process Servicing Transfer Instructions.

Contract Amount

Definition:
 

The aggregate unpaid principal balance of mortgages that you agree to sell to Freddie Mac under the contract.

For the Guarantor and MultiLender Swap programs, the Contract Commitment Amount is the dollar amount of Mortgages that Freddie Mac agrees to purchase, as specified in the applicable Purchase Contract.

Contract Expiration Date

Definition:
 

The date in which you must fulfill the terms of your purchase contract to Freddie Mac.


Contract Name

Definition:
 

A unique name you may enter to identify the contract when taking out the contract in the selling system.


Contract Outstanding Balance

Definition:
  Remaining amount of the unfulfilled principal balance of the contract.

Contract Product

Definition:
  Indicates the types of mortgages that can be delivered under a contract.

Contract Settlement Date

Definition:
  For cash programs, the Settlement Date is the Funding Date. Mortgage delivery must be made in advance to meet the established Settlement Date. For the Guarantor and MultiLender Swap programs, the Settlement Date is the date when Freddie Mac purchases the Mortgages and sells the PCs or Giant PCs to the Seller.

CUSIP Number

Definition:
  A CUSIP Number is a unique nine-digit alphanumeric designation assigned by the CUSIP Service Bureau to each PC Pool and Giant PC Pool. The CUSIP Number is used to identify the PC Pool or Giant PC Pool on the books and records of the Federal Reserve Bank's book-entry system. All PCs in Book-Entry Form and all Giant PCs are identified by a CUSIP Number.

Designated Servicer Name

Definition:
 

Name of servicer retaining servicing rights.


Escrow Funds Collected at Closing

Definition:
 

The total amount of insurance or tax to be paid from Escrow.

How to Calculate:
  This amount carries over from the selling system data point known as Other Funds Collected at Closing Amount.  Refer to the Servicing Released Sales Process Servicing Transfer Instructions.

First Rate Adjustment Cap

Definition:
 

The maximum number of percentage points by which the rate can increase from the previous interest rate.

The related ULDD Data Point name is Per Change Maximum Increase Rate Percent.

First Rate Adjustment Effective Date

Definition:
 

The date, as established in the Note, on which the first adjustment in the Note Rate is effective The related ULDD Data Point name is First Rate Change Payment Effective Date and it also known as the Payment Change Date.


FHLMC Loan Number

Definition:
 

Loan number assigned by Freddie Mac.


Index Source Type

Definition:
 

Specifies the type and source of index to be used to determine the interest rate at each adjustment.


Interest Adjustment

Definition:
 

Amount of interest due the servicing buyer based on the funding/settlement date and the interest paid to date (DDLPI). Interest Adjustment is due the Servicing Buyer when the funding date falls in the month prior to the DDLPI date.  When the funding date falls in the same month as the Interest Paid to Date (DDLPI), Accrued Interest is due the Seller.

The related ULDD Glossary term is Last Paid Installment Due Date and also known in the Guide as the Due Date Last Paid Installment (DDLPI).
How to Calculate:
  Loan Acquisition Scheduled UPB Amount X Accounting Net Yield / 12 =  30 days Interest Adjustment.

Interest Rate

Definition:
 

Note Rate or coupon rate.


Investor Contract Identifier

Definition:
 

Unique contract identifier assigned by Freddie Mac


Last Paid Installment Due Date

Definition:
 

The due date of last paid installment that had been collected for the mortgage.


Net Price

Definition:
 

Loan base price minus delivery fees.


P&I Payment Amount

Definition:
 

The dollar amount of the principal and interest payment as stated on the Note.


Participation Percent

Definition:
 

Identifies the percentage amount of the loan owned by the investor.  This is also known as the Investor Ownership Percent.


Pool Number

Definition:
 

A PC Pool Number is a unique numeric or alphanumeric designation used to identify a PC Pool or a Giant PC Pool. The first two characters of a PC Pool Number indicate the PC Prefix.


Premium (Discount)

Definition:
 

A premium price is the portion of the price above par.  For example, if the price is 100.500, the premium portion of the price is .500.  A discount price is the portion of the price below par.  For example, if the price is 99.500 the discount portion of the price is .500.  Premium and discount price apply only to cash contracts. 

How to Calculate:
  Loan Acquisition Scheduled UPB Amount X total premium or discount portion of the price.

Prepayment Remittance Due Days

Definition:
  Indicates the number of days you will have to remit the unpaid principal balance to Freddie Mac if a loan is paid off early.

Principal Purchased

Definition:
 

Principal amount of the mortgage purchased by Freddie Mac.  The related ULDD Data Point name is the Loan Acquisition Scheduled UPB Amount. 


Remaining Maturity Period Count

Definition:
 

Remaining number of P&I payments due until the loan’s maturity date.


Remittance Option

Definition:
  Determines the due date for remitting monthly principal and interest due to Freddie Mac for servicing purposes.

Security Product

Definition:
  Security Product is the Mortgage Product being pooled to form a Mortgage Participation Certificate security ("PC").

Seller Loan Identifier

Definition:
  A unique identifier assigned by the Seller to the loan.

Servicer Address

Definition:
  Street address of designated servicer.

Servicer Identifier

Definition:
  Unique 6 digit numeric identifier assigned by Freddie Mac.

Servicing Released Proceeds Summary

Definition:
 

Details the amounts wired to the servicing buyer.


Servicing Spread Adjustment

Definition:
 

The Servicing Spread is the amount of interest income retained by the Servicer from each Mortgage as compensation for Servicing that Mortgage, and is the amount by which the Note Rate exceeds the Accounting Net Yield applicable to that Mortgage.

The amount of servicing spread (note rate - accounting net yield) due the servicing buyer is based on the funding/settlement date and the Last Paid Installment Due Date.  The related ULDD Glossary term is Last Paid Installment Due Date and also known in the Guide as Due Date Last Paid Installment (DDLPI).
How to Calculate:
 

Loan Acquisition Scheduled UPB Amount X .0025 (servicing spread adjustment) X Number of days (funding date to the end of the month)/360. 

When this figure displays as a negative, this amount is included in the Total Disbursement to the Seller.

Settlement Summary

Definition:
  Details the amounts wired to the seller.

Tax Fee

Definition:
 

Disbursements due and payable within 60 days of the Freddie Mac funding/settlement date regardless of whether the loan has escrow collections.

Also known as the Tax Service Fee.

How to Calculate:
 

Refer to the Servicing Released Sales Process Servicing Transfer Instructions for the most up-to-date fee information.


Total Disbursement

Definition:
 

Settlement proceeds wired to the seller.  For Cash, Servicing Released contracts, this amount includes the servicing released adjustments displayed in the Servicing Released Proceeds Summary section of the Loan Purchase Statement.


Total Fees

Definition:
 

Dollar amount of total exhibit 19 delivery fees for the loan.


Transaction Fee

Definition:
 

Standard fee due the servicing buyer for the initial costs associated with setting up the loan.

How to Calculate:
 

Refer to the Servicing Released Sales Process Servicing Transfer Instructions for the most up-to-date fee information.


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