Freddie Mac Multifamily offers a variety of lock options including Standard Delivery, early rate-lock and Index Lock. Each choice provides different benefits and are available with almost all of our products, except small balance loans, which do not offer Index Locks.
- With our Standard Delivery process, once the Seller/Servicer accepts the commitment, the deal may be rate-locked.
- Early Rate-lock (ERL) allows borrowers to lock the full note rate months before closing, with limited preliminary requirements. Full due diligence is provided after ERL and some aspects of the transaction can be modified, as needed, to provide flexibility.
- The Index Lock option for fixed-rate mortgages enables borrowers to lock the most volatile part of the coupon—the Treasury Index—at any time during quote or underwriting process, and more quickly than Standard Delivery (SD). Following an Index Lock, borrowers may complete the early rate-lock (ERL) process to quickly lock the spread or follow the Standard Delivery path to lock at the completion of full underwriting.