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Hi. I’m Tom Pohlmann, a Production Manager, in the New York office. I work with Program Plus Sellers to help them determine which mortgage products and features best meets the needs of their borrowers. Helping a Seller and their borrower decide when and how to rate-lock is just one of the ways I assist in a transaction.

Speed to lock is critical for you and your borrower with changing interest rates. This is especially noteworthy since Freddie Mac mortgage coupons are tied to a Treasury Index, which, as we have all seen recently, can experience volatility.  That’s why we have introduced a new rate-lock option, Index Lock.

Index Lock is available for borrowers to mitigate market risk, reduce loan coupon volatility, and avoid potential proceed cuts by locking the Treasury Index of their coupon anytime. Index Lock eligibility is simple for borrowers that have had a Capital Markets Execution, or CME loan, purchased by Freddie Mac, within the last 18 months.

• Identify an asset for with a loan size 50 million dollars or less
• Request a loan amount
• Complete and submit a Loan Submission Template
• Receive a quote from a Freddie Mac producer, like myself
• Sign and return the Index Lock Application

The Treasury Index can then be locked within hours of receipt of a completed Loan Submission Template and application. All without submitting a preliminary underwriting package.

But there’s even more flexibility as you proceed through the underwriting process. Borrowers can choose either an Early Rate Lock or Standard Delivery path. The spread is locked after Commitment Acceptance of either option. Remember, Index Lock is an application, not a commitment and includes a 90-day lock term.  

I encourage you to contact your Freddie Mac Producer to further explain Index Lock. We also have many resources on the Originate and Underwrite website page to explain Index Lock to your borrower. We at Freddie Mac are your partners in every deal.