Cash, Servicing-Retained Execution
Increase your profitability while maintaining your servicing asset
Freddie Mac's cash, servicing-retained execution provides you with a highly competitive secondary marketing solution that supports your borrower relationship strategies. This cash execution helps you increase your profitability for fixed-rate and balloon/reset mortgages, while maintaining your servicing asset. When you sell loans for cash, you get the benefits of a securities execution without the additional considerations of a swap, and you receive top securities-market prices for your loans.
You can sell one loan at a time through a best efforts contract, or many loans through a large mandatory contract based on your individual business needs. In addition, you can sell both premium and discount mortgages as long as their note rates are at or below our posted maximum eligible coupon. You will receive premium prices for your premium mortgages and you can sell the entire mortgage yield (less your servicing spread) since there is no par cap.
Product Features
Feature |
Description |
Eligible Mortgage Products |
- Fixed-rate mortgages except:
- Prepayment Penalty Mortgages
- Mortgages with shared equity plans
- 5- and 7-year balloon/reset mortgages
- Refer to Freddie Mac's Single-Family Seller/Servicer Guide Exhibit 17S for a list of other eligible mortgages, including those eligible for our WAC ARM Cash execution and their requirements.
|
Special Sales Requirements |
- Minimum servicing spread of 0.25%
- Maximum servicing spread of 0.50%
|
Eligible Remittance Cycles |
- Choose from two remittance options: Gold or First Tuesday
|
Contract Requirements |
- Mandatory and best efforts contracts are available
- Minimum contract amount is $1,000
- Between 2 and 90 day contract delivery period
- For mandatory contracts, you may substitute loans that fit within the terms of the original contract
- You must fulfill a mandatory contract amount within tolerance levels or be charged a pairoff fee
|
Settlement |
- Easily manage settlement parameters
- Get faster settlement often within the same day as certification (if certified by noon) provided the settlement designation is PM or both AM/PM
- Loans can fund individually within a contract as they are ready
- Choose multiple warehouse lenders within a single contract
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Key Benefits
- Receive premium prices for your premium mortgages and get competitive prices for your current rate and discount mortgages
- Take advantage of our best efforts commitment option as an exceptional tool to hedge your pipeline and manage your risk
- Reduce exposure to interest rate fluctuations in the market
- Select contract delivery periods in one-day increments between 2 and 90 days
- Take advantage of market shifts with a two-way pairoff capability
- Get faster settlement, often within the same day as certification (if certified by noon)
For More Information
The information found on this page is not a replacement or substitute for information found in the Single-Family Seller/Servicer Guide and/or the terms of your Master Agreement and/or Master Commitment.
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