Fixed-rate Guarantor Swaps

The Fastest Paying Conventional Passthrough with Guarantor Swaps for Your Fixed-Rate and Balloon/Reset Mortgages

When you swap your fixed-rate or 5- and 7-year balloon/reset loans for Freddie Mac mortgage-backed securities through our fixed-rate Guarantor execution, you can maximize your origination fee income and increase your servicing portfolio.

Through our fixed-rate Guarantor swap execution, you can trade your fixed-rate and balloon/reset mortgages for our Participation Certificates (PCs)—widely accepted securities that are attractive to investors. Our Guarantor Swap execution gives you PCs backed exclusively by mortgages you have sold to Freddie Mac. Holding a Freddie Mac PC in your investment portfolio requires less capital than holding whole loans. Or, choose a swap and sell to replenish your funds to make more loans. You'll need to have a Master Commitment to sell through this execution.

Lender Benefits

• Guarantor Swaps give you Freddie Mac PCs backed exclusively by at least $1 million of your own fixed-rate and balloon/reset mortgages ($250 K for Guarantor minipools)

In addition to payment speed, several factors make the Gold PC® the mortgage-backed security of choice:

• Guaranteed timely payment of both interest and scheduled principal
• Immediate eligibility as collateral for GOLD MACS®, REMICS, Giants, etc.

For More Information

• Call (800) FREDDIE
• See Guide Chapter 13 for complete pooling and disclosure requirements for fixed-rate and balloon/reset mortgages
• Contact your Freddie Mac Account Manager
• Print out a Fixed-rate Guarantor Swaps [PDF 191K] factsheet.
• Find out more about the WAC ARM Guarantor execution.