Original Cash
Freddie Mac's Original Cash is one of two methods of pricing
under our immediate delivery Home Mortgage purchase program.
With Original Cash, pricing is based on the Required Net Yield
(RNY) to Freddie Mac. The RNY is the pass-through rate that
Freddie Mac must receive for each mortgage we purchase.
As with our other cash programs, you will find Original
Cash to be a fast and easy outlet for your mortgages.
Advantages
Make the most of a fast and easy outlet
- You can make a commitment to sell loans in just one phone call
- Your loans can be funded within a few days after delivery
Benefits from float
- For mortgages with P&I payments due to Freddie Mac on
the first Tuesday of the month following the month in which
the borrower makes the payment, you earn interest on the
funds while holding the payment
- For mortgages under our Accelerated Remittance Cycle (ARC),
you trade in the float for a higher cash price up front
(or excess servicing if your mortgage is already at par)
Replenish working capital
- Use the cash to repay warehouse lines and originate more
mortgages, so you can build your servicing portfolio
For More Information
- Refer to your Single-Family Seller/Servicer Guide, Chapters
9 and 54
- Contact your Freddie Mac Account Manager
- Call (800) FREDDIE
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