Seller-Owned Modified Mortgages
Quickly and easily meet your borrowers’ needs without another closing
Seller-owned Modified Mortgages give you the flexibility you need to build long-term borrower loyalty, with requirements to help you easily sell mortgages you have held in your portfolio and modified before delivery to Freddie Mac.
Modifying loans in your portfolio, where the new mortgage is a fixed-rate mortgage, ARM or balloon/reset mortgage, expands your ability to meet your existing refinance borrowers' needs without another closing – reducing loan runoff from your servicing portfolio. Less documentation, underwriting and title requirements, and easier verifications, offer you the process efficiencies you need during times of high volume.
Use Seller-owned Modified Mortgages to augment customer relationships you’ve already built, while providing an exceptional enhancement to your borrower-retention product line and a Freddie Mac secondary market sale for the modified mortgage.
|Eligible Mortgage Products||
|Maximum LTV Ratios||
|Special Delivery Requirements||
|Single-Family Seller/Servicer Guide||
Download a Seller-owned Modified Mortgages fact sheet for more details.
With Seller-owned Modified Mortgages, you will be able to:
- Expand your product line with a borrower-retention alternative to refinances.
- Reduce loan runoff from your servicing portfolio with a competitive option for your current borrowers.
- Leverage the secondary market through Freddie Mac to effectively manage your portfolio with an outlet for your modified loans.
- Take advantage of flexibility for your Seller-owned Modified Mortgage and seasoned mortgage sales with seasoning based on the modification date, not the original note date.
- Enhance your relationship with your existing borrowers and benefit from cross-sell opportunities.
Benefits for Your Borrowers
For your borrowers, Seller-Owned Modified Mortgages provide:
- Cost savings with a mortgage modification that doesn't require a new closing.
- Time savings and convenience with fewer documentation and verification requirements.
For More Information
- Call your Freddie Mac representative.
- Print a Seller-owned Modified Mortgages fact sheet.
Visit The Learning Center for live and recorded web conferences, access to classroom-style workshops and self-study tools – all designed to help you stay competitive, serve more borrowers and make it easier to do business with us.
The information in this document 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.