Skip to Page Content | Skip to Site Navigation | Skip to Section Navigation

FAQs on Cash Payups for Mortgages with Specified Attributes

Freddie Mac offers a payup to standard Cash pricing for eligible mortgages with specified attributes. Refer to these FAQs to help guide you as you consider our payup pricing levels and prepare to sell your loans for cash.

  1. What products are eligible for specified payups?
  2. How do we complete the specified cash payup transactions in Loan Selling Advisor®?
  3. Does the specified cash payup offering apply to both mandatory and best effort contracts?
  4. Do I need to deliver an Investor Feature Identifier (IFI) in order to receive the cash payup?
  5. Can I deliver a mortgage with an original Note amount smaller than the original contract?
  6. Will I be charged a pair-off fee if I take out the wrong Cash Specified Pool Type? How are pair-off fees calculated on these contracts?
  7. When will I see the final adjusted price on my specified loan/contract?
  8. How long can I take out a contract for and still receive a payup?
  9. Are there going to be additional attributes Freddie Mac will pay up for?
  1. What products are eligible for specified payups?

    The payups apply to 30-yr, 20-yr and 15-yr conventional fixed-rate mortgages that meet the specified attribute requirements.
  2. How do we complete the specified cash payup transactions in Loan Selling Advisor®?

    Use the fields "Cash Specified Pool Indicator" and "Cash Specified Pool Type" when taking out a contract in Loan Selling Advisor® and simply allocate your eligible loans in the same way you do with other loans you sell. If a mortgage does not meet the requirements for the applicable Cash Contract, you won’t be able to allocate the mortgage to the contract.

  3. Does the specified cash payup offering apply to both mandatory and best efforts contracts?

    No, payups apply to mortgages sold under mandatory contracts only. Best efforts executions are not available at this time.
  4. Do I need to deliver an Investor Feature Identifier (IFI) in order to receive the cash payup?

    For contracts taken out prior to 10/15/2018, you will need to deliver an IFI (H64-H68) to receive cash payups for eligible mortgages with specified attributes. However, for contracts taken out on or after 10/15/2018, you will no longer need to deliver an IFI to receive cash payups.
  5. Can I deliver a mortgage with an original Note amount smaller than the original contract?
    Yes, but the payup you'll receive for this mortgage will be calculated based on the LLB specified contract under which you have allocated the loan. For example, a mortgage with an original Note amount of $75,000 allocated to a $110,000 specified contract will receive the payup associated with that contract on the payup grid in Loan Selling Advisor.
  6. Will I be charged a pair-off fee if I take out the wrong Cash Specified Pool Type? How are pair-off fees calculated on these contracts?
    Yes, pairoff fees may be charged if you incorrectly select a Cash Specified Pool Type and are unable to allocate a loan to deliver in that contract. Pair-off fees will be calculated in the same manner used for standard cash contracts. It is important you select the correct Cash Specified Pool Type for the mortgages you are delivering to avoid paying pair-off fees.
  7. When will I see the final adjusted price on my specified loan/contract?
    You'll see the final fully-adjusted price with the associated payup when you allocate the mortgages to a contract in Loan Selling Advisor. The payup will be identified on the pricing summary screen along with other price adjustments and Credit Fees in Price.
  8. How long can I take out a contract for and still receive a payup?
    Payups will be applied only to mortgages that are funded in 60 days or less from the Cash Contract Acceptance date.
  9. Are there going to be additional attributes Freddie Mac will pay up for?
    We continue to monitor market trends and regularly review ways where we can expand opportunities for your business. We will communicate any additional payup opportunities with our customers.

Back to Top