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FAQs on Cash Payups for Specified Loan 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 the Loan Selling AdvisorSM?
  3. Does the specified cash payup offering apply to both mandatory and best effort contracts?
  4. Can I deliver a mortgage with a loan balance smaller than the original contract?
  5. 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?
  6. I forgot to deliver the applicable IFI on the ULDD file and my loan has funded without the payup credit. Can I still receive the pay up for the LLB I delivered?
  7. What ULDD data point do I deliver the IFI in?
  8. When will I see the final adjusted price on my specified loan/contract?
  9. How long can I take out a contract for and still receive a payup?
  10. 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 the Loan Selling AdvisorSM?

    For loans with low loan balances (LLBs), use the LLB fields, "Cash Specified Pool Indicator" and "Cash Specified Pool Type" and simply allocate your LLB loans in the same way you do with other loans you sell.

    However, for non-LLB specified attributes, you'll need to submit a pricing request and the corresponding loan-level data to the Freddie Mac Cash Desk (cash_ex@FreddieMac.com) by 4:15 pm to receive a contract price based on the day's cash payup levels.
  3. Does the specified cash payup offering apply to both mandatory and best effort contracts?

    No, payups for LLBs only apply to mandatory contracts. Best effort executions are not available at this time.
  4. Can I deliver a mortgage with a loan balance 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 $75,000 loan allocated to a $110,000 specified contract and delivered with the IFI "H67" (code for maximum LLB ≤ $110,000) will receive the applicable payup associated with the $110K specified type on the payup grid.
  5. 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, pair-off fees may be charged if you incorrectly select a Cash Specified Pool Type for a mortgage with an unpaid principal balance (UPB) that is higher than the maximum UPB that is designated for the Cash Specified Pool Type.

    For example, you cannot deliver a $140,000 loan into a contract that has a Cash Specified Pool Type of $110,000. 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.
  6. I forgot to deliver the applicable IFI on the ULDD file and my loan has funded without the payup credit. Can I still receive the pay up for the LLB I delivered?
    Yes. You will have to submit a Post Fund Data Correction to add the IFI to the appropriate loan record. The payup will appear as an adjustment/credit back to you on your next billing statement.
  7. What ULDD data point do I deliver the IFI in?
    All IFIs are delivered under the ULDD data point: Sort ID #368. Please refer to the Freddie Mac XML Data Requirements Reference Tool V.4.0.2 for all ULDD requirements and additional information on Sort ID #368.
  8. 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 the Loan Selling Advisor. The payup will be identified on the pricing summary screen along with other price adjustments and credit fees in price.
  9. 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.
  10. 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.

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