Contract Extension Fees for Best Efforts Cash Contracts
When you use the selling system to sell loans for Cash and select best efforts (servicing-released or retained), you get the benefits of a securities execution without the additional considerations of a swap. You can extend your expiration date for a fee at any time prior to funding, as long as the loan is not set for funding. You're also allowed a maximum of two extensions per contract.
Freddie Mac will charge a contract extension fee based on the length of the extension period. Extension fees are subject to change without notice, and we'll communicate any future fee changes as needed.
Below you'll find a listing of the current Best Efforts Cash contract extension fees through the selling system:
|Best Efforts Cash Contract Extension Fees|
|5 days (minimum)||7.5 bps|
|6 – 10 days||15 bps|
|11 – 15 days||22.5 bps|
|16 – 30 days||45 bps|
* Last Updated: January 10, 2011