Best Efforts Commitment Option
Lock in competitive rates and reduce exposure to interest rate fluctuation
Freddie Mac's best efforts commitment option reduces your interest rate and pipeline risk, providing greater control over all your secondary market activities. Our best efforts commitment option allows you to lock in competitive prices for fixed-rate cash contracts that become mandatory only if the loan closes. For loans that don't close, despite your best efforts, you can cancel your lock without incurring a pair-off fee.
Use Freddie Mac's Loan Selling Advisor® to sell your individual fixed-rate loans, either servicing-released or servicing-retained, and both premium and discount mortgages are eligible as long as their note rates are at or below our posted maximum eligible coupon. You will receive premium prices for your premium mortgages and you can sell the entire mortgage yield (less your servicing spread) since there is no par cap.
|Eligible Mortgage Products||
- Reduce exposure to interest rate fluctuations in the market
- Sell either servicing-released or servicing-retained
- Take advantage of net pricing, including Credit Fees in Price, for quick, all-in pricing when using the servicing-released option
- Receive premium prices for your premium mortgages and competitive prices for your current rate and discount mortgages
- Get faster settlement, often within the same day as certification (if certified by noon)
- Select contract delivery periods in one-day increments between 2 and 90 days
- Monitor status of your contract pipeline at the contract-and loan-level
For More Information
- Access selling and delivery education resources at The Learning Center
- Contact your Freddie Mac representative
The information found on this page 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 other Pricing Identifier Terms.