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Cash-Released XChangeSM

Back to Servicing-Released XChangeSM

Our Cash-Released XChange execution allows you the option to sell any number of fixed-rate loans for cash and concurrently transfer the servicing in the same transaction to a Transferee Servicer identified by Freddie Mac. When mortgage servicing is not your core capability, this execution allows you to maximize your Servicing-Released Premiums (SRP) for a variety of fixed-rate mortgage products.

Benefits

      • All-in cash price. Refer to the Freddie Mac availability matrix for details on eligible servicing-released products.
      • Competitive servicing-released premiums from six Servicing Transferees .
      • Fast Settlement. Mortgages can be funded that same day, if certain conditions are met.
      • All contract terms are provided is in the Freddie Mac Single-Family Seller/Servicer Guide. A separate negotiated contract with each Servicing Transferee is not necessary.
      • Full bifurcation. Seller maintains liability for selling representations and warranties and the Servicing Transferee assumes liability for servicing representations and warranties.
      • Mandatory or best efforts commitments.
      • No data mapping required to the Servicing Transferees. Servicing Transferees have access to all ULDD data in Loan Selling Advisor® to facilitate loan boarding.
      • No volume requirement. Choose the option to sell one, a few or many loans for cash.

Product Features

Feature Description
Eligible Mortgage Products
  • 15-, 20- and 30- year fully amortizing fixed-rate mortgages. Includes Home Possible® and Home Possible Advantage® mortgages. Includes Freddie Mac Relief Refinance MortgagesSM with LTV ratios less than or equal to 105 percent.
  • Refer to the Freddie Mac availability matrix for details on eligible servicing-released products.
  • Refer to the Freddie Mac Single-Family Seller/Servicer Guide for complete details on our requirements. Refer to Chapter 6101, Cash Program (see specifically Section 6101.7), Chapter 6300 Delivery of All Mortgage Programs (see specifically Section 6302.26 for special delivery requirements for Mortgages sold through Cash-Released XChange), and Chapter 6304 Document Custody (see specifically Section 6304.1 regarding requirement that the Seller must use Bank of New York Mellon as Designated Custodian for mortgages purchased under Cash-Released XChange). 
    Also Refer to Guide Exhibit 28A, Loan Purchase and Sale Agreement for Cash-Released XChange, that contains requirements for Seller and each Transferee Servicer.
Eligible Remittance Cycles
  • Gold remittance cycle only.
Contract Requirements
  • Mandatory and best efforts contracts are available.
  • Between 2 and 90 day contract delivery period.
  • For mandatory contracts, you may substitute loans that fit within the terms of the original contract (the servicing-released premium is subject to change).
  • You must fulfill a mandatory contract amount within tolerance levels (2.5% or $10,000 whichever is higher) or a pairoff fee may apply.
  • See Guide Exhibit 17S for more specific Loan Selling Advisor requirements on Freddie Mac fixed-rate products.
Settlement
  • Receive settlement twice a day, or choose mornings or afternoons.
  • Get faster settlement often within the same day as certification (if certified by noon) provided the settlement designation is PM or both AM/PM.
  • Loans can settle individually within a contract as they are ready.
  • Choose multiple warehouse lenders within a single contract.

Freddie Automated Servicing TransferSM

Saving time, simplifying servicing transfers. That’s FAST!

Which Execution is Best for You?

Contact us to find the right Servicing-Released execution for your business.

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