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Fixed-Rate Guarantor Execution

Maximize your origination fee income and increase your servicing portfolio

Freddie Mac's Fixed-Rate Guarantor execution allows you to maximize your origination fee income and increase your servicing portfolio. Through this execution in the selling system, you can swap your fixed-rate mortgage for Freddie Mac Participation Certificates (PCs), widely accepted securities that are attractive to investors.  Backed exclusively by the mortgages you have sold to Freddie Mac, these PCs require less capital than holding whole loans. You may also choose to swap and sell your PCs to replenish your funds and make more loans.

Product Features

FeatureDescription
Eligible Mortgage Products
  • 15-, 20-, and 30- year fixed-rate mortgages
  • 40-year fixed-rate Home Possible Mortgages secured by 1-unit primary residences
  • Up to 30-year fully amortizing FHA/VA fixed-rate mortgages
  • Refer to Freddie Mac's Single-Family Seller/Servicer Guide Exhibit 17S for more information about eligible products and their requirements
Special Sales Requirements
  • Minimum servicing spread of 0.25%
  • Maximum servicing spread of 2.00%
Eligible Remittance Cycles
  • Choose from three remittance cycle options: Gold, Super ARC or First Tuesday
Settlement Cycles
  • In the selling system, choose a 3- or 4-day Gold Rush® settlement cycle in exchange for a Gold Rush fee, or choose the 5-day standard cycle
Pooling Requirements
  • 15- and 30-year fixed-rate mortgages must be pooled separately
  • 30-year fixed-rate mortgages may not be pooled with 40-year fixed-rate mortgages
  • 20-year fixed-rate mortgages must be pooled separately to receive a 20-year PC prefix. Otherwise, they must be pooled with 30-year fixed-rate mortgages in a 30-year PC prefix
  • Minimum pooling amount for Gold PCs is $1 million
  • Minimum pooling amount for mini-Gold PCs is $250,000
  • Fixed-rate super conforming mortgages are TBA eligible as long as they do not exceed 10 percent of the unpaid principal balance of all mortgages in the applicable pool and other applicable de minimus requirements are met.
  • Fixed-rate Freddie Mac Relief Refinance MortgagesSM with LTV ratios less than or equal to 105 percent may be pooled with other mortgages without additional pooling requirements
  • Fixed-rate Relief Refinance Mortgages with LTV ratios greater than 105 percent must be pooled separately in PC pools comprised entirely of Relief Refinance Mortgages with LTV ratios greater than 105 percent. These PC pools are not eligible for sale in the TBA market*

(*Relief Refinance Mortgages with LTV ratios greater than 105 percent and less than or equal to 125 percent are eligible for Freddie Mac settlements on or after October 1, 2009.)

Key Benefits

  • Receive a Freddie Mac PC that is eligible for Giant PCs and REMICs
  • Increase your profitability with 3- and 4-day Gold Rush® settlement cycles in exchange for a Gold Rush fee
  • Choose from several remittance options to manage your servicing float value
  • Deliver your mortgages on the same day that you take out a conversion

For More Information

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 Master Commitment.

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