Skip to Page Content | Skip to Site Navigation | Skip to Section Navigation

Guide Bulletin 2012-6 Provides Details on Freddie Mac's Implementation of the Mandated Gfee Increase

February 29, 2012

We are issuing Single-Family Seller/Servicer Guide (Guide) Bulletin 2012-6 today to provide you with additional details on implementing the increase in required spreads announced in Guide Bulletin 2011-26.

In addition, if you have buyup and buydown provisions in your Master Commitment, the Guide Bulletin provides information on the impacts to these provisions.

Sell & Deliver

As a result of the Temporary Payroll Tax Cut Continuation Act of 2011, effective for settlements on or after April 1, 2012, we are implementing a 10 basis point increase on all single-family mortgages sold to Freddie Mac. The implementation includes an increase to the required spreads for our Guarantor and MultiLender Swap executions, as well as other executions outlined in your Purchase Documents, and a commensurate pricing change in our Cash execution.

If you are selling through our Guarantor or MultiLender Swap executions, it's important you are aware of the following:

  • For mortgages sold through the selling system, you will be able to view the increase in required spreads through the selling system's Gfee Add-on functionality. Freddie Mac representatives are working with Sellers to ensure they have the capability to use this functionality for mortgages with settlement dates on or after April 1, 2012.
  • New Guide Exhibit 19RS, Required Spread Add-On, identifies the 10 basis point increase as the Payroll Tax Cut Act Gfee Add-On.

If you have maximum buyup and buydown provisions in your Master Commitment, the following changes will apply:

  • Master Commitments that state a specific maximum required spread amount or maximum buyup value will increase by 10 basis points.
  • The selling system will reflect the required spread amount and the Payroll Tax Cut Gfee Add-on separately.
  • As applicable, we will update your Master Commitment at a later date.

For mortgages sold under the Cash program with settlement dates on or after April 1, 2012, the selling system has been updated to reflect a commensurate change in Cash execution pricing.

For all other delivery paths, the pricing you'll receive will include the 10 basis point increase for mortgages with settlement dates on or after April 1, 2012.

Get More Information

Back to Top