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MultiLender Final Settlement Date Extended

February 26, 2013

In order to provide you with additional settlement days to participate in the MultiLender Swap execution, the final settlement date for MultiLender pools now will be two business days prior to the last business day of the month. This change will apply to 30-year and 15-year To Be Announced (TBA) MultiLender pools. Under the current practice, the final settlement date is tied to the Class D settlement date, which is generally more than a week before the end of the month.

This enhancement is in addition to the 0-2 month loan age MultiLender Swap option that was introduced in May 2012 to help lenders maximize their profit when they use the MultiLender Swap execution. 

For coupons where there is a pay-up for pools of newly originated loans, Sellers have the option to deliver loans into the MultiLender Pools or into the 0-2 month loan age MultiLender Pools. With these pools, they will receive a pro-rata share of a 30- or 15-year Freddie Mac Participation Certificate (PC) that contains loans 0-2 months old.  For coupons where no pay-up exists for pools of newly originated loans, the standard MultiLender Pools will continue to be offered.

Key benefits of our MultiLender Swap execution include:

  • Opportunity for a pay-up for MultiLender Pools with loan ages of 0-2 months.
  • $1,000 minimum required commitment.
  • Many security options with various PC coupons and note rate ranges available each month.

This update to the final monthly settlement date will begin with the March 2013 pools. For example, the new date for final March settlement of 30-year and 15-year TBA MultiLender pools is March 27, 2013. This provides five additional settlement days for these MultiLender Pools during the month of March. In April, the final settlement date for 30-year and 15-year TBA MultiLender pools will be
April 26, 2013.

Contact your Freddie Mac representative to discuss using MultiLender Swaps for your new loan production.

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