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Discover Freddie Mac's competitive and profitable options for ARMs that enhance customer loyalty
As mortgage origination and refinance volume are expected to decline this year, and many ARMs are scheduled to adjust, look to Freddie Mac for solutions to help you meet the challenges of today's market, while strengthening your borrower relationships and your portfolio management strategies.
Valuable options to consider for ARMs in your portfolio
With Seller-owned Modified Mortgages, you can offer your existing borrowers an opportunity to modify their ARM to the stability of a fixed-rate mortgage with ease – allowing you to enhance your borrower relationships and reduce loan run-off from your servicing portfolio.
Seller-owned Converted Mortgages also provide a solution to help you effectively and profitably manage your ARM share. Seller-owned Converted Mortgages (convertible ARMs you originated that have converted to a fixed-rate of interest) can be sold to Freddie Mac using a streamlined process. Particularly in times when we're facing an inverted yield curve, you'll want to consider restructuring your balance sheet and selling these loans so you'll have the liquidity you need to originate additional mortgages.
Additional opportunities for your business
As you match these mortgage options to meet your borrowers' and your business needs in today's changing market, consider these additional opportunities:
- Benefit from enhanced loan process efficiency. Seller-owned Modified Mortgages offer you and your borrowers the added convenience and efficiency you can expect by eliminating the need for another closing, resulting in less documentation, fewer underwriting and title insurance requirements, easier verifications, and cost and time savings.
- Leverage cross-sell opportunities. Offering your borrowers the opportunity to convert their existing ARMs into a stable, fixed-rate mortgage may increase your borrower's loyalty. Through enhanced borrower relationships, you'll have even more opportunities to cross-sell other financial services to your current borrowers.
- Profitably sell your Seller-owned Modified Mortgages. With Freddie Mac's cash, Guarantor, and MultiLender Swap execution options for Seller-owned Modified Mortgages, you can look to us as your secondary market investor for the sale flexibility you need.
- Choose competitive sale options for Seller-owned Converted Mortgages. Make your sale quick, easy, and profitable when you choose to sell these loans through our cash execution option, which will allow you to gain the liquidity you need to adjust your loan-to-deposit or loan-to-share ratios. Or, if you want to retain these assets as a way to maintain relationships with your borrowers, you can take advantage of our Fixed-rate Guarantor execution.
- Take advantage of the flexibility of non-seasoned or seasoned mortgage sales. With your Seller-owned Modified and Seller-owned Converted Mortgages, seasoning is determined by the modification date and conversion date, respectively, not the original note date – enhancing your opportunities to achieve a profitable sale based on your portfolio restructuring strategies.
For more information about the mortgage products featured in this article, visit:
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