Realize possibilities for your business when you sell seasoned, bulk loans to Freddie Mac

Looking for a quality and market assessment, or just want to know what your best options are for managing your mortgage portfolio in a changing market? Our team of experts can help you discover the easiest and most profitable strategy and sale solution for your mortgage holdings.

Under our negotiated bulk sales transactions, we purchase a wide range of mortgage types, including fixed-rate mortgages, ARMs, balloon/reset mortgages, Community Reinvestment Act (CRA) eligible mortgages, and 2- to 4-unit mortgages. We'll analyze your mortgage holdings – at no charge, and show you a variety of options to accomplish your goals.

Our team of experts can help you reduce your risk and enhance your profitability. With a bulk sale transaction, you can either sell us your loans outright for cash, or take back mortgage-backed securities to use as collateral to reduce your funding costs. No matter the size of your institution, we'll help you assess how selling mortgage portfolios into the secondary market will help you:

• Reduce credit risk. Many lenders have built up considerable risk concentrations due to a lack of geographic or origination-year diversification. You can transfer that credit risk to Freddie Mac, continue to service your borrowers' loans, and take back a highly liquid, AAA-rated Freddie Mac mortgage-backed security.
• Fine-tune your balance sheet. Selling seasoned loans to Freddie Mac can help you address the challenges of rising interest rates. Sell discounted fixed rate loans and then reinvest at current market yields. Or sell above market rate loans to book a gain on sale. And while ARMs have less price volatility than fixed-rate mortgages, they still have plenty of interest-rate risk from prepayments, especially as the ARM approaches its roll date.
• Generate more revenue. Converting your seasoned loans to a Freddie Mac security can reduce your Tier II risk-based capital requirement from 4% to 1.6%. You can use the extra capital to support investments in additional earning assets, for acquisitions, expansion of your branch network, share repurchases – and almost any asset or activity that can generate more revenue, income, and growth.
  

To take advantage of this service, simply contact your Freddie Mac representative. We will recommend a pooling strategy that will provide competitive pricing on your pools to enable you to obtain the best execution in the market.

For more information

• Check out our full service-approach to your mortgage portfolio needs
• Contact your Freddie Mac representative or call (800) FREDDIE.