Best Efforts Contracts FAQ

A best efforts contract is a contract for the sale of a specified mortgage with respect to which the Seller's obligation to deliver the Mortgage becomes mandatory only when and if the mortgage is closed and funded. You will not be assessed a pairoff fee for non-delivery. Bulk contracts and loan substitutions are not permitted.

The minimum amount for an individual best efforts contract is $1,000.

Pricing is available in Loan Selling Advisor each business day and is based on prices Freddie Mac expects to receive in the securities market. In addition, best efforts pricing is affected by seller pull-through performance relative to aggregate pull-through performance in the best efforts program and pull-through rate over time can affect individual best efforts pricing. The price also reflects the mortgage note rate, original loan balance (if applicable), the minimum contract servicing spread, the delivery period and the cost that Freddie Mac incurs for managing interest rate risk on your behalf.

The purchase contract effective period is the period of time during which a price for eligible mortgages provided to you by Loan Selling Advisor remains in effect. You may select a purchase contract effective period from two to 90 days.

Yes. You may extend the best efforts contract in Loan Selling Advisor at any time on or prior to the contract expiration date.

You may extend the contract as many times as needed, as long as the total extension period does not exceed 30 days from the original contract expiration date. You will be assessed a fee for the contract extension.

Yes. Weekends and holidays are included, but if the new expiration date falls on a weekend or holiday, it will move to the next business day.

Yes. In the event the mortgage specified in a best efforts contract will not close on or prior to the contract expiration date, or if the best efforts contract has a status of “unfulfilled” for less than or equal to 30 days either because (i) the mortgage failed to close prior to the contract expiration date or (ii) the mortgage was withdrawn, you may relock the best efforts contract in Loan Selling Advisor. The contract will be re-priced at the lower of the:

• Original accepted price minus the best efforts contract relock fee, or
• Current market price minus the best efforts contract relock fee

You may relock the contract as long as the total relock period does not exceed 90 days.

Also, you may extend and relock a best efforts contract as many times as needed, as long as the cumulative extension/relock period does not exceed 90 days, 30 of which may be for extension.

Fees will be assessed in your monthly billing statement.

The new contract expiration date is calculated from the day the relock is requested, not from the original contract expiration date.

Relocks can be executed in Loan Selling Advisor Monday – Friday, 8:15 a.m. – 8 p.m. ET. Extensions can be executed in Loan Selling Advisor 24/7, subject to system availability.