Cash Payups for Mortgages with Specified Characteristics FAQ

The payups apply to 30-yr, 20-yr, 15-yr, and 10-yr conventional fixed-rate mortgages that meet the specified characteristic requirements. 

To find out which cash-specified payup types are eligible for each product, please view the Request Freddie Mac Price Sheet screen in Loan Selling Advisor^®.

Use the fields "Cash Specified Pool Indicator" and "Cash Specified Pool Type" when taking out a contract in Loan Selling Advisor and allocate your eligible loans in the same way you do with other loans you sell. If a mortgage does not meet the "Cash Specified Pool" Type requirements for the applicable Cash Contract, you won’t be able to allocate the mortgage to the contract.

Yes, payups can apply to mortgages sold under either a mandatory contract or a best efforts contract.

Yes, but the payup you'll receive for this mortgage will be calculated based on the low loan balance (LLB) specified contract under which you have allocated the loan. For example, a mortgage with an original Note amount of $75,000 allocated to a $110,000 specified contract will receive the payup associated with that contract.

No, you only need to select this option when you have exceeded the threshold for cash super conforming deliveries to Freddie Mac in a given month. Super conforming mortgages sold within the monthly threshold are committed as non-specified cash contracts where you select “No” in the Cash Specified Pool Indicator field in Loan Selling Advisor. Once beyond the threshold, super conforming mortgages should only be committed by selecting “Yes” in the Cash Specified Pool Indicator field and “Super Conforming” in the Cash Specified Pool Type field in Loan Selling Advisor. The applicable super conforming price adjustment is included within the note rate level pricing in Loan Selling Advisor.

For more information see Guide Section 6302.31(d) and Freddie Mac's Super Conforming Mortgages.

The value of the cash-specified payup is included in the contract level prices on the price results and contract details screens when taking out a contract.

Payups will be applied to the full commitment periods including the duration of any extensions.

We continue to monitor market trends and regularly review ways where we can expand opportunities for your business. We will communicate any additional payup opportunities with our customers.

Loans qualify for the “Green” payup type if they meet one of the following criteria:

• GreenCHOICE Mortgages® plus solar panels – loan must be delivered with ULDD Data Point Loan Program Identifier of “GreenCHOICEToPayOffOutstandingEnergyDebt’ and ULDD Data Point Renewable Energy Component Type of “Solar”.
• New construction with Home Energy Rating System (HERS) score less than or equal to 60 (from RESNET) – loan must be delivered with an IFI value of “J99.” 
• New construction with solar panels – loan must be delivered with an IFI value of “J98.”

For more information check out Single-Family Green Bonds - Capital Markets.

MISSION SCORES USE RESTRICTION: Loan-level mission scores may be used solely to facilitate securitization of the applicable mortgages into Freddie Mac Single-Family Social MBS. Please refer to the Mission Index Criteria: Methodology Example in our Mission Index Guidepdf and other resources on our Mission Index - Capital Markets webpage to understand loan level criteria. 

Yes. Eligible super conforming loans may be delivered through the Mission Index cash-specified payup path. Please note that any super conforming loans delivered into cash contracts with a Cash Specified Pool Type of Mission Score 2 or 3, will be excluded from the monthly super conforming delivery threshold calculations as noted in the Execution Options section of our Super Conforming Mortgages product information online.

For more information see Guide Section 6302.31(d) and Freddie Mac's Super Conforming Mortgages.