Mandatory Cash Contracts FAQ

The minimum amount for an individual mandatory cash contract is $1,000.

Loan Selling Advisor^® restricts the maximum individual cash contract amount to $50M for 30yr, $25M for 20yr, $25M for 15yr and $15M for 10yr. If you have a contract that exceeds these thresholds, please contact the Single-Family cash desk at 571-382-5960.

Yes, the purchase tolerance is equal to the greater of 2.5% of the purchase contract amount or $10,000.

Freddie Mac purchases loans with settlement dates no more than six months after the note date or, for Construction Conversion and Renovation Mortgages, the effective date of permanent financing. We suspended purchases through our bulk sales unit in 2020.

If you fail to deliver on a mandatory cash contract, you will be assessed a pairoff fee. See question "What is a pairoff?" for details on pairoffs.

Pricing is available in Loan Selling Advisor each business day and is based on prices Freddie Mac expects to receive in the securities market. The price also reflects the mortgage note rate, the minimum contract servicing spread, the delivery period and the value of any cash-specified payup, if indicated when taking out a contract.

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 of between two and 90 days.

Yes, in the event the contract amount specified in a mandatory cash contract will not be fulfilled on or prior to the contract expiration date, you may extend the 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 cumulative extension period plus the original contract term does not exceed 120 days and each extension is less than 90 days beyond the current date. You will be assessed a fee for each contract extension.

Fees will be assessed in your monthly billing statement.

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.

No, extensions are performed using the total remaining unfulfilled amount.

In the event the contract amount will not be fulfilled by delivery of mortgages, you may request a pairoff via Loan Selling Advisor or may wait until the contract expires and Loan Selling Advisor automatically calculates the pairoff fee. The pairoff calculation in Loan Selling Advisor may result in either a pairoff fee due from the Seller to Freddie Mac, or a pairoff credit from Freddie Mac back to the Seller, depending on market conditions. Fees will be assessed in your monthly billing statement. You may also choose to allocate mortgages to pairoff and transfer to a new contract (or "pairoff and recommit"). With this functionality, you may:

• Pairoff part or all of a current contract
• Take out a new contract with different terms and/or a different amount
• Transfer non-funded loans to a new contract to extend the purchase contract effective period or increase the purchase contract amount

Pairoffs can be executed in Loan Selling Advisor Monday – Friday, 8:15 a.m. – 5 p.m. ET. Extensions can be executed in Loan Selling Advisor 24/7, subject to system availability.