Fixed-Rate Guarantor Execution

Maximize your origination fee income and increase your servicing portfolio

Freddie Mac's Fixed-Rate Guarantor execution allows you to maximize your origination fee income and increase your servicing portfolio. Through this execution in Loan Selling Advisor^®, you can swap your fixed-rate mortgage for a Freddie Mac Uniform Mortgage-Backed Security^TM (UMBS^TM) which is eligible for TBA trade or a Freddie Mac MBS which is not eligible for TBA trade.

Product Features

Feature	Description
Eligible Mortgage Products	10-, 15-, 20- and 30-year fixed-rate mortgages Refer to Freddie Mac's Single-Family Seller/Servicer Guide (Guide) Chapters 6201 and 6202 and Guide Exhibit 17S for more information about eligible products and their requirements.
Purchase and Pooling Requirements	Mortgages must have note rates of at least 0.250% above the security coupon but no greater than 1.125% above the security coupon. The minimum contract servicing spread must be at least 0.250% and for mortgages sold under a fixed-rate guarantor execution, but the maximum servicing spread may not exceed 0.500% The minimum contract servicing spread must be equal to or greater than the minimum servicing spread. For mortgages with annual and monthly premium lender paid mortgage insurance, the minimum contract servicing spread must: Be at least 0.250% Include the amount necessary to pay the mortgage insurance premium when due, and Not exceed 0.500% See Guide Exhibit 17S for more information on fixed-rate Enhanced Relief Refinance^SM Mortgages with LTV ratios greater than 105%.
Settlement Cycles	Choose a 2-, 3- or 4-day Gold Rush^® settlement cycle in exchange for a Gold Rush fee. Choose the 5-day standard cycle or choose a 6- through 15-day early pool disclosure settlement cycle.
Loan Selling Advisor	Review Guide Chapter 6203 for special requirements for selling mortgages under the Fixed-Rate Guarantor program through Loan Selling Advisor.

Key Benefits

Receive a Freddie Mac UMBS that is eligible for Supers or an MBS that is eligible for Giant MBS.
Increase your profitability with 2-, 3- and 4-day Gold Rush^® settlement cycles in exchange for a Gold Rush fee.
Early pool disclosure settlement cycles are available to publish pool data to your bond dealers up to 15 days in advance of the security settlement date, instead of the standard 5-day settlement cycle. Disclosing pool data earlier in the process enables you to trade your Single-Issue Guarantor Pools as soon as you are ready.
Deliver your mortgages on the same day that you take out a conversion.

For More Information

Access selling and delivery education resources at Freddie Mac Learning
Guarantor Pricing and Contract Process tutorial (25 minutes)
Contact your Freddie Mac representative

The information found on this page is not a replacement or substitute for information found in the Single-Family Seller/Servicer Guide and/or the terms of your Master Agreement and/or other Pricing Identifier Terms.