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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 SecurityTM (UMBSTM) 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 RefinanceSM 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

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.

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