Best Efforts Fixed-Rate Execution Option
Eligible Mortgage Products
10-, 15-, 20-, and 30- year fully amortizing fixed-rate mortgages.
Refer to Freddie Mac's availability matrix for additional details on eligible products or Guide Section 6101.4 of the Single-Family Seller/Servicer Guide for more information on our best efforts fixed-rate contract requirements.
Contract Requirements
Freddie Mac considers your success rate under prevailing market conditions, in closing mortgages that are allocated to best efforts fixed-rate contracts. A mortgage that fails to fund and close as specified in the contract may adversely affect your pricing for future best efforts fixed-rate contracts.
Loan Requirements
- Loan substitution is not permitted.
- If certain loan characteristics change, you may need to re-price the contract based on the changed characteristics, using the prices in effect on the original contract date.
- If a loan closes, you must sell the loan to us under your original contract. You cannot take out another contract to re-price the loan.
Cash-Specified Payups
- Mortgage characteristics that are eligible for cash-specified payups are available in Loan Selling Advisor.
Learn more about cash-specified payups here.
Extensions
Best efforts contracts can be extended at any time on or prior to the contract expiration date.
- You may extend the contract in Loan Selling Advisor® as many times as needed, as long as the total 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.
Settlements
- View settlement statements in real time using Freddie Mac's Loan Selling Advisor.
- Request a specific settlement date for each mortgage sold, or settlement will occur as soon as the requirements for sale have been met.