Mandatory 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 Section 6101.3 of your Single-Family Seller/Servicer Guide for more information on our mandatory fixed-rate contract requirements.
Contract Requirements
- Contract requirements must be completed by the contract expiration date.
- Loans delivered must meet contract parameters for product, note rate, and UPB, subject to our contract purchase tolerance.
- The purchase tolerance is equal to the greater of 2.5% of the contract amount or $10,000.
Loan Requirements
- Loan substitution is permitted
- Bulk loan delivery is permitted
Cash Specified Payups
- Mortgage characteristics that are eligible for Cash Specified Payups are available in Loan Selling Advisor.
Learn more about cash-specified pays ups here.
Extensions
If a mandatory fixed-rate contract will not close on or prior to the contract expiration date, you may extend the contract 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.
Pairoffs
In the event a mandatory fixed-rate contract will not be fulfilled, Freddie Mac allows you to do one of the following:
- Pair off all or part of a current contract, or
- Pair off and recommit by transferring non-funded loans to a new contract.
Settlement
- View settlement statements in real time via 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.