Cash, Servicing-Released Execution
Maximize the value of your servicing asset and have more cash available to fund more mortgages
Freddie Mac's cash, servicing-released execution offers you the option to sell one, a few, or many loans for cash and release your servicing to improve your liquid assets and fund more mortgages. When mortgage servicing is not your core capability, this competitive cash execution allows you to maximize your servicing-released premiums for a variety of mortgage products and financing structures. You can select either a mandatory or best efforts servicing-released commitment option based on your individual business or borrowers' needs. With the servicing-released execution, you sell your mortgage asset and servicing asset in one transaction, and receive an all-in cash price that includes the servicing-released premium.
Product Features
Feature |
Description |
Eligible Mortgage Products |
- 15-, 20-, 30- and 40-year fully amortizing fixed-rate mortgages
- 5- and 7-year balloon/reset mortgages
- Refer to Freddie Mac's availability matrix
[PDF 72K]
for details on eligible servicing-released products
- Refer to Freddie Mac's Single-Family Seller/Servicer Guide Section 9.9 for complete details on our requirements for servicing-released sales through the selling system
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Eligible Remittance Cycles |
- Gold remittance cycle only
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Contract Requirements |
- Mandatory and best efforts contracts are available
- Between 2 and 90 day contract delivery period
- For mandatory contracts, you may substitute loans that fit within the terms of the original contract (the servicing-released premium is subject to change)
- You must fulfill a mandatory contract amount within tolerance levels (2.5% or $10,000 whichever is higher) or a pairoff fee may apply
- See Guide Exhibit 17S for more specific contract requirements on Freddie Mac's fixed-rate products (including balloon/reset) mortgages
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Settlement |
- Receive settlement twice a day, or choose mornings or afternoons
- Get faster settlement often within the same day as certification (if certified by noon) provided the settlement designation is PM or both AM/PM
- Loans can settle individually within a contract as they are ready
- Choose multiple warehouse lenders within a single contract
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Key Benefits
- Benefit from competitive servicing-released premiums from multiple servicing buyers
- Take advantage of our best efforts commitment option as an exceptional tool to hedge your pipeline and manage your risk
- Retain the relationship with your customers by choosing the “no cross-sell” option
- Reduce exposure to interest rate fluctuations in the market
- Take advantage of net pricing, including postsettlement delivery fees, for quick, all-in pricing when using the servicing-released option
- Select contract delivery periods in one-day increments between 2 and 90 days
- Take advantage of market shifts with our two-way pairoff capability
- Get faster settlement, often within the same day as certification (if certified by noon)
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 Master Commitment.
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