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 the selling system, you can swap your fixed-rate or 5- and 7-year balloon/reset mortgages for Freddie Mac Participation Certificates (PCs), widely accepted securities that are attractive to investors. Backed exclusively by the mortgages you have sold to Freddie Mac, these PCs require less capital than holding whole loans. You may also choose to swap and sell your PCs to replenish your funds and make more loans.
Product Features
Feature |
Description |
Eligible Mortgage Products |
- 15-, 20-, 30- and 40-year fixed-rate mortgages
- 5- and 7-year balloon/reset mortgages
- Up to 30-year fully amortizing FHA/VA fixed-rate mortgages
- Initial InterestSM fixed-rate mortgages
- Refer to Freddie Mac’s Single-Family Seller/Servicer Guide Exhibit 17S for a list of eligible products and their requirements
|
Special Sales Requirements |
- Minimum servicing spread of 0.25%
- Maximum servicing spread of 2.00%
|
Eligible Remittance Cycles |
- Choose from three remittance cycle options: Gold, Super ARC or First Tuesday
|
Settlement Cycles |
- In the selling system, choose a 3- or 4-day Gold Rush® settlement cycle in exchange for a Gold Rush fee, or choose the 5-day standard cycle
|
Pooling Requirements |
- 15- and 30-year fixed-rate mortgages must be pooled separately
- 30-year fixed-rate mortgages may not be pooled with 40-year fixed-rate mortgages
- 5- and 7-year balloon/reset mortgages must be pooled separately
- 20-year fixed-rate mortgages must be pooled separately to receive a 20-year PC prefix. Otherwise, they must be pooled with 30-year fixed-rate mortgages in a 30-year PC prefix
- Minimum pooling amount for Gold PCs is $1 million
- Minimum pooling amount for mini-Gold PCs is $250,000
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Key Benefits
- Receive a Freddie Mac PC that is eligible for Giant PCs and REMICs
- Increase your profitability with 3- and 4-day Gold Rush® settlement cycles in exchange for a Gold Rush fee
- Choose from several remittance options to manage your servicing float value
- 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 Master Commitment.
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