Freddie Mac Single-Family Seller/Servicer Guide 6101.4 — Servicing options and remittance cycle for fixed-rate Cash Contracts

Freddie Mac Single-Family Seller/Servicer Guide 6101.4 — Servicing options and remittance cycle for fixed-rate Cash Contracts

Effective 2025-11-05 · Freddie Mac's stamp for this section

This section contains requirements related to: ■ Servicing options for fixed-rate Cash Contracts ■ Remittance cycle for fixed-rate Cash Contracts ■ Minimum Contract Servicing Spread for fixed-rate Cash Contracts (a) Servicing options for fixed-rate Cash Contracts Subject to approval and conditions set by Freddie Mac, the Seller may sell fixed-rate Mortgages under Cash using one of the following Servicing options: ■ Servicing retained: The Seller sells the Mortgage to Freddie Mac and agrees to service the Mortgages in accordance with the Guide and applicable Purchase Documents ■ Concurrent Transfer of Servicing: The Seller sells the Mortgage to Freddie Mac and agrees to service the Mortgages in accordance with the Guide and applicable Purchase Documents and concurrently engages in a Transfer of Servicing initiated by the Seller to a Transferee Servicer with the Mortgage purchase and the Transfer of Servicing occurring on the Settlement Date. The Servicer selected by the Seller must be a Freddie Mac-approved Servicer eligible to service the particular Mortgage, and Freddie Mac must approve the Transfer of Servicing in accordance with Chapter 7101. See Section 6302.51 for additional information regarding delivery requirements for Mortgages sold servicing-released under Mandatory Cash Contracts or Best Efforts Contracts. ■ Cash-Released XChange®: The Seller sells the Mortgage servicing-released in accordance with the requirements of Section 6101.5 (b) Remittance cycle for fixed-rate Cash Contracts The remittance cycle that applies to Mortgages sold under a Mandatory Cash Contract or Best Efforts Contract is the Standard Remittance Cycle. The price that the Seller receives for the Mortgages under a Mandatory Cash Contract or Best Efforts Contract will reflect the Standard Remittance Cycle. (c) Minimum Contract Servicing Spread for fixed-rate Cash Contracts The Servicing Spread applicable to any individual Mortgage delivered pursuant to a specific Purchase Contract may be greater than or equal to, but not less than, the Minimum Contract Servicing Spread selected by the Seller for that specific Purchase Contract. The Minimum Contract Servicing Spread is selected by the Seller when taking out a Purchase Contract and is applicable to all the Mortgages delivered pursuant to that specific Purchase Contract. The Minimum Contract Servicing Spread must be equal to or greater than the Minimum Servicing Spread. For fixed-rate Cash, the Minimum Contract Servicing Spread: ■ Must be at least 0.250% and may not exceed 0.500% and ■ Must equal 0.250% for Mortgages sold through Cash-Released XChange For Mortgages with annual or monthly premium lender-paid mortgage insurance, the Seller must select a Minimum Contract Servicing Spread that is sufficient to ensure that the Servicer receives the Minimum Servicing Spread plus the amount necessary to pay the mortgage insurance premium when due. Refer to Section 4701.2(b) for special eligibility requirements for Mortgages with lender-paid mortgage insurance.

Source: Freddie Mac Single-Family Seller/Servicer Guide 6101.4 — Servicing options and remittance cycle for fixed-rate Cash Contracts · source URL · snapshot 4c94f67729042dd6