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Redeemable at the Option of Freddie Mac, Commencing June 11, Form
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People also ask
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What does it mean if my loan was sold to Freddie Mac?
It's common for lenders to sell home loans to another company, including Freddie Mac. This practice allows lenders to make more home loans. If you received a letter titled "Borrower Notification: Freddie Mac Has Purchased Your Mortgage Loan," don't be alarmed.
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What does it mean when a mortgage company sells your loan?
Why do mortgages get sold? Many lenders specialize in originating a mortgage, but often, this initial lender can't afford to wait for 15 or 30 years for you to pay it all back. By selling it, they no longer have to keep your debt on their books, and they can offer loans to other prospective homeowners.
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Is my loan Fannie Mae or Freddie Mac?
We encourage you to contact your servicer (often your bank or lender) to verify that your mortgage loan is owned or guaranteed by Fannie Mae or Freddie Mac, or you may verify it yourself by accessing the following websites: Fannie Mae .KnowYourOptions.com/loanlookup, Freddie Mac .freddiemac.com/mymortgage.
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Why do banks sell loans to Freddie Mac?
Delivering mortgage loans to the secondary market through Freddie Mac can help community banks access sustainable affordable mortgage products and responsibly expand mortgage business opportunities while limiting long-term credit, prepayment, and interest rate risks.
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What happens when loan is sold to Fannie Mae?
Does my loan change because Fannie Mae purchased it? No. It does not change the terms or conditions of your mortgage loan, deed of trust, or note. Your loan remains the same, and your monthly payments will not be affected.
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Why did my mortgage get sold to Freddie Mac?
Q: Why did my lender sell my mortgage to Freddie Mac? A: We provide funds to lenders by purchasing mortgages from them. This creates a continuous source of mortgage funds that allows homebuyers to obtain financing. We maintain requirements for the mortgages we purchase through lenders/servicers.
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What is the Freddie Mac scandal?
An accounting scandal erupted at Freddie Mac in June 2003 that was discovered through an SEC investigation. The company had intentionally understated $5 billion in earnings.
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What is the notice period for Freddie Mac?
Notice Period and Servicer right to transfer Freddie Mac will notify the Servicer in writing 90 days before the scheduled date of the termination of the Servicing Contract and related Servicing Contract Rights without cause.
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