Federal Home Loan Mortgage Corporation - Page 11

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               To exercise its delivery right under a prior approval                  
          purchase contract, an originator was required to give notice of             
          conversion to petitioner and enter into a 30-day “mandatory                 
          delivery contract” on Form 64A, Conventional Multifamily                    
          Immediate Delivery Purchase Contract and Prior Approval                     
          Conversion Amendment.  An originator could elect to deliver the             
          multifamily mortgage at petitioner’s maximum required net yield             
          or at an alternate required net yield.9  Petitioner’s required              
          net yield was the rate at which originators could contract to               
          deliver a mortgage under the immediate delivery purchase program.           
          The maximum required net yield was the fixed rate, or locked-in             
          interest rate, that petitioner and an originator had previously             
          agreed upon in Form 6.10  The alternate required net yield was              
          the rate at which an originator could contract to deliver a                 
          mortgage to petitioner under the immediate delivery purchase                
          program as quoted by petitioner on any day during the 60-day (or            

               9 Effective July 1986, upon electing to effectuate delivery            
          with a mandatory delivery contract with an alternative required             
          net yield, an originator could request an increase in the maximum           
          amount of the mortgage to be delivered.  The amount of any                  
          increase was at the sole discretion of petitioner.  Upon the                
          request for an increase, an originator was required to remit                
          $1,000 plus 2 percent of the increased mortgage amount within 24            
          hours.  Of this 2 percent, 0.5 percent was nonrefundable and, if            
          approved, petitioner was entitled to retain the fee.  Upon                  
          purchase of the mortgage, petitioner refunded 1.5 percent of the            
          total mortgage amount as increased.                                         
               10 The maximum required net yield is the maximum interest              
          rate that petitioner may receive from the mortgage delivered by             
          an originator.                                                              





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Last modified: May 25, 2011