Freddie Mac offers two securitization options to its customers: Guarantor and MultiLender. In the Guarantor program, lenders exchange a pool of their loans for a security backed by the cash flows of only the mortgages they provided. The minimum pool size in Guarantor is $1 million, but the program offers more flexibility to its users than does MultiLender. Lenders can mix a wider range of interest rates in the same pool, and the Guarantor execution is available for both fixed-rate and ARM loans.
MultiLender offers just what the name implies – the ability for a lender to mix its loans with those of other lenders around the country and to receive in exchange a commensurate slice of the total security created from all of the loans provided by all of the lenders. This program offers securitization to lenders who may not have $1 million of their own mortgages to swap. In MultiLender, the minimum amount necessary to join the execution is just $1,000. The range of eligible loans is tighter, however, and there is no MultiLender execution for ARM loans.
