source:
  type: guide
  id: fhlmc-6401.1
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 6401.1 — Pairoff
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 6401.1 — Pairoff.
  coverage_tier: operative
obligations:
- id: fhlmc-6401.1-full
  canonical_id: fhlmc-6401.1-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 6401.1 — Pairoff
  type: do
  tags:
  - regulator-direct
  - fhlmc
  - freddie-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide Section 6401.1 — Pairoff
    source_class: fhlmc-guide
    source_url: https://guide.freddiemac.com/ci-guide
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-05-23T00:27:40Z'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '6401.1: Pairoff (11/05/25) This section contains requirements
      related to: ■ Pairoff overview ■ Pairoff procedures for Cash, Guarantor and
      MultiLender Swap Purchase Contracts ■ Pairoff procedures for Commitment Amounts
      ■ Payment of pairoff fees (a) Pairoff overview A pairoff constitutes fulfillment
      of a mandatory obligation to deliver Mortgages to Freddie Mac under the Cash,
      Guarantor or MultiLender Swap programs. The Seller may pair off a cash Purchase
      Contract or a mandatory obligation to deliver Mortgages under a Pricing Identifier
      by repurchasing all or any portion of the respective contract in lieu of selling
      the Mortgages to Freddie Mac. Failure to deliver Mortgages pursuant to the terms
      of the respective contract or to otherwise fulfill a mandatory obligation to
      deliver Mortgages to Freddie Mac according to the requirements of this section
      subjects the Seller to the remedies for nondelivery provided in the Guide. Note:
      Best Efforts Contracts are not mandatory, and pairoff requirements do not apply.
      See Section 6101.2(b) for additional requirements applicable to Best Efforts
      Contracts. (b) Pairoff procedures for Cash, Guarantor and MultiLender Swap Purchase
      Contracts The pairoff amount for a Purchase Contract with a mandatory obligation
      to deliver Mortgages is equal to the Commitment Amount of such Purchase Contract,
      less the following: ■ The applicable purchase tolerance (equal to the greater
      of 2.5% of the Purchase Contract amount or $10,000), and ■ The number of Mortgages
      previously purchased by Freddie Mac under the applicable Purchase Contract The
      Seller may choose to: Freddie Mac Single-Family Seller/Servicer Guide Chapter
      6401 As of 11/05/25 Page 6401-2 ■ Request a pairoff via Loan Selling Advisor®
      prior to the Purchase Contract Expiration Date using the pairoff functionality
      as described in Section 6101.2(a)(iv) ■ Have Loan Selling Advisor automatically
      calculate the pairoff fee after the Purchase Contract Expiration Date The pairoff
      process is “two-way” and, depending on market conditions, may result in either:
      ■ A fee due to Freddie Mac from the Seller; or ■ A fee due to the Seller from
      Freddie Mac Pairoff fees calculated and provided by Loan Selling Advisor are
      non-negotiable. (c) Pairoff procedures for Commitment Amounts The Seller may
      pair off a Commitment Amount associated with a Pricing Identifier that has a
      mandatory obligation to deliver Mortgages at any time before and including the
      Pricing Identifier Expiration Date. The Seller makes a pairoff request by contacting
      its Freddie Mac account manager. The pairoff amount shall equal the applicable
      Commitment Amount, less the following: ■ The purchase tolerance associated with
      the Pricing Identifier, and ■ The Commitment Amount of any Cash Purchase Contracts
      fulfilled under the Pricing Identifier plus the UPB of Mortgages previously
      purchased by Freddie Mac under Guarantor or MultiLender Swap Purchase Contracts
      taken out in connection with the Pricing Identifier Freddie Mac will determine
      the amount of the pairoff fee and quote it to the Seller. Pairoff fees will
      be included in the Seller’s invoice and must be paid as set forth in Section
      6303.2(a). (d) Payment of pairoff fees Pairoff fees will be included in the
      Seller’s monthly invoice and must be paid as set forth in Chapter 6303. Freddie
      Mac reserves the right to amend the provisions of this section relating to the
      Loan Selling Advisor pairoff process without prior notice.'
  judgment: false
