How to Become a Program Plus Seller/Servicer

Freddie Mac's Program Plus^® network is a highly selective group of experienced multifamily lenders with over 150 branches across the nation. The small size of the network allows us to ensure quality originations and provide a high level of service to our lenders and their borrowers.

Program Plus lenders must meet our standards for both origination and servicing of multifamily loans. However, simply meeting these eligibility standards is no guarantee that you will be approved. Many lenders who meet, or even exceed, the requirements are not selected for participation in the Program Plus network, because the market they cover is already well served by one or more existing Program Plus lenders.

If you meet the basic requirements and would like one of Freddie Mac's regional directors of loan production to determine whether an opening exists in the Program Plus network for your market, please complete the application request form and click on "submit" to send it. If the regional director sees a market need for your services, we will forward an application form to you. Either way, we will respond to your request in writing.

Minimum Eligibility Standards

Each applicant must meet the following minimum standards as of the due date of the application and at all times after approval as a Program Plus Seller/Servicer:

Net Worth or Servicing Requirements
Category	Requirement
Minimum adjusted net worth	$2 million
Minimum liquid assets	$200,000
Minimum Servicing volume	$200 million of mortgages secured by income properties (including $50 million of mortgages secured by multifamily properties) or $100 million of mortgages secured by multifamily properties
Minimum number of mortgages	150 mortgages secured by income properties and/or multifamily properties

Terms Defined

Adjusted Net Worth: For the purpose of determining compliance with the Program Plus eligibility requirements, adjusted net worth is defined as follows:

Generally accepted accounting principles (GAAP) net worth, minus the sum of the following assets:

• Goodwill
• Originated servicing
• Purchased servicing
• Capitalized excess servicing
• Investments in joint ventures
• Investments in limited partnerships
• Real Estate Owned (REO)
• Plant, property and equipment
• Receivables from affiliates
• Investments in affiliates
• Other assets
• Other intangibles

To the above definition of net worth add:

• Deferred tax liability on capitalized excess servicing
• Value of nonrecourse income-property servicing as described below

Freddie Mac will allow the value of servicing for income-property mortgages serviced at the close of the fiscal year, to be counted towards adjusted net worth as follows:

• The value may be calculated up to four and one-half times the gross annual servicing income, calculated as follows: (UPB x average annual servicing spread) x 4.5, where UPB is the unpaid principal balance)
• Freddie Mac may adjust the value at its sole discretion
  

Liquid Assets: For the purpose of determining compliance with the Program Plus eligibility requirements, liquid assets are defined at follows:

• Cash or cash equivalents
• Treasury Bills
• Money market investments or certificates of deposit with maturities of one year or less
• Marketable securities, such as stocks and bonds (Any stocks or bonds for a company that is in default must not be included as a liquid asset.)

Restricted cash and pledged assets must be excluded.

You Can Still Access our Programs Even if You Don't Meet These Requirements

If you're not a Program Plus lender, you can still access our programs. Just contact one of our Program Plus lenders located nationwide to find out how you can participate.