SS Memo 11-04

SELLING GUIDE REVISIONS: CONTACT UNDERWRITING

Date: March 24, 2011

Interest Rate Buydowns

(Section 1005.09.E)

Seller/Servicer Memorandum 11-02 announced a change to the pricing for interest rate buydowns and established a 1% maximum buydown. The chart below reflects updated pricing associated with the new buydown guidelines and replaces the chart in Memorandum 11-02.

Interest Rate

Buydown Amount

Buydown Fee

15 year

30 year

.125

.500

.500

.250

1.000

1.000

.375

1.375

1.625

.500

1.875

2.125

.625

2.250

2.625

.750

2.750

3.250

.875

3.250

3.750

1.000

3.750

4.125


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Section 1005.09.E