Refer to Single-Family Seller/Servicer Guide (Guide) Exhibit 17S, Available Mortgage Products, for a list of eligible ARM products and their requirements and Section 6102.2(b), Best Efforts ARM Cash Contracts, for more information on best efforts adjustable-rate mortgages (ARMs) contract requirements.

Eligible Mortgage Requirements

Eligible ARMs for purchase by Freddie Mac include:

  • First-lien mortgages that are fully amortizing with an original maturity not exceeding 30 years.
  • Non-convertible SOFR-indexed ARMs.
  • Non-seasoned ARMs only.
  • Home Possible® mortgages.

Contract Requirements

Each business day, the Seller may take out a Best Efforts ARM Cash Contract to sell a specific mortgage to Freddie Mac. If commitments will not be available on the next business day, Freddie Mac will endeavor to make an announcement prior to the offer day.

  • The contract period may be between two and 90 days or such other time frame as permitted by Loan Selling Advisor®.
  • The minimum amount for an individual Best Efforts ARM Cash Contract is $1,000.
  • Freddie Mac may, at its discretion and at any time, impose a maximum contract amount for Best Efforts ARM Cash Contracts.
  • No pairoff fee will be assessed if the contract is unfulfilled.

Freddie Mac considers your success rate under prevailing market conditions in closing mortgages that are allocated to Best Efforts ARM Contracts. A mortgage that fails to fund and close as specified in the contract may adversely affect your pricing for future Best Efforts ARM Contracts.

Contract Extensions

  • Best Efforts Contracts may be extended at any time on or before 5 p.m. ET on the contract expiration date.
  • You may extend the contract in Loan Selling Advisor as many times as needed, as long as the total extension period plus the original contract term does not exceed 120 days and each extension is less than 60 days beyond the current date.
  • A fee will be assessed for each contract extension, in accordance with Section 6303.2(a), Payment of Fees.

Settlements

  • View settlement statements in real time in Loan Selling Advisor.
  • Request a specific settlement date for each mortgage sold, or settlement will occur as soon as the requirements for sale have been met.