Weighted Average Coupon (WAC) ARM Guarantor Execution

A competitive securities execution with lucrative options

Freddie Mac's Weighted Average Coupon (WAC) ARM Guarantor execution offers a competitive securities execution for your ARMs that adjust based on the Secured Overnight Financing Rate (SOFR)-index. Under the WAC ARM Guarantor execution, you receive Freddie Mac WAC ARM Participation Certificates (PCs) in exchange for a variety of SOFR- indexed ARMs. WAC ARM PCs provide investors with assets to match short-term liabilities, including those with floating rates. You can also take advantage of an optional delivery period to meet your individual needs. With only a $500,000 minimum commitment, we'll work with you to take advantage of either a swap and hold or a swap and sell solution that meets your investment needs.

Product Features

Feature	Description
Eligible Mortgage Products	Whole ARM products that adjust using the Secured Overnight Financing Rate (SOFR) Index Refer to Freddie Mac's Single-Family Seller/Servicer Guide Chapter 4401, and Exhibit 17S for a list of eligible ARM products and Guide Chapters 6201 and 6202 for information about their pooling requirements
Special Sales Requirements	Each eligible ARM product may only be sold on a whole loan basis All ARMs must have an original term of 30 years (360 months) or less Minimum pool size is $500,000 All ARMs must have the same Index, Lookback Period, Initial Period, Adjustment Period, Initial Cap (see Guide Section 6202.4(k) for exceptions) and Periodic Cap
Minimum Commitment Amount	Minimum commitment amount is $500,000
Eligible Remittance	Standard

Key Benefits

Receive a Freddie Mac PC, an attractive investment, that is eligible for Giant PCs.
Reduce your capital costs by swapping and holding WAC ARM PCs.
Increase your profitability with 2-, 3- and 4-day Gold Rush^® settlement cycles in exchange for a Gold Rush fee.
Early pool disclosure settlement cycles available to publish pool data to your bond dealers up to 15 days in advance of the security settlement date, instead of the standard 5-day settlement cycle. Disclosing pool data earlier in the process enables you to trade your Single-Issue Guarantor Pools as soon as you are ready.
Benefit from a competitive securities execution for your ARM products that adjusts based on the SOFR- index.
Deliver your mortgages on the same day you take out a WAC ARM Guarantor contract.

For More Information

Access selling and delivery education resources at The Learning Center.
Review this reference tool: Deliver ULDD ARM Data Fields.
Contact your Freddie Mac representative.

The information found on this page is not a replacement or substitute for information found in the Single-Family Seller/Servicer Guide and/or the terms of your Master Agreement and/or other Pricing Identifier Terms.