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.
|Eligible Mortgage Products
|Special Sales Requirements
|Minimum Commitment Amount
- 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.