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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

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.

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