Weighted Average Coupon (WAC) ARM Guarantor ExecutionA 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 Constant Maturity Treasury (CMT)-index or the London Interbank Offered Rate (LIBOR)-index. Under the WAC ARM Guarantor execution, you receive Freddie Mac WAC ARM Participation Certificates (PCs) in exchange for a variety of nonconvertible CMT- and LIBOR-indexed ARMs. WAC ARM PCs provide investors with assets to match short-term liabilities and liabilities with floating rates. You can also take advantage of an optional delivery period and flexible remittance cycles 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 either the 1-Year Weekly Constant Maturity Treasury (CMT) Index or the 6-Month and 1-Year London Interbank Offered Rate (LIBOR) Index Refer to Freddie Mac's Single-Family Seller/Servicer Guide Chapter 30, Chapter J33 and Exhibit 17S for a list of eligible ARM products and Guide Chapter 11 and Chapter A13 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 A13.4 (l) for exceptions), and Periodic Cap Adjustable-rate Freddie Mac Relief Refinance Mortgages^SM with LTV ratios less than or equal to 105 percent may be pooled with other mortgages without additional pooling requirements Adjustable-rate Relief Refinance Mortgages with LTV ratios greater than 105 percent are not eligible for sale
Minimum Commitment Amount	Minimum commitment amount is $500,000
Eligible Remittance Cycles	Choose from two remittance options: First Tuesday or our Accelerated Remittance Cycle (ARC)
Eligible Settlement Cycles	In the selling system, choose a 3- or 4-day Gold Rush® settlement cycle in exchange for a Gold Rush fee, or choose the 5-day standard cycle
Contract Requirements	A WAC ARM Guarantor contract is an optional delivery commitment Minimum servicing spread is 0.25% Maximum servicing spread is 2.00%

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 3- and 4-day Gold Rush® settlement cycles in exchange for a Gold Rush fee
Choose from two remittance cycles for your P&I remittances to better manage your servicing float value
Benefit from a competitive securities execution for your ARM products that adjusts based on the CMT- and LIBOR- index
Deliver your mortgages on the same day you take out a WAC ARM Guarantor contract

For More Information

Print out a Weighted Average Coupon (WAC) ARM Guarantor execution fact sheet
Access selling and delivery education resources at The Learning Center
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 Master Commitment.