Selling System News

More ARM Products and Options

With this release we've added the capability to sell more ARM products in the selling system, for your WAC ARM Cash and WAC ARM Guarantor sales. On top of that, we provided you with even more options to sell loans to Freddie Mac through the selling system.

New ARM Products and Options Expand your Secondary Market Sale Capabilities

We added many new non-convertible CMT and LIBOR-indexed ARMs in the selling system, so it's even easier for you to use the system to sell more of the products you're originating to Freddie Mac. Our full line-up of new ARM products available in the selling system includes:

• Fully amortizing CMT and LIBOR-indexed ARMs, available for sale under the WAC ARM Guarantor execution:
• 3/1 CMT-indexed ARM with 3/2/5 or 3/2/6 cap structures
• 5/1 CMT-indexed ARM with 3/2/5 or 3/2/6 cap structures
• 7/1 CMT-indexed ARM with 2/2/5, 2/2/6, 3/2/5, 3/2/6, and 5/2/6 cap structures
• 10/1 CMT-indexed ARM with 2/2/5, 2/2/6, 3/2/5, 3/2/6, 5/2/6 cap structures
• 5/1 LIBOR-indexed ARM with 6/2/6 cap structure
• 7/1 LIBOR-indexed ARM with 2/2/5 or 2/2/6 cap structures
• 10/1 LIBOR-indexed ARM with 2/2/5 or 2/2/6 cap structures
• Fully amortizing LIBOR ARMs, available for sale under the WAC ARM Guarantor execution, with initial fixed periods of 3- to 10- years, followed by 6-month adjustment periods:
• 3-year/6-month LIBOR-indexed ARM with 3/1/5, 3/1/6, and 6/2/6 cap structures
• 5-year/6-month LIBOR-indexed ARM with 5/1/5, 5/1/6, 5/2/5, 5/2/6, and 6/2/6 cap structures
• 7-year/6-month LIBOR-indexed ARM with 5/1/5 or 5/1/6 cap structures
• 10-year/6-month LIBOR-indexed ARM with 5/1/5 or 5/1/6 cap structures

We added a new Initial Interest^SM 3/1 CMT-indexed ARM with 3/2/5 and 3/2/6 cap structures for sale under the WAC ARM Guarantor execution through the selling system. In addition, a new 5/1 CMT-indexed ARM with a 5/2/5 cap structure and a 45-day lookback is eligible for sale under the WAC ARM Cash sale path in the selling system.

Before you take out any commitments and deliver the new ARM products through the selling system's Guarantor executions, you must initiate and receive an amendment to your Master Commitment.  Without this amendment, you cannot take out a commitment or deliver these mortgages to Freddie Mac.  Please contact your Freddie Mac Account Manager or Customer Relations Representative, or call (800) FREDDIE, to review and update your Master Commitment.

New Pooling Options for Assumable ARMs Strengthens your Securities Executions

With our new enhancements, the selling system allows you to pool 3/1, 5/1, 7/1 and 10/1 ARMs with different assumability periods in a Participation Certificate (PC). For example, now ARMs assumable for the life of the mortgage, ARMs assumable after the first interest rate adjustment date, and ARMs with any other assumability periods, can be pooled together. This change allows you to form larger pools, improving your overall ARM securities execution options. To make it easy for you to take advantage of this change, we updated the system so you'll see a new assumability option labeled "various periods" for these ARMs on the 'Loan Screen'.

Expanded ARM Lookback Options Better Match your Business Needs

Based on customer requests, we added an additional lookback period for certain non-convertible ARMs available for sale under our WAC ARM Guarantor execution through the selling system. You now have the option of delivering eligible ARMs with a lookback that is the first business day of the month immediately proceeding the month in which the interest change date occurs. The first business day lookback is delivered as a 25-day lookback and is available through the selling system for all ARMs eligible for sale through the WAC ARM Guarantor execution sales option.

Learn More About Our Selling System Enhancements

• Expanded Mortgage Product Capabilities
• Increased Sale Options to Help Strengthen Your Affordable Lending Business Opportunities