New England Federal Credit Union Praises WAC ARM Cash

Cash Execution Delivers Happy Ending and New Opportunities

Sheila Scharer’s “farewell to ARMs” is a story with a happy ending, thanks to the Weighted Average Coupon (WAC) ARM Cash execution on Freddie Mac’s selling system.

Scharer, a secondary market supervisor for New England Federal Credit Union in Williston, Vermont, says her company has been using the selling system for fixed-rate cash. They sell 100 percent of their loans for cash. “Having it now available to use for ARMs is an added benefit,” she says. “We’d been holding onto most of our ARMs and then decided to sell them quickly. Using the selling system made it very easy to get them turned around and sold. Since we were already using the system, we didn’t have to adapt to anything new.”

What does she like best about the WAC ARM Cash execution? “I don’t have to have a separate system to sell. Everything is calculated for me. The system shows you everything you need right there before you even lock in your loan. It gives you the weighted averages of various loan parameters for those loans allocated to a contract, and gives you options as far as rate lock periods and rates." She also likes being able to group ARMs with different note rates, margins, life caps, and months to adjustment in one contract.

Scharer says overall, the selling system helps her do business the way she wants and simplifies her workflow process. “It’s easy and the web training is really helpful. We get pricing right away. In the time that I save, I sell more loans and find different ways of creating new products to sell to our members.” She adds, “It’s been great working with Freddie Mac!”

• If you’re a qualified Seller/Servicer already using the selling system, check out our training opportunities on this execution.
• Find out how you can benefit from the selling system by calling your selling system representative today. With ARM volumes the highest in years, don’t miss out!