Weighted Average Coupon (WAC) ARM Cash Execution
Sell ARMs with various margins and interest rates in a single contract
Freddie Mac's Weighted Average Coupon (WAC) ARM Cash execution lets you sell ARMs with various margins and interest rates (within specified ranges) in a single, flexible contract that's not limited by tight contracting terms. With this servicing-retained cash execution, you can reduce your exposure to interest rate fluctuations and the corresponding changes in ARM pricing on your ARMs that have not yet closed.
WAC ARM Cash offers you a liquid pipeline management tool for non-convertible Constant Maturity Treasury (CMT) and London Interbank Offered Rate (LIBOR)-indexed ARMs. You also receive additional flexibility, including commitments from 2 to 90 days, faster funding, and more.
|Eligible Mortgage Products||
- Sell ARMs with various margins and interest rates (within specified ranges) in a single contract
- Reduce exposure to interest rate fluctuations in the market
- Expand the range of ARM products you can offer your borrowers, with an assured secondary market sale
- Get faster settlement, often within the same day as certification (if edits are cleared and the loan is certified by noon)
- Take advantage of market shifts with our two-way pairoff capability
For More Information
- Print out a Weighted Average Coupon (WAC) ARM Cash 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.