Accelerated Remittance Cycle (ARC)
Freddie Mac offers Sellers various options for remitting their principal and interest (P&I) payments. A remittance cycle specifies when monthly mortgage proceeds are due to Freddie Mac. Based on the timing of the remittance, your applicable pricing may be increased or decreased to reflect the gain or loss of float income.
You may request at contract issuance or Master Commitment (referred to in the Single-Family Seller/Servicer Guide as Pricing Identifier) Conversion that the Accelerated Remittance Cycle (ARC) be applied to your contract for deliveries under the WAC ARM Guarantor execution. Once ARC is applied to the contract, it cannot be removed. Your contract confirmation lists your selected remittance cycle.
- P&I payments are typically due to Freddie Mac three business days after the 15th of each month (versus First Tuesday remittance, standard for WAC ARM guarantor deliveries, where you remit P&I on the first Tuesday of the month following the month the payment is due to you)
- In exchange for choosing a shorter remittance cycle, your pricing is enhanced by an amount communicated in basis points
- The ARC pricing enhancement is updated and published by Freddie Mac on a monthly basis on this web page
- All ARM products through WAC ARM Guarantor are eligible for ARC
Hybrid ARM and ARM Cash pricing assume the use of the ARC remittance cycle.
For More Information
- Reporting and Remitting Quick References
- Call (800) FREDDIE
- Contact your Freddie Mac Account Manager