Freddie Mac Single-Family Seller/Servicer Guide 6102.1 — ARM Cash Eligibility

Freddie Mac Single-Family Seller/Servicer Guide 6102.1 — ARM Cash Eligibility

Effective 2025-10-01 · Freddie Mac's stamp for this section

This section contains requirements related to: ■ ARM Cash defined terms ■ Eligible Sellers for ARM Cash ■ Eligible Mortgages and purchase requirements under ARM Cash (a) ARM Cash defined terms Sellers should be familiar with the following defined terms as they relate to ARMs sold to Freddie Mac under ARM Cash: ■ Loan Attributes — For ARMs sold under an ARM Cash Contract, the Loan Attributes are the Note Rate, Margin, Servicing Spread, Life Cap and Initial Period ■ Loan Level Tolerance — For ARMs sold under an ARM Cash Contract, the Loan Level Tolerance is the range of values specified in the contract for the Loan Attributes of each ARM that may be allocated to the contract (b) Eligible Sellers for ARM Cash In order to be eligible to sell Mortgages to Freddie Mac under ARM Cash, the Seller must have entered into Purchase Contracts with Freddie Mac. (i) Margin requirements Freddie Mac may, at its sole discretion, require Sellers to post margin in connection with transactions under this Chapter 6102. In all events, Freddie Mac shall be the sole calculation agent with respect to the required margin amount and whether the margin amount is to be posted or returned. (ii) Margin deficit notification If Freddie Mac provides notice of a margin deficit by 10:00 a.m. Eastern time on any Business Day, the Seller shall transfer any required margin no later than the close of business on such Business Day. If such notice is received after 10:00 a.m. Eastern time on any Business Day or on a day that is not a Business Day, the Seller shall transfer such margin no later than the close of business on the next Business Day. (iii) Establishing a securities trading account A Seller may establish a trading account with Freddie Mac that allows the Seller to engage in the purchase and sale of UMBS® and Freddie Mac Mortgage Participation Certificates. To request approval to establish such an account, Sellers may e-mail or call the Cash Window at CashDesk_Traders@FreddieMac.com or (571) 382-3080. Any securities trading activities are subject to the following requirements: ■ Sellers must comply with the margining terms and credit limits set forth in Exhibit 102, Securities Trading Customer Agreement ■ Freddie Mac will be the calculation agent for purposes of determining any and all amounts payable pursuant to the terms of any margin provisions, and such determinations by Freddie Mac shall be final and binding (c) Eligible Mortgages and purchase requirements under ARM Cash (i) Mortgage variability under ARM Cash Under ARM Cash, the ARMs in a single contract may be delivered with Note Rates, Margins, Life Caps, Servicing Spreads and Initial Periods that vary within a specified range. (ii) Accounting Net Yield (ANY) for Mortgages sold under ARM Cash An ANY will be calculated for each ARM delivered under an ARM Cash Contract and will be based on the individual ARM’s Note Rate and Servicing Spread. (iii) Special eligibility requirements for Mortgages sold under ARM Cash Unless specified otherwise in this chapter, the special eligibility requirements for ARMs set forth in Chapter 4401 apply to ARMs sold under ARM Cash. (iv) Other Guide provisions related to Mortgages sold under ARM Cash Refer to the following Guide provisions for additional information related to ARMs sold under ARM Cash: Other Guide provisions related to Mortgages sold under ARM Cash Guide provision Guide location Eligible Mortgage Products available through Loan Selling Advisor® Exhibit 17S, Available Mortgage Products ARM Note Rate change requirements, including applicable caps Section 4401.1(c) General ARM requirements, including margin Section 4401.1(b) Pricing under ARM Cash Section 6102.2(b)

Source: Freddie Mac Single-Family Seller/Servicer Guide 6102.1 — ARM Cash Eligibility · source URL · snapshot 4c94f67729042dd6