Freddie Mac Single-Family Seller/Servicer Guide §6102.3 — Purchase and settlement under ARM Cash (10/08/25)
Freddie Mac Guide §6102.3 (Purchase and settlement under ARM Cash). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide §6102.3 — Purchase and settlement under ARM Cash (10/08/25) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Freddie Mac Guide 6102.3
(10/08/25) This section contains requirements related to: ■ Funding Date ■ Funding amount ■ Interest paid to the Servicer in connection with Mortgage funding (a) Funding Date By the close of business on the Purchase Contract Expiration Date, the Seller must have completed all the requirements for the sale of the Mortgages to Freddie Mac. Sellers may request a specific Funding Date for each of the Mortgages sold under an ARM Cash Contract or elect to have funding occur as soon as practicable after the requirements for sale of the Mortgages to Freddie Mac have been met (“ASAP funding”). (b) Funding amount As each Mortgage funds, Freddie Mac will pay the Seller the amount calculated by multiplying the price (including all adjustments to price based on the ARM Loan Attributes) specified in the cash Purchase Contract by the UPB of the Mortgage. If a Mortgage is subject to Credit Fees or credits for Credit Fees, Freddie Mac will: ■ Net the fee or credit amounts against the amount paid to the Seller ■ Reflect any subsequent change to Credit Fees and credits for Credit Fees on the Seller’s monthly invoice
Freddie Mac Guide 6102.3
102-7 (c) Interest paid to the Servicer in connection with Mortgage funding In connection with the Mortgage funding, Freddie Mac will determine the amount of interest to pay the Servicer on each ARM purchased under ARM Cash by computing the interest on the UPB of the ARM from the first day of the Funding Date month through the day before the Funding Date using the Accounting Net Yield (ANY). Thereafter, Freddie Mac will compensate the Servicer in an amount equal to the Servicing Spread for each ARM and authorizes the Servicer to retain the Servicing Spread out of the interest payments made by the Borrower, and the Servicer will remit the ANY to Freddie Mac.
Freddie Mac Guide 6102.3
Servicing options and remittance cycle for ARM Cash Contracts (10/01/25) This section contains requirements related to: ■ Servicing options for ARM Cash ■ Remittance cycle and Servicing Spreads for ARM Cash Contracts (a) Servicing options for ARM Cash Subject to approval and conditions set by Freddie Mac, Sellers may sell ARMs under ARM Cash using the following Servicing options: ■ Servicing retained: The Seller sells the Mortgage to Freddie Mac and agrees to service the Mortgages in accordance with the Guide and applicable Purchase Documents ■ Concurrent Transfer of Servicing: The Seller sells the Mortgage to Freddie Mac and agrees to service the Mortgages in accordance with the Guide and applicable Purchase Documents and concurrently engages in a Transfer of Servicing initiated by a Seller to a Transferee Servicer with the purchase of the Mortgage and the Transfer of Servicing occurring on the Settlement Date. The Servicer selected by the Seller must be a Freddie Mac-approved Servicer eligible to service the particular Mortgage, and Freddie Mac must approve the Transfer of Servicing in accordance with Chapter 7101. See Section 6302.51 for additional information regarding delivery requirements for Mortgages sold servicing-released under Mandatory Cash Contracts or Best Efforts Contracts. (b) Remittance cycle and Servicing Spreads for ARM Cash Contracts
Freddie Mac Guide 6102.3
102-8 (i) Remittance cycle The Standard Remittance Cycle applies to Mortgages sold under ARM Cash Contracts. (ii) Minimum Contract Servicing Spreads The Servicing Spread applicable to any individual Mortgage delivered pursuant to a specific Purchase Contract may be greater than or equal to, but not less than, the Minimum Contract Servicing Spread selected by the Seller for that specific Purchase Contract. The Minimum Contract Servicing Spread is referred to in Loan Selling Advisor® as servicing fee rate. The Minimum Contract Servicing Spread is selected by the Seller when taking out a Purchase Contract and is applicable to all the Mortgages delivered pursuant to that specific Purchase Contract. The Minimum Contract Servicing Spread must be equal to or greater than the Minimum Servicing Spread. When entering into an ARM Cash Contract, the Seller must select a Minimum Contract Servicing Spread for the contract that is no less than 0.250% and no greater than 0.375%. Freddie Mac will use the Minimum Contract Servicing Spread selected by the Seller to establish the acceptable Servicing Spread for ARMs allocated to the contract (Loan Level Tolerance).
Freddie Mac Guide 6102.3
Guarantor and MultiLender Swap programs eligibility (12/17/25) This section contains requirements related to: ■ Definitions and context for terms used in the chapter ■ Provisions for selling eligible Mortgages to Freddie Mac ■ Securities issued under the fixed-rate Guarantor and MultiLender Swap programs ■ Securities issued under the WAC ARM Guarantor program ■ Sellers eligible to submit offers under the Guarantor and MultiLender Swap programs ■ MultiLender Swap posting information ■ Freddie Mac’s obligation to sell UMBS®, MBS or ARM PCs in exchange for Mortgages (a) Definitions and context for terms used in the chapter Unless the context requires otherwise: ■ The term “Mortgages” used in this chapter refers to fixed-rate Mortgages and ARMs ■ The phrase “Guarantor program” refers to the fixed-rate Guarantor program and the WAC ARM Guarantor program ■ The requirements of this chapter apply to the Guarantor program and the MultiLender Swap program (b) Provisions for Selling eligible Mortgages to Freddie Mac The provisions of this chapter set forth the terms for selling eligible Mortgages to Freddie Mac in exchange for UMBS, MBS or WAC ARM PCs. Mortgages may be sold in exchange for securities through one of the following purchase programs: ■ Guarantor program
Freddie Mac Guide 6102.3
201-2 (i) Fixed-rate Guarantor program Conventional fixed-rate Mortgages may be sold to Freddie Mac in exchange for a UMBS or MBS representing an undivided interest in the same Mortgages. FHA and VA Mortgages may be sold to Freddie Mac in exchange for an MBS representing an undivided interest in the same Mortgages. (ii) WAC ARM Guarantor program Conventional ARMs may be sold to Freddie Mac in exchange for a WAC ARM PC representing an undivided interest in the same Mortgages. ■ MultiLender Swap program (i) Eligible conventional fixed-rate Mortgages Conventional 10-, 15-, 20- and 30-year fixed-rate Mortgages may be sold to Freddie Mac in exchange for an MBS or UMBS representing an undivided interest in the same Mortgages. (ii) Government Mortgages Fixed-rate Government Mortgages (FHA/VA, Section 184 Native American, Section 502 GRH) may be sold to Freddie Mac in exchange for an MBS representing an undivided interest in the same Mortgages. Delivery under the Freddie Mac Guarantor and MultiLender Swap programs is not mandatory, but delivery under Pricing Identifier Terms may be mandatory. See Section 1501.2(b) for further information regarding mandatory delivery requirements. For additional information on the Guarantor and MultiLender Swap programs, refer to the following chapters in the Guide: Additional references for Guarantor and MultiLender Swap programs Topic Location Fixed-rate Guarantor Chapters 6202 and 6203 WAC ARM Guarantor Chapters 6202 and 6204 MultiLender Swap Chapters 6202 and 6205 Sections 6201.1(c) and 6201.1(d) summarize the types of securities issued under the Guarantor program or MultiLender Swap program. For detailed information, see Exhibit 17S, Available Mortgage Products.
Freddie Mac Guide 6102.3
201-3 For current Prefix information, contact Investor Inquiry at (800) 336-3672. (c) Securities issued under the fixed-rate Guarantor and MultiLender Swap programs The fixed-rate Guarantor program issues securities for pools of the following types of fixed- rate Mortgages: Guarantor and MultiLender Swap programs Mortgage type Terms available Pooling rules Conventional fixed-rate Mortgages ■ 10-year ■ 15-year ■ 20-year ■ 30-year ■ 10- and 15-year terms may be pooled together in a 15-year security ■ 20- and 30-year terms may be pooled together in a 30-year security FHA and VA Mortgages ■ 15-year ■ 20-year ■ 30-year 20- and 30-year terms may be pooled together in a 30-year security. (d) Securities issued under the WAC ARM Guarantor program The WAC ARM Guarantor program issues WAC ARM PCs for eligible ARM products. Separate WAC ARM PCs will be issued based on the characteristics of the ARM. The following characteristics are used to form WAC ARM PCs: ■ Index ■ Lookback Period ■ Initial and Periodic Caps ■ Length of Initial Period ■ Length of subsequent adjustment periods, and ■ Whether the ARMs are subject to prepayment penalties or not See Chapter 4401 and Exhibit 17S for detailed information on the combination of ARM characteristics that are acceptable for WAC ARM PCs.
Freddie Mac Guide 6102.3
201-4 (e) Sellers eligible to submit offers under the Guarantor and MultiLender Swap programs All Sellers are eligible to submit offers under the Guarantor and MultiLender Swap programs, provided that the Seller first enters into Pricing Identifier Terms with Freddie Mac. A Seller should contact its Freddie Mac Account Manager to discuss how to enter into such terms. (f) Multilender Swap posting information On the first Business Day of each month, Freddie Mac will announce at https://capitalmarkets.freddiemac.com/mbs/data/FRE_Multilender_Table.txt and through various market information vendors the following information with respect to Mortgages Freddie Mac will purchase under the MultiLender Swap program: ■ Mortgage term and final Settlement Dates ■ WA Net Interest Rate (Coupon) ■ Permissible Note Rate range ■ Prefix ■ Security Identifier (Pool Number) ■ CUSIP Number (g) Freddie Mac’s obligation to sell UMBS, MBS or ARM PCs in exchange for Mortgages The obligation of Freddie Mac to sell UMBS, MBS or ARM PCs in exchange for Mortgages is subject to the Mortgages’ eligibility for purchase, the Seller’s compliance with any Maximum Annual Mortgage Purchase Amount established for the Seller and all other requirements of the Purchase Documents.