Freddie Mac Single-Family Seller/Servicer Guide 6202.4 — Pooling requirements for WAC ARM PC Pools

Freddie Mac Single-Family Seller/Servicer Guide 6202.4 — Pooling requirements for WAC ARM PC Pools

Effective 2026-08-12 · Freddie Mac's stamp for this section

This section contains requirements related to: ■ Term requirements ■ Minimum pool size requirements ■ Minimum Contract Servicing Spread requirements ■ Index requirements ■ Lookback Period requirements ■ Initial Period requirements ■ Periodic adjustments ■ Note Rate adjustment cap requirements ■ Pooling requirements for ARMs with special characteristics This section outlines the pooling and disclosure requirements related to issuing WAC ARM PCs under the WAC ARM Guarantor program. ARMs may not be sold under the MultiLender Swap program. (a) Term requirements The underlying ARMs in each WAC ARM PC Pool must have an original term of 30 years (360 months) or less. Example: A 15-year (180-month) term ARM may be pooled with a 30-year (360-month) term ARM. See Section 4201.3 for original term requirements for Mortgages. (b) Minimum pool size requirements The underlying ARMs in each WAC ARM PC Pool must have an aggregate UPB of at least $500,000. (c) Minimum Contract Servicing Spread requirements See Section 6201.4(b)(iii) for Servicing Spread requirements. (d) Index requirements The underlying ARMs in each WAC ARM PC Pool must adjust based on the same Index. See Section 4401.1(b) for the ARM Indices descriptions applicable to each eligible ARM product. (e) Lookback Period requirements The underlying ARMs in each WAC ARM PC Pool must have the same Lookback Period. See Section 4401.1(b) for the Lookback Period applicable to each eligible ARM product. (f) Initial Period requirements The underlying ARMs in each WAC ARM PC Pool must have the same Initial Period. For example, 3/6-Month ARMs may only be pooled with other 3/6-Month ARMs. See Section 4401.1(a) for the Initial Period applicable to each eligible ARM product. (g) Periodic adjustments The Initial Period of an ARM is followed by subsequent Note Rate adjustments that occur on a periodic basis. The underlying ARMs in each WAC ARM PC Pool must have the same time interval between subsequent periodic adjustments. See Section 4401.1(a) for the periodic adjustments applicable to each eligible ARM product. (h) Note Rate adjustment cap requirements (i) Initial Cap The underlying ARMs in each WAC ARM PC Pool must have the same Initial Cap. (ii) Periodic Cap The underlying ARMs in each WAC ARM PC Pool must have the same Periodic Cap. (iii) Life Cap The underlying ARMs in each WAC ARM PC Pool may have different Life Caps. See Exhibit 17S, Available Mortgage Products, for the specific Note Rate adjustment caps for each eligible ARM product. (i) Pooling requirements for ARMs with special characteristics The underlying Mortgages in each WAC ARM PC Pool must have the same characteristics and features. The following are the pooling and disclosure requirements for ARMs with special characteristics: ■ Under the WAC ARM Guarantor program, the aggregate UPB of all Extended Buydown Mortgages may not exceed 10% of the aggregate UPB of all the Mortgages in the applicable WAC ARM PC Pool ■ See Section 6302.18 for the delivery requirements for Extended Buydown Mortgages ■ See Section 4204.3 for Extended Buydown Mortgage eligibility requirements

Source: Freddie Mac Single-Family Seller/Servicer Guide 6202.4 — Pooling requirements for WAC ARM PC Pools · source URL · snapshot 4c94f67729042dd6