Freddie Mac Single-Family Seller/Servicer Guide 6204.2 — WAC ARM Guarantor Contract requirements

Freddie Mac Single-Family Seller/Servicer Guide 6204.2 — WAC ARM Guarantor Contract requirements

Effective 2025-11-05 · Freddie Mac's stamp for this section

This section contains requirements related to: ■ Offer procedures for WAC ARM Guarantor Contracts ■ Purchase and sale obligations and Commitment Amounts for WAC ARM Guarantor Contracts (a) Offer procedures for WAC ARM Guarantor Contracts (i) Settlement Date and Settlement Cycle The Seller may take out one or more WAC ARM Guarantor Contracts each Business Day. When taking out a WAC ARM Guarantor Contract, the Seller must select: ■ A Settlement Date that is a Business Day on or before the latest Settlement Date associated with the applicable Pricing Identifier (i.e., the Pricing Identifier Expiration Date) ■ A 2-, 3-, 4- or 5-day Settlement Cycle or, for early pool disclosure, a 6- to 15-day Settlement Cycle The underlying Mortgages allocated to a WAC ARM Guarantor Contract must have an aggregate UPB of at least $500,000. See Section 6202.4 for additional information on aggregate UPB limitations for specific types of ARMs. (ii) Changes to Settlement Date The Seller may change the Settlement Date provided that the Settlement Cycle has not commenced. The new Settlement Date must be a Business Day on or before the latest Settlement Date associated with the applicable Pricing Identifier. It is also possible to change the Final Delivery Date. For Sellers that have selected a 6- to 15-day Settlement Cycle: ■ Mortgage(s) may be removed from the early pool disclosure contract due to the Mortgage(s) being paid if the Settlement Cycle has commenced and the removal occurs 48 hours prior to the Settlement Date ■ If any Mortgages are removed, Sellers must still meet the Swap Disclosure and Pooling requirements of Chapter 6202 ■ To submit a request for a Mortgage to be removed, Sellers should contact Customer Service at 800-FREDDIE (iii) Gold Rush fee If the Seller selects a 2-, 3- or 4-day Settlement Cycle, the Seller will be assessed a Gold Rush® fee, to be paid in accordance with Section 6303.2(a). Gold Rush fee rates are: ■ Expressed in basis points ■ Applied to the aggregate UPB of the Mortgages allocated to the WAC ARM Guarantor Contract funded by Freddie Mac on the requested Settlement Date ■ Subject to change on a monthly basis ■ Available through Loan Selling Advisor® on the Guarantor Rate Sheet results screen under the Credit Fees section (iv) Delivery/contract cancelation Delivery under a WAC ARM Guarantor Contract is optional. The Seller may cancel a WAC ARM Guarantor Contract in Loan Selling Advisor until 8:00 p.m. Eastern time on the Business Day immediately preceding the Settlement Date. (b) Purchase and sale obligations and Commitment Amounts for WAC ARM Guarantor Contracts (i) Purchase and sale obligations The Seller makes an offer to sell Mortgages to Freddie Mac when the Seller enters the required data into Loan Selling Advisor to take out a WAC ARM Guarantor Contract. A binding contract is created when the Seller accepts the WAC ARM Guarantor Contract’s terms and conditions made available to the Seller by Freddie Mac in Loan Selling Advisor. (ii) Commitment Amounts The Seller must monitor the aggregate UPB of all Mortgages the Seller delivers to Freddie Mac under Pricing Identifier Terms to ensure that the Commitment Amount tolerance is not exceeded.

Source: Freddie Mac Single-Family Seller/Servicer Guide 6204.2 — WAC ARM Guarantor Contract requirements · source URL · snapshot 4c94f67729042dd6