Freddie Mac Single-Family Seller/Servicer Guide 8502.1 — ARM Servicing and reporting
Freddie Mac Single-Family Seller/Servicer Guide Section 8502.1 — ARM Servicing and reporting.
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Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide 8502.1 — ARM Servicing and reporting — 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 Single-Family Seller/Servicer Guide 8502.1 — ARM Servicing and reporting
An ARM has a Note Rate that adjusts periodically based on a specified Index. The specific features of an ARM vary depending upon the terms of the Note. All ARMs must be accounted for and reported under the net yield accounting reporting method, as described in Section 8301.2(a), and are reported via the transmission of the Loan-Level Transaction. Under this method, Freddie Mac receives its proportionate share of principal and interest collected each month including any Negative Amortization activity for the period. For purposes of reporting to Freddie Mac, interest is computed by multiplying the Ending UPB of the current Accounting Cycle of a loan by the Accounting Net Yield (ANY), using a 30-day month/360-day year. Note: See Chapters 8301 through 8304 for the accounting and reporting requirements for ARMs. See Chapter 8303 for remittance requirements.
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Source of record: https://claudeforcompliance.com/regs/fhlmc-8502-1/
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