Freddie Mac Single-Family Seller/Servicer Guide §6102.2 — ARM Cash Contracts (11/05/25)
Freddie Mac Guide §6102.2 (ARM Cash Contracts). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide §6102.2 — ARM Cash Contracts (11/05/25) — 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 6102.2
This section contains requirements related to: ■ ARM Cash Contracts ■ Pricing under ARM Cash ■ Acceptance of offer under ARM Cash (a) ARM Cash Contracts (i) Offer amounts and procedures for ARM Cash Contracts Freddie Mac will endeavor to announce prior to the offer day if commitments will not be available due to holidays or other reasons. Contracts under ARM Cash are mandatory. Each Business Day, a Seller may take out contracts to sell ARMs under ARM Cash. The minimum amount for each ARM Cash Contract is $1,000. Freddie Mac may, at its discretion and at any time, impose a maximum contract amount for individual ARM Cash Contracts. The Seller may enter into multiple mandatory cash contracts but may not exceed $200 million in aggregate fixed-rate (see Section 6101.2(a)) and ARM commitment volume per day. The Seller may seek an exception to this amount by contacting the Cash Desk ([email protected] or 571-382-5960).
Freddie Mac Guide 6102.2
102-4 Note: If this limit is exceeded without prior Freddie Mac approval, Freddie Mac may pair off the Seller’s contract(s) or may require the Seller to pair off the contract(s) at the Seller’s expense. (ii) Seller obligations for ARM Cash Contracts Under an ARM Cash Contract, the Seller must: ■ Sell Mortgages to Freddie Mac that have an aggregate principal balance equal to the contract amount, plus or minus the greater of $10,000 or 2.5% of the contract amount, and ■ Have completed all requirements for the sale of the Mortgages by the close of business on the Purchase Contract Expiration Date (iii) Contract periods for ARM Cash Contracts Sellers may select a Purchase Contract period of between two and 90 days or such other time frame as permitted by Loan Selling Advisor®. Mortgages under an ARM Cash Contract may settle one at a time; however, all requirements for the sale of all Mortgages under the contract must be completed by the Purchase Contract Expiration Date. (iv) Pairoff process for ARM Cash Contracts In the event an ARM Cash Contract will not be fulfilled by delivery of Mortgages, the Seller may request a pairoff via Loan Selling Advisor or wait until the contract expires, at which point Loan Selling Advisor will automatically calculate the pairoff fee. The pairoff process used in Loan Selling Advisor is “two-way” and may result in either a fee due Freddie Mac from the Seller or a fee due the Seller from Freddie Mac, depending on market conditions. See Section 6401.1(b) for additional information regarding pairoffs of cash Purchase Contracts. A pairoff fee calculated and provided by Loan Selling Advisor is non-negotiable. Pairoff fees will be included in the Seller’s monthly invoice and paid as set forth in Chapter 6303. Freddie Mac reserves the right to amend the provisions of this section relating to the Loan Selling Advisor pairoff process without prior notice. (v) ARM Cash Contract extensions
Freddie Mac Guide 6102.2
102-5 If the contract amount specified in a Mandatory ARM Cash Contract will not be fulfilled prior to the contract expiration date, the Seller may extend, in Loan Selling Advisor, the ARM Cash Contract at any time prior to the contract expiration date. The Seller may extend the contract an unlimited number of times as long as the total extension period does not exceed 30 days from the original contract expiration date. In exchange for the contract extension, the Seller will be assessed a fee to be paid in accordance with Section 6303.2(a). (b) Pricing under ARM Cash (i) Loan Level Tolerance ARMs sold to Freddie Mac under an ARM Cash Contract may have Loan Attributes that vary within a specified range. The Loan Attributes are the: ■ Life Caps ■ Margin ■ Note Rate ■ Numbers of months to the next Interest Change Date ■ Servicing Spread When taking out an ARM Cash Contract, the Seller must provide all of the data required by Loan Selling Advisor. Freddie Mac will use the data provided by the Seller to establish Loan Level Tolerances for each Loan Attribute. (ii) Obtaining pricing Pricing for ARM Cash is available from Loan Selling Advisor each Business Day. Once a Seller accepts and agrees to the contract price, the Seller may not increase the contract amount. The Seller may take out another contract to sell additional ARMs under ARM Cash. (iii)Certain negotiated Credit Fees Freddie Mac may, from time to time, assess certain negotiated Credit Fees. Any such pricing will be made available to the Seller on the cash Purchase Contract loan-level fee breakdown screen in Loan Selling Advisor.
Freddie Mac Guide 6102.2
102-6 In addition to the provisions of Section 1101.2(a)(ii), Freddie Mac may amend, supplement, revise or terminate any pricing or provisions implemented pursuant to this section in whole or in part upon written notice to the Seller. (c) Acceptance of offer under ARM Cash Except as provided in Section 1201.4(b), there is a binding commitment by Freddie Mac to purchase, and by the Seller to sell, ARMs under the contract terms (subject to conformity of each ARM to the requirements of the Purchase Documents) once the Seller has accepted and agreed to the contract price provided by Freddie Mac in Loan Selling Advisor. The terms of the Purchase Contract are provided in Loan Selling Advisor.