Freddie Mac Single-Family Seller/Servicer Guide §6204.2 — WAC ARM Guarantor Contract requirements (11/05/25)
Freddie Mac Guide §6204.2 (WAC ARM Guarantor Contract requirements). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide §6204.2 — WAC ARM Guarantor Contract requirements (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 6204.2
(11/05/25) This section contains requirements related to: ■ Offer procedures for WAC ARM Guarantor Contracts
Freddie Mac Guide 6204.2
204-2 ■ 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).
Freddie Mac Guide 6204.2
204-3 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.
Freddie Mac Guide 6204.2
Purchase and settlement requirements for Mortgages sold through Loan Selling Advisor® under the WAC ARM Guarantor program (12/17/25) This section contains requirements related to: ■ Purchase requirements for Mortgages sold through Loan Selling Advisor® under the WAC ARM Guarantor program
Freddie Mac Guide 6204.2
204-4 ■ Providing data for Mortgages sold through Loan Selling Advisor under the WAC ARM Guarantor program ■ Wire transfer instructions/delivery of ARM PCs for Mortgages sold through Loan Selling Advisor under the WAC ARM Guarantor program (a) Purchase requirements for Mortgages sold through Loan Selling Advisor under the WAC ARM Guarantor program ARMs eligible for sale to Freddie Mac under the WAC ARM Guarantor program must be non-convertible first lien Mortgages that fully amortize with an original maturity not exceeding 30 years. See Chapter 4401 for additional information regarding the eligibility requirements for ARMs sold to Freddie Mac. In addition, ARMs eligible for sale under the WAC ARM Guarantor program: ■ Must be sold in accordance with the WAC ARM Guarantor Contract ■ Must have a Margin that is at least the sum of the Credit Fee in Yield plus the Minimum Contract Servicing Spread, which includes, for Mortgages with annual or monthly premium lender-paid mortgage insurance, the amount necessary to pay the lender-paid mortgage insurance premium when due Nothing herein affects the provisions set forth in: ■ Chapter 6201 related to the Guarantor and MultiLender Swap programs ■ Chapter 6202 related to Swap disclosure and pooling requirements (b) Providing data for Mortgages sold through Loan Selling Advisor under the WAC ARM Guarantor program The Seller must provide the data for all Mortgages sold under the WAC ARM Guarantor program by: ■ Importing the required data into Loan Selling Advisor ■ Importing the relevant Loan Product Advisor® data, based on the Key Number, into Loan Selling Advisor, or ■ Manually entering the loan data for each Mortgage into Loan Selling Advisor The Seller must then allocate those Mortgages to a WAC ARM Guarantor Contract.
Freddie Mac Guide 6204.2
204-5 Loan Selling Advisor will automatically assign Freddie Mac loan numbers to Mortgages sold under the WAC ARM Guarantor program. (c) Wire transfer instructions/delivery of ARM PCs for Mortgages sold through Loan Selling Advisor under the WAC ARM Guarantor program (i) Wire instructions management The Seller must assign and manage their wire instructions for Mortgages sold under the WAC ARM Guarantor program through Loan Selling Advisor as required by Section 6201.3(b). (A) Employees authorized to provide wire instructions Pursuant to Section 2403.2(b), the Seller must provide information to Freddie Mac regarding authorized Loan Selling Advisor users and their designated user roles. Any employee or employees designated to perform the Setup Manager Role on the Seller’s behalf must be designated by the Seller as one of the employees authorized to provide Freddie Mac with instructions (or modify instructions) to transfer funds or securities on the Seller’s behalf in connection with the sale of Mortgages to Freddie Mac. This designation must be documented using the following forms, as applicable: ■ Form 988SF, Certificate of Incumbency for a Bank, Savings Bank, Savings and Loan Association, Credit Union, Corporation or Limited Liability Company, or ■ Form 989SF, Certificate of Incumbency for Limited Partnerships See Section 2201.1 for additional information regarding certificate of incumbency requirements. (B) Timing for completion of wire instructions In order for the WAC ARM Guarantor Contract to enter the Settlement Cycle, wiring instructions must be completed in Loan Selling Advisor no later than 8:00 p.m. Eastern time on the Final Delivery Date. If changes need to be made to the wire instructions, the Seller must provide the revised wire transfer instructions in Loan Selling Advisor no later than 8:00 p.m. Eastern time on the last Business Day before the Settlement Date. (C) Additional Warehouse Lender requirement to submit Form 996E, Warehouse Provider Release and Transfer
Freddie Mac Guide 6204.2
204-6 In addition to the completion of wiring instructions, if Pledged Mortgages are allocated to a contract, the Warehouse Lender must submit Form 996E through Loan Selling Advisor by no later than 8:00 p.m. Eastern time on the Final Delivery Date. However, the Seller may revise and resubmit Form 996E by 12:30 p.m. Eastern time the last Business Day before the Settlement Date if the wire instructions change.
Freddie Mac Guide 6204.2
Remittance cycle and Servicing Spreads for Mortgages sold through Loan Selling Advisor® under the WAC ARM Guarantor program (12/03/25) This section contains requirements related to: ■ Remittance cycle ■ Servicing Spread Information and requirements relating to the remittance cycle and Servicing Spreads applicable to Mortgages sold under the WAC ARM Guarantor program are those set forth in Chapter 6201 as amended or supplemented by this chapter or Loan Selling Advisor®. (a) Remittance cycle The Standard Remittance Cycle applies to Mortgages sold under a WAC ARM Guarantor Contract. (b) Servicing Spreads (i) Servicing Spread requirements In Loan Selling Advisor, Minimum Required Servicing Spread means Minimum Contract Servicing Spread as that term is defined in the Guide. The Minimum Contract Servicing Spread for each ARM in a WAC ARM Guarantor Contract must be at least 0.250% and: ■ May not exceed 2.00% ■ For ARMs with lender-paid mortgage insurance that have annual or monthly renewal premiums, include the amount necessary to pay the mortgage insurance premium when due (ii) Servicing Spread selection For ARMs sold under the WAC ARM Guarantor program, the Seller selects three discrete Minimum Contract Servicing Spreads:
Freddie Mac Guide 6204.2
204-7 ■ Minimum coupon servicing spread ■ Minimum margin servicing spread ■ Minimum lifetime ceiling servicing spread Subject to the requirements of Section 6201.4(b)(iii), the Seller may select the same or a different value for any of the three discrete Minimum Contract Servicing Spreads. When the Seller selects a different value for any of the three discrete Minimum Contract Servicing Spreads, the affected ARMs are referred to as having variable servicing spreads.
Freddie Mac Guide 6204.2
Loan Purchase Statements and ARM PC disclosure for Mortgages sold through Loan Selling Advisor® under the WAC ARM Guarantor program (11/05/25) This section contains requirements related to: ■ Loan Purchase Statement ■ Disclosure for ARM PCs formed under the WAC ARM Guarantor program (a) Loan Purchase Statement Form 15, Loan Purchase Statement (Form 15C for WAC ARM PCs), will be accessible to the Seller in Loan Selling Advisor® by the first day of the Settlement Cycle. Sellers that have selected a 6- to 15- day Settlement Cycle and removed Mortgages from early pool disclosure, as permitted in Section 6203.2(a), should access updated Form 15. (b) Disclosure for ARM PCs formed under the WAC ARM Guarantor program For each Pool formed under the WAC ARM Guarantor program, Freddie Mac will provide a Pool Supplement that contains information about the Mortgages in the WAC ARM PC Pool as of the Settlement Date. The Pool supplement can be obtained: ■ On the Freddie Mac website (https://capitalmarkets.freddiemac.com/mbs)