source:
  type: regulation
  id: fhlmc-4401.1
  authority: Freddie Mac Single-Family Seller/Servicer Guide §4401.1 — General ARM eligibility requirements (11/05/25)
  description: "Freddie Mac Guide §4401.1 (General ARM eligibility requirements). Gap-fill (verbatim, ID-diff).\
    \ \n"
obligations:
- id: fhlmc-4401.1-0
  canonical_id: fhlmc-4401.1-0
  section: Freddie Mac Guide 4401.1
  description: '4401.1 General ARM eligibility requirements: (11/05/25) This section contains information related
    to: ■ Eligible ARM products ■ Common requirements for all ARM products ■ ARM Note Rate change requirements ■
    Credit Fees for ARMs (a) Eligible ARM products Freddie Mac will purchase rate-capped ARMs that have an Initial
    Period …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4401.1 — General ARM eligibility requirements (11/05/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '(11/05/25) This section contains information related to: ■ Eligible ARM products ■ Common
      requirements for all ARM products ■ ARM Note Rate change requirements ■ Credit Fees for ARMs (a) Eligible
      ARM products Freddie Mac will purchase rate-capped ARMs that have an Initial Period followed by subsequent
      Note Rate adjustments. The following table shows, for each eligible ARM product, the applicable Initial Period
      and the subsequent periodic adjustments: Initial Periods and periodic adjustments for eligible ARM Products
      Eligible ARM product Initial Period Periodic adjustments (subsequent to the Initial Period) 3/6-Month ARM
      36 months 6 months 5/6-Month ARM 60 months 7/6-Month ARM 84 months 10/6-Month ARM 120 months Note: See Section
      4401.1(c) for first Interest Change Date requirements.'
    drafter_attestation: Verbatim from Freddie Guide §4401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4401.1-1
  canonical_id: fhlmc-4401.1-1
  section: Freddie Mac Guide 4401.1
  description: '4401.1 General ARM eligibility requirements: 401-2 Only an ARM with an Initial Period of 5, 7 or
    10 years is eligible for sale to Freddie Mac as a Higher-Priced Mortgage Loan and Higher-Priced Covered Transaction.
    See the Glossary and Section 4202.2(b) for additional information. Note: Exhibit 17S, Available Mortgage Produc…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4401.1 — General ARM eligibility requirements (11/05/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '401-2 Only an ARM with an Initial Period of 5, 7 or 10 years is eligible for sale to Freddie
      Mac as a Higher-Priced Mortgage Loan and Higher-Priced Covered Transaction. See the Glossary and Section 4202.2(b)
      for additional information. Note: Exhibit 17S, Available Mortgage Products, provides a consolidated summary
      of certain information contained in this chapter regarding eligible ARM products. (b) Common requirements
      for all ARM products (i) Index ARMs are subject to periodic Note Rate adjustments based on the value of an
      Index at a specified time, as set forth in the Note. Only ARMs that use the 30-day Average SOFR Index are
      eligible for purchase by Freddie Mac. (ii) Lookback Period The time interval for establishing the Index value
      is referred to as the Lookback Period, and all eligible ARM products have a 45-day Lookback Period. (iii)Due
      Date The Due Date must occur on the first day of the month. (iv) Payment Change Date The Payment Change Date
      must occur on the first day of the month following each Interest Change Date. (v) Calculation of monthly payment
      amount The monthly payment amount that is calculated following each Interest Change Date must be sufficient
      to amortize the UPB fully over the remaining term of the ARM. (vi) Margin The Margin must be equal to or greater
      than 100 basis points and less than or equal to 300 basis points. (vii) Lifetime Ceiling The Lifetime Ceiling
      must equal the sum of the Note Rate at origination plus the Life Cap stated in the Note, as described in Section
      4401.1(c).'
    drafter_attestation: Verbatim from Freddie Guide §4401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4401.1-2
  canonical_id: fhlmc-4401.1-2
  section: Freddie Mac Guide 4401.1
  description: '4401.1 General ARM eligibility requirements: 401-3 (viii) Lifetime Floor For ARMs with Lifetime
    Floors, the Lifetime Floor must equal the Margin stated in the Note, as specified in Section 4401.1(c). (ix)
    Title insurance requirements The Seller must provide title insurance in accordance with Chapter 4702. (c) ARM
    Note Rate …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4401.1 — General ARM eligibility requirements (11/05/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '401-3 (viii) Lifetime Floor For ARMs with Lifetime Floors, the Lifetime Floor must equal the
      Margin stated in the Note, as specified in Section 4401.1(c). (ix) Title insurance requirements The Seller
      must provide title insurance in accordance with Chapter 4702. (c) ARM Note Rate change requirements ARMs eligible
      for purchase by Freddie Mac must comply with the requirements of this section regarding the timing of, and
      Periodic Caps for, Interest Change Dates and how Note Rate adjustments are made and disclosed. Note Rate adjustments
      must comply with the terms of the Note and with applicable law. (i) Interest Change Date Each Interest Change
      Date, stated in the Note, must occur on the first day of the month. After the first Interest Change Date,
      subsequent interest changes occur every 6 months. The following table shows when the first Interest Change
      Date must occur: First Interest Change Date by eligible ARM product Eligible ARM product First Interest Change
      Date 3/6-Month ARM 36 months after the Due Date of the first payment 5/6-Month ARM 60 months after the Due
      Date of the first payment 7/6-Month ARM 84 months after the Due Date of the first payment 10/6-Month ARM 120
      months after the Due Date of the first payment (ii) Calculation of adjustments Refer to Section 8502.2 for
      requirements related to determining Note Rate changes on ARMs.'
    drafter_attestation: Verbatim from Freddie Guide §4401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4401.1-3
  canonical_id: fhlmc-4401.1-3
  section: Freddie Mac Guide 4401.1
  description: '4401.1 General ARM eligibility requirements: 401-4 (iii)Limits on Note Rate adjustments Each ARM
    Note must specify limits on the periodic adjustments (the Lifetime Ceiling, the Lifetime Floor and the Periodic
    Cap) to the Note Rate. The Note Rate may not exceed the Lifetime Ceiling or be less than the Lifetime Floor,
    which m…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4401.1 — General ARM eligibility requirements (11/05/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '401-4 (iii)Limits on Note Rate adjustments Each ARM Note must specify limits on the periodic
      adjustments (the Lifetime Ceiling, the Lifetime Floor and the Periodic Cap) to the Note Rate. The Note Rate
      may not exceed the Lifetime Ceiling or be less than the Lifetime Floor, which must equal the Margin as required
      by Section 4401.1(b). The Note Rate at the first Interest Change Date may not exceed the value of the Note
      Rate at origination plus the Initial Cap or be less than the value of the Note Rate at origination minus the
      Initial Cap. Adjustments on subsequent Interest Change Dates are subject to the Periodic Cap. (iv) Applicable
      caps for eligible ARM products All eligible ARM products have (in percentage points) a Periodic Cap of 1%
      and a Life Cap of 5%. The following table shows (in percentage points) the applicable Initial Cap for ARM
      products eligible under ARM Cash and WAC ARM Guarantor program: Applicable Initial Cap, Periodic Cap and Life
      Cap by ARM product Eligible ARM product Initial Cap Periodic Cap Life Cap 3/6-Month ARM 2% 1% 5% 5/6-Month
      ARM 2% 7/6-Month ARM 5% 10/6-Month ARM 5% (d) Credit Fees for ARMs The Seller must refer to Exhibit 19, Credit
      Fees, for Credit Fees related to certain ARMs. Credit Fees are paid in accordance with the Credit Fee provisions
      stated in Chapter 6303.'
    drafter_attestation: Verbatim from Freddie Guide §4401.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
