Weighted Average Coupon (WAC)

Weighted Average Coupon (WAC)

The Weighted Average Coupon (WAC) of any group of Mortgages is calculated by: Multiplying the purchased UPB of each Mortgage by the Note Rate of such Mortgage (resulting in a "product" for each Mortgage) Adding the products so obtained for all of the Mortgages Dividing the sum of the products by the purchased aggregate UPB of all the Mortgages in the group Freddie Mac's determination of the WAC is conclusive.