Selling Guide

Published June 3, 2020

The Selling Guide is organized into parts that reflect how lenders generally categorize various aspects of their business relationship with Fannie Mae. To begin browsing, select from any of the sections below. You may also download the entire Selling Guide in PDF format.

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What are the eligibility requirements to sell a loan in forbearance due to COVID-19?

Note: This information comes from the published Lender Letter, LL-2020-06, Selling Loans in Forbearance Due to Covid-19. Content published Apr. 22, 2020.

Eligibility Requirements for Sale of Loans in Forbearance

Loans in forbearance due to a COVID-19 hardship will be eligible for sale to us if the loans comply with the following requirements.

Criteria

Terms

Eligible transactions

  • Purchase
  • Limited cash-out refinance

Ineligible transactions

  • Cash-out refinance

Payment history

Loans in forbearance cannot be more than one month delinquent at the time the lender submits the loan data in Loan Delivery for whole loan purchase or MBS execution (refer to the effective dates above for implementation details)

MBS pools (including TBA-eligible UMBS pools) 

All standard pooling policies apply (with exception allowed for inclusion of loans in forbearance and one month delinquency)

Fannie Majors®

Loans are eligible for delivery in Fannie Majors based on the above MBS effective dates

Special Feature Code

All loans must be delivered with SFC 919, COVID Forbearance

Loan Delivery data

Lenders must deliver

  • Actual Unpaid Principal Balance (whole loan and MBS)
  • Actual Last Paid Installment Date (whole loan and MBS)
  • Scheduled MBS Issue Date Unpaid Principal Balance (MBS)
  • First-time homebuyer data elements, if applicable (whole loan and MBS)

Refer to the Job Aid for additional guidance on delivering COVID-19 loans in forbearance.  

Loan-level price adjustment (LLPA)

  • 500 basis points (5.000%) for loans where any borrower is a first-time homebuyer (as defined in the Selling Guide), or
  • 700 basis points (7.000%) for all other loans

This LLPA is in addition to any other price adjustments that are otherwise applicable to the particular transaction.

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