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.

View All Selling Policy Updates

Download PDF

Hint: Ask in a form of a question.

For best results, pose your search like a question.

A2-1-02, Nature of Mortgage Transaction (02/27/2018)


This topic contains information on mortgage transaction requirements.

Delivery Methods

Sellers may sell loans to Fannie Mae using either of the two following delivery methods.

  • As whole loans - the seller sells the loans to Fannie Mae and receives cash proceeds in the amount of the purchase price, with the loans to be retained by Fannie Mae in its porftolio or to be included later in MBS pools formed by Fannie Mae.

  • As MBS loans - the sellers sells the loans which are conveyed to an MBS trust under the terms of the Fannie Mae MBS program and the seller (or its designee) receives mortgage pass-through certificates representing interests in the loans as the purchase price for the loans.

The term “delivery” refers to the delivery of whole loans to Fannie Mae and into MBS pools. In cases where specific requirements apply to one type of transaction, the delivery method is specified. The term “loan” means “mortgage loan” and includes participation interests in loans unless specified otherwise. The glossary defines terms used in connection with Fannie Mae requirements in the Selling Guide.

True Sale

Both Fannie Mae and the seller intend that every sale of loans to be the seller’s true, absolute, and unconditional sale to Fannie Mae of the loans. However, if a court or other appropriate forum holds the loans are still the seller’s property, then Fannie Mae and the seller intend that the transaction be deemed to be:

  • a pledge by the seller to secure a debt or other obligation owed to Fannie Mae for all related loans, and

  • a grant by the seller to Fannie Mae of a first priority perfected security interest in the loans.

Accordingly, for each loan delivery, the seller grants Fannie Mae a security interest in all of the seller’s right, title, and interest in the loans sold to Fannie Mae. Such security interest secures the seller’s performance of all of its obligations to Fannie Mae pertaining to that loan or the contract under which it is sold to or serviced for Fannie Mae.

If the seller breaches its obligations to Fannie Mae, Fannie Mae may,

  • without a binding election of remedies, use the remedies provided by applicable law to the holder of a security interest; or

  • extinguish all equitable, legal, and other right, title, or interest of the seller in the pledged security and take such property as its property.

Have You Tried Ask Poli?

Poli knows. Just ask.

Ask Poli features exclusive Q&As and
more—plus official Selling & Servicing

Try Ask Poli

Related Articles

A2-1-01, Contractual Obligations for Sellers/Servicers (02/06/2019)

IntroductionThis topic describes some of the seller’s, servicer’s and seller/servicer’s contractual arrangements, including: Role of MSSC  Special...

Read more

A2-1-03, Indemnification for Losses (08/29/2017)

IntroductionThis topic contains information on indemnification for losses, including: General Requirements  Application After Enforcement Relief ...

Read more

Have guide questions? Get answers to all of your policy questions, straight from the source.

Get Started
Having Issues with Seeing this Page Correctly?

Use Firefox or Chrome   How to do a hard refresh in Internet Explorer
We recommend that you use the latest version of FireFox or Chrome.

Download Firefox
Download Chrome
  A hard refresh will clear the browsers cache for a specific page and force the most recent version of a page.
    Hold the Ctrl key and press the F5 key.

Email Us
If you still have Technical Support questions, feel free to