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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B5-5.2-06, Loans with Resale Restrictions: Pricing, Mortgage Insurance and Special Feature Codes (06/26/2012)

Introduction

This topic contains information on loans with resale restrictions: pricing, mortgage insurance and special feature codes, including:


Identification and Tracking

The lender selling and servicing mortgages subject to resale restrictions must be able to identify and track those mortgages on its systems and must have staff sufficiently trained to originate and service those mortgages.


Pricing

There are no specific LLPAs required for loans with resale restrictions. All other price adjustments that are otherwise applicable to the transaction will apply. For the current applicable LLPAs, see Loan-Level Price Adjustment (LLPA) Matrix.


Mortgage Insurance

If a mortgage loan is subject to resale restrictions that survive foreclosure or deed-in-lieu of foreclosure and mortgage insurance is required, the lender must first contact its mortgage insurance provider and obtain confirmation that the mortgage insurer is willing, on a program basis, to insure these mortgages under the lender’s master primary policy.


Special Feature Codes

Lenders must report SFC 630 when delivering mortgages secured by properties with resale restrictions that terminate automatically upon foreclosure (or the expiration of any applicable redemption period) or the recordation of a deed-in-lieu of foreclosure, and the lender uses the optional calculation to compute the LTV ratio based on the appraised value of the property without resale restrictions.

This LTV ratio, calculated using the appraised value of the property without resale restrictions, must also be reported as part of the delivery data.

No special feature code is required when delivering mortgage loans secured by properties with resale restrictions that terminate automatically upon foreclosure (or the expiration of any applicable redemption period) or the recordation of a deed-in-lieu of foreclosure, if the lender uses the standard calculation to compute the LTV ratio based on the lower of sales price or the current appraised value with resale restrictions.

Lenders must report SFC 631 when delivering mortgages secured by properties with resale restrictions that survive foreclosure or deed-in-lieu of foreclosure.

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