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.

B8-3-02, Special Note Provisions and Language Requirements (06/03/2020)


This topic contains information on special note provisions and language requirements, including:

Late Charges for Conventional Mortgages

The note for a conventional first mortgage must include information about the late charge to be assessed for any payment that is not received by the 15th day after it becomes due. The amount of the late charge must meet the following requirements:

  • The amount must be permissible under applicable law.

  • The late charge must be a minimum of 0% and up to 5% of the principal and interest (P&I) payment.

Requirement for Unit Number

If the subject property is a condo or other property type that is identified by a unit number, the unit number must be included in the property address on the note.

Mandatory Arbitration

Mandatory arbitration is a loan provision or an agreement accompanying the loan that requires the borrower to submit to arbitration any disputes arising out of or relating in any way to the mortgage transaction. Mortgages that are subject to mandatory arbitration are ineligible for sale to, or securitization by, Fannie Mae unless the mandatory arbitration provision provides that, in the event of a transfer or sale of the mortgage or an interest in the mortgage to Fannie Mae, the mandatory arbitration clause immediately and automatically becomes null and void and cannot be reinstated.

The lender must provide the borrower with written notice of the waiver provision within 60 days of the transfer or sale of the mortgage to Fannie Mae. That notice must contain substantially the following language:

Pursuant to your mortgage documents, Fannie Mae is hereby notifying you that an interest in your loan has been transferred or sold to Fannie Mae and therefore the mandatory arbitration clause of your loan, requiring that you submit to arbitration to resolve any dispute arising out of or relating in any way to your mortgage, is immediately null and void.

The lender and servicer shall maintain a copy of such notice in the mortgage file.

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

B8-3-01, Notes for Conventional Mortgages (02/06/2019)

IntroductionThis topic contains information on notes for conventional loans, including: Use of Conventional First Mortgage Notes  Adjustable-Rate...

Read more

B8-3-03, Signature Requirements for Notes (10/31/2017)

IntroductionThis topic contains information on borrowers’ signatures on notes, including: Borrowers’ Signatures on Notes  Signature...

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