This topic identifies the requirements for loans delivered against a whole loan commitment, including:
All loans delivered against a whole loan commitment must share certain common attributes. These include:
- Product type — See Mortgage Products for information about products eligible for sale to Fannie Mae.
- Mortgage type — Conventional or government
- Lien type — First mortgages
- Amortization type — Fixed-rate or adjustable-rate
- Mortgage term — 10-, 15-, 20-, or 30-year. Lenders may commit to deliver loans with nonstandard amortization terms or loans that exceed the maximum number of months for a given term by selecting the next highest amortization schedule available in Fannie Mae’s whole loan committing application, regardless of pricing option.
- ARM plan number, if applicable
- Remittance type
Lenders may enter into multiple commitments but may not exceed $200 million in aggregate commitment volume per day. Lenders seeking permission to exceed this amount must contact the Capital Markets Pricing and Sales Desk (see E-1-03, List of Contacts). Lenders exceeding the limit without Fannie Mae approval may be required to pair off their commitment(s) at the lender's expense.
There is no minimum commitment amount for mandatory whole loan commitments. Note that commitments are issued in multiples of $1.
Commitments to deliver most loan products can be taken for 1 to 90 days. Lenders should be sure to choose a commitment period that allows sufficient time after loan closing for the fulfillment of the lender’s shipping and delivery requirements. (See C2-2-01, General Requirements for Good Delivery of Whole Loans, and C2-2-02, Documentation Requirements for Whole Loan Deliveries, for details.)
Commitments are based on calendar days but must expire on a business day. Lenders can track the status of their commitments in Fannie Mae’s whole loan committing application.
Lenders may sell most loans seasoned no more than 12 months, measured from closing date to delivery date. Lenders may sell 10-, 15-, 20-, and 30-year standard fixed rate loans seasoned up to 24 months.
Fannie Mae also buys older loans. Contact the Capital Markets Pricing and Sales Desk for pricing and parameters (see E-1-03, List of Contacts).
The table below provides the requirements for payment status for loans delivered to Fannie Mae.
|Transaction Type||Payment Status|
|12 or fewer months old at the time of delivery||The borrower must not have had any 30-day delinquencies since the loan was originated.|
|More than one year old at the time of delivery||The borrower must not have any 30-day delinquencies in the 12-month period that precedes the lender’s delivery of the loan to Fannie Mae.|
|Assumed||The payment status requirement applies to the current borrower. However, for a seasoned loan, if the current borrower has owned the property less than 12 months, the time period is reduced to the number of months that he or she has owned the property.|
By submitting a whole loan to Fannie Mae as a whole loan delivery, the lender represents, warrants, and agrees that all right, title, and interest in the mortgage is sold, transferred, set over, and otherwise conveyed by the lender to Fannie Mae as of the date of Fannie Mae’s funding of the purchase proceeds.
A lender may deliver a loan that has been originated by another lender. However, the selling lender must make all of the warranties specified in Fannie Mae’s Contract as if it were the originator. In such cases, the selling lender must be aware of all matters related to the loan that were known to the originating lender.
The lender may not assign Fannie Mae’s whole loan commitments except to obtain construction financing or interim financing under a “warehouse” line of credit. If the construction or warehouse lender intends to use the commitment or contract to deliver mortgages to Fannie Mae on its own behalf, it must be an approved Fannie Mae lender. It also must notify the lender’s Fannie Mae customer account team of the assignment before it delivers a loan to Fannie Mae.
Lenders that want to sell loans to Fannie Mae that contain unique eligibility and underwriting considerations not permissible for delivery via a standard commitment may request a negotiated commitment.
A variance between Fannie Mae and the lender is required when the lender is delivering whole loans via a negotiated commitment. Lenders should contact their Fannie Mae customer account team for details.