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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C2-1.1-04, Mandatory Commitment Extensions and Pair-Offs (05/30/2017)


This topic provides details on lender-requested and automatically-generated extensions and pair-offs, including:



Under certain circumstances, lenders may extend or pair off a mandatory whole loan commitment. In addition, in certain circumstances, Fannie Mae will automatically extend commitment periods and pair off commitment balances. For information on the fees associated with these activities, see C2-1.1-02, Pricing, Fees, and Pricing Adjustments.


Lender-Requested Commitment Extensions

Lenders may extend commitments on or before the original commitment expiration date for up to a maximum of 30 days from that date. They may request multiple extensions as long as the total extension period is no longer than 30 days. Each request must be made before the contract expiration date in effect following the previous extension. See C2-1.1-02, Pricing, Fees, and Pricing Adjustments, for information on the fees associated with a lender-requested extension.

Lenders may extend the entire outstanding commitment balance or a portion of it, if the lender also requests a partial pair-off of the remaining balance. The sum of the extended amount and the paired-off amount must equal the total remaining commitment amount.

Lenders may request extensions in Fannie Mae’s whole loan committing application or through the Capital Markets Pricing and Sales Desk between 8:15 a.m. and 10:00 p.m. (Eastern time) on any business day (see E-1-03, List of Contacts). All telephone conversations are voice-recorded. Lenders should maintain detailed records of the contract extensions requested.


Fannie Mae-Implemented (Automatic) Commitment Extensions

If a lender fails to meet Fannie Mae’s good delivery requirement within the original commitment period and has not previously extended the commitment, Fannie Mae will automatically extend it. Commitments expiring with outstanding unpaid principal balances will be automatically extended a minimum of five calendar days and assessed the appropriate extension fee. See C2-1.1-02, Pricing, Fees, and Pricing Adjustments, for information on the fees associated with an automatic extension.

If no deliveries have been made by the expiration of the five-day extension, Fannie Mae will effect an automatic pair-off and the appropriate fee assessed and drafted from the lender’s designated account.


Lender-Requested Pair-offs

A lender may purchase (pair off) all or part of a mandatory delivery commitment in the whole loan committing application or by contacting the Capital Markets Pricing and Sales Desk between 8:15 a.m. and 5:00 p.m. (Eastern time), if it is unable to satisfy Fannie Mae’s minimum delivery requirement. The request can be made at any time between the date on which the commitment was executed and the date on which it expires. The lender can obtain a new quotation later, but before the commitment expiration date, to avoid an automatic extension and the possible assessment of an automatic pair-off fee.

After Fannie Mae verifies the information required for calculating a pair-off fee, it will provide the lender with a fee quotation through either the whole loan committing application or through the Capital Markets Pricing and Sales Desk. The quotation may be for a pair-off fee to be paid by the lender or, if the transaction is eligible for a cash back pair-off, it may be for an amount due to the lender by Fannie Mae. The lender must accept the quotation within a short time frame if it wants to exercise the pair-off. Confirmation of the pair-off can be obtained in the whole loan committing application.

In conjunction with a lender-requested pair-off, if the whole loan price at commitment is greater than the price at the time of the pair-off solely as a result of market fluctuations (and not from any other cause, including product-related pricing changes implemented by Fannie Mae), then Fannie Mae will not charge a lender a pair-off fee but will provide cash back to the lender (known as a cash back pair-off). The lender is not eligible for a cash back pair-off on a commitment if

  • the commitment gets paired off through the automatic pair-off process, and

  • the mortgage products delivered under the commitment are deemed by Fannie Mae, in its sole discretion, to be ineligible per the Selling Guide.

Additionally, negotiated transactions with the Capital Markets Pricing and Sales Desk and commitments that exceed the daily volume limit may not be eligible for cash back pair-offs.

Though lenders are generally eligible to receive cash back on pair-offs upon approval to transact business in the whole loan committing application, Fannie Mae may decline to activate a lender for cash back pair-offs if, in Fannie Mae’s sole discretion, the lender’s anticipated business strategy does not align with Fannie Mae’s use of the cash back pair-off process.

Additionally, if any of the following events occur, Fannie Mae may immediately terminate a lender’s eligibility for cash back pair-offs:

  • Fannie Mae, in its sole discretion, determines that the lender is obtaining commitments without the intent to deliver;

  • there is any suspension of the lender’s selling privileges under the Master Selling and Servicing Contract (MSSC); or

  • the lender’s MSSC is terminated.

Termination will be effective as to any new or outstanding commitments as of the effective date of the termination.


Fannie Mae-Implemented (Automatic) Pair-offs

Fannie Mae automatically pairs off the entire remaining commitment balance for any expired, unfulfilled mandatory commitment that has been previously extended, although Fannie Mae will first process any mortgage deliveries pending in its purchase pipeline.


Additional Resources

See C2-1.1-02, Pricing, Fees, and Pricing Adjustments, for information on

  • the fees associated with a lender-requested pair-off,

  • calculating cash back amounts, and

  • the fees associated with an automatic pair-off.

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