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.

C2-2-03, General Information on Whole Loan Purchasing Policies (05/01/2019)


This topic includes information on the conditions under which Fannie Mae will fund the purchase of a loan delivered in fulfillment of a whole loan commitment, including:

Whole Loan Funding Requirements

Fannie Mae will send the proceeds from the whole loan sale and delivery via a wire transfer into the lender’s designated account on the purchase date shown on the Purchase Advice if:

  • the designated payee code is valid;

  • the mortgage is eligible for purchase; and

  • the document custodian received a complete, accurate mortgage document submission package and loan delivery data by the applicable cutoff times.

Fannie Mae will direct the wire transfer to either:

  • the account(s) and depository institution(s) the lender designates, or

  • the lender itself (if it is able to receive wire transfers through the Fedwire system).

Lenders may make arrangements for different payees to receive transfers of purchase proceeds on an ongoing basis, unless a lender and its warehouse lender have executed a Triparty Wiring Instruction Agreement. See C2-2-08, Triparty Wiring Instructions, for details.

To avoid delays in purchasing and funding, Fannie Mae accepts delivery of any mortgage up to 45 days from the due date of the reported last paid installment.

Warehouse Lender’s Release of Interest in the Property

When Fannie Mae purchases a mortgage, the mortgage seller represents and warrants that title to the mortgage note is free and clear of any security interest, lien, pledge, or other encumbrance, which means that any interest held by a warehouse lender must be released no later than the date Fannie Mae acquires the note.

To ensure that this is always the case, Fannie Mae has established delivery procedures to cover those instances in which the document custodian either:

  • receives with the mortgage delivery documents a bailee letter notifying it of a warehouse lender’s security interest, or

  • is otherwise aware that a warehouse lender is claiming an interest of any kind in the mortgage notes being delivered.

This process is intended solely to ensure the correctness of the selling representations and warranties a mortgage seller makes to Fannie Mae (and not to benefit any third party). These procedures are outlined in C1-2-04, Bailee Letters. Also see C1-2-03, Ownership of Mortgage Loans Prior to Purchase or Securitization and Third-Party Security Interests, for additional information.

Fannie Mae also has established operational procedures that can be used to reduce instances of conflicting delivery instructions for pledged mortgages. See C1-1-01, Execution Options.

Procedures Related to the Secure Transfer of Funds

Each lender is responsible for establishing and maintaining controls and procedures that ensure the confidentiality of all transfer instructions and payee codes and the integrity of its communications with Fannie Mae.

The lender agrees to be bound by any transfer instructions issued in its name and sent to Fannie Mae, whether or not they were authorized.

A lender is solely liable for transfers that are initiated (either directly or indirectly) as the result of a breach in its security arrangements or as the result of its failure to give Fannie Mae timely notice of an error, omission, or irregularity in establishing payee arrangements. The lender is fully responsible for notifying the Fannie Mae Asset Acquisitions by telephone and submitting written confirmation of the call to Fannie Mae within 24 hours of the breach. Fannie Mae will do everything possible to suspend operations until a correction is sent, including removing all payee codes on record for the lender and issuing new codes based on instructions the lender provides in accordance with Fannie Mae standard procedures.

The lender is advised that these procedures will not be used to detect an error in the transmission or content of a transfer of funds to the lender’s designated bank or an error in processing a request to set up a payee code for use in transferring funds.

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

C2-2-01, General Requirements for Good Delivery of Whole Loans (08/07/2018)

IntroductionThis topic provides Fannie Mae’s requirements for good delivery of whole loans, including: Definition of Whole Loan Good Delivery ...

Read more

C2-2-02, Documentation Requirements for Whole Loan Deliveries (05/01/2019)

IntroductionThis topic describes the documentation requirements for whole loan deliveries, including: Required Documents for Whole Loans  Submission...

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