Selling Guide

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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C3-6-01, Parameters for Pooling Loans Into Fannie Majors (12/04/2019)

Introduction

This topic contains general parameters for pooling loans into Fannie Majors, including:


Fannie Majors Overview

Fannie Majors are pools of loans that are contributed by more than one lender. Lenders participating in a Fannie Majors pool receive an MBS representing its share of the pool in proportion to the dollar amount of mortgages it contributed to the pool.


Obtaining Fannie Majors Pool Numbers

The pool number identifies the pools in which a lender’s loans are included. Fannie Mae assigns Fannie Majors pool numbers based on loan term, pass-through rate, and the month of issuance. Pool numbers, CUSIP numbers, and pass-through rates are posted on the Fannie Majors page on Fannie Mae's website and on the various wire services.


Selecting Mortgages to Include in a Fannie Majors Pool

When deciding which mortgages to include in a Fannie Majors pool, lenders must make sure that:

  • the mortgage conforms to the appropriate product type,

  • the mortgage has the appropriate seasoning,

  • the note rate is within the minimum and maximum range in relation to the pass-through rate, and

  • the minimum submission size is satisfied.

To be eligible for a Fannie Majors pool, mortgages may be no older than 11 months as of the security issue date. For example, all loans to be included in a December 2019 pool, must have first payment dates on or after January 2019.

As with single-lender, fixed-rate MBS pools, the minimum and maximum allowable interest rate within a Fannie Majors pool is 25 basis points (.25%) and 112.5 basis points (1.125%) respectively above the pool’s pass-through rate. Lenders can use loan-level buyups and buydowns to eliminate excess servicing and, in the case of buydowns, include loans in a higher coupon.

Fannie Majors have a minimum submission requirement of $1,000 when lenders deliver the loan to Fannie Mae.


Selecting a Settlement Date and Security Issuance

Lenders may choose their own settlement date for a Fannie Majors pool. If a lender makes several submissions into the same Fannie Majors pool, it may select different settlement dates for each.

Fannie Mae can issue securities in book-entry form within three business days after the lender submits a complete, error-free pool documentation package via Loan Delivery, as long as Fannie Mae receives:

  • the lender’s transmission of the loan delivery data by 6:00 p.m. (Eastern time), and

  • the transmission of the document custodian’s pool certification by 10:30 a.m. (Eastern time) on the day following the lender’s Loan Delivery transmission.

See C3-7-06, Settling the Trade, for additional information on turnaround times.

A lender delivering into Fannie Majors receives securities rounded to the lowest whole dollar amount of the loans it contributed to the pool, unless it requests otherwise. Fannie Mae issues certificates in minimum denominations of $1,000 with additional increments of one dollar. Only one security denomination can be issued for each account.


Making Multiple Submissions

A lender may deliver several different pieces for inclusion in a multiple pool (Fannie Majors) as long as all of the pieces have the same remittance cycle. This means that delivery of multiple servicer numbers per seller number is permitted in a Fannie Majors pool; however each piece must have one seller/servicer combination. In addition, each piece must be submitted separately and must meet the $1,000 minimum submission requirement.

Fannie Mae will combine the submissions with the same branch seller/servicer number and remittance day into the same pool under the same lender. These loans must be serviced as one pool after issuance. The dollar amount of the lender’s securities will be equal to the sum of the issue date principal balances of all the mortgages from each of the lender’s pool documentation packages related to the multiple pool, rounded down to the next lowest whole dollar amount.

Lenders may deliver nonstandard loans into Fannie Majors MBS pools. Each discrete delivery the lender makes under a given Fannie Majors TBA–eligible UMBS pool will be subject to the limitations that apply to a single TBA–eligible UMBS pool. See C3-2-01, Determining Eligibility for Loans Pooled into MBS for additional information.

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