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.

C3-7-02, Initiating an MBS Sale (05/01/2019)


This topic describes the steps lenders take to initiate an MBS, including UMBS, sale via Fannie Mae’s Capital Markets Pricing and Sales Desk, including:

Determining the Trade Type

If a lender sells MBS, its trade may be TBA or specified. With a TBA trade, the lender may deliver any UMBS meeting eligibility requirements as defined by SIFMA. A specified trade means that a specific MBS is being traded and only that security can be delivered in satisfaction of the trade. TBA trades settle on the SIFMA settlement dates (see Pool Settlement Dates).

Checking Market Prices

See C3-1-01, General Information About Fannie Mae’s MBS Program, for information on MBS prices and their determinants. Prices of Fannie Mae MBS are quoted in 32nds of a percent for both immediate and forward delivery issues.

Selecting a Settlement Date

The lender must plan its settlement date to be sure it can deliver the securities as scheduled. In particular, the lender must allow sufficient time after loan closing for the processing of the documentation package. Any errors in the package can result in a delay in settlement.

Lenders may settle trades for newly issued securities on any day of the month in which they are issued. When a trade is settled on a “regular” settlement date, it will occur on a date that is predetermined by SIFMA, based on a schedule that changes periodically.

Note: Settlements cannot occur on holidays.

Selecting a Settlement Method

The method of funding the sale of a security depends on the settlement method the lender chooses when delivering the pool to Fannie Mae. Lenders that want to use an early funding settlement option such as As Soon As Pooled Sale (for pools) or As Soon As Pooled Plus (for whole loans) must execute a special agreement that provides the specific terms for the type of transaction it is using. Lenders interested in using an early funding settlement option should contact the Capital Market Sales Desk. See E-1-03, List of Contacts.

For newly issued securities, if a lender opts for an “original issue” settlement instead of “delivery vs. payment,” lenders must specify Fannie Mae’s account in the wiring instructions on the Delivery Schedule (Form 2014) it submits when the pool is delivered. Lenders using this option must follow SIFMA’s guidelines and submit notification 48 hours prior to settlement.

Existing MBS must be funded through “delivery vs. payment” (or a “delivery against funds” or “existing issue”) settlement option. Under this settlement option, when Fannie Mae receives the security, it credits the lender’s account at the institution that wires the security to the Desk.

If a lender has not sold the securities to an investor before it delivers loans to Fannie Mae and has not elected to use the “original issue” settlement option, Fannie Mae will issue the securities to the lender.

Requesting and Accepting a Firm Bid/Offer

When contacting the Desk to request a firm bid/offer, the lender must be prepared to specify the following information:

  • MBS product,

  • amount of the trade,

  • coupon rate,

  • settlement date,

  • unique characteristics of the pool that will back the security.

Fannie Mae’s Sales Desk will convey a bid/offer for the security to the lender. If the lender accepts the firm bid or firm offer, the Sales Desk will lock in the bid or offer and verify the trade details in a recorded telephone conversation with the lender.

That evening, Fannie Mae will send the lender a written confirmation statement that includes the details of the trade such as the trade number, date, amount, price, the coupon rate, and the settlement date. The confirmation, taken together with the relevant sections of this Guide, constitutes conclusive evidence of the terms between Fannie Mae and the lender with respect to the transaction to which the confirmation relates, unless the lender promptly notifies the Desk of any errors in the confirmation.

Note: For lenders executing trades with Fannie Mae via Fannie Mae’s electronic trading platform, the lender’s trade details for the bid or offer will be available through the platform using appropriate login credentials.

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

C3-7-01, Establishing an MBS Trading Account (12/04/2019)

IntroductionThis topic provides information on establishing an MBS trading account, including: Process Used to Establish a Trading Account ...

Read more

C3-7-03, Making Good Delivery (05/01/2019)

IntroductionThis topic describes the requirements for making good delivery of MBS, (which includes UMBS), including: Good Delivery Conditions ...

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