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.

C3-7-05, Confirming Presettlement Information (04/01/2009)


This topic provides the steps entailed and the information the lender must provide to Fannie Mae prior to the security settlement date, including:


Basic Requirements for Presettlement

When a lender sells MBS through the Capital Markets Pricing and Sales Desk, it must call the Desk to verify trade details no later than 3:00 p.m. (Eastern time) two business days before the settlement date. This is called the notification date.

If a lender needs to make any corrections or cancellations, it must call before 12:15 p.m. (Eastern time) on the notification date to ensure that delivery can take place within two business days. If the call is received after this time, the delivery cannot take place until three business days after the notification date.

Fannie Mae will accept a fax transmission of the trade details as long as the lender notifies the Desk in advance about the pending transmission and the transmission is received by 3:00 p.m. (Eastern time) on the notification date. See Capital Markets Operations Collateral Management for fax number information E-1-03, List of Contacts.

After the change or deletion of the payee code has been made, Fannie Mae mails the lender a list of its outstanding payee arrangements.

  MBS pool number and the related CUSIP number
  Original pool balance (which is the face amount of the security)
  Pass-through rate (which is the “coupon” rate of interest that will be paid to the investor)
  Price (which is the dollar amount paid for the MBS)
  Trade date (which is the date on which the parties agree to the terms of the transaction)
  Settlement date (which is the date that the parties agreed the transfer of the securities and the payment of the purchase price would take place)
  Issue date (which is the first day of the month in which the securities backed by the pool are issued)
  Any unique pool specifications (such as a Fannie Majors)


Information Required for Presettling Pools of Seasoned Mortgages

There may be some instances in which Fannie Mae requires a pool that is seasoned for two or fewer years to be treated as a “seasoned” pool. When this occurs, Fannie Mae will inform the lender during the oral confirmation of the trade. For any pool that is treated as a “seasoned” pool, the lender must provide not only the information required above, but also the following additional information:

  Weighted-average maturity (which is the weighted-average of the remaining terms of the mortgages underlying the MBS as of the trade date)
  Weighted-average coupon (which is the weighted-average of the note rates of the mortgages underlying the MBS as of the trade date)
  Latest loan maturity (which is the maturity date of the latest maturing mortgage in the MBS)
  Geographic concentration of the mortgages in the pool (if a concentration was specified at the time of the trade)


Information Required for Presettling ARM MBS

ARM MBS pools are backed by ARMs of any age. For an ARM MBS pool, the lender must provide not only the information required above (and the information for a seasoned pool above, if the pool is treated as a “seasoned” pool), but also the following additional information:

  Index on which the periodic interest rate adjustments for the underlying mortgages are based
  Periodic and lifetime interest rate caps for the underlying mortgages
  Periodic payment caps (if any) for the underlying mortgages
  MBS margin (which is the portion of the mortgage margin that is used to establish the pass-through rate for the pool on each interest rate change date)
  Interest rate change date (which is the date on which the interest rates for the underlying mortgages will be adjusted)
  Frequency of the interest rate adjustments for the underlying mortgages
  Applicability and terms of any conversion-to-fixed-rate feature for the underlying mortgages

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

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

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

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