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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C3-7-06, Settling the Trade (12/04/2019)


This topic provides information concerning buying an MBS from or selling the MBS to the Sales Desk, including:

Turnaround Times for MBS Pool Deliveries

The following turnaround times apply to the elapsed time between Fannie Mae’s receipt of the lender’s error-free loan delivery data, Fannie Mae’s receipt of the document custodian’s certification that the lender submitted a complete and accurate pool submission package, and Fannie Mae’s book-entry delivery of the securities.

Note: The names of the days of the week are used as an example only.

If processing type is And lender’s error-free transmission is received by: And custodian’s certification is received by: Then, book-entry delivery of securities will be by:
Single-Issue Pool1 6:00 p.m. (ET) on Monday 10:30 a.m. (ET) on Tuesday Thursday (4 business days)
Fannie Majors1 6:00 p.m. (ET) on Monday 10:30 a.m. (ET) on Tuesday Wednesday (3 business days)

If Fannie Mae cannot meet a lender’s specified book-entry date, Fannie Mae will not be responsible for any direct, indirect, or consequential damages that the lender incurs because of the delayed book-entry delivery.

Distribution of Securities

When Fannie Mae accepts an MBS pool submission for securitization, it issues a security backed by the mortgages in the pool and delivers it electronically through the Federal Reserve Book-Entry System to an account in an institution that the lender specifies. The lender’s book-entry delivery date may be the same date as settlement, but must not be later than the last day of the month in which the pool issue date occurs.

“Due Bill” for MBS Pool Settlements

A due bill is a document that the seller of a security issues to the purchaser of the security to enable the purchaser to redeem principal and interest the seller receives after the record date.

If the settlement occurs before the record date, but the delivery and payment on the trade will occur between the record date and a subsequent “payable” date, then the due bill should accompany the securities.

If the delivery and payment occur after the payable date, then a postdated check for the amount of P&I the purchaser is due, which will serve as the due bill until the postdated date of the check, must accompany the securities. When securities are transferred over the Federal Reserve’s book-entry system, a Fedwire message is an acceptable substitute for the check. Due bill or Fedwire messages are valid for 60 days.

The purchaser may submit a due bill or Fedwire message to the seller for payment as soon as pool factors are available. As long as the request for payment is presented three or more days before a “payable” date, the seller will pay the purchaser the amount on the “payable” date. If the purchaser requests payment after that, the seller has three days from the date of the due bill or Fedwire message is presented in which to pay the purchaser.

Multiple Warehouse Lenders

Currently, Fannie Mae can only link one warehouse lender to each document custodian the lender uses for its MBS pool deliveries. Therefore, if a lender that uses only one document custodian, and assembles pools involving more than one warehouse lender (or uses different warehouse lenders for some MBS pools), the lender will need to designate one warehouse lender to represent the interests of the other warehouse lenders it uses.

The other warehouse lenders must execute written agreements that:

  • give the designated warehouse lender the authority to represent them for those mortgages in MBS pools in which they have an interest; and

  • obligate the designated warehouse lender to take the steps necessary to ensure that they receive securities equal to their interests in the mortgages in the MBS pools, when appropriate.

Rejection of a Wire Transfer/Change of Wire Transfer Instructions

If a Fannie Mae wire transfer is rejected by a depository institution or by the Federal Reserve Bank of New York, Fannie Mae will contact the lender for verification of the instructions and request that it update any information that resulted in the rejection.

To change wire transfer instructions, the lender may modify its Delivery Schedule (Form 2014) any time prior to 6:00 p.m. (Eastern time) on the business day preceding the designated book-entry delivery date, except when the lender is using an early funding option or delivers a loan under a bailee letter. See C3-7-02, Initiating an MBS Sale for additional information.

If a change will affect the lender’s warehouse lender, the lender should contact the warehouse lender. If the warehouse lender disagrees with the lender’s initial wire transfer instructions or any subsequent changes the lender makes to them, the warehouse lender should contact the lender. Fannie Mae will not compensate the lender or warehouse lender for any losses, costs, expenses, or damages it or another party incurs as a result of Fannie Mae’s adherence to the lender’s instructions.

Loan- and Pool-Level Information Available after Pool Closing

The table below summarizes the types and locations of MBS pool-related information that is available after the MBS pool is closed.

Information Type/Report Location
Loan Numbers: The servicer of the MBS mortgages should enter the Fannie Mae loan numbers into its records immediately since they must be used in reporting all subsequent activity related to the mortgages to Fannie Mae. Loan Delivery, “Fannie Mae Loan Numbers Assigned” report, and the MBS Online Reports (Servicers) in Fannie Mae Connect.
Final Schedule of Mortgages showing pool-level and loan-level characteristics, pools closed, and a history of its closed pools. MBS Online Reports (Servicers)
Guaranty fee buyup and buydown ratio, pool proceeds and other pool-level and loan-level characteristics. A lender may download this report and use it to verify all of the information for closed MBS pools. Fannie Mae Connect


The last day to submit single and Fannie Majors pools is the fifth business day before the end of the month.

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