A2-2-02, Delivery Information and Delivery-Option Specific Representations and Warranties (08/30/2016)

Regardless of the delivery option, the lender represents and warrants that all required mortgage loan delivery data is true, correct, and complete, even for such data elements that are not required to qualify a borrower or underwrite a loan. The lender also represents and warrants that at the time Fannie Mae releases cash or MBS in exchange for the mortgage loan, no person has any right of rescission pursuant to the Truth in Lending Act or other law which has not expired or otherwise terminated.

For purchase money loans and also for loans that have a right of rescission that has been waived, a lender may not request or receive cash or MBS until at least one business day after the lender disburses the funds to (or on behalf of) the borrower.

The lender makes the following additional representations and warranties when it sells Fannie Mae a mortgage loan that is included as part of an MBS pool delivery:

• the mortgage loan, or participation interest, conforms to the requirements and specifications for mortgage loans that are pooled to back MBS issues and the pool formation criteria of the specific MBS pool in which the mortgage loan is included (see C3-3, MBS Guaranty Fees and Guaranty Fee Buyups and Buydowns C3-3, MBS Guaranty Fees and Guaranty Fee Buyups and Buydowns),

• the mortgage satisfies the general mortgage loan eligibility requirements and underwriting guidelines for mortgage loans delivered to Fannie Mae (see C3-3, MBS Guaranty Fees and Guaranty Fee Buyups and Buydowns C3-3, MBS Guaranty Fees and Guaranty Fee Buyups and Buydowns),

• the description of the mortgage loan, or participation interest, described in the applicable Schedule of Mortgages is true and correct, and

• all owners named in the Delivery Schedule (Form 2014) were provided the most recent prospectus, and any applicable prospectus supplement, available for the MBS program at the time they entered into their contract for the purchase of the related securities.

When the lender sells Fannie Mae an MBS pool that includes mortgage loans with special product characteristics that make them subject to delivery limitations, the lender represents and warrants that no more than 10% of the aggregate issue date principal balance of the pool is composed of mortgage loans that have one of the special product characteristics. If mortgage loans with more than one of the special characteristics are included in the same pool, the lender warrants that the total amount of mortgage loans with special product characteristics in the pool does not exceed 15% of the aggregate issue date principal balance of the pool.

If a mortgage loan in an MBS pool has achieved enforcement relief as provided in A2-3.2-02, Enforcement Relief for Breaches of Certain Representations and Warranties Related to Underwriting and EligibilityA2-3.2-02, Enforcement Relief for Breaches of Certain Representations and Warranties Related to Underwriting and Eligibility, then the obligation to indemnify Fannie Mae is limited in certain respects. See A2-1-03, Indemnification for LossesA2-1-03, Indemnification for Losses, for a description of the continuing indemnification obligations.

By submitting any loan to Fannie Mae under any execution, including MBS, whole mortgage loan, or a participation pool mortgage to Fannie Mae as a whole loan, the lender represents and warrants that

• all right, title, and interest in the mortgage loan is sold, transferred, set over, and otherwise conveyed by the lender to Fannie Mae as of the date Fannie Mae funds the purchase proceeds;

• there is no agreement with any other party providing for servicing the mortgages that continues after such date unless there is full compliance with all the Fannie Mae Guide requirements for subservicing (see A3-3-03, Other Servicing ArrangementsA3-3-03, Other Servicing Arrangements, and the Servicing Guide) or any prior servicing agreement is made expressly subject to Fannie Mae’s rights as owner of the mortgage loans; and

• it is aware of all matters related to the mortgage that were known to the originating lender.

The party that was servicing for the lender prior to the transfer of the loan to Fannie Mae may become a servicer for Fannie Mae, if there is full compliance with all the Fannie Mae Guide requirements that provide for either

• the assignment of servicing from the lender concurrent with conveyance of the mortgage to Fannie Mae (see A3-3-02, Concurrent Servicing TransfersA3-3-02, Concurrent Servicing Transfers), or

• post-delivery transfers of servicing (see the applicable section of the Servicing Guide).

When Fannie Mae consents to a transfer of servicing by a lender or servicer, it relies on the integration and non-divisibility of the Lender Contract. Fannie Mae requires that the transferor lender remain obligated for all selling and servicing representations and warranties and recourse obligations upon the transfer of servicing. Fannie Mae also requires that the transferee servicer, whether the original seller or a transferee servicer, undertake and assume joint and several liability for all selling and servicing representations and warranties and recourse obligations related to the mortgage loans it services unless explicitly agreed to the contrary in writing by Fannie Mae.