B5-1-02, High-Balance Pricing, Mortgage Insurance, Special Feature Codes, and Delivery Limitations (02/01/2023)

Live pricing options are provided for high-balance mortgage loan transactions in Fannie Mae’s whole loan committing application. Specific additional LLPAs apply to all high-balance mortgage loans, whether delivered under whole loan commitments or MBS contracts. High-balance mortgage loans are also subject to all other applicable LLPAs. All price adjustments are cumulative. For details, see the Loan-Level Price Adjustment (LLPA) Matrix.

Mortgage insurance coverage is required for high-balance mortgage loans with LTV ratios greater than 80%. Financed borrower-purchased mortgage insurance is permitted; however, the maximum gross LTV (after the inclusion of the financed premium) cannot exceed 95%.

The lender must report SFC 808 when delivering a high-balance loan to Fannie Mae, except for government loans and unless otherwise instructed. All other applicable SFCs must also be reported as required for the transaction.

Fannie Mae's requirements regarding delivery limitations for nonstandard loans apply to high-balance mortgage loans. For details see C2-2-01, General Requirements for Good Delivery of Whole LoansC2-2-01, General Requirements for Good Delivery of Whole Loans, and C3-2-01, Determining Eligibility for Loans Pooled into MBSC3-2-01, Determining Eligibility for Loans Pooled into MBS. Furthermore, lenders may deliver high-balance mortgage loans into a Fannie Majors TBA-eligible pool. For details, see C3-6-01, Parameters for Pooling Loans Into Fannie MajorsC3-6-01, Parameters for Pooling Loans Into Fannie Majors.