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B5-4.1-04, Texas Section 50(a)(6) Loan Delivery and Servicing Considerations (12/19/2017)

This topic contains information on Texas Section 50(a)(6) loan delivery considerations, including:

Special Feature Codes and Pricing

All Texas Section 50(a)(6) loans must be identified at delivery with SFC 304. In addition, the lender must enter the following special feature codes at loan delivery:

  • SFC 003 for each Texas Section 50(a)(6) loan that is classified as a cash-out refinance under Fannie Mae’s policy, and

  • SFC 007 for each Texas Section 50(a)(6) loan that is classified as a limited cash-out refinance under Fannie Mae’s policy.

If the lender determines that a loan secured by a mortgage on a homestead property in Texas is classified as a cash-out refinance per this Guide but is not a Texas Section 50(a)(6) loan, then the loan should be delivered as a standard (non-Texas Section 50(a)(6) loan) cash-out refinance transaction and should not be identified with SFC 304.

At delivery, all Texas Section 50(a)(6) loans that are classified as cash-out refinance transactions are subject to the loan-level price adjustments applicable to cash-out refinance loans per the Lender Contract.


A lender that delivers a Texas Section 50(a)(6) loan to Fannie Mae may either service the loan, enter into a subservicing arrangement with another lender, or assign the servicing concurrent with its delivery to Fannie Mae.

Except as otherwise noted in the Selling Guide or Servicing Guide, standard Fannie Mae servicing requirements apply to Texas Section 50(a)(6) loans.

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