Designed to provide liquidity to the mortgage market, Fannie Mae’s whole loan conduit (also known as the Cash Commitment Window) allowed nearly 1,100 small and mid-size lenders to deliver loans to Fannie Mae in exchange for cash in 2012. By offering competitive pricing and flexibility in committing, Fannie Mae makes execution favorable to lenders, while also allowing lenders the unique opportunity to retain servicing rights for the loans they have delivered.
The Whole Loan Conduit also offers investors the opportunity to obtain diversified pools of mortgages to meet their needs. Whole loan conduit issuance has become a larger percentage of Fannie Mae MBS issuance over recent years, particularly following the credit crisis, as lenders sought liquidity and several large aggregators scaled back their correspondent business, or exited altogether.
Read the latest edition of Fannie Mae's MBSenger to learn about the whole loan conduit, and the benefits for small and mid-size lenders, such as immediate funding and flexible commitments.
Senior Vice President, Capital Markets Single-Family Products and Business Initiatives
The views expressed in these articles reflect the personal views of the authors, and do not necessarily reflect the views or policies of any other person, including Fannie Mae or its Conservator. Any figures or estimates included in an article are solely the responsibility of the author.