Selling Guide

Published June 5, 2018

A2-4-01: Master Agreement Overview (10/31/2017)

This topic contains information on Master Agreements, including:

About Master Agreements

A Master Agreement is an “umbrella” document that supplements the general guidelines and requirements of the Fannie Mae Selling Guide and Servicing Guide and sets forth the additional terms under which Fannie Mae does business with lenders—whether the business relates to MBS pools or whole loan deliveries.

Subject to Fannie Mae's approval of the lender for a Master Agreement, Fannie Mae issues two types of Master Agreements—conversion and nonconversion. Fannie Mae determines the type of Master Agreement that is offered to specific lenders. A lender can obtain multiple Master Agreements to segregate various segments of its business. A Master Agreement may be for any amount.

Lenders Required to Obtain a Master Agreement

Although a lender is not required to obtain a Master Agreement if it only sells standard whole loans to Fannie Mae, it may do so at Fannie Mae's discretion. A lender must have a Master Agreement for deliveries under certain negotiated terms, some of which are described below.

The lender should contact its lead Fannie Mae regional office (see E-1-03, List of Contacts) to determine whether it is eligible for a Master Agreement.

Mortgage Loan Types That Require a Master Agreement

Mortgage loans that currently require customized/negotiated terms in a Master Agreement (whether whole loans or MBS pool deliveries) include, but are not limited to, the following:

  • second mortgage loans,

  • certain adjustable-rate mortgage loans,

  • FHA-insured and VA-guaranteed mortgage loans,

  • mortgages secured by properties in Guam,

  • certain special housing initiative mortgages (rural housing initiative loans and Native American housing initiative loans),

  • mortgage loans underwritten through an automated underwriting system other than Desktop Underwriter, and

  • any other mortgages that contain variances.

    Note: As indicated above, FHA—insured and VA—guaranteed mortgage loans require a Master Agreement; however, HUD-guaranteed Section 184 mortgages, and RD-guaranteed Section 502 mortgages can be delivered per the Selling Guide without a Master Agreement.

Fannie Mae may identify other loan types that require negotiated terms and a variance to the lender's Master Agreement. See A2-4-03, Variances and Special Provisions, for additional requirements that apply to variances.

Fannie Mae and the lender may either execute a separate, stand-alone Master Agreement covering delivery of the specific mortgage loans or incorporate the delivery terms for the mortgage loans by amending an existing Master Agreement.

Fannie Mae reserves the right to cease approving lenders for or accepting deliveries of any or all of the mortgage loan types listed above from any or all lenders, such as second mortgage loans. The decision to no longer accept deliveries may result in an amendment to, or the termination of the related delivery terms in the Master Agreement. Fannie Mae will provide the affected lender(s) with reasonable notice of this decision. If the decision affects a lender's ability to fulfill any required mandatory delivery amount under its Master Agreement, Fannie Mae will consider alternatives through which the lender can fulfill its delivery obligation.

Related Announcements

The table below provides references to the Announcements that have been issued that are related to this topic.

Announcements Issue Date
Announcements SEL-2017-09 October 31, 2017
Announcement SEL-2016–09 December 06, 2016
Announcement SEL-2015–09 August 25, 2015
Announcement SEL-2014–12 September 30, 2014
Announcement SEL-2013–03 April 9, 2013
Announcement SEL-2013–01 January 17, 2013
Announcement SEL-2011–05 June 28, 2011