Selling Guide

Published December 4, 2019

B5-1-02: High-Balance Pricing, Mortgage Insurance, Special Feature Codes, and Delivery Limitations (12/15/2015)

This topic contains information about the following aspects of high-balance mortgage loans, including:

Pricing/Loan-Level Price Adjustments

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 Requirements

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%.

Delivery Data Requirements Including Special Feature Codes

SFCs: Lenders must use SFC 808 when delivering high-balance mortgage loans to Fannie Mae, except for government loans and unless otherwise instructed. All other applicable SFCs must also be provided.

High-Balance Whole Loan and MBS Delivery Limitations

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 Loans, and C3-2-01, 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 Majors.

Related Announcements

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

Announcements Issue Date
Announcement SEL-2015–13 December 15, 2015
Announcement SEL-2015–10 September 29, 2015
Announcement SEL-2012–06 June 26, 2012
Announcement 09–29 September 22, 2009
Announcement 09-08R June 8, 2009
Announcement 08-27 October 16, 2008