Selling Guide

Published September 4, 2018

B8-3-01: Notes for Conventional Mortgages (08/20/2013)

This topic contains information on notes for conventional mortgages, including:

Use of Conventional First Mortgage Notes

Lenders should use the note that is correct for the applicable mortgage type, lien type, property type, and product type for regularly amortizing conventional mortgages that are closed on the Fannie Mae/Freddie Mac uniform security instruments.

Fannie Mae publishes state-specific fixed-rate notes for ten jurisdictions (although they are not available for all products). The multistate note can be used in most jurisdictions unless the security property is located in a jurisdiction for which Fannie Mae publishes a state-specific mortgage note.

A lender that uses a state-specific version of the Balloon Loan Refinancing Instrument to document the refinancing of a balloon mortgage that has a conditional refinance option does not need to use Fannie Mae’s note forms because that document incorporates the terms of the note.

The various notes that are used for fixed-rate mortgages may be found on Fannie Mae’s website. Authorized changes that must or may be made to these documents are set out in the instructions that accompany each document.

Adjustable-Rate Mortgage Notes (First Mortgage Loans)

Generally, notes for adjustable-rate mortgages apply to specific ARM plans. Fannie Mae does not publish state-specific notes for all ARM plans. If Fannie Mae does not publish state-specific documents for a particular ARM plan, the lender must use the multistate note for that particular ARM plan and amend it as necessary to satisfy the requirements of the jurisdiction in which the security property is located. Required amendments may be incorporated by reprinting the amended documents, adding addenda to the documents, or making the changes on the documents themselves. The various notes that are used for ARMs may be found on Fannie Mae’s website. Authorized changes that must or may be made to these documents are set out in the instructions that accompany each document.

Second Mortgage Notes

Fannie Mae does not publish standard notes for second mortgages; therefore, lenders must use a note developed or otherwise approved by their attorneys that is correct for the applicable transaction type, lien type, property type, and product type.

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-2013–06 August 20, 2013
Announcement SEL-2012–06 June 26, 2012