A lender can begin to deliver loans against its commitments as soon as it receives a commitment confirmation number for whole loans, or an MBS commitment contract number for MBS loans. The lender must deliver the loans required to fulfill the commitment prior to the commitment expiration date. Specifically, lenders must submit loan data electronically, via Loan Delivery, and send the documentation package to the document custodian.
Fannie Mae may reject a loan for a variety of reasons, including failure to meet Fannie Mae’s eligibility requirements, incomplete or inaccurate loan delivery data, or incomplete document submission packages. Fannie Mae may assess a late delivery fee for loans that are redelivered after a commitment has expired. See C2-2-01, General Requirements for Good Delivery of Whole Loans, and C2-2-02, Documentation Requirements for Whole Loan Deliveries, for information concerning whole loan data and document delivery requirements and C3-7-04, Delivering MBS Pool Data and Documents, for information concerning data and document delivery requirements for loans in MBS pools.
For both whole loan and MBS deliveries, lenders may deliver an amount slightly higher or lower than the original commitment amount, without charge. For information on delivery tolerances specific to whole loan sales and MBS transactions, see C2-1.1-02, Pricing, Fees, and Pricing Adjustments, and C3-7-03, Making Good Delivery.
Lenders must ensure that all loans selected for delivery meet Fannie Mae’s underwriting and eligibility guidelines and legal requirements. The loan terms must also match the terms of the commitment, including mortgage type, amortization, original term, and pass-through rate(s) selected for delivery when the commitment was created.
When Fannie Mae purchases loans in fulfillment of a whole loan execution, it does so by sending funds via wire transfer to an account designated by the lender for this purpose. For MBS transactions, Fannie Mae issues securities to the lender, if the lender has elected to hold the securities in its portfolio, or to the investor designated by the lender, if the lender has sold the securities before it delivers the loans to Fannie Mae. If the lender has elected to use an “original issue” settlement to fund a forward trade through Fannie Mae’s Capital Markets Pricing and Sales Desk (see E-1-03, List of Contacts), the securities will be assigned directly to Fannie Mae. For details specific to the two types of transactions, see C2-2-03, General Information on Whole Loan Purchasing Policies, and C3-7-06, Settling the Trade, respectively.
The table below provides references to the Announcements that have been issued that are related to this topic.