By accepting any prices and delivering mortgages to Fannie Mae pursuant to a commitment obtained through Fannie Mae’s whole loan committing application, the lender confirms that:
the lender is approved and continues to satisfy the eligibility requirements as described in this Guide, and
the mortgages comply with all Fannie Mae requirements in the Mortgage Selling and Servicing Contract and the Selling and Servicing Guides.
Fannie Mae will commit to pay to lenders proceeds that are based upon the acquisition price for committed loans, subject to any applicable adjustments, as long as:
the key data and product type delivered matches the key data and product type reported to Fannie Mae to enter into the commitment, and
the acquisition date is on or before the date upon which the commitment expires.
Best efforts commitments are for a specific borrower, address, and commitment period. Loan substitution is not allowed. Lenders may not change a best efforts commitment to a mandatory commitment (or vice versa) or change the remittance type from scheduled/scheduled to actual/actual (or vice versa).
Lenders must notify Fannie Mae via the whole loan committing application within one business day of any change to the key data or product type that occurs during the commitment period. If there is a change to the key data or product type and the new loan meets Fannie Mae’s eligibility requirements, the acquisition price for the committed loan may be changed to reflect the revised information (using worse case pricing when applicable).
Lenders may retain, release, or sell the servicing rights associated with the loans they deliver in fulfillment of a best efforts commitment. Lenders may also execute a concurrent transfer of servicing via the whole loan committing application. If approved to participate in the Servicing Execution Tool component of the whole loan committing application, lenders have the option to retain servicing or arrange for the concurrent sale of servicing to a participating servicer through the Servicing Execution Tool. See C2-1.3-01, Servicing Execution Tool and Servicing Marketplace, for more information.
Those retaining or releasing servicing may do so using the actual/actual or scheduled/scheduled remittance type. Certain products, however, require servicing via a specific remittance type. See C1-3-01, General Information on Remittance Types, for information on remittance types and the Cash Remittance System for details on remittance requirements for specific mortgage products.
For more information and to learn about additional terms and conditions associated with servicing-released executions, lenders should contact their Fannie Mae customer account team or the Capital Markets Pricing and Sales Desk for details.
Fannie Mae's DDC or FCCs serve as the document custodian for loans delivered via a best efforts execution. For additional information on the role of Fannie Mae's DDC or FCCs, see C2-2-02, Documentation Requirements for Whole Loan Deliveries.
Early funding is available for loans delivered in fulfillment of a best efforts commitment. For details on this option and other options, and terms and conditions associated with best efforts commitments, lenders should contact their Fannie Mae customer account team or the Capital Markets Pricing and Sales Desk.
A lender may fulfill a best efforts commitment by delivering a mortgage loan with a valid DU loan casefile ID that is associated with the lender's institution ID. The DU loan casefile must have received a DU recommendation of Approve/Eligible no earlier than 60 days prior to commitment. Alternatively, lenders may select the “Other” Underwriting Method (as viewed in the whole loan committing application), in which case a DU recommendation is not required.
The table below provides references to the Announcements and Release Notes that have been issued that are related to this topic.
|Announcements and Release Notes||Issue Date|
|Announcement SEL-2018-03||April 03, 2018|
|Announcement SEL-2015–06||May 26, 2015|
|Announcement SEL-2015–01||January 27, 2015|
|Announcement SEL-2014–16||December 16, 2014|
|Announcement SEL-2013–08||October 22, 2013|
|Announcement SEL-2012–07||August 21, 2012|
|DU Version 9.0||July 24, 2012|
|Announcement SEL-2011–11||October 25, 2011|
|Announcement SEL-2011–04||May 24, 2011|
|Announcement 09–29||September 22, 2009|
|Announcement 08-32||December 10, 2008|