Selling Guide

Published September 4, 2018

C3-1-02: Preparing to Pool Loans into MBS (04/03/2018)

This topic provides information on the steps lenders need to take before they can obtain MBS commitments and pool loans into MBS, including:

Obtaining Approval to Deliver MBS Loans

A lender must obtain approval for MBS execution and access to Fannie Mae’s MBS committing application before it can deliver mortgages into a single-lender MBS pool or a Fannie Majors.

Fannie Mae considers a number of factors prior to offering MBS execution to a lender. These factors include, but are not limited to, the following:

  • the expertise of the lender’s management in securitization,

  • whether the lender’s operational processes support MBS delivery and servicing requirements,

  • the lender’s ability to manage and maintain a delivery process that ensures the delivery of accurate data to Fannie Mae,

  • the lender’s prepayment speeds, and

  • the lender’s performance against outstanding Fannie Mae obligations.

Fannie Mae does not accept requests for MBS execution from lenders whose selling or servicing privileges have been suspended or that have not performed satisfactorily under other MBS commitments or contracts.

Selecting a Document Custodian

Lenders must select an eligible document custodian and have the applicable executed Master Custodial Agreement in place before obtaining an MBS commitment (see A3-3-04, Document Custodians). The document custodian certifies, takes and retains actual physical possession of the custodial documents for the mortgages. Also, see the RDC guide for document custodian eligibility criteria.

Lenders may also use Fannie Mae’s DDC or FCC as their document custodian for MBS loans.

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-2018-03 April 03, 2018
Announcement SEL-2017-06 July 25, 2017
Announcement SEL-2016–09 December 06, 2016
Announcement 08-37 December 19, 2008