Selling Guide

Published October 2, 2018

C3-6-01: Parameters for Pooling Loans Into Fannie Majors (04/25/2017)

This topic contains general parameters for pooling loans into Fannie Majors, including:

Fannie Majors Overview

Fannie Majors are pools of loans that are contributed by more than one lender. Lenders participating in a Fannie Majors pool receive an MBS representing its share of the pool in proportion to the dollar amount of mortgages it contributed to the pool.

Obtaining Fannie Majors Pool Numbers

The pool number identifies the pools in which a lender’s loans are included. Fannie Mae assigns Fannie Majors pool numbers based on loan term, pass-through rate, and the month of issuance. Pool numbers, CUSIP numbers, and pass-through rates are posted on the Fannie Majors page on Fannie Mae's website and on the various wire services.

Selecting Mortgages to Include in a Fannie Majors Pool

When deciding which mortgages to include in a Fannie Majors pool, lenders must make sure that:

  • the mortgage conforms to the appropriate product type,

  • the mortgage has the appropriate seasoning,

  • the note rate is within the minimum and maximum range in relation to the pass-through rate, and

  • the minimum submission size is satisfied.

To be eligible for a Fannie Majors pool, mortgages may be no older than 12 months as of the security issue date. In addition, for certain Fannie Majors pools identified on the Fannie Majors page, mortgages may be no older than three months as of the security issue date. For example, for a January 1, 2017 issue date, a loan’s first payment date cannot be earlier than November 1, 2016.

As with single-lender, fixed-rate MBS pools, the minimum and maximum allowable interest rate within a Fannie Majors pool is 25 basis points (.25%) and 250 basis points (2.5%) respectively above the pool’s pass-through rate. Lenders can use loan-level buyups and buydowns to eliminate excess servicing and, in the case of buydowns, include loans in a higher coupon.

Fannie Majors have a minimum submission requirement of $1,000 when lenders deliver the loan to Fannie Mae.

Selecting a Settlement Date and Security Issuance

Lenders may choose their own settlement date for a Fannie Majors pool. If a lender makes several submissions into the same Fannie Majors pool, it may select different settlement dates for each.

Fannie Mae can issue securities in book-entry form within six business days after the lender submits a complete, error-free pool documentation package via Loan Delivery, as long as Fannie Mae receives:

  • the lender’s transmission of the loan delivery data by 6:00 p.m. (Eastern time), and

  • the transmission of the document custodian’s pool certification by 10:30 a.m. (Eastern time) on the day following the lender’s Loan Delivery transmission.

Lenders submitting loans via hard copy or magnetic tape should expect longer turnaround times. See C3-7-06, Settling the Trade, for additional information on turnaround times.

If lenders prefer an earlier book-entry than six days, Fannie Mae’s Flash MBS is available, and securities can be issued within three to five business days after Fannie Mae receives the lender’s Loan Delivery submission. If the lender makes multiple submissions into the same Fannie Majors pool, it may select Flash processing for some pieces and regular turnaround times for others.

A lender delivering into Fannie Majors receives securities rounded to the lowest whole dollar amount of the loans it contributed to the pool, unless it requests otherwise. Fannie Mae issues certificates in minimum denominations of $1,000 with additional increments of one dollar. Only one security denomination can be issued for each account.

Making Multiple Submissions

A lender may deliver several different pools for inclusion in a multiple pool as long as all of the pools have the same product type, remittance cycle, and loan servicer—although Fannie Mae may permit the use of multiple servicers on a case-by-case basis. Each pool should be submitted separately and must meet the $1,000 minimum submission requirement.

Fannie Mae will combine the submissions with the same branch seller/servicer number and remittance day into the same pool under the same lender. These loans must be serviced as one pool after issuance. The dollar amount of the lender’s securities will be equal to the sum of the issue date principal balances of all the mortgages from each of the lender’s pool documentation packages related to the multiple pool, rounded down to the next lowest whole dollar amount.

Lenders may deliver nonstandard loans (as defined in C3-2-01, Determining Eligibility for Loans Pooled into MBS) into Fannie Majors MBS pools. Each discrete delivery the lender makes under a given Fannie Majors TBA–eligible MBS pool will be subject to the limitations that apply to a single TBA–eligible MBS pool. As such, each discrete delivery is subject to the following limitations:

  • The delivered UPB of co-op share loans, high-balance mortgage loans, loans with significant interest rate buydowns, and relocation loans may not exceed 10% individually.

  • The delivered UPB of two or more of these nonstandard loans — co-op share loans, loans with significant interest rate buydowns, and relocation loans — may not exceed 15% of that lender’s total delivery. High-balance mortgage loans are not subject to the 15% limitation.

For example, if a lender makes three separate deliveries into a specific Fannie Majors TBA-eligible MBS pool, each of the three deliveries must satisfy the 10% and 15% delivery limitations for nonstandard loans. However, the 15% cumulative limitation does not apply to high-balance loans in each discrete delivery into the Fannie Majors TBA-eligible MBS pool. See C3-2-01, Determining Eligibility for Loans Pooled into MBS for additional information.

Related Announcements

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

Announcement Issue Date
Announcement SEL-2017-04 April 25, 2017
Announcement SEL-2016–08 October 24, 2016
Announcement SEL-2016–02 February 23, 2016
Announcement SEL-2012–06 June 26, 2012
Announcement SEL-2011–11 October 25, 2011
Announcement SEL-2011–03 March 31, 2011
Announcement SEL-2010–04 March 29, 2010
Announcement 09-08R June 8, 2009
Announcement 08-36 December 18, 2008