Selling Guide

Published June 5, 2018

Required Documents for MBS Pool Loans

See E-2-01, Required Custodial Documents for a list of mortgage documents that should be included in the document submission package for all mortgage loans.

General MBS Pool Delivery Requirements

A lender must deliver the mortgage document submission package to Fannie Mae’s DDC, FCC, or to an approved document custodian that meets Fannie Mae’s eligibility criteria at the same time it transmits the loan delivery data to Fannie Mae and the document custodian. The custodian must complete the required loan certification prior to pool closing, which must occur before Fannie Mae issues the related securities.

The lender must allow sufficient processing time between the time it submits its loan delivery data and the document submission package and the time it wants the securities to be issued in book-entry form.

For additional information on the eligibility criteria for document custodians, see the RDC guide.

MBS Pool Data Delivery Requirements

When a lender transmits its loan delivery data, it must include a Delivery Schedule (Form 2014) for MBS pools. Form 2014 identifies the parties to which the securities are to be issued. If the lender markets and sells the securities before it submits its pool documentation to Fannie Mae, it must provide instructions related to the delivery of the securities on this form. Special instructions for preparing Form 2014 are necessary for MBS delivered using the early funding option As Soon As Pooled Sale.

The lender enters loan data into Loan Delivery. Data should include the Financial Institution Number (FIN) of the applicable document custodian. When submitting loan delivery data to Fannie Mae, the lender represents and warrants that:

  • the data is correct,

  • each loan listed is to be transferred to Fannie Mae on the book-entry delivery date of the related securities, and

  • the loans will be delivered and serviced in accordance with the terms of the MBS commitment and Fannie Mae’s Guides.

For information about specific FIN codes, see Loan Delivery Data Requirements.

Lenders delivering into Fannie Majors must include the Fannie Majors pool and CUSIP number in their deliveries. A lender may submit data for mortgages in the same Fannie Majors at different times and on different days of the month, as long as all of the mortgages submitted are the same product type and have the same remittance cycle and servicer.

Fannie Mae must have received the lender’s loan delivery data for a specific MBS pool transaction by the time it receives the document custodian’s electronic certification for the pool. The easiest way to ensure that happens is to transmit the loan delivery data electronically to the document custodian and Fannie Mae at the same time, via Loan Delivery.

If the lender fails to deliver the required delivery data for any specific MBS pool transaction to Fannie Mae, Fannie Mae may terminate the related MBS commitment by giving the lender written notice of the termination. Fannie Mae will telephone the lender in advance to inform it that a written termination notification is being sent.

MBS Pool Document Delivery Requirements

A lender must submit its pool documentation package in sufficient time to allow Fannie Mae to complete its review prior to the book-entry delivery date.

A lender must have a custodial arrangement for each MBS pool transaction it delivers to Fannie Mae. If the seller wishes to use Fannie Mae’s DDC or FCC, it will need to add the DDC or FCC to its profile within the Loan Delivery application. In addition, the seller must submit the FIN code for the DDC or FCC in the delivery file. The FIN code allows the data to be routed to the proper document custodian. Failure to specify the proper FIN may result in a delay of certification and/or MBS pool securitization. However, if an MBS pool contains one or more ASAP Plus loans, all loans within the pool must be certified by the DDC or FCC. See ASAP Plus Mortgage Loan Deliveries and Redeliveries as ASAP Plus Pools below, for additional details.

Once the lender has the applicable Master Custodial Agreement on file with Fannie Mae for each of the different document custodians it uses (see A3-3-04, Document Custodians), the lender will not need to advise Fannie Mae about the specific custodial arrangement for specific MBS pools when they are delivered.

When a lender delivers loans into an MBS, it must send documentation on each mortgage to its designated document custodian for certification and retention of physical custody, from that point forward, pending successful completion of the loan acquisition transaction. If the Fannie Mae DDC or FCC is the document custodian, the seller should ensure that the mortgage document submission package is submitted to its overnight carrier (with instructions for first morning delivery) the same day that the seller submits the loan data to Fannie Mae for purchase. Loan data delivered by the seller to Fannie Mae will be certified the next business day provided the documents have been delivered to the DDC or FCC via first morning delivery, and there are no discrepancies and no unresolved lien issues. See E-1-03, List of Contacts

When the DDC or FCC receives the mortgage document submission package, it will review the related mortgage documentation to verify that all of the required documents have been received and are in order. Provided there are no document or data-related errors or unresolved lien issues, the DDC or FCC will then transmit a certification to Fannie Mae via the Document Certification application.

The lender will be notified of any document or data deficiencies via the DDC’s Web portal. The lender should work directly with the DDC or FCC to resolve any document issues.

Provided there are no document or data-related errors, the DDC or FCC will then transmit a certification to Fannie Mae via the Document Certification application. See E-2-01, Required Custodial Documents.

As Soon As Pooled Plus Mortgage Loan Deliveries and Redeliveries as As Soon As Pooled Plus Pools

To ensure timely delivery, the seller should ensure that the mortgage document submission package is submitted to its overnight carrier (with instructions for first morning delivery) the same day that they submit the loan data to Fannie Mae for funding. Loan data delivered by the seller to Fannie Mae will be certified the next business day provided the documents have been delivered to the DDC or FCC via first morning delivery, and there are no discrepancies and no unresolved lien issues.

When Fannie Mae’s DDC or FCC receives the mortgage document submission package, it will review the related mortgage documentation to verify that all of the required documents have been received and are in order. The DDC or FCC will verify and work with the lender to correct any certification data errors.

The lender will be notified of any document deficiencies by the DDC or FCC. The lender should work directly with the DDC or FCC to resolve any document or data issues. Provided there are no document or data-related errors, the DDC or FCC will then transmit a certification to Fannie Mae.

If sellers opt to redeliver an As Soon As Pooled Plus loan as a portfolio mortgage execution to Fannie Mae, they should redeliver the loan to Fannie Mae via Loan Delivery. When an As Soon As Pooled Plus loan is redelivered as a portfolio mortgage loan, sellers must include the FIN code upon redelivery. Failure to specify the proper code may result in a delay of certification and/or purchase of the loan.

If sellers opt to redeliver an As Soon As Pooled Plus loan as an MBS execution to Fannie Mae, they should redeliver the loan to Fannie Mae via Loan Delivery.

If an MBS pool contains one or more As Soon As Pooled Plus loans, all ASAP Plus loans within the pool must be certified by the DDC or FCC. In addition, the seller must transmit all of the loans in the pool with the same FIN code. The seller will need to add the DDC or FCC to its profile within the Loan Delivery application.

Failure to specify the proper FIN code may result in a delay of certification and/or purchase of the loan.

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-2017-10 December 19, 2017
Announcement SEL-2017-06 July 25, 2017
Announcement SEL-2016–09 December 06, 2016
Announcement SEL-2014–11 August 26, 2014
Announcement SEL-2012–13 November 13, 2012
Announcement SEL-2012–06 June 26, 2012
Announcement 08-37 December 19, 2008