Conversion Process
Requirements
For a Mortgage LoanMortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents or a mortgage debt obligation with a Fannie Mae credit enhancement. originated using Fannie Mae form Loan DocumentsLoan DocumentsAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. that automatically converts to a variable rate or a fixed rate per the Loan DocumentsLoan DocumentsAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. , you must comply with the Loan DocumentsLoan DocumentsAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. .
For a Mortgage LoanMortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents or a mortgage debt obligation with a Fannie Mae credit enhancement. originated using non-Fannie Mae form Loan DocumentsLoan DocumentsAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. with a conversion option or other interest rate change (automatic or otherwise), you must
- comply with the Loan DocumentsLoan DocumentsAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. , and
- contact Multifamily AcquisitionsMultifamily AcquisitionsTeam that can be contacted at [email protected] .
You must use the following table to determine the conversion process.
| For conversion of... | You must... |
|---|---|
| An ARM Loan or a SARM Loan to fixed rate | Comply with this Chapter. |
| A variable rate Mortgage Loan in a Structured Transaction to fixed rate | Comply with Part IV, Chapter 2: Rate Lock and Committing. |
| A Hybrid ARM Loan to the adjustable rate term | Comply with Part III, Chapter 13: Hybrid Adjustable Rate Mortgage (Hybrid ARM) Loans. |
| A variable rate Credit Enhancement Mortgage Loan to fixed rate | Comply with Part III, Chapter 19: Bond Transactions and Credit Enhancement Mortgage Loans. |
Guidance
For information about the ARM LoanARM LoanMortgage Loan with an interest rate that periodically adjusts based on an Index per the Note or Loan Documents. and SARM Loan conversion process, refer to Frequently Asked Questions (FAQs) Exercising the Fixed Rate Conversion Option for an Adjustable Rate Mortgage Loan (ARM Loan) or a Structured ARM Loan (SARM Loan).