Operating Procedures
You must coordinate with Fannie Mae to ensure the following conversion activities occur.
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Fannie Mae will... |
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- Issue a new fixed rate MBS Pool after completing the conversion process.
- Deliver the converted fixed rate Mortgage Loan to Fannie Mae under the new confirmed Commitment.
- Ensure the MBS trade has a Book-Entry Date no later than:
- the 17th day of the month of the Conversion Effective Date for an MBS ARM Loan or SARM Loan; or
- the 10th day of the month of the Conversion Effective Date for a Cash ARM Loan or SARM Loan.
- Deposit the funds from the MBS trade into your applicable P&I Custodial Account.
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- Issue the new fixed rate MBSMBSMortgage-Backed Security
.
- For a variable rate Cash Mortgage LoanCash Mortgage LoanMortgage Loan purchased by Fannie Mae in exchange for cash.
, place it into the MBSMBSMortgage-Backed Security
trade assignment account.
- Transfer the MBSMBSMortgage-Backed Security
to the MBS InvestorMBS InvestorFor MBS Mortgage Loans, either a Third Party MBS Investor for Lender-Arranged Sales, or the Multifamily Trading Desk.
per your instruction on either the 10th or the 17th day of the month (as applicable) of the Conversion Effective Date.
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