Section 308
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Guidance
The Quote LetterQuote LetterFannie Mae response via DUS Gateway to your request for an interest rate quote on a Mortgage Loan, specifying: the breakdown of Total Credit Fees into the applicable Guaranty Fee, and Servicing Fee; and any other required terms and conditions. generated through DUS GatewayDUS GatewayMultifamily pre-acquisition system, or any successor systems, recording deal registration, Pre-Review and/or waiver tracking, Mortgage Loan Commitments, and decision records. includes the terms for a Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. , and its acceptance is subject to:
- this Part IV, Chapter 3: Streamlined Rate Lock, Section 308: Streamlined Treasury Lock; and
- the Streamlined Treasury Lock Agreement (Form 6430.STLA).
Until you obtain a Rate LockRate LockAgreement between you and the Investor containing the terms of the Lender-Arranged Sale or Multifamily Trading Desk trade of the Mortgage Loan and the MBS terms and conditions relating to the underlying MBS, if applicable, which may be documented via a recorded telephone conversation. using either the Streamlined Rate LockStreamlined Rate LockOptional process permitting a Rate Lock before completing full Mortgage Loan underwriting, per Part IV, Chapter 3: Streamlined Rate Lock. or standard Rate LockRate LockAgreement between you and the Investor containing the terms of the Lender-Arranged Sale or Multifamily Trading Desk trade of the Mortgage Loan and the MBS terms and conditions relating to the underlying MBS, if applicable, which may be documented via a recorded telephone conversation. options, the Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. will:
- lock the IndexIndexBasis for determining an ARM Loan Gross Note Rate or entering a Streamlined Treasury Lock on a fixed rate Mortgage Loan, including any required alternative index deemed necessary by Fannie Mae because the prior Index: is no longer widely accepted; or was replaced as the index for similar…; and
- hold the:
- Investor SpreadInvestor SpreadRequired spread above the Index (excluding the Guaranty Fee and Servicing Fee) charged by the Investor purchasing the: Mortgage Loan; or MBS Mortgage Loan. ; and
- Total Credit FeesTotal Credit FeesFor any Mortgage Loan or Credit Enhancement Mortgage Loan, the sum of the Guaranty Fee and the Servicing Fee, specified in the: Indicative Pricing Table in DUS Gateway; or Quote Letter. .
Requirements
You must not use the Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. for any:
- ARM LoanARM LoanMortgage Loan with an interest rate that periodically adjusts based on an Index per the Note or Loan Documents. ;
- SARM Loan;
- SponsorSponsorPrincipal equity owner and/or primary decision maker of the Borrower (often the Key Principal or the Person Controlling the Key Principal). who has not obtained 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. within the last 24 months;
- per Form 4660:
- Enhanced Pre-Review Mortgage Loan; or
- 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. with Pre-Review Re-Submission requirements;
- 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.
with:
- a Limited Experienced OwnerLimited Experienced OwnerAny Person who has not been a Sponsor, Cooperative Property Sponsor, Key Principal, or Guarantor for a Fannie Mae multifamily Mortgage Loan in the last 10 years before the Commitment Date. Regardless, a Sponsor, Cooperative Property Sponsor, Key Principal, or Guarantor is not a Limited…;
- authorization conditions per the Quote LetterQuote LetterFannie Mae response via DUS Gateway to your request for an interest rate quote on a Mortgage Loan, specifying: the breakdown of Total Credit Fees into the applicable Guaranty Fee, and Servicing Fee; and any other required terms and conditions. ;
- Preferred EquityPreferred EquityA direct or indirect investment in the Borrower, for which the organizational documents provide that equity investor with: an asset management fee or other fee before dividends, distributions, payments, or returns are paid to the investors; or preferred or unequal rights to receive… in the Borrower'sBorrower'sPerson who is the obligor per the Note. ownership structure; or
- a non-standard Prepayment Premium OptionPrepayment Premium OptionApplicable Form 6104 series schedule to the Loan Agreement. (i.e., a Prepayment PremiumPrepayment PremiumFor a Mortgage Loan prepayment, amount the Borrower must pay in addition to the prepaid principal and accrued interest per the Loan Documents. structure not published on Schedule 4 to the Multifamily Loan Agreement (Form 6104 series));
- 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.
secured by a Near Stabilized PropertyNear Stabilized PropertyNewly constructed or recently rehabilitated Property, with all construction or rehabilitation complete, which is expected to achieve Stabilized Residential Occupancy and the applicable required Underwritten Debt Service Coverage Ratio within 120 days after the Mortgage Loan Origination Date.
if you have requested to increase the 120-day period after the Mortgage Loan Origination DateMortgage Loan Origination DateDate you fund a Mortgage Loan to the Borrower.
within which the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the
fee simple or Leasehold interest,
Improvements, and
personal property (per the Uniform Commercial Code).
is required to achieve:
- Stabilized Residential OccupancyStabilized Residential OccupancyPercentage of Property units physically occupied by Qualified Occupants, per Part II, Chapter 1: Attributes and Characteristics, Section 105.02: Qualified Occupants as adjusted for the applicable Part III products and features. ; and
- the applicable required Underwritten DSCRUnderwritten DSCRRatio of Underwritten Net Cash Flow to the annual debt service for a Mortgage Loan amount based on a level debt service payment with the applicable amortization, and calculated per Part II, Chapter 2: Valuation and Income, Section 203: Income Analysis, as adjusted for the applicable products and…;
- Seniors HousingSeniors HousingMultifamily residential rental property with any combination of Independent Living, Assisted Living, Alzheimer’s/Dementia Care, or Skilled Nursing units. 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. ;
- Small Mortgage LoanSmall Mortgage LoanMortgage Loan with an original loan amount less than or equal to $9 million. ; or
- Credit FacilityCredit FacilityStructured Transaction governed by a Master Credit Facility Agreement requiring Mortgage Loans and Properties to be cross-defaulted, and cross-collateralized. initial advance (although a borrow-up/addition is eligible).
Before requesting a Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. from the Multifamily Trading DeskMultifamily Trading DeskTeam that: purchases and trades Cash Mortgage Loans and MBS Mortgage Loans for Fannie Mae's own account; and can be contacted at (888) 889-1118. , you must:
- complete sufficient underwriting to support your request for a Quote LetterQuote LetterFannie Mae response via DUS Gateway to your request for an interest rate quote on a Mortgage Loan, specifying:
the breakdown of Total Credit Fees into the applicable
Guaranty Fee, and
Servicing Fee; and
any other required terms and conditions.
with a Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a:
Streamlined Rate Lock; or
standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock.
, including:
- complying with all general eligibility requirements for the 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. ;
- unless using the Dual Commitment OptionDual Commitment OptionFor a Streamlined Rate Lock Mortgage Loan trade with the Multifamily Trading Desk, your ability to increase the Mortgage Loan Rate Lock amount. per Part IV, Chapter 3: Streamlined Rate Lock, Section 307: Dual Commitment Option, determining the preliminary NCFNCFAt underwriting or for any specified period, the amount calculated per Part II, Chapter 2: Valuation and Income, Section 203: Income Analysis and the applicable products and features in Part III. , NOINOIAt underwriting or for any specified period, the Property's total Effective Gross Income minus operating expenses. , and PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). valuation analysis to support 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. amount within the Rate LockRate LockAgreement between you and the Investor containing the terms of the Lender-Arranged Sale or Multifamily Trading Desk trade of the Mortgage Loan and the MBS terms and conditions relating to the underlying MBS, if applicable, which may be documented via a recorded telephone conversation. tolerance per Part IV, Chapter 3: Streamlined Rate Lock, Section 308.03: Rate Lock Tolerance;
- performing your
- rent collection analysis, and
- refinance risk analysis per Part II, Chapter 2: Valuation and Income, Section 204: Refinance Risk Analysis; and
- determining any other material assumptions regarding the 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. ;
- for a refinance, confirm the Portfolio Mortgage LoanPortfolio Mortgage LoanMortgage Loan purchased by Fannie Mae and held as of a certain date regardless of whether it is a Cash Mortgage Loan or an MBS Mortgage Loan. is not in Payment DefaultPayment DefaultBorrower's failure to fully pay any required Mortgage Loan payment when due, including, principal, interest, late charges, default interest, fees, pricing incentive recapture, prepayment premium, escrows, or other collateral accounts for taxes, insurance, …;
- identify the SponsorSponsorPrincipal equity owner and/or primary decision maker of the Borrower (often the Key Principal or the Person Controlling the Key Principal). , BorrowerBorrowerPerson who is the obligor per the Note. (except a BorrowerBorrowerPerson who is the obligor per the Note. that is being newly formed), any GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. , and all Key PrincipalsKey PrincipalsPerson who controls and/or manages the Borrower or the Property, is critical to the successful operation and management of the Borrower and the Property, and/or may be required to provide a Guaranty. , and PrincipalsPrincipalsPerson who owns or controls, in the aggregate, directly or indirectly (together with that Person's Immediate Family Members, if an individual), specified interests in the Borrower per Part I, Chapter 3: Borrower, Guarantor, Key Principals, and Principals, Section 303: Key Principals, Principals,… known when requesting the Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. , per Part I, Chapter 3: Borrower, Guarantor, Key Principals, and Principals; and
- comply with Part I, Chapter 3: Borrower, Guarantor, Key Principals, and Principals, Section 309: Applicant Experience Check.
Operating Procedures
To obtain a Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. , you must comply with the following.
| Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. Process | ||
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| Step | You must... | Fannie Mae will... |
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| 3 | request, via DUS GatewayDUS GatewayMultifamily pre-acquisition system, or any successor systems, recording deal registration, Pre-Review and/or waiver tracking, Mortgage Loan Commitments, and decision records. , a Quote LetterQuote LetterFannie Mae response via DUS Gateway to your request for an interest rate quote on a Mortgage Loan, specifying: the breakdown of Total Credit Fees into the applicable Guaranty Fee, and Servicing Fee; and any other required terms and conditions. for the 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. that includes a quote for a Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. . |
issue a Quote LetterQuote LetterFannie Mae response via DUS Gateway to your request for an interest rate quote on a Mortgage Loan, specifying: the breakdown of Total Credit Fees into the applicable Guaranty Fee, and Servicing Fee; and any other required terms and conditions. via DUS GatewayDUS GatewayMultifamily pre-acquisition system, or any successor systems, recording deal registration, Pre-Review and/or waiver tracking, Mortgage Loan Commitments, and decision records. that specifies the terms of the Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. , including the:
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submit the Multifamily Required Trade Information for Cash or MBS Mortgage Loans (Form 4097) to the Multifamily Trading DeskMultifamily Trading DeskTeam that: purchases and trades Cash Mortgage Loans and MBS Mortgage Loans for Fannie Mae's own account; and can be contacted at (888) 889-1118. , including:
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confirm, via email to you, the final terms of the Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. , including the:
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| 308.02 | |
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Requirements
You must ensure the "Index Lock Expiration Date" in the Streamlined Treasury Lock Agreement (Form 6430.STLA) is the same as the Quote LetterQuote LetterFannie Mae response via DUS Gateway to your request for an interest rate quote on a Mortgage Loan, specifying: the breakdown of Total Credit Fees into the applicable Guaranty Fee, and Servicing Fee; and any other required terms and conditions. expiration date per Step 3 of the Streamlined Treasury Lock Process per Part IV, Chapter 3: Streamlined Rate Lock, Section 308.01: Description.
On or before the Quote LetterQuote LetterFannie Mae response via DUS Gateway to your request for an interest rate quote on a Mortgage Loan, specifying: the breakdown of Total Credit Fees into the applicable Guaranty Fee, and Servicing Fee; and any other required terms and conditions. expiration date, you must enter into a Rate LockRate LockAgreement between you and the Investor containing the terms of the Lender-Arranged Sale or Multifamily Trading Desk trade of the Mortgage Loan and the MBS terms and conditions relating to the underlying MBS, if applicable, which may be documented via a recorded telephone conversation. for the 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. with Fannie Mae using the:
- Streamlined Rate LockStreamlined Rate LockOptional process permitting a Rate Lock before completing full Mortgage Loan underwriting, per Part IV, Chapter 3: Streamlined Rate Lock. option; or
- standard Rate LockRate LockAgreement between you and the Investor containing the terms of the Lender-Arranged Sale or Multifamily Trading Desk trade of the Mortgage Loan and the MBS terms and conditions relating to the underlying MBS, if applicable, which may be documented via a recorded telephone conversation. option.
The held Investor SpreadInvestor SpreadRequired spread above the Index (excluding the Guaranty Fee and Servicing Fee) charged by the Investor purchasing the: Mortgage Loan; or MBS Mortgage Loan. and Total Credit Fee components of the Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. will be adjusted if Fannie Mae, at any time before Rate LockRate LockAgreement between you and the Investor containing the terms of the Lender-Arranged Sale or Multifamily Trading Desk trade of the Mortgage Loan and the MBS terms and conditions relating to the underlying MBS, if applicable, which may be documented via a recorded telephone conversation. , determines that:
- the interest rate quote does not accurately reflect all material transaction-specific facts relating to the SponsorSponsorPrincipal equity owner and/or primary decision maker of the Borrower (often the Key Principal or the Person Controlling the Key Principal). , BorrowerBorrowerPerson who is the obligor per the Note. , Key PrincipalKey PrincipalPerson who controls and/or manages the Borrower or the Property, is critical to the successful operation and management of the Borrower and the Property, and/or may be required to provide a Guaranty. , and/or GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. , PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). , or other features or terms of the proposed 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. ;
- the SponsorSponsorPrincipal equity owner and/or primary decision maker of the Borrower (often the Key Principal or the Person Controlling the Key Principal). , BorrowerBorrowerPerson who is the obligor per the Note. , Key PrincipalKey PrincipalPerson who controls and/or manages the Borrower or the Property, is critical to the successful operation and management of the Borrower and the Property, and/or may be required to provide a Guaranty. , and/or GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. , and PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). have not satisfied all assumptions, conditions, and other criteria set forth in the interest rate quote;
- your final underwriting determines a Pricing and Underwriting TierPricing and Underwriting TierTier 1, Tier 2, Tier 3, or Tier 4 per the Multifamily Underwriting Standards (Form 4660). different from the basis of the Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. and Investor SpreadInvestor SpreadRequired spread above the Index (excluding the Guaranty Fee and Servicing Fee) charged by the Investor purchasing the: Mortgage Loan; or MBS Mortgage Loan. in the interest rate quote;
- your final underwriting determines the 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. requires Additional DisclosureAdditional DisclosureInformation you provide that is published as an addendum to the disclosure documents when an MBS is issued and describes special Security, Mortgage Loan, or Property characteristics or terms that differ from those described in the standard Multifamily MBS Prospectus. per Form 4098; or
- any of the representations, warranties, statements, certificates, or other data and information provided by any of the SponsorSponsorPrincipal equity owner and/or primary decision maker of the Borrower (often the Key Principal or the Person Controlling the Key Principal). , BorrowerBorrowerPerson who is the obligor per the Note. , Key PrincipalKey PrincipalPerson who controls and/or manages the Borrower or the Property, is critical to the successful operation and management of the Borrower and the Property, and/or may be required to provide a Guaranty. , and/or GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. to you or to Fannie Mae, including the statements made in the Streamlined Treasury Lock Agreement (Form 6430.STLA), was materially false or misleading as of the date given.
Guidance
Each Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. is specific to that
- 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. , and
- PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). .
Requirements
If the BorrowerBorrowerPerson who is the obligor per the Note. fails to Rate LockRate LockAgreement between you and the Investor containing the terms of the Lender-Arranged Sale or Multifamily Trading Desk trade of the Mortgage Loan and the MBS terms and conditions relating to the underlying MBS, if applicable, which may be documented via a recorded telephone conversation. the 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. with Fannie Mae by the Quote LetterQuote LetterFannie Mae response via DUS Gateway to your request for an interest rate quote on a Mortgage Loan, specifying: the breakdown of Total Credit Fees into the applicable Guaranty Fee, and Servicing Fee; and any other required terms and conditions. expiration date, the Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. may not be used for a different
- 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. , or
- PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). .
| 308.03 | |
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Requirements
The Rate LockRate LockAgreement between you and the Investor containing the terms of the Lender-Arranged Sale or Multifamily Trading Desk trade of the Mortgage Loan and the MBS terms and conditions relating to the underlying MBS, if applicable, which may be documented via a recorded telephone conversation. amount and Commitment AmountCommitment AmountAnticipated Mortgage Loan amount per the Commitment. must not be:
- less than 90% of the Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. amount; or
- more than 110% of the Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. amount.
For any 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. using a Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. :
- no additional delivery tolerance (per Part IV, Chapter 4: Delivery, Section 405.01: Acceptability and Delivery Tolerance) is permitted; and
- the Delivered Mortgage Loan AmountDelivered Mortgage Loan AmountUPB of a Mortgage Loan when it is purchased by Fannie Mae. must equal the Commitment AmountCommitment AmountAnticipated Mortgage Loan amount per the Commitment. .
Guidance
If you notified the Multifamily Trading DeskMultifamily Trading DeskTeam that: purchases and trades Cash Mortgage Loans and MBS Mortgage Loans for Fannie Mae's own account; and can be contacted at (888) 889-1118. of your intention to use the Dual Commitment OptionDual Commitment OptionFor a Streamlined Rate Lock Mortgage Loan trade with the Multifamily Trading Desk, your ability to increase the Mortgage Loan Rate Lock amount. per Part IV, Chapter 3: Streamlined Rate Lock, Section 307: Dual Commitment Option, and your final Underwriting ValueUnderwriting ValueValue of the Property determined by the Lender to size the Mortgage Loan per Part II, Chapter 2: Valuation and Income, Section 202: Appraisal and Valuation. supports 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. amount greater than 110% of the Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. amount, you may use the Dual Commitment OptionDual Commitment OptionFor a Streamlined Rate Lock Mortgage Loan trade with the Multifamily Trading Desk, your ability to increase the Mortgage Loan Rate Lock amount. to enter into a Rate LockRate LockAgreement between you and the Investor containing the terms of the Lender-Arranged Sale or Multifamily Trading Desk trade of the Mortgage Loan and the MBS terms and conditions relating to the underlying MBS, if applicable, which may be documented via a recorded telephone conversation. for the excess loan proceeds above 110% of the Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. amount.
Operating Procedures
Fannie Mae may take certain actions (as specified in the Streamlined Treasury Lock Agreement (Form 6430.STLA)) if, by the Quote LetterQuote LetterFannie Mae response via DUS Gateway to your request for an interest rate quote on a Mortgage Loan, specifying: the breakdown of Total Credit Fees into the applicable Guaranty Fee, and Servicing Fee; and any other required terms and conditions. expiration date:
- you fail to:
- enter into a Streamlined Rate LockStreamlined Rate LockOptional process permitting a Rate Lock before completing full Mortgage Loan underwriting, per Part IV, Chapter 3: Streamlined Rate Lock. or standard Rate LockRate LockAgreement between you and the Investor containing the terms of the Lender-Arranged Sale or Multifamily Trading Desk trade of the Mortgage Loan and the MBS terms and conditions relating to the underlying MBS, if applicable, which may be documented via a recorded telephone conversation. with Fannie Mae for the 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. ; and
- obtain 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. CommitmentCommitmentContractual agreement between you and Fannie Mae where Fannie Mae agrees to buy a Mortgage Loan at a future date in exchange for an MBS, or at a specific price for a Cash Mortgage Loan, and you agree to Deliver that Mortgage Loan. ; or
- any other default by the SponsorSponsorPrincipal equity owner and/or primary decision maker of the Borrower (often the Key Principal or the Person Controlling the Key Principal). or any BorrowerBorrowerPerson who is the obligor per the Note. party occurs under the Streamlined Treasury Lock Agreement (Form 6430.STLA).
If you fail to enter into a Streamlined Rate LockStreamlined Rate LockOptional process permitting a Rate Lock before completing full Mortgage Loan underwriting, per Part IV, Chapter 3: Streamlined Rate Lock. or standard Rate LockRate LockAgreement between you and the Investor containing the terms of the Lender-Arranged Sale or Multifamily Trading Desk trade of the Mortgage Loan and the MBS terms and conditions relating to the underlying MBS, if applicable, which may be documented via a recorded telephone conversation. for the 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. , Fannie Mae will:
- draft, as a breakage fee paid to the Multifamily Trading DeskMultifamily Trading DeskTeam that:
purchases and trades Cash Mortgage Loans and MBS Mortgage Loans for Fannie Mae's own account; and
can be contacted at (888) 889-1118.
for the broken Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a:
Streamlined Rate Lock; or
standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock.
, an amount equal to:
- the greater of (but not to exceed the Streamlined Treasury Lock Deposit):
- 0.5% of the Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. amount; or
- all costs, expenses, and/or losses incurred by Fannie Mae in connection with entering into, maintaining, or unwinding hedge positions executed in reliance on the Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. ; plus
- all enforcement costs incurred by Fannie Mae in connection with the Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. ; and
- the greater of (but not to exceed the Streamlined Treasury Lock Deposit):
- retain these funds as liquidated damages in full satisfaction of your Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. obligations.
This remedy will occur:
- after the Index Lock Expiration Date specified in the Streamlined Treasury Lock Agreement (Form 6430.STLA); but
- no sooner than the 2nd Business DayBusiness DayAny day other than a Saturday, Sunday, day when Fannie Mae is closed, day when the Federal Reserve Bank of New York is closed, or for any MBS and required remittance withdrawal, day when the Federal Reserve Bank is closed in the district where any of the MBS funds are held. after Fannie Mae sends you a notice of default under the Streamlined Treasury LockStreamlined Treasury LockOptional process permitting you to lock the Index and hold the Investor Spread and Total Credit Fees before entering into either a: Streamlined Rate Lock; or standard Rate Lock per Part IV, Chapter 2: Rate Lock and Committing, Section 202: Obtaining a Rate Lock. .