308.01

Description

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: 

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
    • 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
Step You must... Fannie Mae will...
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  • register 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. in 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. per Part I, Chapter 2: Mortgage Loan, Section 201: Registration and Multifamily Affordability Estimator; and
  • complete the initial 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. sizing.
  
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:

 

  • 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…;
  • 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. .
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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: 

 

  • the specified expiration date 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. term 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. ; and
  • all known 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. 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. required per Form 4098.
  
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  • advise the BorrowerBorrowerPerson who is the obligor per the Note. of the quoted: 
    • 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…; 
    • 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. ; 
  • obtain an executed Borrower CommitmentBorrower CommitmentYour written commitment with the Borrower to originate a Mortgage Loan, and any separate written or oral rate lock agreements between you and the Borrower to rate lock the Mortgage Loan. per Part IV, Chapter 2: Rate Lock and Committing, Section 201.01: Borrower Commitment, requiring the BorrowerBorrowerPerson who is the obligor per the Note. to:
    • accept 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. ; 
    • 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. ; 
    • close 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
    • be liable for any costs, fees, or damages for failing to originate 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. ; 
  • advise the BorrowerBorrowerPerson who is the obligor per the Note. :
    • to review the Loan DocumentsLoan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. and request any changes before entering into the Streamlined Treasury Lock Agreement (Form 6430.STLA); and
    • that, after entering into the Streamlined Treasury Lock Agreement (Form 6430.STLA), subsequent unapproved Loan DocumentLoan DocumentAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. modification requests are not a defense for the Borrower'sBorrower'sPerson who is the obligor per the Note. failure 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. , and
      • originate 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. ; 
  • execute the Streamlined Treasury Lock Agreement (Form 6430.STLA) with 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. , and GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. (or 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. if no GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. has been identified or is required) requiring the BorrowerBorrowerPerson who is the obligor per the Note. parties to pay the breakage fee plus any costs, expenses, and/or losses if the BorrowerBorrowerPerson who is the obligor per the Note. does not 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. ; and
  • collect from the BorrowerBorrowerPerson who is the obligor per the Note. a Streamlined Treasury Lock Deposit equal to:
    • 2.00% 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
    • any higher amount required by the Multifamily Pricing DeskMultifamily Pricing DeskTeam that: quotes interest rate pricing and other terms for a Mortgage Loan; and can be contacted at [email protected]. .

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:

 

  • 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…;
  • 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. .