Selling Guide - Fannie Mae

1 Selling GuideFannie Mae Single FamilyFebruary 23, 2016 Selling Guide : Fannie Mae Single FamilyPublished February 23, 2016 February 23, 2016 Fannie Mae Copyright Notice(1) 2016 Fannie Mae. No part of this publication may be reproduced in any form or by anymeans without Fannie Mae s prior written permission, except as may be provided herein orunless otherwise permitted by law. Limited permission to reproduce this publication in print inwhole or in part and limited permission to distribute electronically parts of this publication aregranted to Fannie Mae-approved lenders, servicers, and other mortgage finance professionals, forinternal business purposes only and strictly for their own use in originating mortgages, sellingmortgages to Fannie Mae, or servicing mortgages for Fannie Mae. Fannie Mae may revoke theselimited permissions by written notice to any or all Fannie Mae-approved are the property of their respective full version of this publication is also available on the AllRegs website of MortgageResource Center, Inc.

2 , ( MRC ), which posts this publication under license from and with theexpress permission of Fannie Mae. MRC is the exclusive third-party electronic publisher ofthis publication. Fannie Mae makes no representation or warranty regarding any of the features,functionality, or other contents of the AllRegs website. If there should ever be a differencebetween this publication as it appears on the AllRegs website and the version published byFannie Mae, the difference is an error. In such event, the Fannie Mae version of this publicationshall be deemed the correct authoritative version. Material discrepancies between the twoversions, identified by Fannie Mae or otherwise brought to our attention, may be addressed acknowledge and agree (individually and on behalf of the entity for which you are accessingthis publication, You ) that You may not make any claim against Fannie Mae for any errorsand that Fannie Mae shall not be liable to You for any losses or damages whatsoever resultingdirectly or indirectly from any 23, 2016 Printed copies may not be the most current version.

3 For the most current version, go to the online version of ContentsPreface .. xviiiPart A, Doing Business with Fannie Mae .. 1 Subpart A1, Approval Qualification .. 3A1-1, Application and Approval of Lender .. 4A1-1-01, Application and Approval of Lender (04/09/2013) .. 4 Subpart A2, Lender Contract .. 8A2-1, Contractual Obligations for Fannie Mae Approved Lenders .. 9A2-1-01, Contractual Obligations for Lenders (04/09/2013) .. 9A2-1-02, Nature of Mortgage Transaction (04/01/2009) .. 12A2-1-03, Indemnification for Losses (02/23/ 2016 ) .. 13A2-2, Contractual Representations and Warranties .. 16A2-2-01, Contractual Representations and Warranties (02/23/ 2016 ) .. , Additional Selling Representations and Warranties .. , Selling Representations and Warranties Overview(04/01/2009) .. , Delivery Information and Delivery-Option SpecificRepresentations and Warranties (02/23/ 2016 ).

4 , Document Warranties (08/20/2013) .. , Limited Waiver of Contractual Warranties for MortgagesSubmitted to DU (01/27/2015) .. , Invalidation of Limited Waiver of Representation andWarranties (01/27/2015) .. , Life-of-Loan Representations and Warranties (11/03/2015).. 30A2-3, Lender Breach of Contract .. , Lender Breach of Contract .. , Lender Breach of Contract (02/23/ 2016 ) .. , Sanctions, Suspensions, and Terminations (02/23/ 2016 ) .. , Loan Repurchases and Make Whole Payments Requested by FannieMae .. , Loan Repurchases and Make Whole Payments Requested byFannie Mae (02/23/ 2016 ) .. , Enforcement Relief for Breaches of Certain Representationsand Warranties Related to Underwriting and Eligibility (02/23/ 2016 ) .. , Additional Policies Related to Mortgage Loan Repurchases(02/23/ 2016 ) .. , Compensatory Fees .. , Compensatory Fees (07/30/2013).

5 69A2-4, Master Agreement .. 72 February 23, 2016 Printed copies may not be the most current version. For the most current version, go to the online version , Master Agreement Overview (08/25/2015) .. 72A2-4-02, Terms of a Master Agreement (04/01/2009) .. 74A2-4-03, Variances and Special Provisions (06/24/2014) .. 75A2-4-04, Breaches of a Master Agreement (04/09/2013) .. 76A2-5, Mortgage Files and Records .. , Establishment and Maintenance of Mortgage Files and Records .. , Overview of Mortgage Files and Records (04/09/2013) .. , Individual Mortgage Loan Files (08/25/2015) .. , Electronic Records, Signature, and Transactions(07/29/2014) .. , Lender s or Document Custodian s Electronic TransactionsWith Third Parties (07/26/2011) .. , Ownership, Retention, and Examination of Mortgage Files andRecords .. , Ownership of Mortgage Loan Files and Records(04/01/2009).

6 , Access to Records (04/09/2013) .. , Retention and Storage of Mortgage File Records(04/09/2013) .. 92A2-6, Fannie Mae Trade Name and Trademarks .. 94A2-6-01, Fannie Mae Trade Name and Trademarks (04/01/2009) .. 94 Subpart A3, Getting Started With Fannie Mae .. 98A3-1, Fannie Mae s Technology Products .. 99A3-1-01, Fannie Mae s Technology Products (04/01/2009) .. 99A3-2, Compliance With Requirements and Laws .. 101A3-2-01, Compliance With Laws (02/23/ 2016 ) .. 101A3-2-02, Responsible Lending Practices (12/16/2014) .. 107A3-3, Third-Party Lending Functions and Servicing Arrangements .. 111A3-3-01, Outsourcing of Mortgage Processing and Third-Party Originations(12/15/2015) .. 112A3-3-02, Concurrent Servicing Transfers (02/23/ 2016 ) .. 115A3-3-03, Other Servicing Arrangements (12/15/2015) .. 120A3-3-04, Document Custodians (02/23/ 2016 ).

7 123A3-3-05, Custody of Mortgage Documents (09/27/2011) .. 130A3-3-06, Fannie Mae's Designated Document Custodian (06/28/2011) .. , Other Document Custodians .. , Operational Requirements for all Document Custodians(12/15/2015) .. , Document Custodian Reporting Requirements: Active andInactive Status (10/02/2012) .. , Document Custodian Electronic Transactions .. 141 February 23, 2016 Printed copies may not be the most current version. For the most current version, go to the online version , Document Custodian Electronic Transactions (04/01/2009).. 141A3-4, Lending Practices .. 143A3-4-01, Confidentiality of Information/Conflict of Interest Parameters(06/30/2015) .. 143A3-4-02, Data Quality and Integrity (05/26/2015) .. 144A3-4-03, Preventing, Detecting, and Reporting Mortgage Fraud (02/23/ 2016 ).. 148A3-5, Fidelity Bond and Errors and Omissions Coverage.

8 153A3-5-01, Fidelity Bond and Errors and Omissions Coverage Provisions(04/01/2009) .. 153A3-5-02, Fidelity Bond Policy Requirements (04/01/2009) .. 155A3-5-03, Errors and Omissions Policy Requirements (03/02/2010) .. 156A3-5-04, Reporting Fidelity Bond and Errors and Omissions Events(04/01/2009) .. 158 Subpart A4, Maintaining Lender Eligibility .. 159A4-1, Maintaining Lender Eligibility: Overview .. 160A4-1-01, Maintaining Lender Eligibility (12/15/2015) .. 160A4-2, Submission of Operational and Financial Information .. 163A4-2-01, Net Worth, Liquidity, and Credit Rating Requirements(06/30/2015) .. 163A4-2-02, Financial Statements and Reports (05/27/2014) .. 167A4-2-03, Lender Record Information (Form 582) (04/15/2014) .. 170A4-3, Changes in the Lender s Organization .. 172A4-3-01, Report of Changes in the Lender s Organization (03/31/2015).

9 172 Part B, Origination Through Closing .. 174 Subpart B1, Loan Application Package .. 176B1-1, Application Package Documentation .. 177B1-1-01, Contents of the Application Package (12/16/2014) .. 177B1-1-02, Blanket Authorization Form (04/01/2009) .. 180B1-1-03, Allowable Age of Credit Documents and Federal Income TaxReturns (11/10/2014) .. 181 Subpart B2, Eligibility .. 185B2-1, Mortgage Eligibility .. 186B2-1-01, Occupancy Types (11/03/2015) .. , LTV, CLTV, HCLTV, and Subordinate Financing .. , Loan-to-Value (LTV) Ratios (02/23/ 2016 ) .. , Combined Loan-to-Value (CLTV) Ratios (02/23/ 2016 ) .. , Home Equity Combined Loan-to-Value (HCLTV) Ratios(02/23/ 2016 ) .. , Subordinate Financing (06/30/2015) .. 195 February 23, 2016 Printed copies may not be the most current version. For the most current version, go to the online version , Loan Purpose.

10 , Purchase Transactions (09/29/2015) .. , Limited Cash-Out Refinance Transactions (02/23/ 2016 ) .. , Cash-Out Refinance Transactions (02/23/ 2016 ) .. , DELETED TOPIC: Continuity of Obligation (02/23/ 2016 ).. , Prohibited Refinancing Practices (11/13/2012) .. , Payoff of Installment Land Contract Requirements(11/13/2012) .. , Loan Amortization Types .. , Fixed-Rate Mortgages (08/20/2013) .. , Adjustable-Rate Mortgages (ARMs) (06/30/2015) .. , Convertible ARMs (02/23/ 2016 ) .. , Refinanced Balloon Mortgages (12/15/2015) .. , Temporary Interest Rate Buydowns (07/29/2014) .. , Other Loan Attributes and Related Policies .. , Mortgage Loan Limits (03/31/2011) .. , Mortgage Loan Eligibility (11/03/2015) .. , Legal Requirements (08/20/2013) .. , Escrow Accounts (06/30/2015) .. , Principal Curtailments (06/30/2015).