Trading Practices

Requirements

You agree Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! :

may decline to provide pricing or to participate in any trade you request with the Multifamily Trading Desk Multifamily Trading DeskTeam that quotes interest rate pricing for a Mortgage Loan and can be contacted at (888) 889-1118. ;
may close your trading account and your access to the Multifamily Trading Desk Multifamily Trading DeskTeam that quotes interest rate pricing for a Mortgage Loan and can be contacted at (888) 889-1118. services at any time; and
reserves the right to stop entering into Rate Locks Rate LocksAgreement 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. at any time without prior notice (such as during periods of high market volatility), but will attempt to provide advance notice.

You must determine if there is a market for the MBS MBSMortgage-Backed Security before seeking a quote from the Multifamily Trading Desk Multifamily Trading DeskTeam that quotes interest rate pricing for a Mortgage Loan and can be contacted at (888) 889-1118. or Third Party MBS Investor Third Party MBS InvestorMBS Investor for an MBS Mortgage Loan that is not the Multifamily Trading Desk. for a non-standard Prepayment Premium Prepayment PremiumFor a Mortgage Loan prepayment, amount the Borrower must pay in addition to the prepaid principal and accrued interest per the Loan Documents. or other structure.

Operating Procedures

Step	You must...
Before Rate Lock
1	Establish an asset counterparty account with the Multifamily Trading Desk Multifamily Trading DeskTeam that quotes interest rate pricing for a Mortgage Loan and can be contacted at (888) 889-1118. and/or any Third Party MBS Investor Third Party MBS InvestorMBS Investor for an MBS Mortgage Loan that is not the Multifamily Trading Desk. . An asset counterparty account with the Multifamily Trading Desk Multifamily Trading DeskTeam that quotes interest rate pricing for a Mortgage Loan and can be contacted at (888) 889-1118. must: name the people you authorize to transact business on your behalf; and include your address and wiring instructions. Notify the Multifamily Trading Desk Multifamily Trading DeskTeam that quotes interest rate pricing for a Mortgage Loan and can be contacted at (888) 889-1118. of any changes to the authorized people or account information.
2	Provide the Minimum Required Trade Information Minimum Required Trade InformationMortgage Loan, Security, and Property information that must be disclosed to any potential Investor before obtaining a Rate Lock for a Mortgage Loan, using Form 4097 - Multifamily Required Trade Information for Cash or MBS Mortgage Loans. (including any Additional Disclosure Additional 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. items) to all potential Investors InvestorsMBS Investor for an MBS Mortgage Loan, or Fannie Mae for a Cash Mortgage Loan. by: completing the Multifamily Required Trade Information for Cash or MBS Mortgage Loans ( Form 4097 ); using the Multifamily Required Trade Information (Form 4097 Job Aid) ; and ensuring any information you provide to potential Investors InvestorsMBS Investor for an MBS Mortgage Loan, or Fannie Mae for a Cash Mortgage Loan. matches what you deliver to Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! .
3	Inform any Third Party MBS Investor Third Party MBS InvestorMBS Investor for an MBS Mortgage Loan that is not the Multifamily Trading Desk. that Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! will securitize the Mortgage Loan Mortgage 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. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 if the Delivered Mortgage Loan Amount Delivered Mortgage Loan AmountUPB of a Mortgage Loan when it is purchased by Fannie Mae. is within the delivery tolerance per Part IV, Chapter 4: Delivery, Section 405.01: Acceptability and Delivery Tolerance .
4	Ensure the Minimum Required Trade Information Minimum Required Trade InformationMortgage Loan, Security, and Property information that must be disclosed to any potential Investor before obtaining a Rate Lock for a Mortgage Loan, using Form 4097 - Multifamily Required Trade Information for Cash or MBS Mortgage Loans. for MBS Mortgage Loans MBS Mortgage LoansMortgage Loan purchased by Fannie Mae in exchange for an issued MBS backed by the Mortgage Loan. includes any Additional Disclosure Additional 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 Part IV, Chapter 5: Purchase, Section 504.02: Additional Disclosure , and any specific disclosures per the Additional Disclosure Guidance ( Form 4098 ).
5	Ensure, in the event of a conflict, the trade is controlled in this order of priority: Rate Lock Rate 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. ; any applicable Third Party MBS Trading Agreement Third Party MBS Trading AgreementArrangement between you and a Third Party MBS Investor to trade MBS per Part IV, Chapter 2: Rate Lock and Committing, Section 201.02: Trading Agreements. ; all applicable provisions of Part IV; and the Lender Contract Lender ContractProgram Documents per the Multifamily Selling and Servicing Agreement. .
6	Comply with the Pricing Memo Pricing MemoApplicable DUS Pricing Memo or non-DUS Pricing Memo communicating pricing for various products and features. .
7	Collect the Good Faith Deposit Good Faith DepositAmount you collect from the Borrower when originating a Mortgage Loan per Part IV, Chapter 2: Rate Lock and Committing, Section 203: Good Faith Deposits. from the Borrower BorrowerPerson who is the obligor per the Note. .
8	Include the Minimum Required Trade Information Minimum Required Trade InformationMortgage Loan, Security, and Property information that must be disclosed to any potential Investor before obtaining a Rate Lock for a Mortgage Loan, using Form 4097 - Multifamily Required Trade Information for Cash or MBS Mortgage Loans. in the Rate Lock Rate 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. confirmation.
After Rate Lock
9	Within 1 Business Day Business 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 obtaining the Rate Lock Rate 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. , request a Commitment CommitmentContractual 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. .
10	Before assigning any Rate Lock Rate 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 the Multifamily Trading Desk Multifamily Trading DeskTeam that quotes interest rate pricing for a Mortgage Loan and can be contacted at (888) 889-1118. , obtain Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! ’s consent.
11	Include Additional Disclosure Additional 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. items when requesting an MBS MBSMortgage-Backed Security Commitment CommitmentContractual 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. .
12	Before Delivery DeliverySubmission of all correct, accurate, and certifiable documents, data, and information with all applicable documents properly completed, executed, and recorded as needed, and any deficiencies resolved to Fannie Mae’s satisfaction. , inform the Investor InvestorMBS Investor for an MBS Mortgage Loan, or Fannie Mae for a Cash Mortgage Loan. of any changes in the Minimum Required Trade Information Minimum Required Trade InformationMortgage Loan, Security, and Property information that must be disclosed to any potential Investor before obtaining a Rate Lock for a Mortgage Loan, using Form 4097 - Multifamily Required Trade Information for Cash or MBS Mortgage Loans. that occurred after Rate Lock Rate 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. . Ensure the Delivered Mortgage Loan Amount Delivered Mortgage Loan AmountUPB of a Mortgage Loan when it is purchased by Fannie Mae. is within the delivery tolerance per Part IV, Chapter 4: Delivery, Section 405.01: Acceptability and Delivery Tolerance .
13	Promptly inform Multifamily Acquisitions Multifamily AcquisitionsTeam that can be contacted at [email protected]. of any MBS Investor MBS InvestorFor MBS Mortgage Loans, either a Third Party MBS Investor for Lender-Arranged Sales, or the Multifamily Trading Desk. delivery contract disputes, including any failed Deliveries DeliveriesSubmission of all correct, accurate, and certifiable documents, data, and information with all applicable documents properly completed, executed, and recorded as needed, and any deficiencies resolved to Fannie Mae’s satisfaction. .

Guidance

For MBS Mortgage Loans MBS Mortgage LoansMortgage Loan purchased by Fannie Mae in exchange for an issued MBS backed by the Mortgage Loan. , after the Security SecurityMBS, PFP MBS, or REMIC. is delivered to the Investor InvestorMBS Investor for an MBS Mortgage Loan, or Fannie Mae for a Cash Mortgage Loan. , contact the MBS Investor MBS InvestorFor MBS Mortgage Loans, either a Third Party MBS Investor for Lender-Arranged Sales, or the Multifamily Trading Desk. hotline at 1-800-BEST-MBS with all subsequent Investor InvestorMBS Investor for an MBS Mortgage Loan, or Fannie Mae for a Cash Mortgage Loan. inquiries.