Section 603

Commitment

603.01

Generally

Requirements

You must certify that all data submitted is accurate and fairly represents the terms of

  • the Mortgage Loans Mortgage LoansMortgage 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 for the requested Commitments CommitmentsContractual 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. , and
  • any associated MBS MBSMortgage-Backed Security .
603.02

MBS Mortgage Loans

Requirements

You must ensure the DUS Gateway “Authorization to Close” status is “Authorized” before originating any MBS Mortgage Loan MBS Mortgage LoanMortgage Loan purchased by Fannie Mae in exchange for an issued MBS backed by the Mortgage Loan. :

  • constituting a Credit Facility's Credit Facility'sStructured Transaction governed by a Master Credit Facility Agreement requiring Mortgage Loans and Properties to be cross-defaulted, and cross-collateralized.
    • initial advance,
    • addition, or
    • borrow up;
  • refinancing a Portfolio Mortgage Loan Portfolio 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. in the Credit Facility Credit FacilityStructured Transaction governed by a Master Credit Facility Agreement requiring Mortgage Loans and Properties to be cross-defaulted, and cross-collateralized. ; 
  • converting all or any part of a variable rate 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 in the Credit Facility Credit FacilityStructured Transaction governed by a Master Credit Facility Agreement requiring Mortgage Loans and Properties to be cross-defaulted, and cross-collateralized. to a fixed rate 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 ; or
  • substitution advance.

Operating Procedures

For MBS Mortgage Loans MBS Mortgage LoansMortgage Loan purchased by Fannie Mae in exchange for an issued MBS backed by the Mortgage Loan. in a Credit Facility Credit FacilityStructured Transaction governed by a Master Credit Facility Agreement requiring Mortgage Loans and Properties to be cross-defaulted, and cross-collateralized. , you must:

  • comply with the
  • follow the DUS Gateway DUS GatewayMultifamily pre-acquisition system, or any successor systems, recording deal registration, Pre-Review and/or waiver tracking, Mortgage Loan Commitments, and decision records. process to
    • obtain 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. , and
    • receive an Authorization to Close.
DUS Gateway Process
Steps You must... Multifamily Structured Acquisitions will...
1
  • Select the "Credit Facility Module".
  • Navigate to the "Rate Lock/Commitment" page.
  
2

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. : 

 

  • enter and save all 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. data for each MBS Mortgage Loan MBS Mortgage LoanMortgage Loan purchased by Fannie Mae in exchange for an issued MBS backed by the Mortgage Loan. constituting
    • an initial advance,
    • an addition,
    • a borrow up,
    • a refinance of a Portfolio Mortgage Loan Portfolio 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. in the Credit Facility Credit FacilityStructured Transaction governed by a Master Credit Facility Agreement requiring Mortgage Loans and Properties to be cross-defaulted, and cross-collateralized. , 
    • a conversion of a 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 in the Credit Facility Credit FacilityStructured Transaction governed by a Master Credit Facility Agreement requiring Mortgage Loans and Properties to be cross-defaulted, and cross-collateralized. from variable rate to fixed rate, or
    • a substitution advance;
  • identify the applicable "Loan Option"; and
  • select "Log Rate Lock/Commitment".
 Set the "Rate Lock/Commitment" status for each 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 to "Draft".
3
  • Confirm all 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. data was correctly entered for each MBS Mortgage Loan MBS Mortgage LoanMortgage Loan purchased by Fannie Mae in exchange for an issued MBS backed by the Mortgage Loan. constituting
    • an initial advance,
    • an addition,
    • a borrow up,
    • a refinance of a Portfolio Mortgage Loan Portfolio 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. in the Credit Facility Credit FacilityStructured Transaction governed by a Master Credit Facility Agreement requiring Mortgage Loans and Properties to be cross-defaulted, and cross-collateralized. , 
    • a conversion of a 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 in the Credit Facility Credit FacilityStructured Transaction governed by a Master Credit Facility Agreement requiring Mortgage Loans and Properties to be cross-defaulted, and cross-collateralized. from variable rate to fixed rate, or
    • a substitution advance.
  • Select "Finish Rate Lock/Commitment".
  • Change the "Rate Lock/Commitment" status for each 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 to:
    • "Accepted", if all validations pass; or
    • "Submitted for Review", if a review is required.
  • For all Mortgage Loans Mortgage LoansMortgage 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 "Submitted for Review":
    • change the "Rate Lock/Commitment" status to:
      • "Accepted", if no further action is required; or
      • "Draft", if corrections are required; and
    • notify you via email to revise and resubmit any "Rate Lock/Commitment" with a "Draft" status.
4
  • Identify each "Rate Lock/Commitment" status as
    • "Accepted", or
    • "Draft".
  • Revise and resubmit any 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 "Rate Lock/Commitment" with a "Draft" status.
 Change the "Rate Lock/Commitment" status to "Accepted" after all validations pass.
5

On the "Final Underwriting" page, for each Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). , either:

 

  • upload data for
    • underwriting,
    • underwritten value, and
    • income and expenses; or
  • manually enter the underwriting data.
  
6

On the "Credit Facility Checks" page for each MBS Mortgage Loan MBS Mortgage LoanMortgage Loan purchased by Fannie Mae in exchange for an issued MBS backed by the Mortgage Loan. :

 

  • of an initial advance:
    • enter the final "Mortgage Loan Amount";
    • by entering the final "Mortgage Loan Amount", you acknowledge it:
    • if the rate is variable, enter the:
      • "Final Fixed Rate Equivalent Interest Rate";
      • "Final Cap Cost Factor"; and
      • "Final Structured ARM Principal Payment"; and
    • run and submit the Credit Facility Checks to:
      • validate the submission; and
      • populate the Credit Facility Underwriting and Disclosure calculations.
  
6 (continued)
  • of any addition or borrow up:
    • enter the final "Mortgage Loan Amount";
    • by entering the final “Mortgage Loan Amount”, you acknowledge it:
    • if the rate is variable, enter the:
      • "Final Fixed Rate Equivalent Interest Rate";
      • "Final Cap Cost Factor"; and
      • "Final Structured ARM Principal Payment"; 
    • use Fetch Latest Data to populate monthly payments for Portfolio Mortgage Loans Portfolio Mortgage LoansMortgage 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. in the Credit Facility Credit FacilityStructured Transaction governed by a Master Credit Facility Agreement requiring Mortgage Loans and Properties to be cross-defaulted, and cross-collateralized. ;
    • for a partial conversion of a variable rate 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 to a fixed rate 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 , enter the:
      • "Final Cap Cost Factor";
      • "SARM T-12 Interest and Hedge Payment Amount"; and
      • "Actual Conversion Date";
    • if the only Portfolio Mortgage Loans Portfolio Mortgage LoansMortgage 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. in the Credit Facility Credit FacilityStructured Transaction governed by a Master Credit Facility Agreement requiring Mortgage Loans and Properties to be cross-defaulted, and cross-collateralized. are fixed rate, run and submit the Credit Facility Checks to:
      • validate the submission; and
      • populate the Credit Facility Underwriting and Disclosure calculations; and
    • for any SARM Loans in the Credit Facility Credit FacilityStructured Transaction governed by a Master Credit Facility Agreement requiring Mortgage Loans and Properties to be cross-defaulted, and cross-collateralized. :
      • complete and upload the Excel file named “SARM T-12 Interest and Hedge Payment Data”;
      • re-run and submit the Credit Facility Checks; and 
      • receive Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! ’s approval to “Generate” the “Authorization to Close”.
  
7

On the "Authorization to Close" page, for each MBS Mortgage Loan MBS Mortgage LoanMortgage Loan purchased by Fannie Mae in exchange for an issued MBS backed by the Mortgage Loan. :

 

  • select your Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! Seller Number from the dropdown menu;
  • select "Prepare Authorization to Close";
  • review the data;
  • check the "Lender Certification" box; and
  • select "Confirm Authorization to Close".
 Change the "Authorization to Close" status to "Authorized".

Guidance

Once the 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. status is "Accepted", you may print a Commitment Confirmation.

Throughout the process, to resolve any data discrepancies or issues, you may use the Case Management function to request assistance from the

MBS Mortgage Loans MBS Mortgage LoansMortgage Loan purchased by Fannie Mae in exchange for an issued MBS backed by the Mortgage Loan. in a Bulk Delivery Bulk DeliveryStructured Transaction governed by a Bulk Delivery Agreement that allows future: Mortgage Loan additions; and/or Property substitutions. are managed in MSFMS MSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. ; no 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. is required.

603.03

Cash Mortgage Loans

Requirements

For Cash Mortgage Loans Cash Mortgage LoansMortgage Loan purchased by Fannie Mae in exchange for cash. in a Structured Transaction, you must obtain 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. through C&D C&DElectronic committing and delivery system used for issuing and confirming Commitments for acquiring Mortgage Loans, or any such successor system. per Part IV, Chapter 2: Rate Lock and Committing , except for the following entries:

C&D Page Entry
Commitment
  • Select “Structured” as the “Delivery Channel Type”.
  • Enter the MSFMS Deal ID MSFMS Deal IDNumber assigned by MSFMS when registering a Structured Transaction. in the “Structured Facility Management Deal ID” field.
Participants
  • Enter at least 1 Borrower BorrowerPerson who is the obligor per the Note. record.
  • Enter complete data for all deal participants separately in MSFMS MSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. .
Collateral None, this information is entered in MSFMS MSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. .