2.1.12.1.1 High-Balance Mortgage Loans

To determine the maximum original loan amount for High-Balance Mortgage Loans, see the loan limit lookup table on Fannie Mae’s website which can be found at the following link: https://www.fanniemae.com/singlefamily/loan-limits.

2.3.12.3.1 Mortgage Loan Terms

The Note must provide for a fixed interest rate and full amortization by maturity through regular fixed monthly payments up to a maximum term of thirty (30) years.

2.3.22.3.2 Occupancy Types

The following occupancy types are eligible for delivery under the MPF Xtra product:

• Principal Residence Properties
• Second Home Properties
• Investment Properties

2.3.32.3.3 Eligible Transaction Types

The following transaction types are eligible for delivery under the MPF Xtra product:

• Purchase Transactions
• Refinance Transactions
• Texas 50(a)(6) Mortgage Loans
• Construction-to-Permanent Transactions
• New York Consolidation, Extension and Modification Agreements (CEMA)
• Mortgages Where the Proceeds are Used to Pay Off of a Land Contract
• RefiNow Transactions
• First Mortgage with Subordinate Financing
• First Mortgages with Home Equity Lines of Credit (HELOCs)
• First Mortgages with Property Assessed Clean Energy (PACE) Loans
• First Mortgages with Community Seconds or Community Land Trusts
• HomeReady Mortgage Loans

For the transaction types listed above, Originators must comply with the following Fannie Mae Selling Guide chapters and all subchapters in their entirety:

• Fannie Mae Selling Guide Chapter B2-1.2-03: Home Equity Combined Loan-to-Value (HCLTV) Ratios;
• Fannie Mae Selling Guide Chapter B2-2.1-04: Subordinate Financing;
• Fannie Mae Selling Guide Chapter B2-1.3-01: Purchase Transactions;
• Fannie Mae Selling Guide Chapter B2-1.3-02: Limited Cash-Out Refinance Transactions;
• Fannie Mae Selling Guide Chapter B-2-1.3-03: Cash-Out Refinance Transactions;
• Fannie Mae Selling Guide Chapter B2-1.3-04: Prohibited Refinancing Practices;
• Fannie Mae Selling Guide Chapter B2-1.3-05: Payoff of Installment Land Contract Requirements;
• Fannie Mae Selling Guide Chapter B2-1.5 -04: Escrow Accounts;
• Fannie Mae Selling Guide Chapter B5-3.1-01: Conversion of Construction-to-Permanent Financing Overview;
• Fannie Mae Selling Guide Chapter B5-3.1-02: Conversion of Construction-to-Permanent Financing: Single-Closing Transactions;
• Fannie Mae Selling Guide Chapter B5-3.1-03: Conversion of Construction-to-Permanent Financing: Two-Closing Transactions;
• Fannie Mae Selling Guide Chapter B5-3.4-01: Property Assessed Clean Energy Loans;
• Fannie Mae Selling Guide Chapter B5-4.2-02: Disaster-Related Limited Cash-Out Refinance Flexibilities;
• Fannie Mae Selling Guide Chapter B5-4.1-01: General Requirements of Texas Section 50(a)(6) Mortgages;
• Fannie Mae Selling Guide Chapter B5-5: Community Seconds, Community Land Trusts and Loans with Resale Restrictions;
• Fannie Mae Selling Guide Chapter B5-5.1-03:  Community Seconds: Shared Appreciation Transactions;
• Fannie Mae Selling Guide Chapter B5-6: HomeReady Mortgage;
• Fannie Mae Selling Guide Chapter B8-2-02: Special-Purpose Security Instruments.

2.3.42.3.4 Ineligible Transactions, Products, or Mortgage Loan Attributes (12/18/25)

The following transactions, products or mortgage loan attributes are ineligible under the MPF Xtra product:

• Co-ops
• Constructions loans where the construction phase has not been completed
• ARMs
• Balloon mortgages
• Interest only
• Home improvement/rehabilitation loans
• Condotels
• Time shares
• Unimproved land
• Agricultural properties, such as farms or ranches
• Properties that are not suitable for year-round occupancy, regardless of location
• Properties on the island of Hawaii located within lava zone 1 or 2, as defined by the U.S. Geological Survey Hawaiian Volcano Observatory
• Government loans
• Rural Development Section 502 (Blended) Mortgage Loans
• Manually underwritten Refi Plus Mortgage Loans
• HomeStyle^® Renovation loans
• HomeStyle^® Energy loans (also known as Homestyle^® Refresh)
• Housing Finance Authority (HFA) Preferred Loans
• High Loan-to-Value Refinance Loans
• Freddie Mac Home Possible
• Shared Equity Transactions
• Loans underwritten with Loan Product Advisor (LPA)
  

3.1.13.1.1 OFAC

All Borrowers’ names must be checked against Office of Foreign Asset Control (OFAC) lists in compliance with Applicable Law. Originators must comply with Fannie Mae Selling Guide Chapter A3-2-01 Compliance with Laws.

3.1.23.1.2 Illinois Land Trust (5/27/25)

Loans where title to the Mortgaged Property is held by an Illinois Land Trust are eligible provided the trust meets the following criteria:

• The land trustee must be a financial institution customarily engaged in the business of acting as trustee under Illinois land trusts (individuals are not acceptable as trustees);
• All primary beneficiaries of the land trust must be a qualifying Borrower and must execute the Note and Security Instrument as individuals, without any reference to the Borrower’s status as beneficiary(ies), co-signer(s), guarantor(s), etc., of the trust;
• The land trustee must execute the Note, the Security Instrument, and if applicable, any riders:
  • The land trustee must execute the Security Instrument as trustee under the particular trust agreement dated a specified date and known as a specified trust number;
  • The notary’s certificate of acknowledgement should reflect that the execution is by the  officer(s) of the institution acting as trustee, and specify the officer’s(s’) title(s); and
  • The land trustee's execution of the Note and Security Instrument may either include a rider or stamp (whichever is customary) indicating that the trustee is not personally liable on the Note or on the Mortgage covenants and that the Mortgagee can only look to trust assets to satisfy those obligations of the trustee. However, the rider or stamp must not be more broadly stated than only relieving the trustee from personal liability.
• The Uniform Instrument, Illinois Mortgage Form 3014, must be amended as follows:
  • In the “Definitions” on page 1, describe “Borrower” as both (i) an institution which is a trustee under the particular trust agreement dated a specified date and known as a specified trust number and (ii) the credit-seeking beneficiary(ies) of the trust.
  • PFI must add the following language to the second paragraph of “Transfer of Rights in the Property:”

    “The term “Property” wherever used in this Security Instrument expressly includes all rights of the trust and of any beneficiary of the trust to receive the net proceeds from the rental, sale, hypothecation, or other disposition of the Property, whether or not such rights are classified as real or personal property, or such proceeds are otherwise distributable to the beneficiaries of the trust pursuant to a trust agreement. The Borrower warrants that it possesses full power and authority to execute this Security Instrument.”

• The trustee and the beneficiary(ies) must sign an agreement substantially in the form of the “Agreement by Beneficiary and Trustee to Notify Lender of a Sale or Transfer of Interest - Purchasing” (the “Agreement”), Exhibit P, which Agreement amends the trust agreement between the beneficiary(ies) and the trustee in order to protect the Mortgagee from transfers of beneficial interests in the trust without the Mortgagee’s knowledge;
  • If the PFI cannot obtain an Agreement, an assignment of beneficial interest in lieu of the Agreement is acceptable.

4.1.14.1.1 Automated Underwriting System (AUS)

Mortgage Loans may be underwritten using Fannie Mae’s DU automated underwriting system. Mortgage Loans underwritten with DU must follow Fannie Mae’s underwriting and eligibility requirements for that Mortgage Loan. The only MPF Program requirements that supersede Fannie Mae/DU requirements are the following:

• Occupancy Requirements
• Property Type Eligibility (for example: Co-ops are not eligible for sale under the MPF Xtra product)
• Products or loan attributes on the ineligible list (See MPF Xtra Selling Guide Chapter 2.3.4)
• Specific Requirements for using Loan Product Advisor (See Chapter 4.3 for additional information)

13.1.113.1.1 Loan Level Price Adjustments

Mortgage Loans delivered under the MPF Xtra product may be subject to the following Loan Level Price Adjustments (LLPAs), as applicable:

• Standard – LLPAs that apply to all Mortgage Loan types (See Fannie Mae’s Standard LLPA Matrix); and
• All LLPAs are cumulative, unless otherwise noted. The LLPAs are incorporated by reference into the Guides and are binding on PFIs as provided by the MPF Xtra Master Commitments. LLPAs are calculated by the MPF Provider post-delivery and are generally charged to the PFI’s DDA account on the same day the loan funding proceeds are deposited.

13.1.213.1.2 Indicative Pricing

Indicative pricing rates and fees for MPF Xtra Delivery Commitments are posted on the eMPF website each Business Day at 8:30 A.M., 9:30 A.M., 11:00 A.M., 2:00 P.M., and 3:00 P.M. (Central Time), if available from the MPF Bank. Indicative pricing may also be obtained by calling the MPF Service Center.

The MPF Provider may cancel, withdraw and/or reissue the indicative rates and fees at any time during the Business Day.

Rates and fees and verbally quoted prices provide indicative pricing only and do not constitute an offer by the MPF Bank to the PFI for a Delivery Commitment. Rates become binding on the MPF Bank only upon issuance of a Delivery Commitment.

13.2.113.2.1 Obtaining a Mandatory Delivery Commitment

PFIs may open a Mandatory Delivery Commitment any time between the hours of 8:30 A.M. and 3:30 P.M. (Central Time) using the following methods:

• The PFI may utilize the eMPF Website or contact the MPF Service Center to establish Delivery Commitments of less than $10 Million for the following Mortgage Loan types:
  • Conforming Mortgage Loans;
  • High-Balance Mortgage Loans;
  • Mortgage term — 15-, 20-, or 30-year. PFIs may commit to deliver loans with nonstandard amortization (odd) terms or loans that exceed the maximum number of months for a given term by selecting the next highest delivery commitment term available;
• The PFI must contact the MPF Service Center to establish Delivery Commitments for the following:
  • Delivery Commitments greater than or equal to $10 Million; and
  • Delivery Commitments with Mortgage Loans with a 10 year term.

All telephone conversations relative to obtaining a Delivery Commitment will be recorded.

The PFI must supply the following information to open a Delivery Commitment:

• The PFI’s name and number (if via telephone);
• The name of the person calling and authorized to obtain a Delivery Commitment (if via telephone);
• The number of the Master Commitment to which the Delivery Commitment is to be assigned;
• Delivery period;
• The Loan term -10, 15, 20, or 30 year;
• The loan type of the Delivery Commitment;
• The Note Rate for the Delivery Commitment; and
• The Delivery Commitment amount.

The MPF Provider will assign a Delivery Commitment number and issue a binding Delivery Commitment if the referenced Rate and Fee Schedule is still valid and if the referenced Master Commitment is open and the remaining amount equals or exceeds the amount of the Delivery Commitment. Each Delivery Commitment will be confirmed with the PFI on the day of issuance via on-screen notification and e-mail.

Once a Mandatory Delivery Commitment is established, the PFI may submit loans for Loan Presentment and loan delivery up until 3:30 P.M. Central Time seven (7) Business Days prior to the Delivery Commitment’s expiration (expiration is specified on the Delivery Commitment Confirmation) or until the Delivery Commitment is filled, whichever occurs first.

The PFI is required to obtain pre-Funding Initial Certification no later than three (3) Business Days prior to the delivery commitment expiration date.  Provided the loan data presented meets the Investor’s requirements, Loan funding will occur generally two (2) Business Days following the pre-Funding certification date.

13.2.213.2.2 Tolerances

The low delivery tolerance for Mandatory Delivery Commitments is an amount that does not fall below the greater of $10,000 or 2.5% of the original Delivery Commitment amount. If the Mortgage Loans delivered under the Delivery Commitment fall below the delivery tolerance amount, then Pair-off Fees may be assessed to the PFI.

The high delivery tolerance for Mandatory Delivery Commitments is an amount that does not exceed the greater of $10,000 or 2.5% of the original Delivery Commitment amount. If the Mortgage Loans delivered under the Delivery Commitment exceed the high delivery tolerance amount, then over- delivery fees may be assessed to the PFI.

If the PFI requests a partial pair-off or over-delivery, the low delivery tolerance amount will be reduced to $50 below the revised commitment amount, and the high delivery tolerance will be reduced to $50 above the revised commitment amount.

Example:

• Original Delivery Commitment amount = $500,000
• 2.5% of $500,000 = $12,500
• Delivery Tolerance = greater of $10,000 or 2.5% of the original Delivery Commitment amount
  = $12,500
• High delivery tolerance = $512,500
• Low delivery tolerance = $487,500

13.2.313.2.3 Maximum Delivery Amount

The maximum over-delivery amount is twenty-five percent (25%) of the original Delivery Commitment amount.

A PFI is permitted to deliver Mortgage Loans that are over the high delivery tolerance (subject to an over-delivery fee), but the PFI may not deliver a Mortgage Loan that is more than the maximum over- delivery amount.

Example:

• Original Delivery Commitment amount = $150,000
• 25% of $150,000 = $37,500
• Maximum delivery amount = $187,500

If the calculation based on twenty-five percent (25%) of the original Delivery Commitment amount is less than $10,000, then $10,000 is used as the high delivery tolerance amount and the maximum amount that can be delivered under that Delivery Commitment.

Example:

• Original Delivery Commitment amount = $20,000
• 25% of $20,000 = $5,000
• Maximum delivery amount = $20,000 + $10,000 = $30,000

13.2.413.2.4 Note Rate Range

For each Mandatory Delivery Commitment, the PFI must specify a Note Rate. Acceptable Note Rate ranges may vary depending on the Note Rate a PFI specifies at the time the Mandatory Delivery Commitment is obtained. In some cases, the specified Note Rate range may occur in the upper or lower part of the acceptable Note Rate range. Please refer to the following chart for examples:

Further examples substituting four (4) for X:

Since Delivery Commitment pricing is published and obtained in one-eighth percent (0.125%) increments, pricing will be determined for Mortgage Loans that are delivered with Note Rates in between one-eighth percent increments by interpolating the pricing difference, at the time the Mortgage Loan is purchased under the MPF Program, between the upper and lower one-eighth percent rate published for the specific Delivery Commitment.

13.2.513.2.5 Delivery Commitment Reduction

Delivery Commitments may be reduced prior to its expiration by contacting the MPF Service Center or via the eMPF website.

For all Delivery Commitments which are reduced, a Pair-off Fee will be calculated on one hundred percent (100%) of the reduction amount of the Delivery Commitment. The Pair-off Fee will be calculated at the time of the reduction.

13.2.613.2.6 Delivery Commitment Extension

Delivery Commitments may be reduced prior to its expiration by contacting the MPF Service Center or via the eMPF website.

A Mandatory Delivery Commitment may be extended prior to its expiration for up to thirty (30) calendar days as either a one-time thirty (30) day extension or multiple extensions, provided the multiple cumulative extensions do not exceed a total of thirty (30) calendar days. A fee will be assessed for each extension. The extension fee takes into consideration the amount to be extended and the actual number of days by which the Delivery Commitment is extended.

13.3.113.3.1 Obtaining a Best Efforts Delivery Commitment

PFIs may open a Best Efforts Delivery Commitment using the eMPF website or by calling the MPF Service Center. Best Efforts Delivery Commitments may be issued at any time between the hours of 8:30 A.M. and 3:30 P.M. (Central Time) using the following methods:

• The PFI may utilize the eMPF website to establish a Delivery Commitment for the following loan types:
  • Conforming Mortgage Loans;
  • High-Balance Mortgage Loans; and
  • Mortgage term — 10-, 15-, 20-, or 30-year. PFIs may commit to deliver loans with nonstandard amortization (odd) terms or loans that exceed the maximum number of months for a given term by selecting the next highest delivery commitment term available;
• The PFI must contact the MPF Service Center to establish a Delivery Commitment for Mortgage Loans with a 10 year term.

All telephone conversations relative to obtaining a Best Efforts Delivery Commitment are recorded.

The PFI must supply the following information when opening a Delivery Commitment (the Best Efforts Delivery Commitment information and the ULDD/XML file information must match in order for the delivery request to be approved):

• The PFI’s name and number (if via telephone);
• The name of the person calling and authorized to obtain a Delivery Commitment (if via telephone);
• The number of the Master Commitment to which the Delivery Commitment is to be assigned;
• The delivery period;
• The loan term – 10, 15, 20, or 30 years;
• The Note Rate: must be the Note Rate for the Mortgage Loan to be delivered;
• The loan amount;
• The Borrower information; and
• The Mortgaged Property information.

If any of the Best Efforts Delivery Commitment data is also entered into Desktop Underwriter (DU), such data must match at the time the loan delivery request is made. If the DU data changes after the issuance of the Best Efforts Delivery Commitment, the PFI must request changes to the Best Efforts Delivery Commitment to ensure that the data matches the DU data prior to submitting the delivery request.

After the entry of this information into the MPF system, the following information will be verified with the PFI:

• The Best Efforts Delivery Commitment’s price for the corresponding Note Rate, loan term and delivery period; and
• The referenced Best Efforts Master Commitment is open and the remaining amount equals or exceeds the amount of the Best Efforts Delivery Commitment.

Each Best Efforts Delivery Commitments will be confirmed with the PFI on the day of issuance via e–mail.

If a PFI opens a Best Efforts Delivery Commitment for a proposed mortgage loan that was identified for a prior Best Efforts Delivery Commitment, the new Best Efforts Delivery Commitment will not be subject to a duplicate price adjustment if it is opened more than thirty (30) calendar days after the earlier of the expiration or cancellation of the prior Best Efforts Delivery Commitment. 

13.3.213.3.2 Note Rate Range

The Note Rate for the proposed mortgage loan must match the specific Note Rate for the corresponding Best Efforts Delivery Commitment and the Note Rate in the ULDD/XML file. The Note Rate must be in a one-eighth percent (0.125%) increment only. A Note Rate range is not available under a Best Efforts Delivery Commitment.

If the Note Rate for the proposed mortgage loan changes, the PFI must contact the MPF Service Center prior to submitting the delivery request with the ULDD/XML file to request that the Best Efforts Delivery Commitment Note Rate be changed to match the new Note Rate. The Best Efforts Delivery Commitment will be re-priced, and the pass through rate and prices will be based on the prices in effect when the Best Efforts Delivery Commitment was originally issued.

13.3.313.3.3 Delivery Commitment Amount

The loan amount for the proposed mortgage loan must match the specific commitment amount for the corresponding Best Efforts Delivery Commitment and the loan amount in the ULDD/XML file.

If the loan amount of the proposed mortgage loan changes, the PFI must contact the MPF Service Center prior to submitting the delivery request with the ULDD/XML file to request that the Best Efforts Delivery Commitment amount be changed to match the new loan amount. If the unpaid principal balance of the closed mortgage loan is less than the loan amount on the note due to a curtailment or the application of borrower payments, the PFI must request that the Best Efforts Delivery Commitment amount be changed to match the unpaid principal balance of the mortgage loan.

When the commitment amount is changed to the new loan amount, the Best Efforts Delivery Commitment will be re–priced if:

• The Note Rate changes;
• The loan term changes; or
• The loan amount increases from a conforming loan amount to a High–Balance Mortgage Loan amount or decreases from a High-Balance Mortgage Loan amount to a conforming loan amount.

The pass through rate and prices will be based on the prices in effect when the Best Efforts Delivery Commitment was originally issued.

13.3.413.3.4 Delivery Commitment Loan Term

The loan term for the proposed mortgage loan must match the loan term in the ULDD/XML file.

If the term of the proposed mortgage loan changes, the PFI must contact the MPF Service Center prior to submitting the delivery request with the ULDD/XML file to request that the Best-Efforts Delivery Commitment loan term be changed to match the new loan term. The Best Efforts Delivery Commitment will be re-priced; the pass through rate and prices will be based on the prices in effect when the Best Efforts Delivery Commitment was originally issued.

13.3.513.3.5 Delivery Commitment Extension

The Best-Efforts Delivery Commitment expiration date is specified on the Best Efforts Delivery Commitment Confirmation. The commitment period can be extended as follows:

• For an unclosed mortgage loan: A Delivery Commitment may be extended prior to its expiration by contacting the MPF Service Center or via the eMPF website. A Best-Efforts Delivery Commitment may be extended prior to its expiration for up to and no more than thirty (30) calendar days as either a one-time, thirty (30) day extension or multiple extensions, provided the multiple extensions do not cumulatively exceed a total of thirty (30) calendar days. Once this 30-calendar day extension period expires, any subsequent Delivery Commitment requested for the delivery of the identified mortgage loan will be subject to a duplicate commitment price adjustment.
• For closed Mortgage Loans:
  • If the loan funding does not occur prior to the Best-Efforts Delivery Commitment expiration date, there will be an automatic extension of five (5) calendar days until the loan funding occurs; or
  • A Best-Efforts Delivery Commitment may be extended after the loan delivery request, and prior to its expiration, for up to thirty (30) calendar days as either a one-time, thirty (30) day extension or multiple extensions, provided the multiple cumulative extensions do not exceed a total of thirty (30) calendar days. The PFI must contact the MPF Service Center to extend a Best-Efforts Delivery Commitment after a delivery request has been made. If the loan funding does not occur prior to this 30-calendar day extended expiration date, the Best-Efforts Delivery Commitment will automatically be extended five (5) calendar days until the loan funding occurs.

A fee will be assessed for each extension. If the Best-Efforts Delivery Commitment is cancelled after the loan delivery request has been made, including due to the mortgage loan being ineligible for sale under the MPF Xtra product, the Delivery Commitment will be subject to a Pair-off Fee.

13.3.613.3.6 Loan Delivery Requests

The PFI will request the delivery of the closed Mortgage Loan that was identified in the Best Efforts Delivery Commitment through the submission of the ULDD/XML file. Loan delivery requests are subject to the following requirements:

• All of the Best Efforts Delivery Commitment information, the ULDD/XML file and DU (if loan was underwritten with DU) information must match, including:
  • The Borrower’s information. Substitution of Borrower(s) on the Mortgage Loan identified in the Best Efforts Delivery Commitment is not allowed; and
  • The property address. Substitution of the Mortgaged Property identified in the Best Efforts Delivery Commitment is not allowed.
• The PFI shall provide notice that the Mortgage Loan identified in Best Efforts Delivery Commitment has become a closed Mortgage Loan. The PFI’s submission, and the eMPF website’s initial confirmation of the delivery request, is the notification that the proposed mortgage loan identified in the Best Efforts Delivery Commitment has become a closed Mortgage Loan;
• The PFI must successfully complete the Loan Presentment process for the Mortgage Loan prior to or simultaneously with the loan delivery request;
  • PFIs submitting loan funding requests more than five months from the first payment date may have the loan determined to be ineligible for funding by the MPF Program due to insufficient time to perform the pre-funding certification process and delivery to Fannie Mae within the 6 month Investor timeframe:
    • Loan Presentments and loan delivery requests may be requested up until 3:30 P.M. Central Time seven (7) Business Days prior to the Delivery Commitment’s expiration (expiration is specified on the Delivery Commitment Confirmation). The PFI is required to obtain pre-Funding Initial Certification no later than three (3) Business Days prior to the delivery commitment expiration date (expiration is specified on the Delivery Commitment Confirmation) or until the Delivery Commitment is filled, whichever occurs first. Provided the loan data presented meets the Investor’s requirements, Loan funding will occur generally two (2) Business Days following the pre-Funding certification date; and
• The dollar amount permitted to be delivered must match the commitment amount and must be either the loan amount on the Note or the unpaid Principal Balance of the closed Mortgage Loan. The unpaid principal balance may be less than the loan amount on the Note due to a Curtailment or the application of Borrower payments. If the loan amount changes by any amount after the Delivery Commitment is opened, the PFI must notify the MPF Service Center no later than the day prior to date of the delivery request.

13.3.713.3.7 Delivery Commitment Fallout

In order to maintain eligibility to deliver Mortgage Loans under Best Efforts Delivery Commitments, PFIs must demonstrate acceptable use of the Best Efforts Delivery Commitments.

Examples of unacceptable use of Best Efforts Delivery Commitments are:

• A higher cancellation rate than those generally experienced under MPF Xtra product; or
• The cancellation of a Best Efforts Delivery Commitment specifically in order to deliver a closed Mortgage Loan under another Best Efforts Delivery Commitment or a Mandatory Delivery Commitment, regardless of any fees and price adjustments paid by the PFI.

Loss of eligibility would result in the PFI’s Best Efforts Master Commitment being closed to new Best Efforts Delivery Commitments.

13.5.113.5.1 Pair-off Fees

13.5.1.113.5.1.1 Mandatory Delivery Commitment Pair-off Fees

The entire remaining commitment balance will be automatically paired off for any expired, unfilled Mandatory Delivery Commitment. The Pair-off Fee will be based on the entire remaining balance of the Mandatory Delivery Commitment (original commitment amount less the total principal delivered).

The Pair-off Fee will be calculated as of the close of business on the expiration date of the Delivery Commitment.

13.5.1.213.5.1.2 Best Efforts Delivery Commitment Pair-off Fees

The delivery of the proposed mortgage loan in the Best Efforts Delivery Commitment becomes mandatory when it becomes a closed mortgage loan as reported at the time of the loan delivery request.

The PFI is subject to a Pair-off Fee when the closed mortgage loan is not delivered under the corresponding Best Efforts Delivery Commitment.

13.5.213.5.2 Over-Delivery Fees

Over-delivery fees will apply when the aggregate principal amount of the Mortgage Loans delivered under a Mandatory Delivery Commitment is greater than the Mandatory Delivery Commitment amount at expiration.

The over-delivery fee will be calculated as of the close of business on the date that the aggregate principal amount of the Mortgage Loan purchased exceeds the amount of the Delivery Commitment.

13.5.313.5.3 Calculation of the Pair-off Fee and the Over-Delivery Fee

The MPF Provider will calculate the Pair-off Fee and over-delivery fee based on the following:

• The amount of the pair-off;
• The premium or discount corresponding to the Note Rate for the Delivery Commitment; and
• The premium or discount in effect at the time of pair-off for Delivery Commitments that have the same product type, subproduct type, Note Rate, and delivery period that most closely approximates the remaining term of the Delivery Commitment being paired off.

Pair-off Fees and over-delivery fees will be charged to the PFI's DDA.

13.5.413.5.4 Duplicate Commitment Price Adjustments for Best Efforts Delivery Commitments

If another Best Efforts Delivery Commitment or a Mandatory Delivery Commitment is issued for the purpose of delivering the Mortgage Loan identified in the original Best efforts Delivery Commitment, the closed Mortgage Loan will be subject to a duplicate commitment price adjustment under the Delivery Commitment which it is delivered if:

• The subsequent Delivery Commitment is opened while the original Best Efforts Delivery Commitment is open and unexpired; or
• The subsequent Delivery Commitment is opened less than or equal to thirty (30) calendar days after the earlier of the expiration or cancellation of the original Best Efforts Delivery Commitment even if the original Best Efforts Delivery Commitment was cancelled prior to the loan becoming a closed Mortgage Loan.

Under, duplicate commitment price adjustments the closed Mortgage Loan’s pricing under the new Delivery Commitment is adjusted after delivery and is calculated using the Max Loan Amount x (commitment price – pair-off price).

If the recommitment comes through the Best Efforts channel, the pair-off price for the original loan commitment will be calculated based on the market price as of the time of loan fall-out, including the bid/offer spread.

If the recommitment comes through the Mandatory channel, the pair-off price for the original loan commitment will be calculated based on the market price as of the time of loan fall-out, including the bid/offer spread and the hedge factor of the original Best Efforts commitment.

Duplicate commitment price adjustments are charged to the PFI's DDA post–funding.

14.4.114.4.1 Payment Method

The PFI must successfully complete the Loan Presentment process via the eMPF^® website by submitting all Mortgage Loan data in a uniform XML file format, known as the Uniform Loan Delivery Dataset format, or ULDD. See the Xtra Manual Exhibit S-X for a complete detailed list of ULDD required fields or visit the MPF Program’s Resources: Uniform Loan Delivery Dataset (ULDD) Resources for additional information concerning ULDD.

The loan delivery request must be submitted no later than 3:30 P.M Central Time, two (2) Business Days prior to Delivery Commitment expiration. Upon determination that a closed Mortgage Loan can be purchased as presented, the MPF Bank will initiate a credit to the PFI's DDA, typically on the Business Day following the loan delivery request. The purchase of a Mortgage Loan will be confirmed with the PFI via e-mail or electronically on the day of the loan delivery request. A follow up Transaction Confirmation and Loan Funding Activity Report will be delivered to the PFI on the purchase date that will include any applicable Investor fees and interim interest.

The first payment due date for all Mortgage Loans must be the first day of the second month following the disbursement date of the Mortgage Loan.

Mortgage Loans submitted for delivery are be subject to system validation of the Borrowers’ SSN. The system validation will check for the following:

• Invalid formats;
• SSN not issued;
• SSNs belonging to a deceased individual; and
• Borrower age/issue date discrepancies.

Any mortgage loan that has an SSN validation issue is not eligible for delivery under the MPF Program. The MPF Service Center will notify the PFI of the SSN issue the next Business Day following the loan delivery request.

When a loan delivery request cannot be completed due to an SSN issue, the PFI will be responsible for resolving the issue prior to re-submitting the mortgage loan for delivery. The SSN issue may be resolved by correcting an erroneously entered SSN or by validating a correctly entered SSN with the Social Security Administration (SSA). If the SSN needs to be corrected or the PFI has validated the SSN with the SSA, the mortgage loan may only be re-submitted for delivery by contacting the MPF Service Center. The PFI cannot deliver the loan using the eMPF website.

14.4.214.4.2 Reconciliation

If at a later date it is determined that a payment error has taken place, regardless of the source of the error, the MPF Bank will make adjusting debits or credits to the PFI's DDA and confirm the details of such adjustments with the PFI.

14.4.314.4.3 Premium Pricing Reimbursement

The MPF Bank reserves the right to request reimbursement for any premiums paid in connection with Mortgage Loans that are paid off within 120 days of the Funding Date.

15.1.115.1.1 New York Consolidation, Extension, and Modification Agreements

For CEMA, the following documents must be submitted to the Custodian:

• Original/Certified Copy of the most current version of CEMA (FNMA/FHLMC Form 3172);
• FNMA/FHLMC Form 3172 Exhibits "A", "B", "C", and "D". Exhibit "A" must list all Notes and Security Instruments being consolidated, modified and extended; and
• The original consolidated Note evidencing the new indebtedness endorsed "in blank", without recourse.

See the Initial Certification Review Checklist for MPF Xtra ( Exhibit K-X) for more CEMA requirements.

15.1.215.1.2 Data Accuracy

The PFI is responsible for reviewing all Mortgage Loan documents for completeness and accuracy, and is responsible for the correction of all errors prior to submission to the Custodian. All Closing documents must be error-free. If corrections are necessary, strike-overs that are initialed by the Borrower must be used. Corrective coverings are not acceptable.

The names and signatures of each Borrower must be consistent on all Closing documents, and must correspond to the names appearing on the title insurance policy.

15.2.115.2.1 Transit Insurance

If the PFI has not contractually agreed with the Custodian to have the Custodian assume liability for Notes and Assignments and any other documents in the Collateral File while in transit, the PFI must obtain insurance covering physical damage or destruction to, or loss of, any Notes, Assignments and other documents while such documents are in transit between the Custodian's premises and anywhere, regardless of the means by which they are transported. For the purpose of this insurance, Mortgage Notes are considered to be "Negotiable Instruments" under Section 3-104 of the Uniform Commercial Code (UCC).

The PFI or PFI’s insurer, insurance broker or agent must notify the MPF Provider at least thirty (30) calendar days prior to cancellation or nonrenewal of the insurance.

The PFI’s insurance policy must:

• Be underwritten by an insurer that has a B+ or better rating and also a financial size category of VI or better according to the A.M. Best Company, or be affiliated with Lloyd's of London;
• Be maintained in an amount that is deemed adequate for the number of Notes and Assignments held in custody and that is deemed appropriate based on prudent business practice; and
• Have a deductible amount no more than the greater of five percent (5%) of the PFI's GAAP net worth or $100,000, but in no case greater than $10,000,000.

If the PFI is covered under its parent's insurance program rather than by its own insurance, then the following additional requirements apply:

• The acceptable deductible amount for each insurance policy may be no more than the greater of five percent (5%) of the parent's GAAP net worth or $100,000, but in no case greater than $10,000,000; and
• The PFI must be a named insured.

15.3.115.3.1 Correction of Exception (5/27/25)

When the PFI discovers an Exception, which includes an error on one of the documents in the Collateral File or a discrepancy between the Loan Presentment information and the loan document information, the PFI must immediately report the Exception by emailing the MPF Custody Department at [email protected] and work with the MPF Custody Department to correct the Exception.

Exceptions are detailed in the Exception Report on the eMPF website. PFIs should reference Exhibit H (MPF Program Custodian-Document Codes) and Exhibit I (MPF Program Custodian-Exception Codes) for a translation of the codes on the Exception Report.

15.3.215.3.2 Loan Not Eligible

If the Custodian determines that the documents in the Collateral File do not meet the MPF Program requirements, the Custodian will inform the MPF Provider of the conditions that cause ineligibility.

Mortgage Loans subject to Pre-Funding Initial Certification that are determined during the certification process to be ineligible will be deemed ineligible for purchase by the MPF Program; the PFI will be responsible for any Delivery Commitment pair off fees.

17.2.117.2.1 Whole Loan Sale

The MPF Xtra whole loan sale option involves the PFI selling MPF Xtra Mortgage Loans and the Servicing Rights for those Mortgage Loans to the MPF Provider at loan delivery. The MPF Provider then sells the Mortgage Loan to an investor and transfers the Servicing Rights to an Assuming Servicer. The PFI selling the whole loan (Selling Servicer) must execute an MPF Xtra Addendum to the PFI Agreement and must obtain an MPF Xtra Master Commitment that (i) indicates it will sell MPF Xtra Mortgage Loans on a whole loan basis and (ii) lists an Assuming Servicer as directed by the Selling Servicer’s MPF Bank.

17.2.1.117.2.1.1 Selling Servicer Responsibilities

17.2.1.1.117.2.1.1.1 Transfer Process (7/2/24)

For specific requirements regarding the servicing transfer process, see Exhibit W-X: NewRez Whole Loan Servicing Transfer Manual for MPF Xtra.

The Selling Servicer must transfer servicing to the Assuming Servicer in full compliance with Applicable Law, the Guides, and in accordance with the terms and conditions of the applicable Servicing Transfer Manual.

Note: All servicing released activity delivered to Specialized Loan Servicing (SLS) prior to June 1, 2024 has been transitioned to NewRez. As a result, for all mortgage loans previously delivered to SLS, Servicers must refer to and comply with Exhibit W-X: NewRez Whole Loan Servicing Transfer Manual for MPF Xtra.

17.2.1.1.217.2.1.1.2 Quality Control Review

The Selling Servicer is responsible for conducting the quality control review in accordance with the Guides for MPF Xtra Mortgage Loans that were sold by the Selling Servicer on a whole loan basis. If an MPF Xtra Mortgage Loan is selected for MPF Provider or Fannie Mae quality control review, the Selling Servicer shall be responsible for providing copies of the required documents upon request from the MPF Provider or Fannie Mae.

17.2.1.217.2.1.2 Termination of the Assuming Servicer

The MPF Bank and the MPF Provider have the full right to terminate an Assuming Servicer’s right to service MPF Xtra Mortgage Loans at any time. If an Assuming Servicer’s right to service MPF Xtra Mortgage Loans is terminated, all MPF Xtra Master Commitments listing the Assuming Servicer as Servicer will be closed. The MPF Bank will work with the Selling Servicer to find an alternative servicing released option.

The MPF Provider or Fannie Mae may transfer the Servicing to such party as the MPF Provider or Fannie Mae may designate.

17.2.217.2.2 Concurrent Sale of Servicing to Another PFI

Concurrent sales or transfers of Servicing involve the PFI (Selling Servicer) selling the Servicing Rights to an Assuming Servicer at the same time the Mortgage Loan is sold to the MPF Bank. The Selling Servicer will remain liable for origination representations and warranties under its PFI Agreement. The Assuming Servicer must service the Mortgage Loans in compliance with the requirements in the Servicing Guide.

To participate in this concurrent sale of servicing option, PFIs must contact their MPF Bank Representative.

17.2.2.117.2.2.1 Eligible Servicers

Servicers of MPF Xtra Loans must:

• Be a PFI;
• Meet the eligibility requirements in the Program Guide and comply with the Applicable Standards;
• Execute an MPF Addendum to the PFI Agreement;
• Be engaged in purchasing servicing rights under existing servicing sales agreements;
• Be eligible to service loans for Fannie Mae;
• Execute an MPF Xtra Addendum to the PFI Agreement; and
• Be approved by its MPF Bank as a Servicer (thereafter known as an Assuming Servicer) eligible to acquire Servicing Rights for Serviced Xtra Mortgage Loans from Selling Servicers under the MPF Xtra product.

17.2.2.217.2.2.2 Selling Servicer Prerequisites to Selling Servicing Rights

The Selling Servicer may not sell any of its Servicing Rights without the written consent of the MPF Provider under the MPF Xtra product. The Assuming Servicer may not acquire Servicing Rights for Serviced Xtra Mortgage Loans under its PFI Agreement without the written consent of the Assuming Servicer’s MPF Bank. Therefore, in order to sell Servicing Rights to an approved Assuming Servicer, the Selling Servicer must first complete all the following requirements:

• The Selling Servicer and the Assuming Servicer must complete and submit an MPF Xtra Servicing Transfer Notice ( Form SG361-X) to the Assuming PFI’s MPF Bank for its approval;
• The Selling Servicer and the Assuming Servicer must execute a Sale of Servicing Agreement;
• The Selling Servicer must obtain an MPF Xtra Master Commitment (MC) with the approved Assuming Servicer as the Servicing PFI for that MC; and
• The Selling Servicer must have the ability to either originate Mortgage Loans as a “MOM” loan (MERS as Original Mortgagee) or the ability to assign and register the loan with MERS immediately after the sale of the Servicing Rights.

17.2.2.317.2.2.3 Sale of Servicing Agreements

It is the Selling Servicer’s responsibility to verify the Assuming Servicer is approved to purchase Servicing Rights and service MPF Xtra Mortgage Loans for the MPF Program. When a PFI is not approved to acquire Servicing Rights, the PFI must obtain approval to become an Assuming Servicer.

The Selling Servicer and the Assuming Servicer will enter into a Sale of Servicing Agreement in order to sell Servicing Rights for MPF Xtra Mortgage Loans. The MPF Bank and MPF Provider are not parties to the Sale of Servicing Agreement and do not have any obligations or liabilities under the Sale of Servicing Agreement. Additionally, no MPF Bank shall owe any fees to the Selling Servicer or the Assuming Servicer in connection with the sale of MPF Xtra Servicing Rights. Any compensation payable by the Assuming Servicer to the Selling Servicer in connection with the sale of MPF Xtra Mortgage Loan Servicing Rights shall be as provided in the Sale of Servicing Agreement.

In the event of a conflict between the Guides or the PFI Agreements and the Sale of Servicing Agreement, the Guides and PFI Agreements will control. However, to the extent that the Sale of Servicing Agreement addresses matters solely between the PFIs which do not affect the MPF Banks’ rights with respect to the Serviced Xtra Mortgage Loans or the Servicing of such Mortgage Loans, then the Guides or PFI Agreements shall have no applicability to such matters.

The Assuming Servicer’s Servicing Rights with respect to the Serviced Xtra Mortgages are specifically subject to the rights of its MPF Bank and the MPF Provider under the Assuming Servicer’s PFI Agreement and as provided for in the Guides.

17.2.2.417.2.2.4 Servicing Rights Transfer Process

On the date provided for in the Sale of Servicing Agreement, but not later than the last date on which a sale can occur that would allow the Selling Servicer and the Assuming Servicer to comply with the Servicing Requirements specified in the Guides for Serviced Xtra Mortgage Loans, the Selling Servicer shall transfer or deliver to the Assuming Servicer:

• All funds held in connection with the servicing of the Serviced Xtra Mortgage Loans for the benefit of the Borrowers or Fannie Mae;
• Mortgage Loan Files and data related to the loan and the servicing of the Serviced Xtra Mortgage Loans necessary to service the Serviced Xtra Mortgages in accordance with Applicable Standards; and
• All Borrower notices pertaining to transfer of the Servicing Rights in accordance with Applicable Standards and the Sale of Servicing Agreement.

As of the date a Serviced Xtra Mortgage Loan is sold by the Selling Servicer under the MPF Xtra product, the Assuming Servicer shall be responsible for the servicing of the Serviced Xtra Mortgage Loan in accordance with the Applicable Standards. The Assuming Servicer shall accept the servicing of the Serviced Xtra Mortgage Loan despite any Selling Servicer breach of Sale of Servicing Agreement or breach of Selling Servicer Obligations.

The MPF Provider may be required to reverse a funding of a Serviced Xtra Mortgage Loan for which the Servicing Rights have been sold in order to correct loan data. This will result in a new funding confirmation for the Serviced Xtra Mortgage Loan. The Assuming Servicer will be required to service the Serviced Xtra Mortgage Loan in accordance with the new funding confirmation. Because such notifications of loan data corrections are delivered to the Selling Servicer, it is recommended that the Sale of Servicing Agreement contain provisions for the Selling Servicer to share such notification with the Assuming Servicer.

17.2.2.517.2.2.5 Custody Documents

The Selling Servicer shall deliver custodial documents for the Serviced Xtra Mortgage Loans to the MPF Program Custodian.

17.2.2.617.2.2.6 Note Endorsement

The Selling Servicer must endorse the Note “in blank” before it is delivered to the MPF Program Custodian. If an allonge is being used for the endorsement, the allonge must be permanently affixed to the related note and must clearly identify the note by referencing the name of the Borrower(s), the date of the note, the amount of the note, and the address of the mortgaged property. The form and content must comply with all Fannie Mae requirements and applicable state, local, or federal law governing the use of allonges and result in an enforceable and proper endorsement to the note.   

17.2.2.717.2.2.7 Assignments

Unless MERS is the original Mortgagee, the Selling Servicer must prepare and record an Assignment of the Security Instrument to MERS for each Serviced Xtra Mortgage Loan in the form that complies with MERS requirements and Applicable Law.

17.2.2.817.2.2.8 Recording Assignments

Every Serviced Xtra Mortgage Loan must either be a MOM loan (MERS as Original Mortgagee) or assigned to MERS immediately after the sale of Servicing. Immediately following the sale of the Serviced Xtra Mortgage to the MPF Provider, either the Selling Servicer or the Assuming Servicer (as agreed to between them) shall record such assignment in the appropriate public records of the jurisdiction where the related Mortgaged Property is located.

17.2.2.917.2.2.9 Certification with the MPF Program Custodian

The Selling Servicer is responsible for the Initial Certification of the Collateral Files, resolving Initial Certification issues with the MPF Program Custodian, and payment of all fees imposed for uncertified documents or custodial Exceptions. All MPF Xtra Mortgage Loans delivered to the MPF program subject to pre-Funding certification, must meet the Initial Certification requirements prior to Funding to be eligible.

17.2.2.1017.2.2.10 Selling Servicer Document Access

The Selling Servicer may request and obtain the Collateral File from the MPF Program Custodian in order to correct certification exceptions only during the time period permitted for Initial Certification.

17.2.2.1117.2.2.11 Custodial Accounts, Loan Accounts, and Remittances

The Assuming Servicer is required to maintain separate Custodial Accounts in accordance with the Guides. The Assuming Servicer will be responsible for monthly loan accounting and reporting commencing the first monthly cycle cutoff date after the Serviced Xtra Mortgage Loan was sold.

17.2.2.1217.2.2.12 Other Selling Servicer Responsibilities

The Selling Servicer is responsible for conducting the quality control review in accordance with the Program Guide for Serviced Xtra Mortgage Loans for which the Servicing Rights have been sold.

If a Serviced Xtra Mortgage Loan for which the Servicing Rights were sold is selected for MPF Provider or Fannie Mae quality control review, the Selling Servicer shall be responsible for providing copies of the required documents upon request from the MPF Provider or Fannie Mae.

17.2.2.1317.2.2.13 Servicing Rights Sale Provisions

In addition to the representations and warranties in the PFI Agreement, the Selling Servicer represents and warrants as of the Funding Date that:

• The Selling Servicer is the sole and lawful owner of the Servicing Rights;
• The Selling Servicer has the full right and power to sell the Servicing Rights to the Assuming Servicer;
• Except for the Sale of Servicing Agreement and the Selling Servicer Agreement, the Servicing Rights are not subject to any contract or other agreements of the Selling Servicer;
• The terms of the Master Commitment(s) remain in full force and effect; and
• The PFI Agreement remains in full force and effect.

Additionally, the Selling Servicer shall remain liable for:

• The origination obligations for the Serviced Xtra Mortgage Loans;
• Delivery of the document package; and
• Any violations of the Servicing Responsibilities that occur prior to the sale of the Servicing Rights to the Assuming PFI.

The MPF Provider or Fannie Mae may request that the Assuming Servicer repurchase any Serviced Xtra Mortgage Loan:

• Which does not meet the requirements of the Guides, whether such condition is due to the Selling Servicer’s breach of any of its origination obligations or Servicing Responsibilities with respect to such Serviced Xtra Mortgage Loan; or
• If the Assuming Servicer violated its Servicing Responsibilities after its purchase of the Servicing Rights to the Serviced Xtra Mortgage Loan.

Without waiving its rights against the Selling Servicer, the Assuming Servicer shall effect such repurchase, provided:

• The Selling Servicer has not filed nor has a filing been made against the Selling Servicer under the Bankruptcy Code; and
• Neither a receiver nor a conservator has been appointed for the Selling Servicer;
• The MPF Provider or Fannie Mae assigns its rights against the Selling Servicer with respect to such Mortgage to the Assuming Servicer; and/or
• The Assuming Servicer is subrogated to the rights of the MPF Provider or Fannie Mae against the Selling Servicer with respect to such Mortgage Loan.

Regardless of whether or not any of the above conditions are met, the MPF Provider or Fannie Mae may pursue repurchase of the Serviced Xtra Mortgage Loan directly against the Selling Servicer or its successors and assigns in an instance where the Selling Servicer is responsible for a repurchase under the terms of the Guides and the Selling Servicer’s PFI Agreement. However, the Assuming Servicer will continue to service such Serviced Xtra Mortgage Loan until it is repaid, liquidated or the MPF Provider or Fannie Mae notifies the Assuming Servicer that the Serviced Xtra Mortgage Loan has been sold.

17.2.2.1417.2.2.14 Termination of the Assuming Servicer as Servicer

Termination of the Assuming Servicer’s right to service Mortgage Loans under the PFI Agreement, shall terminate the Assuming Servicer's MPF Xtra Servicing without separate notice to the Assuming Servicer. If Fannie Mae terminates the Assuming Servicer’s eligibility as a Servicer, it will also result in the termination of the Assuming Servicer’s MPF Xtra Servicing Rights for the Serviced Xtra Mortgage Loans. Such termination shall not relieve the Assuming Servicer of its obligation to transfer all funds, Mortgage Loan Files and data for the Service Xtra Mortgage Loans in its possession to the party designated by the MPF Provider, or Fannie Mae. The MPF Provider or Fannie Mae may transfer the Servicing to such party as the MPF Provider or Fannie Mae may designate.

17.2.2.1517.2.2.15 Termination of the Sale of Servicing Agreement

If the Selling Servicer terminates the Sale of Servicing Agreement, the Selling Servicer must notify the MPF Provider immediately in writing of the termination. Termination of the Sale of Servicing Agreement does not relieve the Assuming Servicer of its obligation to service the Serviced Xtra Mortgage Loans in accordance with the requirements of the Guides.