Skip to main content

Bond Transactions and Credit Enhancement Mortgage Loans

Bond Transactions and Credit Enhancement Mortgage Loans Using A Credit Enhancement Instrument

As of January 15, 2016 Lenders no longer have access to the external MCODES URL to which committing and delivery data previously has been submitted for a Credit Enhancement Mortgage Loan involving a Bond transaction on which Fannie Mae will issue its Credit Enhancement Instrument.  All such committing and delivery data, including all change requests, must be submitted to Multifamily Operations at [email protected] for processing within the application. This Job Aid does not apply to a Credit Enhancement Mortgage Loan where Fannie Mae has issued:

  • A Credit Enhancement Instrument in connection with a Trust Indenture where some of the Bond proceeds will finance other projects in addition to the Property securing the Credit Enhancement Mortgage Loan (sometimes referred to as an “open Trust Indenture”), which will continue to use C&D for the input of data, as a “Cash” execution; or

  • An MBS rather than a Credit Enhancement Instrument, which will continue to use C&D for the input of data, as an “MBS” execution.

The following steps provide an overview of the processes needed for data to be entered into MCODES for a Credit Enhancement Mortgage Loan where Fannie Mae will issue its Credit Enhancement Instrument and all of the proceeds of the Bonds being issued under the Trust Indenture will finance the Property securing the Credit Enhancement Mortgage Loan (sometimes referred to as a “closed Trust Indenture”).

Commitment Confirmation

  1. The Lender completes the “Bond” and “Short Property” commitment data fields using the appropriate Multifamily Acquisitions template provided via email to the Lender.  (Not applicable for Structured Transactions.  Please proceed to Loan Delivery/Purchase section below).

  2. The Lender returns the completed template via email to [email protected].

  3. Multifamily Operations enters commitment values using the information provided by the Lender in the template.

  4. Multifamily Operations forwards the submitted data in PDF form via email to the Lender for review.

  5. If the Lender identifies data errors, the Lender must update the Lender template with required corrections and resend via email to [email protected].  Repeat this process as necessary until the Lender verifies commitment data is ready to request a Commitment by sending an email to [email protected].

  6. Multifamily Acquisitions Analyst confirms the Fannie Mae Commitment.

Loan Delivery/“Purchase” and Issuance of Credit Enhancement Instrument

  1. The Lender completes remaining loan level data fields using the appropriate Multifamily Acquisitions template provided via email to the Lender.

  2. The Lender returns the completed template via email to [email protected].

  3. Multifamily Operations enters loan level values using the information provided by the Lender in the template.

  4. Multifamily Operations forwards the submitted data in PDF form via email to the Lender for review and sign-off.

  5. If the Lender identifies data errors, the Lender must update the template with required corrections and resend via email to [email protected].  Repeat this process as necessary until the Lender verifies loan level data is ready for “purchase” (i.e., the issuance of the Fannie Mae Credit Enhancement Instrument).

  6. Lender verifies data is accurate and complete by sending an email to the [email protected] using standardized language.

    1. Fannie Mae is relying on the accuracy and completeness of the submitted data.  Fannie Mae will take further actions based on that reliance, including the Bond purchase.  Inaccuracies may cause delays in the timely purchase of the Bonds.  Please respond “Confirm” for affirmation of the representations and warranties made in the Multifamily Selling and Servicing Guide and the Lender Contract with Fannie Mae.

  7. Multifamily Operations executes the “purchase” event, and the Fannie Mae Credit Enhancement Instrument is issued.

  8. Multifamily Operations provides a PDF of fully executed transaction via email to the Lender.

Data Change Process

Requests for data changes are made via email to [email protected].

Privacy and Confidential Information

Multifamily Operations will follow the Fannie Mae privacy policy that governs the collection and sharing of non-public personal information (NPI).  Multifamily Operations will encrypt email and/or email attachments accordingly.

Back to Top

© 2016 Fannie Mae. Trademarks of Fannie Mae.