Streamlined Rate Lock (MBS or Cash)

The Streamlined Rate Lock provides Lenders with an option to rate lock the loan with the Borrower at any point during the underwriting process—as early as borrower application. The Lender is liable for the non-delivery damages if the loan is not delivered to Fannie Mae for any reason following the rate lock.  

Initially Fannie Mae Capital Markets will be the only eligible MBS investor.  

Fannie Mae will collect non-delivery damages directly from the Lender under its trading agreement with Fannie Mae.   

Follow these steps to initiate a Commitment in C&D™ with a Streamlined Rate Lock:

  1. Launch the Multifamily C&D application.
  2.  Enter your User ID and Password to log in. 
    The Multifamily C&D home page appears.
  3. Select Create a new deal from the drop-down menu and complete the registration screen. You may also select an existing deal name for the deal you would like to commit.
  4. Select the Commitments tab to complete the commitment information.
    The Commitments screen appears.
  5. Scroll to the Commitment Details section and enter the commitment information.
  6. Scroll to the Pricing Attributes section.
     
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  7.  Click the Streamlined Rate Lock checkbox next to Other Attributes (Select all applicable).
  8. Submit the Commitment to Fannie Mae.
    Fannie Mae will confirm the commitment as a Streamlined Rate Lock.

Change the Streamlined Rate Lock Amount

The original Streamlined Rate Lock commitment amount may need to be changed after the underwriting process is completed.

Follow these steps to increase the commitment amount for cash loans:

  1. Contact the Whole Loan Desk to request a Dual DUS/Additional Rate Lock and provide the information requested.
  2. After rate locking the Dual DUS Commitment, submit an Additional Rate Lock Request in the C&D system (see Section 11 of the C&D User Manual for additional information).
     
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  3. Complete the text fields on the Additional Rate Lock Data section, and click Submit Additional Rate Lock to submit to Fannie Mae for approval.
     
    streamline3.png

    Fannie Mae will confirm the Dual DUS/Additional Rate Lock Commitment.  
  4. The system will update the Commitment with the new values and provide a history of the original Commitment and the revisions in the Additional Rate Lock section.
     
    streamline4.png


Follow these steps to decrease the commitment amount for cash loans:

  1. Submit a Change Request to Fannie Mae with the data to update the fields that relate to the changed commitment amount.
    The additional fields that may need to be updated as a result of increasing the commitment amount include, but are not limited to:
    • Commitment Amount ($)
    • Purchase Price (%)
    • Current Interest Rate (%)
    • Servicing Fee Rate (%)
    • Est. LTV at Commitment (%) (Combined if Supplemental)
    • Est. DSCR at Commitment (Combined if Supplemental)
    • Lender Certificate Fields
  1. A Pair-off Fee will be assessed based on the amount of the reduction.

Follow these steps to increase or decrease the commitment amount for MBS loans:

  1. Contact the Whole Loan Desk to request a MBS Dual/Additional Rate Lock and provide the information requested.
    The Fannie Mae Trading Desk will approve the MBS Dual/Additional Rate Lock for the existing Commitment.
  2. Submit a Change Request to Fannie Mae with the data to update the fields that relate to the changed commitment amount.  
    The additional fields that may need to be updated as a result of increasing the commitment amount include, but are not limited to:
  • Commitment Amount ($)
  • Purchase Price (%)
  • Current Interest Rate (%)
  • Servicing Fee Rate (%)
  • Est. LTV at Commitment (%) (Combined if Supplemental)
  • Est. DSCR at Commitment (Combined if Supplemental)
  • Lender Certificate Fields
  1. The system will update the Commitment with the new values and provide a history of the revisions in the Change Requests tab of C&D.
  2. If the request is to decrease the commitment amount, a Pair-off Fee will be assessed based on the amount of the reduction.

Submit the Mortgage Loan

Follow these steps to submit the mortgage loan:

  1. Associate the Commitment to the loan page.
  2. Complete all required Mortgage Loan information.
  3. Deliver the Mortgage Loan as a Cash/MBS Mortgage Loan in C&D.
    Fannie Mae will purchase the Cash/MBS Mortgage Loan (subject to all other DUS requirements).

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