source:
  type: guide
  id: fnma-sel-c3-3-03
  authority: Fannie Mae Selling Guide C3-3-03 — Buying Up and Buying Down the Guaranty
    Fee for MBS
  description: Fannie Mae Selling Guide C3-3-03 — Buying Up and Buying Down the Guaranty
    Fee for MBS.
  coverage_tier: operative
obligations:
- id: fnma-sel-c3-3-03-full
  canonical_id: fnma-sel-c3-3-03-full
  section: Fannie Mae Selling Guide C3-3-03 — Buying Up and Buying Down the Guaranty
    Fee for MBS
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide C3-3-03 — Buying Up and Buying Down the Guaranty
      Fee for MBS
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'C3-3-03, Buying Up and Buying Down the Guaranty Fee for MBS
      (05/07/2025) Introduction This topic contains information on buying up and buying
      down the guaranty fee for MBS, including: Guaranty Fee Buyup Maximums and Buydown
      Minimums for Fixed-Rate Mortgages Eligibility Requirements for ARM Guaranty
      Fee Buyups and Buydowns Guaranty Fee Buyup Maximums and Buydown Minimums for
      ARMs Guaranty Fee Buyup Maximums and Buydown Minimums for Fixed-Rate Mortgages
      The maximum guaranty fee buyup amount is stated in the lender''s MBS commitment.
      The guaranty fee cannot be bought down to a number less than zero. Eligibility
      Requirements for ARM Guaranty Fee Buyups and Buydowns A lender may buy up or
      buy down the guaranty fee remittance for MBS pools consisting of adjustable-rate
      mortgages (ARMs) originated under any standard ARM plan, as long as the mortgages
      meet the following eligibility criteria: The guaranty fee rate may be bought
      up or bought down in increments of 0.0001% (one one-hundredth of a basis point).
      Any buyup or buydown of the guaranty fee remittance rate for adjustable-rate
      MBS pools must be calculated on the reduced guaranty fee remittance rate that
      applies to this type of remittance cycle. Guaranty Fee Buyup Maximums and Buydown
      Minimums for ARMs The weighted-average coupon of the pooled mortgages must not
      exceed the following limits: 1.000% (100 basis points) higher than the accrual
      rate (the pass-through rate) for the pool as of the issue date for mortgages
      originated under most ARM plans; or 0.875% (87.5 basis points for mortgages
      originated under ARM plans that have initial ﬁxed-rate periods of 3, 5, 7, or
      10 years). The recommended maximum allowable interest rate is 100 basis points
      (1%) over the minimum allowable interest rate. Published May 6, 2026 994 Additionally,
      for all ARM plans, the guaranty fee buyup is limited to 0.25% (25 basis points).
      The guaranty fee cannot be bought down to a number less than zero. Recent Related
      Announcements The table below provides references to recently issued Announcements
      that are related to this topic. Announcements Issue Date Announcement SEL-2025-03
      May 07, 2025 Announcement SEL-2019-04 May 01, 2019 Chapter C3-4, Pooling Loans
      into Fixed-Rate MBS Introduction Lenders can pool mortgages into one of two
      types of MBS: ﬁxed-rate MBS and ARM MBS. This chapter provides information on
      pooling loans into ﬁxed-rate MBS, which includes UMBS.'
  judgment: false
