source:
  type: guide
  id: fnma-sel-c3-7-03
  authority: Fannie Mae Selling Guide C3-7-03 — Making Good Delivery
  description: Fannie Mae Selling Guide C3-7-03 — Making Good Delivery.
  coverage_tier: operative
obligations:
- id: fnma-sel-c3-7-03-full
  canonical_id: fnma-sel-c3-7-03-full
  section: Fannie Mae Selling Guide C3-7-03 — Making Good Delivery
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide C3-7-03 — Making Good Delivery
    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: 'C3-7-03, Making Good Delivery (05/01/2019) Introduction This
      topic describes the requirements for making good delivery of MBS, (which includes
      UMBS), including: Good Delivery Conditions Principal Amount of the Trade Accrued
      Interest Maximum Number of Pools and Minimum Delivery Amounts Pairing Oﬀ Good
      Delivery Conditions Acceptance of a ﬁrm bid to sell MBS to the Desk is an enforceable
      obligation that requires the lender to deliver the security at the parameters
      agreed upon at the time of the trade and in amount that meets the minimum trade
      requirements for the commitment. When a lender meets this obligation, it has
      made good delivery. Published May 6, 2026 1020 However, a good delivery for
      Fannie Mae’s purposes and a good delivery that satisﬁes SIFMA''s guidelines
      for a TBA trade are not always the same. The guidelines that determine whether
      a lender has or has not made good delivery for a TBA trade include the following:
      The delivery of a single-lender MBS under a ﬁrm bid that speciﬁed a Fannie Majors
      multiple-lender MBS does not constitute good delivery for that trade. The delivery
      of a Fannie Majors UMBS, however, will be considered good delivery for a TBA
      trade under any ﬁrm bid, even if the lender did not specify that the trade would
      include a Fannie Majors UMBS. The delivery of a 30-year term UMBS against a
      TBA trade that speciﬁes a 30-year UMBS will not be considered as a good delivery
      unless the ﬁnal maturity date of the security was greater than 181 months when
      the security was issued. The delivery of an MBS backed by pools that are comprised
      of more than 10% of any single type of nonstandard loan or more than 15% of
      any combination of nonstandard loans is not considered a good delivery for a
      TBA trade. See C3-2-01, Determining Eligibility for Loans Pooled into MBS for
      additional information about pooling nonstandard loans. Failure to eﬀect a good
      delivery of a security for a TBA trade can severely limit a lender’s ability
      to deal with the Desk and could result in Fannie Mae declaring the lender to
      be in default. See C3-7-01, Establishing an MBS Trading Account, for more details.
      See C3-7-04, Delivering MBS Pool Data and Documents, for speciﬁcs on the data
      and documents required in order to make good delivery. Principal Amount of the
      Trade The maximum diﬀerence between the principal balance the lender committed
      to deliver and the amount actually delivered can be plus or minus 0.01% of the
      trade amount for a TBA trade. If multiple trades are executed against a single
      pool transmission, the delivery variance applies to each trade. Lenders that
      need a higher or lower variance in some situations should contact the Capital
      Markets Pricing and Sales Desk to negotiate an alternative variance. Lenders
      should note, however, that trades that have variances outside of SIFMA''s tolerances
      will not be eligible for TBA trades. Also, no variance is allowed for transactions
      in which the seller provides the buyer with a pool number and speciﬁc original
      face amount on the date the two parties agree to enter into the transaction.
      For funding purposes, the principal amount is calculated as follows: a = d x
      b, where a = net principal d = current balance of the security b = price (in
      decimals) Accrued Interest Published May 6, 2026 1021 Accrued interest is paid
      up to, but not including, the settlement date. Therefore, if the settlement
      occurs on the ﬁrst of the month, the current amount due does not include an
      accrued interest payment. For funding purposes, the accrued interest amount
      is calculated based on the following formula: c = [d x e/360 days] x (f – 1
      day), where c = interest d = current balance of the security e = the pass-through
      rate f = the settlement date Maximum Number of Pools and Minimum Delivery Amounts
      The maximum number of pools permitted for delivery into a given trade depends
      on: the MBS pass-through rate, the amount of the trade, and the number of pools
      that are needed to reach the minimum delivery amount (which is determined by
      the applicable trade delivery variance). The current minimum balance for each
      pool in a group submission must be at least $25,000. The limits are described
      in the following table: MBS Pass-Through Rate Original Trade Amount Maximum
      Number of Pools < 8% ≤ $500,000 1 > $500,000 and < $1,000,000 2 ≥ $1,000,000
      3 pools per each million dollars of the trade amount Published May 6, 2026 1022
      MBS Pass-Through Rate Original Trade Amount Maximum Number of Pools ≥ 8% ≤ $500,000
      3 > $500,000 and < $1,000,000 4 ≥ $1,000,000 5 pools per each million dollars
      of the trade amount Pairing Oﬀ If a lender is having diﬃculty meeting its commitment
      to deliver a security, the Desk may permit the lender to execute a “pair-oﬀ.”
      The lender should request a pair-oﬀ well in advance of the scheduled settlement
      date to avoid a “failed” delivery. To request a pair-oﬀ, a lender may either:
      request a “ﬁrm oﬀer” from the Desk, identifying the trade to be paired oﬀ. A
      ﬁrm oﬀer will enable the lender to buy from the Desk (at current market value)
      an MBS that is comparable to the one the lender agreed to sell to the Desk,
      or arrange a transaction with a third party whereby the lender purchases the
      MBS from that party and delivers it to the Desk in fulﬁllment of its commitment.
      Pair-oﬀs are not always possible in certain market environments; therefore,
      a lender should evaluate market conditions before considering their use. The
      lender must wire pair-oﬀ funds to Fannie Mae on the settlement date. If the
      lender owes Fannie Mae pair-oﬀ funds from two or more related buy and sell transactions
      that settle on the same day, it should remit a single wire for the net amount
      due to Fannie Mae. The wire transfer must include the lender’s name, the settlement
      date, and the word “pair-oﬀ.” Fannie Mae has the right to charge interest on
      delinquent funds. Recent Related Announcements The table below provides references
      to recently issued Announcements that are related to this topic. Announcements
      Issue Date Announcement SEL-2019-04 May 01, 2019 Published May 6, 2026 1023'
  judgment: false
