source:
  type: guide
  id: fnma-sel-c2-2-03
  authority: Fannie Mae Selling Guide C2-2-03 — General Information on Whole Loan
    Purchasing Policies
  description: Fannie Mae Selling Guide C2-2-03 — General Information on Whole Loan
    Purchasing Policies.
  coverage_tier: operative
obligations:
- id: fnma-sel-c2-2-03-full
  canonical_id: fnma-sel-c2-2-03-full
  section: Fannie Mae Selling Guide C2-2-03 — General Information on Whole Loan Purchasing
    Policies
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide C2-2-03 — General Information on Whole Loan
      Purchasing Policies
    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: 'C2-2-03, General Information on Whole Loan Purchasing Policies
      (05/04/2022) Introduction This topic includes information on the conditions
      under which Fannie Mae will fund the purchase of a loan delivered in fulﬁllment
      of a whole loan commitment, including: Whole Loan Funding Requirements Warehouse
      Lender’s Release of Interest in the Property Procedures Related to the Secure
      Transfer of Funds Whole Loan Funding Requirements Fannie Mae will send the proceeds
      from the whole loan sale via a wire transfer into the lender’s designated account
      on the "Purchased and Funded" date (as reﬂected in Loan Delivery) if: the designated
      payee code is valid; the loan is eligible for purchase; and the document custodian
      received a complete, accurate mortgage document submission package and loan
      delivery data by the applicable cutoﬀ times. Fannie Mae will direct the wire
      transfer to either: the account(s) and depository institution(s) the lender
      designates, or the lender itself (if it is able to receive wire transfers through
      the Fedwire system). To avoid delays in purchasing and funding, Fannie Mae accepts
      delivery of any mortgage up to 45 days from the due date of the reported last
      paid installment. Warehouse Lender’s Release of Interest in the Property Published
      May 6, 2026 968 When Fannie Mae purchases a mortgage, the mortgage seller represents
      and warrants that title to the mortgage note is free and clear of any security
      interest, lien, pledge, or other encumbrance, which means that any interest
      held by a warehouse lender must be released no later than the date Fannie Mae
      acquires the note. To ensure that this is always the case, Fannie Mae has established
      delivery procedures to cover those instances in which the document custodian
      either: receives with the mortgage delivery documents a bailee letter notifying
      it of a warehouse lender’s security interest, or is otherwise aware that a warehouse
      lender is claiming an interest of any kind in the mortgage notes being delivered.
      This process is intended solely to ensure the correctness of the selling representations
      and warranties a mortgage seller makes to Fannie Mae (and not to beneﬁt any
      third party). These procedures are outlined in C1-2-06, Bailee Letters. Also
      see C1-2-03, Ownership of Mortgage Loans Prior to Purchase or Securitization
      and Third-Party Security Interests, for additional information. Fannie Mae also
      has established operational procedures that can be used to reduce instances
      of conﬂicting delivery instructions for pledged mortgages. See C1-1-01, Execution
      Options. Procedures Related to the Secure Transfer of Funds Each lender is responsible
      for establishing and maintaining controls and procedures that ensure the conﬁdentiality
      of all transfer instructions and payee codes and the integrity of its communications
      with Fannie Mae. The lender agrees to be bound by any transfer instructions
      issued in its name and sent to Fannie Mae, whether or not they were authorized.
      A lender is solely liable for transfers that are initiated (either directly
      or indirectly) as the result of a breach in its security arrangements or as
      the result of its failure to give Fannie Mae timely notice of an error, omission,
      or irregularity in establishing payee arrangements. The lender is fully responsible
      for notifying the Fannie Mae Asset Acquisitions by telephone and submitting
      written conﬁrmation of the call to Fannie Mae within 24 hours of the breach.
      Fannie Mae will do everything possible to suspend operations until a correction
      is sent, including removing all payee codes on record for the lender and issuing
      new codes based on instructions the lender provides in accordance with Fannie
      Mae standard procedures. The lender is advised that these procedures will not
      be used to detect an error in the transmission or content of a transfer of funds
      to the lender’s designated bank or an error in processing a request to set up
      a payee code for use in transferring funds. Recent Related Announcements The
      table below provides references to recently issued Announcements that are related
      to this topic. Published May 6, 2026 969 Announcements Issue Date Announcement
      SEL-2022-04 May 04, 2022 Announcement SEL-2019-04 May 01, 2019'
  judgment: false
