source:
  type: guide
  id: fnma-sel-c3-2-01
  authority: Fannie Mae Selling Guide C3-2-01 — Determining Eligibility for Loans
    Pooled into MBS
  description: Fannie Mae Selling Guide C3-2-01 — Determining Eligibility for Loans
    Pooled into MBS.
  coverage_tier: operative
obligations:
- id: fnma-sel-c3-2-01-full
  canonical_id: fnma-sel-c3-2-01-full
  section: Fannie Mae Selling Guide C3-2-01 — Determining Eligibility for Loans Pooled
    into MBS
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide C3-2-01 — Determining Eligibility for Loans
      Pooled into 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: 'C3-2-01, Determining Eligibility for Loans Pooled into MBS (09/07/2022)
      Introduction This topic contains information on eligibility requirements for
      loans pooled into MBS (which includes UMBS), including: Published May 6, 2026
      982 General Eligibility Requirements for Loans Pooled into MBS Nonstandard Loans
      Identifying Nonstandard Loans at Delivery Amortization Schedule Requirements
      for MBS Loans Requirements for Pooling Seasoned Loans into MBS Interest Rate
      Requirements for Loans Pooled into MBS Servicer Requirements for Loans Pooled
      into MBS General Eligibility Requirements for Loans Pooled into MBS All loans
      pooled into MBS must be secured by a ﬁrst mortgage and must represent the entire
      right, title, and interest in the note and the related security instrument,
      unless the MBS commitment expressly indicates otherwise. As of the issue date
      of the MBS, the loans in the related MBS pool may not be delinquent by more
      than one monthly installment of principal and interest that is due on the issue
      date (including the period beginning on the second day of the month preceding
      the issue date and ending on the issue date). For example, if the ﬁrst payment
      date is November 1, and the issue date of the MBS is January 1, then, in order
      to be eligible for purchase by Fannie Mae, the November and December payments
      must have been paid, and the only payment that may be delinquent (due) would
      be for the period December 2 through January 1. In addition, if the loan is
      one year or less from the ﬁrst payment date to the pool issue date, the borrower
      cannot have any 30–day delinquencies since origination; and if the current borrower
      assumed the loan and has owned the property for one year or less, the borrower
      must have no 30-day delinquencies since purchasing the property. See B2-1.5-02,
      Loan Eligibility, for the requirements concerning seasoned loans. Nonstandard
      Loans “Nonstandard loans” (or loans with nonstandard characteristics) may be
      pooled into MBS, but depending on the concentration in the pool, may only be
      pooled as negotiated rather than standard transactions. Nonstandard loans are:
      co-op share loans, relocation loans (deﬁned below), loans with signiﬁcant interest
      rate buydowns, and high-balance loans. In a TBA-eligible UMBS pool, nonstandard
      loans are each limited to 10% of the issue date UPB of a TBA-eligible UMBS pool.
      If loans with more than one of the nonstandard characteristics are included
      in the same TBA-eligible UMBS pool, the sum of the issue date UPB of two or
      more of the loans with nonstandard characteristics may not Published May 6,
      2026 983 exceed 15% of the total issue date UPB of the pool. The 15% cumulative
      limitation, however, does not apply to high-balance loans. For pools with greater
      than 10% concentrations of nonstandard loans, see the Pool Preﬁx Glossary for
      the applicable pool preﬁxes. Nonstandard loans may be delivered into existing
      MBS commitments and may use the same base guaranty fee as those used for the
      lender’s standard conforming loans. Lenders may deliver loans with the nonstandard
      characteristics described above into Fannie Majors TBA-eligible UMBS pools.
      For Fannie Majors requirements, see C3-6-01, Parameters for Pooling Loans Into
      Fannie Majors. For the purposes of TBA pooling parameters, a relocation loan
      is an owner-occupied purchase money loan, originated pursuant to an established
      employee relocation program, administered by the employer (or its agent), where
      the employer relocates employees as part of its normal course of business. A
      loan that involves an employee relocation that does not meet these parameters
      is not considered a relocation loan for TBA pooling purposes, and as such, the
      pooling limitations and SFC 013 delivery requirement are not applicable. Examples
      The issue date UPB of loans with signiﬁcant interest rate buydowns and the issue
      date UPB of co-op share loans individually may not exceed 10% of the total issue
      date UPB of the TBA-eligible UMBS, and together may not exceed 15% of the total
      TBA-eligible UMBS. However, while the issue date UPB of high-balance loans and
      the issue date UPB of co-op share loans individually may not exceed 10% of the
      total issue date UPB of the TBA- eligible UMBS, together they may exceed 15%
      of the total TBA-eligible UMBS because high-balance loans are not subject to
      the 15% limitation. Identifying Nonstandard Loans at Delivery As a reminder,
      nonstandard loans must be identiﬁed at delivery with the following: relocation
      loans – SFC 013 loans with signiﬁcant interest rate buydowns – SFC 014 high-balance
      loans – SFC 808 co-op share loans – the Legal Structure in Loan Delivery is
      “cooperative.” Amortization Schedule Requirements for MBS Loans For loans pooled
      into MBS, the ﬁrst payment date must be no later than two months from the ﬁnal
      disbursement date of the loan proceeds. In the case of a single-close construction-to-permanent
      loan, the two-month period begins at the time of the conversion to permanent
      ﬁnancing. The following table provides an example of this requirement. If the
      ﬁnal disbursement date occurs in... Then the ﬁrst payment date must be no later
      than... Published May 6, 2026 984 If the ﬁnal disbursement date occurs in...
      Then the ﬁrst payment date must be no later than... January March February April
      November January Standard pooling allows lenders to include in an MBS pool only
      those loans for which the ﬁrst payment date is no later than the ﬁrst day of
      the month that immediately follows the issue date of the related MBS. The pool
      issue date is the ﬁrst day of the month in which securities backed by the MBS
      pool are issued. For seasoned loans, the ﬁrst payment date must be at least
      12 months prior to the pool’s issue date. In addition, the loan’s amortization
      schedule must not provide for any period during which principal has been disbursed
      and is outstanding, but interest is not accruing. However, if the lender chooses
      to pool within the same month of loan origination (also known as "same month
      pooling"), the loan may begin to amortize on the ﬁrst day of the month that
      is two months after the issue date of the securities, with the initial remittance
      to Fannie Mae being an “interest-only” remittance, because the borrower will
      not have made their ﬁrst payment at the time of the initial remittance. A negotiated
      contract is needed to pool loans for which the borrower’s monthly payment is
      due on a day other than ﬁrst of the month (“odd due dates”). Requirements for
      Pooling Seasoned Loans into MBS Lenders may pool current or seasoned loans into
      a single-lender MBS. Fannie Mae has no minimum seasoning requirement for conventional
      loans included in single pool transactions. Refer to C3-6-01, Parameters for
      Pooling Loans Into Fannie Majors for additional information about seasoning
      for Fannie Majors. If a pool of ARM loans will have amortized by more than 12
      monthly payments as of the issue date of the pool, the terms of a negotiated
      contract will specify whether the loans will be treated as current or seasoned.
      The key determinants are the length of the interest rate adjustment intervals
      and whether interest rate or payment adjustments will have occurred by the pool’s
      issue date. For a converted ARM (which is a ﬁxed-rate loan that was once an
      ARM until the borrower exercised an option to convert it to a ﬁxed rate), the
      12-month period is measured from the date of conversion to the issue date month
      of the related pool. To sell seasoned loans under an MBS execution, lenders
      must have an MBS commitment that permits delivery of seasoned loans. For information
      on pricing and parameters, contact the Capital Markets Pricing and Sales Desk
      (see E-1-02, List of Contacts). Interest Rate Requirements for Loans Pooled
      into MBS Published May 6, 2026 985 Loans with diﬀerent annual rates of interest
      can be included in the same MBS pool, as long as those rates fall within the
      minimum and maximum spreads Fannie Mae allows between the loan interest rates
      and the pass- through rate for the MBS pool. For ﬁxed-rate loans that are pooled,
      the minimum allowable interest rate is 25 basis points (.25%) above the pool’s
      pass-through rate and the maximum allowable interest rate is 112.5 basis points
      (1.125%) above the pool’s pass-through rate. Generally, for ARMs that are pooled,
      the minimum allowable interest rate is the sum of the lowest guaranty fee (after
      all applicable adjustments have been made, including buyups and buydowns) and
      the lender’s minimum servicing fee, which must include renewal premiums for
      lender-purchased mortgage insurance, if applicable. The recommended maximum
      allowable interest rate is 100 basis points (1%) over the minimum allowable
      interest rate. Lenders must comply with the allowable minimum and maximum interest
      rates for each MBS ARM structure. Servicer Requirements for Loans Pooled into
      MBS All loans in a single issuer MBS pool must be serviced by the same entity.
      If a lender plans to deliver several pieces for inclusion in a multiple pool
      (Fannie Majors), each piece may have a diﬀerent servicer. The lender may deliver
      any combination of seller/servicer numbers for inclusion in a multiple pool
      (Fannie Majors), however the servicers designated must be servicing loans in
      the multiple pool that have the same remittance cycle as the loans being delivered.
      Recent Related Announcements The table below provides references to recently
      issued Announcements that are related to this topic. Announcements Issue Date
      Announcement SEL-2022-08 September 07, 2022 Announcement SEL-2021-09 October
      06, 2021 Announcement SEL-2019-06 July 03, 2019 Announcement SEL-2019-04 May
      01, 2019 Announcement SEL-2019-03 April 03, 2019 Published May 6, 2026 986'
  judgment: false
