source:
  type: guide
  id: fnma-sel-c2-1.1-07
  authority: Fannie Mae Selling Guide C2-1.1-07 — Standard ARM and Converted ARM Resale
    Commitments
  description: Fannie Mae Selling Guide C2-1.1-07 — Standard ARM and Converted ARM
    Resale Commitments.
  coverage_tier: operative
obligations:
- id: fnma-sel-c2-1.1-07-full
  canonical_id: fnma-sel-c2-1.1-07-full
  section: Fannie Mae Selling Guide C2-1.1-07 — Standard ARM and Converted ARM Resale
    Commitments
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide C2-1.1-07 — Standard ARM and Converted ARM
      Resale Commitments
    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: 'C2-1.1-07, Standard ARM and Converted ARM Resale Commitments
      (05/30/2017) Introduction This topic provides information about whole loan mandatory
      commitments to deliver ARM loans to Fannie Mae, including: Standard ARM Mandatory
      Commitments Minimum Commitment Amount for Converted ARM Resale Commitments Process
      for Converting an ARM within an MBS to a Fixed-Rate Mortgage Commitment Timing,
      Pricing and Compensatory Fees for Converted ARM Resale Commitments Standard
      ARM Mandatory Commitments Lenders may take down mandatory whole loan commitments
      to deliver a variety of ARMs to Fannie Mae. Fannie Mae will purchase ARMs with
      varying initial ﬁxed rate periods and indexes. See the Standard ARM Plan Matrix
      for parameters for ARM loans eligible for sale to Fannie Mae, including the
      initial ﬁxed interest rate period, interest rate adjustment frequency, indexes,
      and cap structure. Fannie Mae’s Published May 6, 2026 955 standard ARM program
      does not permit the purchase of ARMs with caps (“ﬂoors”) (other than the ARM’s
      margin) on the lifetime decreases to the life of the loan. The margin for each
      ARM delivered must include the same servicing fee speciﬁed in the commitment.
      For additional information, see the Standard ARM Plan Matrix. Minimum Commitment
      Amount for Converted ARM Resale Commitments Converted ARM Resale mandatory commitments
      are used by lenders to redeliver ARMs that were originally in an MBS pool and
      have been converted to ﬁxed-rate whole loans. Lenders must agree to deliver
      an amount (total UPB) equal to the outstanding balance of the mortgage to be
      delivered under the commitment. If the lender is delivering multiple mortgages
      with the same interest rate after conversion, the amount must equal the combined
      UPB of those mortgages. Process for Converting an ARM within an MBS to a Fixed-Rate
      Mortgage ARM loans with a conversion option are eligible for conversion to ﬁxed-rate
      mortgages. When a borrower chooses to convert an ARM currently in an MBS pool,
      the lender must follow these steps. Step Process for Converting the Mortgage
      1. Contact Fannie Mae to repurchase the mortgage from the MBS pool before interest
      begins accruing at the new ﬁxed rate. 2. Redeliver the mortgage to Fannie Mae
      as a whole loan (A/A remittance only), if the lender speciﬁed a take-out post-conversion
      disposition option when it originally delivered the ARM. 3. Continue any recourse
      or credit enhancement that initially applied to the mortgage unless the lender
      and Fannie Mae agree otherwise. 4. Obtain a Converted ARM Resale commitment
      number from Fannie Mae. Note: Only mortgages originally delivered with the take-out
      post-conversion disposition option may be delivered under this commitment. For
      additional information concerning the redelivery of ARMs under both the take-out
      and market rate options, see C3-5-04, Pooling ARMs with a Conversion Option.
      Commitment Timing, Pricing and Compensatory Fees for Converted ARM Resale Commitments
      See the table below for information on the relationship between the timing of
      the commitment and the pricing Published May 6, 2026 956 and fees Fannie Mae
      may charge. Date Of Commitment Request Price On or before the 16th day of the
      month in which the conversion rate is requested. Par. After the 16th day of
      the month in which the conversion rate is requested. Fannie Mae may discount
      the price the lender receives by • $250 or • the applicable discount created
      by the market movement between the ﬁrst business day of the month in which the
      commitment was supposed to be requested and the date on which the commitment
      actually is obtained. As a result, Fannie Mae either bills lenders for the compensatory
      discount or reduces the lender’s purchase proceeds by the applicable amount.
      Recent Related Announcements There are no recently issued Announcements related
      to this topic. Section C2-1.2, Best Eﬀorts Commitments to Sell Whole Loans'
  judgment: false
