source:
  type: guide
  id: fnma-sel-c3-7-02
  authority: Fannie Mae Selling Guide C3-7-02 — Initiating an MBS Sale
  description: Fannie Mae Selling Guide C3-7-02 — Initiating an MBS Sale.
  coverage_tier: operative
obligations:
- id: fnma-sel-c3-7-02-full
  canonical_id: fnma-sel-c3-7-02-full
  section: Fannie Mae Selling Guide C3-7-02 — Initiating an MBS Sale
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide C3-7-02 — Initiating an MBS Sale
    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: 'C3-7-02, Initiating an MBS Sale (07/07/2021) Introduction This
      topic describes the steps lenders take to initiate an MBS, including UMBS, sale
      via Fannie Mae’s Capital Markets Pricing and Sales Desk, including: Determining
      the Trade Type Checking Market Prices Selecting a Settlement Date Selecting
      a Settlement Method Requesting and Accepting a Firm Bid/Oﬀer Determining the
      Trade Type If a lender sells MBS, its trade may be TBA or speciﬁed. With a TBA
      trade, the lender may deliver any UMBS meeting eligibility requirements as deﬁned
      by SIFMA. A speciﬁed trade means that a speciﬁc MBS is being traded and only
      that security can be delivered in satisfaction of the trade. TBA trades settle
      on the SIFMA settlement dates (see Pool Settlement Dates). Checking Market Prices
      See C3-1-01, General Information About Fannie Mae’s MBS Program, for information
      on MBS prices and their determinants. Prices of Fannie Mae MBS are quoted in
      32nds of a percent for both immediate and forward delivery issues. Published
      May 6, 2026 1018 Selecting a Settlement Date The lender must plan its settlement
      date to be sure it can deliver the securities as scheduled. In particular, the
      lender must allow suﬃcient time after loan closing for the processing of the
      documentation package. Any errors in the package can result in a delay in settlement.
      Lenders may settle trades for newly issued securities on any day of the month
      in which they are issued. When a trade is settled on a “regular” settlement
      date, it will occur on a date that is predetermined by SIFMA, based on a schedule
      that changes periodically. Note: Settlements cannot occur on holidays. Selecting
      a Settlement Method The method of funding the sale of a security depends on
      the settlement method the lender chooses when delivering the pool to Fannie
      Mae. Lenders that want to use an early funding settlement option such as As
      Soon As Pooled Sale (for pools) or As Soon As Pooled Plus (for whole loans)
      must execute a special agreement that provides the speciﬁc terms for the type
      of transaction it is using. Lenders interested in using an early funding settlement
      option should contact the Capital Market Sales Desk. See E-1-02, List of Contacts.
      For newly issued securities, if a lender opts for an “original issue” settlement
      instead of “delivery vs. payment,” lenders must specify Fannie Mae’s account
      in the wiring instructions on the Delivery Schedule (Form 2014) it submits when
      the pool is delivered. Lenders using this option must follow SIFMA’s guidelines
      and submit notiﬁcation 48 hours prior to settlement. Existing MBS must be funded
      through “delivery vs. payment” (or a “delivery against funds” or “existing issue”)
      settlement option. Under this settlement option, when Fannie Mae receives the
      security, it credits the lender’s account at the institution that wires the
      security to the Desk. If a lender has not sold the securities to an investor
      before it delivers loans to Fannie Mae and has not elected to use the “original
      issue” settlement option, Fannie Mae will issue the securities to the lender.
      Requesting and Accepting a Firm Bid/Oﬀer When contacting the Desk to request
      a ﬁrm bid/oﬀer, the lender must be prepared to specify the following information:
      MBS product, amount of the trade, coupon rate, settlement date, unique characteristics
      of the pool that will back the security. Fannie Mae’s Sales Desk will convey
      a bid/oﬀer for the security to the lender. If the lender accepts the ﬁrm bid
      or ﬁrm oﬀer, the Sales Desk will lock in the bid or oﬀer and verify the trade
      details in a recorded telephone Published May 6, 2026 1019 conversation with
      the lender. That evening, Fannie Mae will send the lender a written conﬁrmation
      statement that includes the details of the trade such as the trade number, date,
      amount, price, the coupon rate, and the settlement date. The conﬁrmation, taken
      together with the relevant sections of this Guide, constitutes conclusive evidence
      of the terms between Fannie Mae and the lender for the respective trade, unless
      the lender notiﬁes the Operations team of any errors in the conﬁrmation by close
      of trading on the next trading day. Lenders will be responsible for any resulting
      economic diﬀerences from a trade if they fail to notify Fannie Mae of any errors
      in the conﬁrmation within the speciﬁed window. Note: For lenders executing trades
      with Fannie Mae via Fannie Mae’s electronic trading platform, the lender’s trade
      details for the bid or oﬀer will be available through the platform using appropriate
      login credentials. Recent Related Announcements The table below provides references
      to recently issued Announcements that are related to this topic. Announcements
      Issue Date Announcement SEL-2021-06 July 07, 2021 Announcement SEL-2019-04 May
      01, 2019'
  judgment: false
