source:
  type: guide
  id: fnma-sel-c3-1-01
  authority: Fannie Mae Selling Guide C3-1-01 — General Information About Fannie Mae's
    MBS Program
  description: Fannie Mae Selling Guide C3-1-01 — General Information About Fannie
    Mae's MBS Program.
  coverage_tier: operative
obligations:
- id: fnma-sel-c3-1-01-full
  canonical_id: fnma-sel-c3-1-01-full
  section: Fannie Mae Selling Guide C3-1-01 — General Information About Fannie Mae's
    MBS Program
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide C3-1-01 — General Information About Fannie
      Mae's MBS Program
    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: 'C3-1-01, General Information About Fannie Mae’s MBS Program
      (10/06/2021) Introduction This topic includes general information about Fannie
      Mae’s MBS program (which includes UMBS), including: MBS Program Description
      UMBS Program Description Published May 6, 2026 977 MBS Single-Family Pool Trust
      Agreement Guaranty Fees MBS Pricing Parameters MBS Servicing Fees MBS Remittance
      Types and Cycles MBS Program Transaction Options Structured Transactions Fannie
      Mae’s Capital Markets Pricing and Sales Desk MBS Program Description Fannie
      Mae MBS are securities that represent an ownership interest in pools of residential
      mortgages with similar characteristics. MBS are also known as “pass-through
      certiﬁcates,” because the principal and interest on the underlying mortgages
      are passed through to investors based on the percentage of the security that
      each investor owns. Fannie Mae guarantees to the related trust holding the mortgages
      that it will supplement amounts received by that trust as required to permit
      timely payment of principal and interest on the MBS. Fannie Mae’s MBS program
      provides for the issuance and sale of MBS that represent fractional, undivided,
      beneﬁcial ownership interests in a distinct pool of mortgages, such as the following
      mortgage types: conventional, FHA-insured, VA-guaranteed, and HUD-guaranteed
      Section 184 loans. MBS transactions result in the formation of one of two types
      of pools: a single-lender pool, in which all of the mortgages share a common
      characteristic, such as amortization type, loan term or range of loan terms,
      mortgage type, or ARM plan number. The minimum pool size (aggregate UPB) for
      a ﬁxed rate, single-lender pool is $1 million. For ARMs, the minimum pool size
      is $500,000. a multiple-lender pool, known as a Fannie Majors, that consists
      of pools of whole mortgages delivered by more than one lender. For Fannie Mae
      to open a Fannie Majors pool, the pool’s aggregate UPB must meet the minimum
      amounts noted above. Once opened, a lender may deliver loans with UPBs as low
      as $1,000. UMBS Program Description A common security issued by the GSEs that
      is eligible for trading in the To-be-Announced market. The securities are backed
      by ﬁxed-rate loans secured by single-family one-to-four unit properties and
      are identiﬁed by certain pool preﬁxes. MBS Single-Family Pool Trust Agreement
      Published May 6, 2026 978 Fannie Mae holds, in its capacity as trustee, the
      mortgages sold to Fannie Mae by a lender or lenders in a trust comprising the
      pool and issues MBS that are backed by those mortgages. All mortgage loans related
      to a pool represent a separate trust and issuance of MBS. For each issuance
      of MBS, there will be an issue supplement to the Trust Agreement. The Trust
      Agreement and any issue supplement are entered into by Fannie Mae in its corporate
      capacity (as Issuer, Master Servicer and Guarantor) and as Trustee. The trust
      agreement is posted at Single Family Master Trust Agreement. Issue supplements
      are available to investors in related pools upon request from the Fixed- Income
      Investor Helpline; see E-1-02, List of Contacts. The Amended and Restated 2016
      Single-Family Master Trust Agreement is eﬀective for all ﬁxed-rate and adjustable-rate
      mortgage loans in pools delivered to Fannie Mae, and Pooled from Portfolio loans
      included in pools, for all MBS issued on or after June 1, 2016. Guaranty Fees
      The lender must pay Fannie Mae a guaranty fee remittance each month as compensation
      for the lender’s right to participate in the MBS program. The guaranty fee is
      ultimately a corporate responsibility of the servicer and is not a function
      of the pool cash ﬂows; therefore, it must be paid even if there is no pool collection
      activity. The guaranty fee remittance rate for MBS mortgages varies depending
      on: the credit risk of mortgages included in the pool, the servicing option
      that applies to each mortgage in the pool, and the remittance cycle that applies
      to the pool. For additional details, see C1-1-01, Execution Options. Lenders
      may buy up or buy down their guaranty fees. See C3-2-03, MBS Remittance Type
      and Selecting a Remittance Cycle, and Chapter C3–3, MBS Guaranty Fees and Guaranty
      Fee Buyups and Buydowns, for more information. MBS Pricing Parameters MBS prices
      are driven by investors and can change continually throughout the day. Pricing
      is a function of the security itself, such as, the type of mortgage backing
      the security and the coupon rate (the rate at which interest is paid to the
      investor); and market factors, such as interest rate ﬂuctuations and overall
      MBS demand. MBS may be bought or sold at par, at a premium, or at a discount,
      that is, a price equal to, greater than, or less than 100% of their face value.
      MBS Servicing Fees The lender determines the amount of the total servicing compensation
      it wants to receive when it establishes the interest rate for the mortgage,
      but Fannie Mae requires that it provide for at least a minimum servicing fee.
      Generally, the total servicing fee for a regularly amortizing mortgage is the
      diﬀerence between the interest rate Published May 6, 2026 979 of a loan and
      the sum of (a) the pass-through rate on the loan (or, for ARMs, the loan’s contributions
      to the pool accrual rate) and (b) the guaranty fee. The total servicing fee
      that is established when the MBS pool is formed generally will remain in eﬀect
      for the life of the pool (without regard to whether the pool contains ﬁxed-rate
      loans or ARMs). For all ﬁxed-rate loans, the minimum servicing fee is 25 basis
      points (.25%) and the maximum servicing fee is limited to 50 basis points (.50%).
      For ARM loans, the minimum servicing fee is 25 basis points (.25%). For additional
      information regarding minimum and maximum servicing fees, refer to Servicing
      Guide F-2-08, Servicing Fees for MBS Mortgage Loans. MBS Remittance Types and
      Cycles The scheduled principal and interest due on mortgages pooled into MBS
      must be remitted to Fannie Mae, whether or not it is collected from the borrowers
      (that is, accounted for using the scheduled/scheduled remittance type). MBS
      Program Transaction Options Lenders can opt to either hold the MBS in their
      investment portfolio (often referred to as a “swap-and-hold” transaction) or
      sell the MBS to another investor as part of the same transaction (“swap-and-sell”).
      Lenders can choose to service the mortgages underlying the MBS or sell the servicing
      associated with these loans to another ﬁnancial institution. Structured Transactions
      MBS may be combined with other Fannie Mae mortgage-related securities to create
      a single structured transaction security, such as: Supers - Pass-through securities
      backed by groups of existing UMBS or other existing Supers; Megas — Pass-through
      securities backed by groups of existing MBS or other existing Megas; SMBS —
      Pass-through securities created by either (1) restructuring the interest and
      principal payments into separately tradable securities (standard SMBS) or (2)
      with Fannie Mae’s approval, depositing into an SMBS trust a portion of the interest
      payable on mortgage loans backing certain MBS—the “excess yield” (excess servicing
      SMBS); and REMICs — Multiclass mortgage-related securities backed by UMBS, MBS,
      Supers, Megas or whole loans. Lenders that wish to deliver mortgage-related
      securities to Fannie Mae in exchange for a structured transaction security should
      contact the Capital Markets Structured Transactions group, to seek approval
      to do so. Fannie Mae’s Capital Markets Pricing and Sales Desk Published May
      6, 2026 980 Lenders in good standing may be eligible to use the services of
      Fannie Mae’s Capital Markets Pricing and Sales Desk (“the Desk”) to either buy
      or sell MBS (and whole loans as well). The Desk also assists lenders in obtaining
      current market quotes and in ﬁnding markets for nonstandard MBS products. However,
      the Desk will not make individualized trade recommendations or determine the
      appropriateness or beneﬁt of any particular transaction or strategy for a lender.
      Lenders should note that they must consent to the recordation of all telephone
      conversations with the Desk. In the event of a conﬂict between a recorded telephone
      conversation and a conﬁrmation or settlement notice sent by Fannie Mae to the
      lender, the recorded conversation represents the oﬃcial terms of the transaction.
      Recent Related Announcements The table below provides references to recently
      issued Announcements that are related to this topic. Announcements Issue Date
      Announcement SEL-2021-09 October 06, 2021 Announcement SEL-2019-04 May 01, 2019'
  judgment: false
