source:
  type: guide
  id: fnma-sel-c3-3-02
  authority: Fannie Mae Selling Guide C3-3-02 — Accessing Buyup and Buydown Ratios
    and Calculating Payments or Charges
  description: Fannie Mae Selling Guide C3-3-02 — Accessing Buyup and Buydown Ratios
    and Calculating Payments or Charges.
  coverage_tier: operative
obligations:
- id: fnma-sel-c3-3-02-full
  canonical_id: fnma-sel-c3-3-02-full
  section: Fannie Mae Selling Guide C3-3-02 — Accessing Buyup and Buydown Ratios and
    Calculating Payments or Charges
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide C3-3-02 — Accessing Buyup and Buydown Ratios
      and Calculating Payments or Charges
    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: 'C3-3-02, Accessing Buyup and Buydown Ratios and Calculating
      Payments or Charges (12/04/2019) Introduction This topic provides information
      lenders need in order to buy up or buy down their guaranty fee, including: General
      Information on Buyups General Information on Buydowns Accessing Buyup and Buydown
      Ratios Calculating Buyup Payments and Buydown Charges Buyup Payment Recapture
      General Information on Buyups Loan level guaranty fee buyups and buydowns allow
      lenders to pool a wider range of note rates under one MBS coupon. Lenders can
      buy up guaranty fees, meaning they agree to remit a guaranty fee higher than
      the contractual fee applicable for the particular servicing option and remittance
      cycle in return for a one-time payment from Fannie Mae. Fannie Mae disburses
      payment for buyups to lenders once a month in a single cash transfer covering
      all of the lender’s mortgages with buyups that were in pools for which securities
      were issued in the previous month. General Information on Buydowns Lenders can
      buy down or agree to remit a lower guaranty fee than the applicable contract
      fee in exchange for a one-time, upfront payment to Fannie Mae. When Fannie Mae
      drafts the lender’s monthly guaranty fee remittances, it also will draft charges
      for buydowns on pooled loans for which securities were issued in the previous
      month. Generally, lenders must place buydown funds into a T&I escrow account.
      If buydown funds (or subsidy payments or other advance payments made by the
      borrower) are directed for immediate application under the mortgage documents,
      the lender may deposit these amounts directly into the P&I custodial account.
      If a lender holds MBS certiﬁcates and the buydown account and its attorneys
      believe there are tax complications, the lender may deposit the funds in a special
      account with another institution that meets Fannie Mae’s requirements for custodial
      depositories. For more information, see Fannie Mae’s Servicing Guide. If a lender
      buys down a guaranty fee but does not service the associated mortgage, Fannie
      Mae establishes a receivable in the lender’s name. The lender must deposit the
      funds into a designated account in time for Fannie Mae to draft the funds on
      the seventh calendar day of the month (or the preceding business day if the
      seventh is a holiday or weekend) following the issue date of the related MBS
      pool. Accessing Buyup and Buydown Ratios Published May 6, 2026 992 Fannie Mae
      posts guaranty fee buyup/buydown ratios for nearly all mortgage products in
      a matrix format that enables a lender to ﬁnd the applicable buyup or buydown
      ratio for any individual mortgage that it plans to include in an MBS pool by
      using the gross note rate and remaining term (in months) of the mortgage. Information
      concerning guaranty fee buyup or buydown ratios can come from several diﬀerent
      sources. For example, registered users of PE-MBS can obtain them on the day
      they are posted by accessing PE-MBS, and lenders may request a copy of the posted
      ratios from their Fannie Mae customer account team. Refer to Fannie Mae’s website
      for information about the buyup and buydown grids. Calculating Buyup Payments
      and Buydown Charges The total buyup disbursement or buydown charge is calculated
      as follows: multiply the number of basis points by which each mortgage in a
      given pool was bought up/down (the diﬀerence between the “guaranty fee rate
      before the buyup or buydown” and the “guaranty fee rate after the buyup/buydown”)
      by the “buyup/buydown per basis point” (rounding to three decimal places), multiply
      the rounded product by 0.0001 to convert the basis points to a decimal equivalent,
      and multiply the decimal equivalent by the delivered unpaid principal balance
      with a guaranty fee rate buyup/buydown. Do this for all pools that include mortgages
      with guaranty fee rate buyups/buydowns and settled in the month. The total of
      the buyups or buydowns for all of the pools will be the amount Fannie Mae collects,
      disburses, or nets. Buyup Payment Recapture With respect to any mortgage loan
      that pays oﬀ within 120 days from the MBS issue date that involved a guaranty
      fee buyup, Fannie Mae reserves the right to request reimbursement of any or
      all buyup proceeds paid by Fannie Mae. For mortgage loans repurchased by a lender,
      Fannie Mae in its sole discretion may require reimbursement by the lender of
      any buyup proceeds paid by Fannie Mae in connection with the purchase of the
      related repurchased mortgage loan without regard to the 120–day limitation.
      Recent Related Announcements The table below provides references to recently
      issued Announcements that are related to this topic. Announcements Issue Date
      Announcement SEL-2019-09 December 04, 2019 Published May 6, 2026 993'
  judgment: false
