source:
  type: guide
  id: fnma-sel-c2-1.1-02
  authority: Fannie Mae Selling Guide C2-1.1-02 — General Information about Mandatory
    Commitment Pricing and Fees
  description: Fannie Mae Selling Guide C2-1.1-02 — General Information about Mandatory
    Commitment Pricing and Fees.
  coverage_tier: operative
obligations:
- id: fnma-sel-c2-1.1-02-full
  canonical_id: fnma-sel-c2-1.1-02-full
  section: Fannie Mae Selling Guide C2-1.1-02 — General Information about Mandatory
    Commitment Pricing and Fees
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide C2-1.1-02 — General Information about Mandatory
      Commitment Pricing and Fees
    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: 'C2-1.1-02, General Information about Mandatory Commitment Pricing
      and Fees (06/07/2023) Introduction This topic describes Fannie Mae’s pricing
      policies and practices, including: Overview Pass-Through Rates Access to Pricing
      Up-front Commitment, Extension, Overdelivery, Pair-oﬀ and Other Fees Additional
      Resources Overview As noted in C1-1-01, Execution Options, when lenders commit
      to sell loans to Fannie Mae, Fannie Mae provides a “live” price, so named because
      prices move throughout the day, generally in tandem with the MBS market. Fannie
      Mae purchases regularly amortizing whole mortgages either at par (100% of the
      unpaid principal balance), at a discount, or at a premium, based on the type
      of mortgage being delivered and the pricing option speciﬁed in the whole loan
      commitment under which the mortgage is delivered. Pass-Through Rates For whole
      loans, the rate at which the lender must remit interest on the mortgages it
      sells to Fannie Mae via a mandatory commitment is the pass-through rate, deﬁned
      as the diﬀerence between the gross note rate and the servicing fee. Lenders
      can choose a range of ﬁve consecutive pass-through rates in increments of 0.125%
      under the same mandatory commitment. When obtaining a commitment, lenders specify
      the minimum pass-through rate. The lender does not need to know the exact interest
      rate of the mortgages that will be delivered in fulﬁllment of the commitment
      as long as the pass-through rates fall within the selected range. The actual
      interest payments lenders will remit for regularly amortizing mortgages will
      depend on the remittance option selected by the lender. Access to Pricing Lenders
      obtain current pricing speciﬁc to their institution by accessing Fannie Mae’s
      whole loan committing application. Access to both generic and lender-speciﬁc
      pricing information is available to approved Fannie Mae lenders and requires
      a valid user ID and password. For information on obtaining access to this information,
      lenders should contact their Fannie Mae customer account team or the Capital
      Markets Pricing and Sales Desk. Up-front Commitment, Extension, Overdelivery,
      Pair-oﬀ and Other Fees Published May 6, 2026 946 Fannie Mae may charge up-front
      fees on commitments made to deliver adjustable-rate mortgages for which the
      lender has selected the scheduled/actual remittance option. See C1-3-01, General
      Information on Remittance Types, for more information on this remittance type.
      Fannie Mae may charge lenders for lender-requested and automatic extensions
      for mandatory commitments (“extensions”), delivering more than the maximum delivery
      amount of their commitment (“overdelivering”), repurchasing all or part of a
      commitment (“pairing-oﬀ”), or otherwise failing to satisfy mandatory commitment
      requirements. These fees, if charged, are drafted from the lender’s designated
      account the business day following the assessment. If cash is due to the lender
      under a cash back pair-oﬀ, the lender’s designated account will be credited
      the business day following the pair-oﬀ. See below for account requirements.
      Extension fees are based on three factors: Amount to be extended, which equals
      the lender’s original commitment amount minus any deliveries as of the date
      of the extension, and, if the extension is a partial extension, minus any partial
      pair-oﬀ amount; Actual number of days by which the commitment expiration date
      is being extended. (Note that if the request is for a 20-day extension and the
      20th day falls on a weekend or holiday, the contract will be extended to the
      next business day.); and Daily interest charge, which is based on the minimum
      pass-through rate posted on the original commitment. For overdelivery and pair-oﬀ
      fees, including cash back pair-oﬀs, whole loan prices captured at commitment
      and again at the time of the overdelivery or pair-oﬀ are used to determine if
      a fee will be charged or if cash back is due and, if so, the amount. All pair-oﬀ
      amounts (including cash back pair-oﬀs) are calculated from the original commitment
      amount, not the low delivery tolerance. A lender must designate a non-MBS P&I
      custodial account from which Fannie Mae can and will automatically draft and
      credit whole loan transaction and related fees that it owes, or is owed by,
      Fannie Mae. The bank instructions for the account must be established in the
      Cash Remittance System (CRS). Fannie Mae will draft or credit, as applicable,
      up-front commitment, extension, overdelivery, and pair-oﬀ fees from the lender’s
      designated account on the day following the request for the commitment, extension,
      overdelivery, or pair-oﬀ. Compensatory fees for failure to satisfy mandatory
      delivery requirements will be drafted from the designated account on the ﬁrst
      Friday after the expiration of the commitment period and any additional time
      allowed to eﬀect the delivery or a pair-oﬀ. To ensure that funds related to
      borrower payments are not used to satisfy a lender’s corporate responsibility
      for the payment of fees or charges due Fannie Mae, a lender must make sure that
      its designated account will have suﬃcient funds on hand when Fannie Mae drafts
      it for the related fee. The lender must notify Fannie Mae immediately about
      changes to the status of its designated account to ensure Fannie Mae’s drafts
      are honored and protect the lender from being charged additional fees for late
      remittances. Additional Resources For additional information on speciﬁc topics,
      see the resources noted below: For information on best eﬀorts and mandatory
      commitments, see C2-1.2-02, Best Eﬀorts Commitment Published May 6, 2026 947
      Pricing, Periods, and Fees, and C2-1.1-04, Mandatory Commitment Extensions and
      Pair-Oﬀs. For information on overdeliveries, see C2-2-01, General Requirements
      for Good Delivery of Whole Loans. For information on compensatory fees associated
      with the delivery of ARMs in fulﬁllment of a Converted ARM Resale Commitment,
      see C2-1.1-07, Standard ARM and Converted ARM Resale Commitments. For information
      on LLPAs, see the Loan-Level Price Adjustment (LLPA) Matrix . Recent Related
      Announcements The table below provides references to recently issued Announcements
      that are related to this topic. Announcements Issue Dates Announcement SEL-2023-05
      June 07, 2023 Announcement SEL-2022-04 May 04, 2022 Announcement SEL-2019-08
      October 02, 2019'
  judgment: false
