source:
  type: guide
  id: fnma-sel-a2-1-02
  authority: Fannie Mae Selling Guide A2-1-02 — Nature of Mortgage Transaction
  description: Fannie Mae Selling Guide A2-1-02 — Nature of Mortgage Transaction.
  coverage_tier: operative
obligations:
- id: fnma-sel-a2-1-02-full
  canonical_id: fnma-sel-a2-1-02-full
  section: Fannie Mae Selling Guide A2-1-02 — Nature of Mortgage Transaction
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide A2-1-02 — Nature of Mortgage Transaction
    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: 'A2-1-02, Nature of Mortgage Transaction (02/27/2018) Introduction
      This topic contains information on mortgage transaction requirements. Delivery
      Methods True Sale Delivery Methods Sellers may sell loans to Fannie Mae using
      either of the two following delivery methods. As whole loans - the seller sells
      the loans to Fannie Mae and receives cash proceeds in the amount of the purchase
      price, with the loans to be retained by Fannie Mae in its portfolio or to be
      included later in MBS pools formed by Fannie Mae. As MBS loans - the sellers
      sells the loans which are conveyed to an MBS trust under the terms of the Published
      May 6, 2026 8 Fannie Mae MBS program and the seller (or its designee) receives
      mortgage pass-through certiﬁcates representing interests in the loans as the
      purchase price for the loans. The term “delivery” refers to the delivery of
      whole loans to Fannie Mae and into MBS pools. In cases where speciﬁc requirements
      apply to one type of transaction, the delivery method is speciﬁed. The term
      “loan” means “mortgage loan” and includes participation interests in loans unless
      speciﬁed otherwise. The glossary deﬁnes terms used in connection with Fannie
      Mae requirements in the Selling Guide. True Sale Both Fannie Mae and the seller
      intend that every sale of loans to be the seller’s true, absolute, and unconditional
      sale to Fannie Mae of the loans. However, if a court or other appropriate forum
      holds the loans are still the seller’s property, then Fannie Mae and the seller
      intend that the transaction be deemed to be: a pledge by the seller to secure
      a debt or other obligation owed to Fannie Mae for all related loans, and a grant
      by the seller to Fannie Mae of a ﬁrst priority perfected security interest in
      the loans. Accordingly, for each loan delivery, the seller grants Fannie Mae
      a security interest in all of the seller’s right, title, and interest in the
      loans sold to Fannie Mae. Such security interest secures the seller’s performance
      of all of its obligations to Fannie Mae pertaining to that loan or the contract
      under which it is sold to or serviced for Fannie Mae. If the seller breaches
      its obligations to Fannie Mae, Fannie Mae may, without a binding election of
      remedies, use the remedies provided by applicable law to the holder of a security
      interest; or extinguish all equitable, legal, and other right, title, or interest
      of the seller in the pledged security and take such property as its property.
      Recent Related Announcements The table below provides the reference to recently
      issued Announcement that is related to this topic. Announcement Issue Date Announcement-SEL-2018-02
      February 27, 2018'
  judgment: false
