Borrower Information

The purpose of this job aid is to help provide additional information on data fields required in Loan Delivery for delivering borrower/co-borrower and other related fields.

NOTE: This does not include all of the fields available in the Underwriting section on the Loan Details page in Loan Delivery.

For detailed instructions on how to perform other tasks, see the Loan Delivery User Guide, eLearning tutorials, or other job aids. If you do not have access to Loan Delivery and require it, please contact your Technology Manager administrator.

General Borrower Identity Criteria

A borrower is any applicant (e.g., individually or jointly) whose credit, income and/or assets are used for qualifying purposes to determine the ability to meet Fannie Mae’s underwriting and eligibility standards. For Fannie Mae’s purposes, the term co-borrower is used to describe any borrower other than the first borrower (e.g., the primary borrower) whose name appears on the mortgage note, regardless if that person owns the property jointly with the first borrower (and is jointly and severally liable for the note).

Lenders must confirm each borrower’s identity prior to the extension of credit. Fannie Mae’s requirements for borrower identity verification are intended to align with lenders’ existing federal obligations under laws requiring information and document verification, including the Department of Treasury's Office of Foreign Assets Control (OFAC) regulations and the U.S. Patriot Act.

How to Deliver More than Two Borrowers

Loan Delivery accepts delivery of up to four borrowers on a loan. The process for delivering this information includes:

• Import: When importing a loan containing more than two borrowers, Loan Delivery will send the data provided in the Primary Borrower and the Secondary Borrower fields to downstream Acquisitions systems. The data provided in the remaining co-borrower field(s) will be retained in the Loan Delivery database.
• Manual Entry: The information provided on the Loan Delivery user interface for the Primary Borrower and the Secondary Borrower fields will be sent downstream to Acquisitions systems. For loans with more than two borrowers, users are able to enter borrower data for up to two additional co-borrowers (a total of four borrowers) on the Loan Delivery user interface.

How to Deliver when a Borrower is an Inter Vivos Revocable Trust

Deliver the information for the Trust’s beneficiary(s) for the primary and secondary/co-borrower (if applicable). Enter the individual borrower and co-borrower information (as applicable) according to the ULDD requirements for borrowers who are natural persons. Do not populate the Entity Full Name (Sort ID 544) or Legal Entity Type (Sort ID 545) with the value of Living Trust. Special Feature Code (SFC) 168 Inter Vivos Revocable Trust (Cash and MBS) is required in this instance.  

How to Deliver when a Borrower is an Illinois Land Trust

Deliver the information for the Trust’s beneficiary(s) for the primary and secondary/co-borrower (if applicable). Enter the individual borrower and co-borrower information (as applicable) according to the ULDD requirements for borrowers who are natural persons. Do not populate the Entity Full Name (Sort ID 544) or Legal Entity Type (Sort ID 545) with the value of Land Trust And Beneficiary Is Individual or Living Trust.

NOTE: Please check your Master Agreement for the availability of a variance for delivery of a loan to an Illinois Land Trust borrower. The appropriate SFC must be delivered.

Fields to be Delivered when a Borrower is an Inter Vivos Revocable Trust, or Illinois Land Trust

• Last Name (Sort ID 541)

• First Name (Sort ID 540)

• Middle Initial (Sort ID 542)

• Suffix (Sort ID 543).

• Citizenship Residency Type (Sort ID 598) valid values are:

• • Non-Permanent Resident Alien

  • Permanent Resident Alien

  • US Citizen

• Date of Birth ( Sort ID 568)

• Age (Sort ID 567)

How to Deliver when a Borrower is a Legal Entity

When a for-profit or nonprofit investor, or a local government agency that purchases existing dwellings for renovation is the borrower for a HomeStyle Renovation mortgage, deliver the information for the Legal Entity field. Populate the Entity Full Name (Sort ID 544) and the Legal Entity Type (Sort ID 545) with the applicable value. Credit Repository Source Indicator (Sort ID 582) must be set to No. Valid values for Legal Entity Type include:

• Corporation 

• Government Entity

• Joint Venture

• Limited Liability Company

• Limited Partnership

• Non-Profit Corporation

• Partnership

• Land Trust and Beneficiary is Individual

• Living Trust

NOTE: If an SFC is required, the variance terms in your Master Agreement will indicate the appropriate value – not all of these have SFCs. Check your Master Agreement for the availability of a variance for delivery of a loan to the Legal Entity.

Fields to be Delivered for Primary and Secondary/Co-borrower (if applicable)

The Number of Borrowers (Sort ID 227) is the total number of borrowers obligated on the Note. This field must be completed for all deliveries.

Fields to be Delivered when a Borrower is an Individual (including Inter Vivos Trust or Land Trust)

• Last Name (Sort ID 541)  

• First Name (Sort ID 540)

• Middle Initial (Sort ID 542) if applicable – only a one-character middle initial is supported at this time

• Suffix (Sort ID 543) if applicable – use abbreviations

• Citizenship Residency Type (Sort ID 598) indicates this borrower's U.S. citizenship or alien status, as collected on the URLA. Valid values are:

• • Non-Permanent Resident Alien

  • Permanent Resident Alien

  • U.S. Citizen

• Date of Birth ( Sort ID 568)

• Age (Sort ID 567)

Required for Borrowers on all Loans

• Demographic Information (multiple Sort IDs) – Refer to the Delivering Demographic Information job aid for more information.

• Taxpayer ID Type (Sort ID 613) – Specifies the type of identification number used by the Internal Revenue Service (IRS) in the administration of tax laws. It is issued either by the Social Security Administration (SSA) or the IRS. A Social Security Number (SSN) is issued by the SSA; all other taxpayer identification numbers are issued by the IRS. Valid values are:

• • Employer ID No. (Entity borrowers only)

  • Individual Taxpayer ID Number

  • Social Security Number

• Taxpayer ID (Sort ID 614) – The value of the taxpayer identifier as assigned by the IRS to the individual or legal entity.

• Bankruptcy Indicator (Sort ID 596) – Deliver value of Yes if the Uniform Residential Loan Application (URLA), credit report, or other loan documents indicate that the borrower has declared bankruptcy within the past seven years. Provide as applicable for legal entities.

• Foreclosure Or Judgment Indicator (Sort ID 599) – Deliver value of Yes if the URLA, credit report, or other loan documents indicate the borrower has been directly or indirectly obligated on a loan that resulted in foreclosure, transfer of title in lieu of foreclosure, or judgment. Provide as applicable for legal entities.

• Self Employed Indicator (Sort ID 600) – Deliver value of Yes if the referenced income being used to qualify the borrower is from self-employment. This is N/A for legal entities.

Required for Borrowers for Affordable Housing Loans

• Counseling Confirmation Type (Sort ID 576) – Specifies the type of mortgage counseling or education program attended by the borrower and/or co-borrower. Valid values are:

• • Borrower Did Not Participate

  • Government Agency

  • HUD Approved Counseling Agency

  • Lender Trained Counseling

  • Mortgage Insurance Company

  • No Borrower Counseling

  • Non-Profit Organization

• Counseling Format Type (Sort ID 578) – Identifies the educational setting of the formal borrower homeownership program in which the borrower participated as a requirement of a special mortgage program. Valid values are:

• • Borrower Did Not Participate

  • Borrower Education Not Required

  • Classroom

  • Home Study

  • Individual

NOTE: ULDD Phase 3 requires delivery of new loan-level data for Down Payment and Closing Costs for Affordable Housing loans when the loan application is received after January 1, 2019. Please see ULDD Appendix D for additional information.