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Bailee Correction Reminders

This job aid details the correction process for loans submitted in Loan Delivery with incorrect warehouse lender related information.

Whole loan (Cash) Bailee Correction Process

If a loan requires a correction to the warehouse lender (and payee code), the lender should:

  1. Select the Cancel Cert button in Loan Delivery on the Loan Details page to cancel the certification request and bring the loan back to Draft status
  2. Update the payee code and nine-digit warehouse lender ID
  3. Resubmit the loan (which will trigger a new data feed to custodian)

A new Fannie Mae loan number will be generated on the resubmission.

NOTE: If a change is needed to an existing cash wire instruction associated to a payee code, the lender is required to submit Form 482. Once the form is  processed, Loan Delivery will be updated, and the lender will need to administer the updated wire instructions for warehouse lender approval.

MBS Bailee Correction Process

If a loan requires a correction to the warehouse lender, or if the account information for a security wire related to a warehouse lender or disbursement agent is incorrect, lenders can  cancel certification or delete the loan or the pool. See the Pool Corrections job aid for details. 

If using Cancel Certification, the loan will be removed from the custodian’s queue, and changes will be reflected upon resubmission.

  1. Select the Loan(s) to be updated  in the loans tab and click on “Cancel Cert”
  2. Cancel Cert will remove the loan from the custodian’s view 
  3. Once submitted for Cancel Cert, change the loan data  
  4. Click “Save and Run Loan Edits” to update the loan 
     

For detailed steps, refer to the Cancel Certification Job Aid.


If the loan or the pool is deleted, the lender then performs the following:

  1. Assigns a new pool number for single issue pool or assigns new suffix for Fannie Major pool
  2. Updates the loan-level wire nickname
  3. Validates pool-level wire instructions
  4. Resubmits the pool (which will trigger a new data feed to the custodian)

New Fannie Mae loan numbers will be generated on the resubmission.

NOTE:
*  If a change is needed to a security wire instruction in your seller profile in Loan Delivery, the lender is required to update wire instructions and submit the request for warehouse lender approval. 

* Securities requiring material changes to the wiring instructions on the book entry date will also require rejection and resubmission (and a new book entry date).

*The timing of when the reject/resubmit request is received could impact a lender's settlement date.

Important Reminder

For loans that have an incorrect physical Bailee Letter or Form 2004A, a corrected Bailee Letter or Form 2004A will need to be sent to the custodian.