My web
Construction-to-Permanent Financing
The purpose of this job aid is to provide additional information on data fields required in the Loan Delivery application for Construction-to-Permanent (C2P) loans.
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.
Overview
The conversion of construction-to-permanent financing involves the granting of a long-term mortgage to a borrower for the purpose of replacing interim construction financing that the borrower has obtained to fund the construction of a new residence.
Construction-to-permanent financing can be structured as a transaction with one closing or a transaction with two separate closings. The borrower must hold title to the lot, which may have been previously acquired or be purchased as part of the transaction.
All construction work, including any work that could entitle a party to file a mechanics’ or materialmen’s lien, must be completed and paid for, and all mechanics’ liens, materialmen’s liens, and any other liens and claims that could become liens relating to the construction must be satisfied before the mortgage loan is delivered to Fannie Mae.
The lender must use Fannie Mae's uniform mortgage instruments to document the permanent mortgage. These documents may not be altered to include any reference to construction of the property, other than any alteration that Fannie Mae specifically requires.
Identifying Construction-to-Permanent Loans
Until planned updates are made to downstream systems, C2P loans cannot be identified using the available data in ULDD. The table below provides an overview of the data needed to identify C2P loans in Loan Delivery.
|
Identifying Construction-to-Permanent Loans |
|||
|
ULDD Sort ID |
Loan Delivery Data Label |
Loan Delivery Implementation Notes | Enumerations |
|
231 |
Construction Loan (Indicators) |
The ULDD Implementation Notes for ConstructionLoanIndicator (Sort ID 231) instruct reporting of “FALSE” (“No”) for all loans (including loans that are C2P). |
No Yes |
|
368 |
Special Feature Code |
Report SFC 151 for One Closing C2P loans. There is no SFC for Two Closing C2P loans. |
|
|
162 |
Loan Type |
Delivering “No” as the Construction Loan indicator is recommended. Delivering “Yes” (not recommended) as Construction Loan in the Indicators section causes the Special Products section to display at the bottom of the screen with additional required C2P data. |
Construction Only Construction To Permanent |
|
163 |
C2P Closing Feature |
Automatic Conversion Modification Agreement New Note |
|
|
165 |
C2P Closing Type |
One Closing Two Closing |
|
|
167 |
C2P 1st Payment Date |
|
|
Optional Delivery of Construction-to-Permanent Loan Data
If optional C2P data is provided, please note the following edits:
-
“Construction Only” is not a valid enumeration.
-
“New Note” is the only feature permitted when the type is “Two Closing”.
-
“New Note” is not permitted for “One Closing”.
Delivery Data for Construction-to-Permanent Loans
The tables below identify the data required by Loan Delivery for C2P loans based on the structure of the C2P loan.
|
One Closing Construction-to-Permanent Loan with Modification Agreement |
|||
|
ULDD Sort ID |
Loan Delivery Data Label |
Loan Delivery Data Section | Loan Delivery Implementation Notes |
|
231 |
Construction Loan |
Indicators |
Deliver "No". |
|
256 |
Maturity Date |
Loan Terms |
Provide the maturity date from the Modification Agreement, not the date that is on the Note. |
|
257 |
Original Term |
Loan Terms |
Provide the term from the Modification Agreement, not the term that is on the Note. |
|
268 |
P&I |
Loan Terms |
Provide the P&I from the Modification Agreement, not the P&I that is on the Note. |
|
272 |
1st Payment Date |
Loan Terms |
Provide the first payment date from the Modification Agreement, not the date that is on the Note. |
|
319 |
Original Loan Amount |
Loan Terms |
Provide the amount from the Modification Agreement, not the amount that is on the Note. |
|
320 |
Date of Mortgage Note |
General Loan Information |
Provide the date from the Note used at one-time closing. |
|
321 |
Note Rate |
Loan Terms |
Provide the interest rate from the Modification Agreement, not the interest rate that is on the Note. |
|
368 |
Special Feature Code |
Special Feature Codes |
151 |
|
397 |
Modification |
Indicators |
Deliver "Yes". See the Loan Modifications Job Aid for additional instructions to deliver the required interim construction loan (pre-modification) data. |
|
One Closing Construction-to-Permanent Loans with Automatic Conversion |
|||
|
ULDD Sort ID |
Loan Delivery Data Label |
Loan Delivery Data Section | Loan Delivery Implementation Notes |
|
231 |
Construction Loan |
Indicators |
Deliver "No". |
|
256 |
Maturity Date |
Loan Terms |
Provide the maturity date of the permanent/converted loan. Do not provide data from the interim construction financing. |
|
257 |
Original Term |
Loan Terms |
Provide the term of the permanent/converted loan. Do not provide data from the interim construction financing. |
|
268 |
P&I |
Loan Terms |
Provide the P&I of the permanent/converted loan. Do not provide data from the interim construction financing. |
|
272 |
1st Payment Date |
Loan Terms |
Provide the first payment date of the permanent/converted loan. Do not provide data from the interim construction financing. |
|
319 |
Original Loan Amount |
Loan Terms |
Provide the amount of the permanent/converted loan. Do not provide data from the interim construction financing. |
|
320 |
Date of Mortgage Note |
General Loan Information |
Provide the date from the Note used at one-time closing. |
|
321 |
Note Rate |
Loan Terms |
Provide the interest rate of the permanent/converted loan. Do not provide data from the interim construction financing. |
|
368 |
Special Feature Code |
Special Feature Codes |
151 |
|
397 |
Modification |
Indicators |
Deliver "No". |
|
Two Closing Construction-to-Permanent Loan |
|||
|
ULDD Sort ID |
Loan Delivery Data Label |
Loan Delivery Data Section | Loan Delivery Implementation Notes |
|
231 |
Construction Loan |
Indicators |
Deliver "No". |
|
256 |
Maturity Date |
Loan Terms |
Provide the maturity date of the permanent loan. Do not provide data from the interim construction financing. |
|
257 |
Original Term |
Loan Terms |
Provide the term of the permanent loan. Do not provide data from the interim construction financing. |
|
268 |
P&I |
Loan Terms |
Provide the P&I of the permanent loan. Do not provide data from the interim construction financing. |
|
272 |
1st Payment Date |
Loan Terms |
Provide the first payment date of the permanent loan. Do not provide data from the interim construction financing. |
|
319 |
Original Loan Amount |
Loan Terms |
Provide the Note Amount of the permanent loan. Do not provide data from the interim construction financing. |
|
320 |
Date of Mortgage Note |
General Loan Information |
Provide the Note Date of the permanent loan. Do not provide data from the interim construction financing. |
|
321 |
Note Rate |
Loan Terms |
Provide the Interest Rate of the permanent loan. Do not provide data from the interim construction financing. |
|
397 |
Modification |
Indicators |
Deliver "No". |
Related Resources
- Fannie Mae Selling Guide
- Loan Delivery application page
- ULDD page
- Loan Delivery Business Rules Dictionary