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Introduction to Special Feature Codes (SFCs)

The Fannie Mae Selling Guide requires sellers to include specific Special Feature Codes (SFCs) as part of the delivery for certain mortgage loans. If a seller fails to identify or incorrectly identifies applicable SFCs, Fannie Mae may impose a compensatory fee.

SFC Highlights:

  • Up to 10 SFCs may be provided. Loan Delivery provides the ability for lenders to deliver up to 10 SFCs on a loan file either by manually entering the SFCs or by updating the XML import file.

  • Fannie Mae will send six SFCs downstream to our internal acquisition systems. Loan Delivery will prioritize the SFCs to ensure the highest priority SFCs are sent downstream.

    • In cases where more than six SFCs are submitted, Loan Delivery will determine the six that should be sent downstream, based on priority and level of impact.

    • SFCs related to charter, trust, pricing, eligibility, etc., will be given highest priority.

    • Within each category, Loan Delivery will order the SFCs from the lowest SFC number to highest SFC number. The SFCs that are ordered into the first six slots will be sent downstream to Fannie Mae's internal acquisitions systems.

    • Based on analysis of customers’ deliveries, almost all “high priority” SFCs fall into the first six slots, resulting in minimal impact. The remaining SFCs will be automatically appended to the loan through a post-purchase adjustment (PPA) process. The PPA process eliminates the need for sellers to manually request that additional SFCs be appended to loans post-acquisition.

    • Reference the Example of Prioritized SFCs section of this job aid for details. 

  • Loan Delivery and EarlyCheckTM will automatically derive certain applicable SFCs associated with a loan. The Loan Delivery UI will display auto-derived SFCs as read-only. Loan Delivery and EarlyCheck will include the derived SFCs in their respective results. Lenders have the following options:

    • Populate all applicable SFCs in the import file,

    • Add all applicable SFCs via manual entry in Loan Delivery application, or

    • Take advantage of auto-derivation feature by using the "root data" in the ULDD XML file. Reference the Auto-Derived SFCs section of this job aid for details.

  1. NOTE: Sellers who manually enter loan data may stop manually entering auto derived SFCs in Loan Delivery. Sellers are still required to populate all other applicable (non-derived) SFCs.