Introduction to Pricing & Execution - Whole Loan (PE – Whole Loan)

A toggle at the top of most of the screens provides simple navigation between execution types. For more information on screen layout and navigation, see the Navigating PE – Whole Loan Application job aid.

Whole Loan Execution Types

Regardless of whether the mandatory or best efforts execution type is chosen, the prices returned by PE – Whole Loan are "live" from 8:15 a.m. to 5:00 p.m. ET, meaning that prices move throughout the day based on the changing market conditions. When making a commitment, you have a 60-second window in which to agree to the terms and accept the commitment.

Mandatory Commitments

With a mandatory commitment, you agree to deliver a specified dollar amount of a mortgage product (within certain delivery tolerances) to Fannie Mae by a specific date at an agreed upon price within a range of pass-through rates. Commitments are mandatory, meaning that if you are unable to fulfill the terms of your commitment with the purchase of loans, you will be required to pair out of the commitment and may be subject to a pair-off fee. However, because commitments are not tied to a specific loan or group of loans, you may be able to substitute loans with similar characteristics in order to fulfill your commitment.

All loans that you deliver against a mandatory commitment should be of the same product type, adjustable-rate mortgage plan (if applicable), and remittance type.

When taking down a mandatory commitment, you select a minimum pass-through rate, but you may deliver loans with pass-through rates up to 50 basis points (bps) higher assuming pricing is available for that entire pass-through range. If a commitment is taken towards the upper end of the pass-through range that is being priced, 50 bps of pass-through rates above the minimum pass-through selected may not be available. In these instances, a commitment would only include the pass-through rates above the minimum that are currently being priced. Previously, you would have used the eCommitting application to make a mandatory commitment.

Best Efforts Commitments

With a best efforts commitment, you agree to deliver a loan for a specific borrower(s) on a specific property to Fannie Mae by the commitment expiration date. A best efforts commitment allows you to enter into an agreement to sell a loan to Fannie Mae, but if the loan does not close, you typically will not be charged a pair-off fee for non-delivery. PE – Whole Loan returns a price corresponding to the commitment’s pass-through rate based on the loan’s note rate less 25 bps in servicing fee that you enter at the time of commitment.

Previously, you would have used the eCommitONE application to make a best efforts commitment. If you currently do not have access to the best efforts committing option within PE – Whole Loan and would like to request access, please contact the Capital Markets Sales Desk at 1-800-752-0257.

Managing Your Pipeline

All of our committing options are available for you to utilize. It is up to you to determine how best to manage the loans in your pipeline and to choose the best mix of whole loan execution types and servicing options that position you best to meet your business goals. Please note that although you have the option to execute under multiple programs, you may not commit and then deliver the same loan under different programs without pricing implications.