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Modifying a Best Efforts Commitment

Managing Commitments Overview

The Pricing & Execution – Whole Loan® (PE – Whole Loan) application allows you to manage the circumstances surrounding your mandatory and best efforts commitments. This job aid provides information on executing an extension for a best efforts commitments. For more information on managing your best efforts commitments, see the:Executing an Extension for a Best Efforts Commitment job aid, the Moving a Best Efforts Commitment to Fallout job aid, and the Executing a Pair-Off for Best Efforts Commitments job aid.

For information on managing mandatory commitments, see the Executing a Pair-Off for Mandatory Commitments job aid, the Executing an Extension for a Mandatory Commitment job aid, and the Executing an Over-Delivery for a Mandatory Commitment job aid.

For information on managing your SET commitments, see the Executing an Extension for a SET Commitment job aid, the Modifying a SET Commitment job aid, the Moving a SET - Best Efforts Commitment to Fallout job aid, and the Executing a Pair-Off for SET Commitments job aid.

Introduction

You can update many of the characteristics of a best efforts commitment, including the product, note rate, and commitment amount without additional fees. The PE – Whole Loan application will re-price the commitment for you when, for example, you change either the product and/or note rate. In particular, you would need to modify a commitment to change the Loan Status from Committed to Closed prior to delivering your data. Your final commitment data must match your delivered data in order for the loan to be successfully purchased. For more details on updating a best efforts commitment's DU Casefile IDs and borrower and property data, see the FAQs | Best Efforts Program Basics document on the PE-Whole Loan page on the Fannie Mae Business web site

Note: When making a change to the product or note rate, the new commitment pass-through rate and prices are recalculated using the market prices in effect at the time of the original commitment date. This type of change is not subject to worse-case pricing.

However, when the product group changes from, for instance, a fixed rate to an adjustable rate mortgage (ARM) product or vice versa, PE – Whole Loan will return the worse-case price for the new product (the lower of the new product’s price at the time of the original commitment and its current live price).

Steps for Modifying a Best Efforts Commitment

Follow the steps to modify a commitment:

  1. Enter the Commitment ID in the Basic Search box to the left of the screen and click the Search icon.

    Note: Other ways to search for a commitment include selecting any relevant commitment pipeline views in the function menu to the left of the screen, and by using the Advanced Search option. For more information, see the Viewing Your Commitment Pipelines Overview and Searching Commitments job aids.



    When Commitment ID is found, the Commitment Details window will open directly.

  2. Click Modify at the top of the Commitment Details window.

  3. Enter the necessary changes in the appropriate editable fields. Fields that can be edited include your Seller Unique ID, the product name, commitment amount, gross note rate, and gross margin (if applicable). More fields are available for editing when the underwriting method is “Other” as opposed to a loan committed through Desktop Underwriter® (DU®).



    To make updates to the commitment's property address, borrower(s) name(s), social security number(s), and/or DU Casefile ID, email Fannie Mae at [email protected].

    Reminder: Loan substitutions are not allowed, therefore most updates should be minor or you may be requested to provide a sufficient explanation for your request.

  4. In the Loan Status section if the loan has closed, change the Loan Status from Committed to Closed, and enter the Loan Closing Date. A calendar opens to assist you.

  1. Note: You should place a loan into “Closed” status within one business day of the loan funding with the borrower(s), which for a purchase will be the business day after closing and for a refinance the business day after the expiration of the three-day right-of-rescission period.

  1. To save your changes, click Save.  A comparison will be made against the most current data in DU.

    1.  If there is a data mismatch on a loan committed through DU, the Warning window appears stating the fields that have a warning messages associated with the values in DU. You can accept or cancel the modifications to the loan.

      1. Click Accept to accept all warning messages and system adjusted fields. The Modify Commitment Timer Screen opens.  

      2. Click Cancel to return to the Modify Commitment Screen.

        Potential warning messages are shown in the chart below.

Field

Warning Message

Casefile ID

DU® Underwriting Recommendation is no longer Approve/Eligible.

 

DU® Underwriting Status is "Out of Date".

Product Term

DU® Loan Term must match the Commitment Product Term prior to delivery.

Product Type

DU® Amortization Type must match the Commitment Product Type prior to delivery.

Borrower SSN

Contact PE-Whole Loan Support to update Commitment with DU® value.

Street Address

Contact PE-Whole Loan Support to update Commitment with DU® value.

City

Contact PE-Whole Loan Support to update Commitment with DU® value.

State

Contact PE-Whole Loan Support to update Commitment with DU® value.

ZIP Code

Contact PE-Whole Loan Support to update Commitment with DU® value.

Credit Score

Click ACCEPT to update Commitment with DU® value now.

LTV

Click ACCEPT to update Commitment with DU® value now.

CLTV

Click ACCEPT to update Commitment with DU® value now.

Property Type

Click ACCEPT to update Commitment with DU® value now.

Occupancy Type

Click ACCEPT to update Commitment with DU® value now.

Loan Purpose

Click ACCEPT to update Commitment with DU® value now.

    1.  
    1. If the data matches on a loan committed through DU, you will continue to the Modify Commitment Timer Screen.

  1. The Modify Commitment: Commitment Price timer screen summarizes the commitment details and displays the price for the loan based on current characteristics for the commitment, including any changes you entered.

    Review the commitment details. If you want to accept the price and update the commitment, click Accept. A Commitment Confirmation window opens.

    If you click Reject, the Pricing & Execution application returns you to the Modify Commitment screen.

Note: You have 60 seconds in which to accept or reject the changes you made. If you run out of time, you return to the Modify Commitment screen. A dialog box will inform you that time has expired. You can change and/or resubmit your request.


Whether you Accept, Reject, or the 60 second timer expires, each action will be recorded in the Commitment Activity history. All fees accepted will also be accessible in the Fees report view. For more information, see the Viewing Best Efforts Commitment Details job aid.

  1. On the Commitment Confirmation window, click the Print icon to print the confirmation details.

  2. To export the updated commitment details to a comma-delimited (.csv) file, click the Export icon .