My web

Executing a Pair-Off for SET Commitments

Managing Commitments Overview

The Pricing & Execution-Whole Loan® (PE – Whole Loan) application allows you to manage the circumstances surrounding your commitments. This job aid provides information on executing a Pair-Off for Servicing Execution Tool™ (SET), servicing-released commitments. For more information on managing your SET commitments, see the following job aids: Executing an Extension for a SET Commitment, Modifying a SET Commitment, and  Moving a SET Best Efforts Commitment to Fallout.  

 Note: The SET, servicing-released program requires additional registration and approval. For more information on SET see the Introduction to Pricing & Execution-Whole Loan (PE – Whole Loan) job aid.

For more information on managing your best efforts commitments, see the: Modifying a Best Efforts Commitment job aid, the Moving a Best Efforts Commitment to Fallout job aid, the Executing an Extension for a Best Efforts Commitment 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.

Introduction

For a “Closed” status best efforts, or SET mandatory commitment, a pair-off is required if the loan is subsequently not purchased by Fannie Mae. Depending on market conditions, a pair-off fee may be assessed based upon the maximum commitment amount throughout the life of the commitment and the difference between the commitment price and the current market price.

SET mandatory commitments may be subject to receive cash-back pair-offs. For more information see, Whole Loan Enhancements Give You Simplicity and Certainty document.

Note:  A SET, servicing-released commitment that has been placed into "Closed" status and has reached its maximum allowed 60 days of extensions without loan purchase will automatically pair-off, and may result in a pair-off fee. For details on automatic extensions, see Executing an Extension for a SET Commitment job aid.

Steps to Pair-Off a Set Commitment

Follow the steps below to execute a pair-off of a SET, servicing-released 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.

  2. Click Pair-Off  at the top of the window. The system generates a message asking if you are sure that you want to pair-off the commitment. 


  3. If you are certain that you are ready to pair-off the commitment, click the Pair-Off button to the right of the drop-down message box. The Confirm Pair-Off window opens.


  4. Review the terms of the pair-off. If you accept the terms, click Accept.  If you click Reject, you will return to the Commitment Details window.

    The Pair-Off Amount is the maximum commitment amount throughout the life of the commitment.

    Note: You have 60 seconds to verify the pair-off amount and accept the pair-off fee. If you run out of time, you return to the Commitment Details window. A dialog box will inform you that time has expired and that you would need to resubmit your pair-off.


  5. A Pair-Off Summary window opens with details about the pair-off. Click the Print icon to print the Pair-Off Summary details.




    The PE – Whole Loan application automatically generates an email confirmation of your transaction. An email confirmation will only be sent if an email address has been added to your contact information. For more information, see the Setting Up Your Contact Preferences job aid.