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Executing an Extension for a SET Commitment
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 an extension for Servicing Execution Tool™ (SET) commitments. For more information on managing your SET servicing-released commitments, see the following job aids: Modifying a SET Commitment, Moving a SET Best Efforts Commitment to Fallout, and Executing a Pair-Off for SET Commitments.
Note: The SET, servicing-released program requires additional registration and approval. For more information on the SET, servicing-released program 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.
If you are unable to satisfy a commitment by the original expiration date, you can request an extension in exchange for a fee. The maximum extension including manual and auto-extensions is 60 days for a closed loan and 30 days for a loan that has not closed. Keep in mind that the PE – Whole Loan application automatically issues a five-day extension of a SET commitment on a closed loan on the night the commitment expires.
In the case of a best efforts SET commitment that has not closed, it automatically falls out on the night the commitment expires. If the execution type is mandatory and commitment status remains “Committed” on the night the commitment expires, it will auto-pair-off.
SET loans with a “Closed” status will be auto-extend in five-day increments until Fannie Mae acquires the loan or it falls out. If the commitment has reached its maximum 60-day extension period (manual and auto-extension) and the commitment remains in the "Closed" loan status, the system will auto-pair-off the commitment and a fee may be assessed.
Steps for Executing an Extension for a SET Commitment
Follow the steps to request a SET, servicing-released extension:
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.
Click the Extension button at the top of the window.
Put your cursor in either the box for Number of Days (the number of days still available for extension will appear to the right of the field) or New Expiration Date.
A calendar appears to assist you in selecting the length of your extension. Your extension period must end on a valid business day. The valid days are highlighted in the calendar.
Click Calculate Fee. The Confirmation Extension window opens. It summarizes the terms of the extension, as well as the extension fee.
Review the terms of the extension. If you accept the terms, click Accept. If you click Reject, you return to the Commitment Details window.
The Extension Amount is the maximum commitment amount throughout the life of the commitment.
The Extension PTR is the maximum pass-through rate (PTR) throughout the life of the commitment.
Note: You have 60 seconds in which to Accept or Reject the extension 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 need to resubmit your request.
The Extension Summary window open with the details of your Extension. Click the Print icon to print the Extension 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.
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