Committing and Delivery (C&D) Job Aid: Streamlined Rate Lock (MBS or Cash) The Streamlined Rate Lock provides Lenders with an option to rate lock the loan with the Borrower at any point during the underwriting process (as early as borrower application) with the Lender liable for the non-delivery damages if the loan is not delivered to Fannie Mae for any reason following the rate lock. Initially Fannie Mae Capital Markets will be the only eligible MBS investor. Fannie Mae will collect non-delivery damages directly from the Lender under its trading agreement with Fannie Mae. Step 1.

Initiate Commitment in C&D. a. On the Commitment page, navigate to the Pricing Attributes section. b. Click the 'Streamlined Rate Lock' checkbox in the Pricing Attributes section under the Other Attributes sub section.

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Step 2.

Complete the Commitment information and submit the Commitment to Fannie Mae. a. Fannie Mae will confirm the commitment as a Streamlined Rate Lock.

Step 3.

If the original Streamlined Rate Lock Commitment amount needs to be changed after completion of underwriting the Lender must proceed as follows:

Step 3.1

For MBS - The commitment amount needs to be increased:

Step 3.1.1

The Lender must contact the Whole Loan Desk and request a MBS Dual/Additional Rate Lock and provide the information requested.

Step 3.1.2

Fannie Mae Trading Desk will approve the MBS Dual/Additional Rate Lock for the existing Commitment.

Step 3.1.3

The Lender will submit a Change Request to Fannie Mae with the data to be updated for any applicable fields as they relate to the changed commitment amount.

Step 3.1.4

The following additional fields may need to be updated as a result of increasing the commitment amount. They include, but are not limited to:  Commitment Amount ($)  Purchase Price (%)  Current Interest Rate (%)  Servicing Fee Rate (%)  Est. LTV at Commitment (%) (Combined if Supplemental)  Est. DSCR at Commitment (Combined if Supplemental)  Lender Certificate Fields

Step 3.1.5 Step 3.2

Fannie Mae will update the Commitment with the new values and provide a history of the revisions in the ‘Change Requests’ tab of C&D. For Cash - The commitment amount needs to be increased:

Step 3.2.1

The Lender must contact the Whole Loan Desk and request a Dual DUS/Additional Rate Lock and provide the information requested.

Step 3.2.2

After rate locking the Dual DUS Commitment, the lender must submit an “Additional Rate Lock Request” in the C&D system (see Section 11 of the C&D User Manual for additional information).

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Step 3.2.3

The lender will complete the Additional Rate Lock screen and submit to Fannie Mae for approval.

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Step 3.2.4

Fannie Mae will confirm the Dual DUS/Additional Rate Lock Commitment. The system will update the Commitment with the new values and provide a history of the original Commitment and the revisions.

Step 3.3

For MBS - The commitment amount needs to be decreased:

Step 3.3.1

The Lender must contact the Whole Loan Desk and notify them of the change to the commitment amount.

Step 3.3.2

Fannie Mae Trading Desk will confirm the updated Commitment, address data changes and calculate the pair-off fees.

Step 3.3.3

The Lender will submit a Change Request to Fannie Mae with the data to be updated for any applicable fields as they relate to the changed commitment amount.

Step 3.3.4

The following additional fields may need to be updated as a result of decreasing the commitment amount. They include, but are not limited to:  Commitment Amount ($)  Purchase Price (%)  Current Interest Rate (%)  Servicing Fee Rate (%)  Est. LTV at Commitment (%) (Combined if Supplemental)  Est. DSCR at Commitment (Combined if Supplemental)  Lender Certificate Fields

Step 3.3.5

A Pair-off Fee will be assessed based on the amount of the reduction.

Step 3.4

For Cash - The commitment amount needs to be decreased:

Step 3.4.1

The Lender will submit a Change Request to Fannie Mae with the data to be updated for any applicable fields as they relate to the changed commitment amount.

Step 3.4.2

The following additional fields may need to be updated as a result of decreasing the commitment amount. They include, but are not limited to:

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      

Commitment Amount ($) Purchase Price (%) Current Interest Rate (%) Servicing Fee Rate (%) Est. LTV at Commitment (%) (Combined if Supplemental) Est. DSCR at Commitment (Combined if Supplement) Lender Certificate Fields

Step 3.4.3 Step 5.

A Pair-off Fee will be assessed based on the amount of the reduction.

Step 5.1 . Step 5.2

Associate the Commitment to the loan page and complete all required Mortgage Loan information.

Step 5.3

Fannie Mae will purchase the Cash/MBS Mortgage Loan (subject to all other DUS requirements).

Submit Mortgage Loan:

Deliver the Mortgage Loan as a Cash/MBS Mortgage Loan in C&D.

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