Changes are being made to the Federal National Mortgage Association’s selling guide that clarify the government-controlled lender’s volume limitations with sellers.
A basic legal relationship is established between lenders and Fannie Mae through the Mortgage Selling and Servicing Contract. Included in the contract are terms and conditions of the sale of loans to the secondary lender.
But Section III, D, of the contract includes a provision that Fannie has no obligation to make a commitment to purchase any mortgage or participation interest from the lender.
The Washington, D.C.-based company went a step further by issuing Selling Guide Announcement SEL-2012-06 on Tuesday.
The bulletin states that Fannie can “establish, amend, or cancel any mortgage loan volume limitations specific to a lender, which may be applicable to whole loan and MBS deliveries and sales.”
In addition, the housing finance agency said it can decline to engage in any specific transaction with a lender.
The clarifications are immediately effective.