DUS Lender Memo 06-01_ Multifamily Whole Loan Desk

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					Multifamily Whole Loan Desk

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January 9, 2006 Fannie Mae DUS™ Lenders LENDER MEMO 06-01, MULTIFAMILY WHOLE LOAN DESK IMPLEMENTATION

HIGHLIGHTS
 Announcing the Multifamily Whole Loan Desk.

We are pleased to announce that the Multifamily Whole Loan Desk will be launched on January 10, 2006. The purpose of the Multifamily Whole Loan Desk is to:       Align common Multifamily production and housing goals within Fannie Mae; Provide fast accurate indications, quotes and bids; Obtain credit worthy business at attractive overall returns to the corporation; Offer fast, accurate responses to all financing questions, in order to effectively compete for deals; Increase staff to provide more dedicated resources for better and faster customer service; and Be a central “clearing house” providing the necessary information and resources on pricing, products and credit to facilitate rapid and coordinated responses to inquiries and transactions.

We have created the Desk to address the following business needs:  Optimize profitability to Fannie Mae by sourcing more Cash Loan business;

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Response to customer requests for transactional efficiency. This will allow us, for higher quality business to be more competitive and to correct the customers perception that our turn around time on inquiries and transactions is too slow; Quickly gain consensus among stakeholders for a timely response; Ensure Lenders get faster decisions out of the home office with better access to general information, advice on products, pricing, etc.; and Provide the Lenders a “back-up” for the NAMs and NAM Team Members when they need quick information on products, general information and answers or advice on waivers, pricing or deals.

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The Multifamily Whole Loan Desk is essentially merging two units within Fannie Mae, the Multifamily Communication Command Center and the Multifamily Desk. Pricing The following are definitions for the purpose of this memo. Indications are general market rates on general terms which can be given in ranges. Quotes are more refined indications on a deal specific terms and are subject to change with market conditions. Bids are for rate locking and are usually taken down or rejected in matter of seconds. The Multifamily Whole Loan Desk will provide a one Fannie Mae quote and will only quote and rate lock on the Fannie Mae Pass Through Rate for all Cash Loans which will include the concept of the Notional Guaranty Fee. Lenders should contact the Multifamily Whole Loan Desk for quotes and bids. There will be no break out of the Investor Spread and the Notional Guaranty Fee to the Lenders for all Cash Loans. Because of this alignment the Multifamily Whole Loan Desk will not provide indications, quotes and bids on Multifamily MBS; however, Fannie Mae will quote and bid on loans on a Cash basis. Lenders with MBS eligible Loans will be able to receive indications, quotes and bids on their MBS from MBS dealers. In addition, Lenders with MBS eligible loans can obtain bids on those loans from the Multifamily Whole Loan Desk on a Cash basis. DUS Lenders are encouraged to do so.

Indications, Quotes and Bids for DUS Cash and MBS/DUS deals

Indications Cash Loans Since the Multifamily Whole Loan Desk is no longer bidding on MBS deals, Marketview will no longer provide investor spreads. Instead Marketview will provide indications on Pass Through Rates for Cash Loans at the Second Level Lender Delegated Pricing Waiver. Lender can obtain the Servicing Fees from the DUS Pricing Memo. MBS Loans The Lender can obtain Guaranty Fees and Servicing Fees from the DUS Pricing Memo. For MBS investor spreads they can contact their MBS/DUS dealers. Pricing Quotes and Bids at the DUS Pricing Memo and Lender Delegated Pricing Waiver Levels Lender approves a Guaranty Fee and Servicing Fee for a loan from the DUS Pricing Memo. Cash Loans The Lender communicates to the Multifamily Whole Loan Desk the approved MBS Guaranty Fee (for information purposes) and the Servicing Fee and other loan terms to the Multifamily Whole Loan Desk The desk will communicate back to the Lender the Fannie Mae Pass Through Rate, Servicing Fee, Note Rate and purchase price. MBS Loans The Lender contacts MBS traders to receive their quotes and bids for the investor spread. Fannie Mae Approved Pricing Waivers For Fannie Mae approved pricing waivers, the process is similar except that Fannie Mae has to approve the Guaranty Fee and Servicing Fee. Some Fannie Mae approved pricing waivers are Cash Loans only. The Multifamily Whole Loan Desk will determine whether such deals are eligible for MBS/DUS. Hours of Operation and Phone Numbers The Multifamily Whole Loan Desk will be staffed each Fannie Mae business day, from 9:00 AM to 6:00 PM EST. However, on Fannie Mae business days in which

the bond market closes at 2:00 PM EST or earlier, the desk will close at 2:00 PM EST or earlier. The Multifamily Whole Loan Desk will continue to post the official hours on Marketview for rate locks on those days. The desk will take down rate locks between 9:00 AM and 4:30 PM EST (and earlier if the bond market closes 2:00 PM or before). The toll free number for the DUS Lenders to contact the Multifamily Whole Loan Desk is 888-889-1118. We will eliminate the Lender toll free number for the Multifamily Communication Command Center because the number is no longer needed. Also, during the week of January 9, we will be holding a session on the new Multifamily Whole Loan Desk. Details will be provided at a later date. If you have any question on this subject please contact the Multifamily Whole Loan Desk at (888) 889-1118.

Lender Memos All Lenders Memos except those listed below have been superseded by previous Guide Updates. The Lender Memos listed below will be incorporated into the DUSSM Guide as the applicable sections are updated. • 97-12 (12/08/97) Refinance Enhancements • 98-12 (06/02/98) New Choice Loan Refinance Guidelines; Structured DUS and Rapid Refi Changes (ESP) • 98-17 (07/23/98) Single Asset Seniors Housing Product Line • 98-24 (11/17/98) Loan Limits • 99-05 (08/24/99) Live Pricing for Cash Commitments/MCODES Commitment Procedures • 00-01 (02/24/00) Mezzanine Equity • 01-02 (01/16/01) Manufactured Housing Community Loans • 01-05 (05/02/01) Modifications to Underwriting Guidelines for Seniors Housing Product • 01-10 (07/18/01) Consolidation of the 5-50SM Streamlined Mortgage Loan Product with the DUS Small Loan Product • 01-14 (10/04/01) 3MaxExpressTM Update • 01-15 (11/27/01) Actual/360 Interest Accrual • 02-06 (09/13/02) Changes to Underwriting Guidelines • 02-08 (10/16/02) Forward Commitments

• 03-02 (04/17/03) Changes to Forward Conversion Worksheet (Form 4212) • 03-03 (05/07/03) Guidelines for Physical Occupancy and Economic Vacancy • 03-04 (09/11/03) Ninth Multifamily Assured Schedule Payment TrustSM • 03-05 (11/05/03) Changes to Principal Analysis • 03-06 (12/31/03) Large Loan Definition • 04-01 (02/09/04) Terrorism Insurance Guidelines • 04-02 (2/13/04) Expansion of Lenders’ Delegated Waiver Authority to Reduce the Underwriting Floors Applicable to Nine and Ten Year Balloon Mortgages

• 04-03 (02/13/04) Modifications to DUS/DMBS Product • 04-04 (03/04/04) New DUS Lender Capital Standards and Requirements • 04-05 (03/19/04) Establishment of Lender Delegated Waiver Authority to Reduce the Underwriting Floors Applicable for Fixed and Variable Rate Bond Credit Enhancement     04-06 (05/24/04) Preferred Delegation Memo 04-07 (06/03/04) Preservation and Section 8 04-08 (12/03/04) Preferred Delegation Memo, Manufactured Housing Expansion 05-01 (03/14/05) Channel Enhancements; Lender Delegated Waiver regarding environmental analysis, and expansion of 3MaxExpressTM loan limit to $5 million in additional counties 05-02 (4/7/05) DMBS SRT Revision 05-03 (7/1/05) Certified Rent Rolls for MATS 05-04 (7/14/05) Preservation and Section 8 05-05 (9/22/05) Seniors Transaction Screening Summaries

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05-06 (10/18/05) 15-Year Structured Interest Rate Cap 05-07 (11/2/05) Revisions to Certain Loan Documents Published on Fannie Mae Multifamily Web Site 05-08 (11/17/05) Drafting of Yield Maintenance/ Prepayment Premium due Fannie Mae 05-09 (12/9/05) New Tier Dropping Form for Supplemental Loan Eligibility 06-01 (1/6/06) Multifamily Whole Loan Desk


				
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