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Date: October 4, 2001

To:   DUS Lenders

From: Robert A. Hunter
      Vice President, Multifamily

Subject:     Lender Memo 2001-14: 3MaxExpressSM Update

            Clarification regarding
                    Loan eligibility
                    Pricing
                    Streamlined Loan Summary Technology
                    Pre-commitment Review Information
                    Timing of revised product Manual
            Announcing availability of 3MaxExpressSM form documents
             on web site

The purpose of this Lender Memo is to clarify policies pertaining to the 3MaxExpress SM
product and announce the availability of the 3MaxExpress SM forms on the web site.

Eligible Loans

Loans eligible under 3MaxExpressSM are DUS loans equal to or less than $3 million.
Unlike the 5-50SM product, 3MaxExpressSM does not have restrictions based on unit
count. Please note that Lenders must use the standard DUS process to underwrite,
price and deliver a loan greater than $3 million on a 5 to 50 unit property.

While Fannie Mae encourages the use of 3MaxExpress SM for loans less than $3 million,
Lenders may continue to use the full DUS underwriting for these loans.
Lenders ready to deliver 3MaxExpressSM loans should refer to the pre-commitment
review section below prior to commitment.


Pricing for 3MaxExpressSM is designed to encourage Lenders to originate small loans
and is identical to the former 5-50SM product. The product uses the DUS pricing grid,
but allows for increased servicing fees that are not shared with Fannie Mae.
Specifically, Lenders may increase the servicing fee by:

            12.5 bps for loans less than $1 million;
            10 bps for loans between $1 million and $2 million; and
            5 bps for loans between $2 million and $3 million.

Generally we would not expect to grant pricing waivers for loans on which Lenders have
increased the servicing fee.

Streamlined Loan Summary Technology

The 3MaxExpressSM product also uses the Streamlined Loan Summary (formerly the
5-50SM Streamlined Mortgage Loan Summary) which meets Fannie Mae’s underwriting
data submission requirements for these loans. The Streamlined Loan Summary has
the additional benefit of populating many of the required MCODES fields when it is
uploaded through Fannie Mae’s web site. This technology was
enhanced in June of 2001 and is fully operational.        The user manual for the
Streamlined Loan Summary has been attached again for your convenience.

Pre-commitment Review

New 3MaxExpressSM Lenders and approved 5-50SM Lenders who were still on pre-
commitment review status for the 5-50SM product remain on pre-commitment review for
3MaxExpressSM. Fannie Mae’s Credit Review department will perform the pre-
commitment reviews. Credit Review, in conjunction with the National Account Manager
and the 3MaxExpressSM team, will determine when a Lender may move to post
purchase review status.

Pre-commitment review files must include the items listed on the 3MaxExpress SM
Mortgage Loan Delivery Table of Contents (Form 4302). They should be forwarded to:

MWRO Lenders:                                 Other Regions:
Fannie Mae                                    Fannie Mae Multifamily
Multifamily                                   Multifamily Loan Pre-review
Credit Review: 3MaxExpress Pre-review         Mailstop 3H-2S-05
One South Wacker Drive                        3900 Wisconsin Ave, NW
Suite 1300                                    Washington, DC 20016
Chicago, IL 60606-4667

Specific contacts for the pre-commitment review process will be provided at the next
DUS Chief Underwriter’s call.

3MaxExpressSM Manual

The 3MaxExpressSM product uses the former 5-50SM Manual which will be updated to
reflect the name change in addition to the enhancements announced in Lender Memo
2001-10. The updated Manual as well as related changes to the DUS Guide will be
announced in a separate Lender Guide Update upon completion. Lenders should
continue to refer to the 5-50SM Manual and 3MaxExpressSM Lender Memos for this
product until the updates are complete.

Loan Documents and Forms

The 3MaxExpressSM product uses the same business forms and loan documents as the
former 5-50SM product. The revised 5-50SM business forms (changed to reflect name
change) will be available on the web site beginning Wednesday,
October 10, 2001, and must be used for any 3MaxExpress SM loan delivery to Fannie
Mae occurring on or after November 1, 2001. After October 9, 2001, the 5-50SM
business forms will no longer be available. Until October 31, 2001, Fannie Mae’s
document delivery certification team has been instructed to accept the existing 5-50SM
business forms, including the 5-50SM Loan Document Delivery Table of Contents. On
and after November 1, 2001, Lenders must use the 3MaxExpressSM Loan Document
Delivery Table of Contents. Further, Lenders must use the published Fannie Mae form
loan documents, as revised and announced in Lender Memo 2001-12.

Contact Information

Fannie Mae will hold a conference call intended to provide product training later this
year. For general questions regarding this product or technology please contact Nancy
Atwell at (202) 752-2412. For questions regarding a specific loan, please contact your
National Account Manager (NAM).

Attachment (Streamlined Loan Summary User Manual)

                                  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 DUS Guide as
the applicable sections are updated.

• 97-12 (12/08/97) Refinance Enhancements

• 98-06 (04/02/98) Actual/360 Loans

• 98-07 (04/30/98) Loan Payoff Reporting Form

• 98-09 (05/14/98) Bond Premium Sales for Fixed-Rate Bond Credit Enhanced
                   Properties / Eligible Borrower Organizations

• 98-12 (06/02/98) New Choice Loan Refinance Guidelines; Structured DUS and
                   Rapid Refi Changes (ESP)

• 98-16 (07/21/98) Exercise of the Defeasance Option

• 98-17 (07/23/98) Single Asset Seniors Housing Product Line

• 98-24 (11/17/98) Loan Limits

• 99-02 (03/18/99) DUS Bond Credit Enhancements - Reduction of Fannie Mae
                   Counsel Fees in DUS Variable Rate Transactions, Fannie Mae
                   Counsel Option for Real Estate Documentation, and Revised
                   Counsel Designation Form

• 99-05 (08/24/99) Live Pricing for Cash Commitments/MCODES Commitment

• 00-01 (02/24/00) Mezzanine Equity

• 00-03 (05/09/00) Fannie Mae 5-50SM Streamlined Mortgage Loan Product

• 00-04 (06/23/00) Revisions to Documents Published on Fannie Mae Multifamily Web

• 01-02 (01/16/01) Manufactured Housing Community Loans

• 01-05 (05/02/01) Modifications to Underwriting Guidelines for Seniors Housing

• 01-06 (06/12/01) New Streamlined Loan Summary Tool

• 01-10 (07/18/01) Consolidation of the 5-50SM Streamlined Mortgage Loan Product
                   with the DUS Small Loan Product

• 01-11 (07/25/01) Fifth Multifamily Assured Schedule Payment TrustSM (“MASTSM”)

• 01-12 (08/22/01) Revisions to Documents Published on Fannie Mae Multifamily Web
                   Site (#2)

• 01-13 (10/04/01) Quarterly DUS Lender Financial Information Submission

• 01-14 (10/04/01) 3MaxExpressSM Update


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