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F-3-13, Acronyms and Glossary of Defined Terms: M (07/14/2021)

make whole amount

The amount that must be realized from a property disposition to avoid incurring a loss. For a foreclosure, it is the total mortgage indebtedness less the amount of any MI claim proceeds. For a short sale, it is the sum of the current UPB of the mortgage loan, interest (computed at the mortgage note rate) from the LPI date through the expected date of closing, and miscellaneous expenses, less any cash contributions from the borrower or property purchaser.

make whole payment

The amount that a party responsible for a breach of a selling representation or warranty or a servicing breach must pay Fannie Mae so that Fannie Mae does not incur a loss on the mortgage loan or the property.

management escalation process

An option available to a seller/servicer or other responsible party for challenging a demand for a servicing remedy after the conclusion of the impasse process.

mandatory delivery commitment

A portfolio mortgage loan commitment that generally requires the seller to deliver eligible mortgage loans equal to at least the minimum required delivery amount (which is an amount that will not be less than the original commitment amount by more than $10,000 or 2.5% of the original amount) by the expiration date of the commitment.

manufactured home

Any dwelling unit built on a permanent chassis and attached to a permanent foundation system. Other factory-built housing (not built on a permanent chassis), such as modular, prefabricated, panelized, or sectional housing, is not considered manufactured housing. The manufactured home must be built in compliance with the Federal Manufactured Home Construction and Safety Standards that were established June 15, 1976 (as amended and in force at the time the home is manufactured) and that appear in HUD regulations at 24 C.F.R. Part 3280. Compliance with these standards will be evidenced by the presence of a HUD Data Plate that is affixed in a permanent manner near the main electrical panel or in another readily accessible and visible location. The manufactured home must be a one-family dwelling that is legally classified as real property. The towing hitch, wheels, and axles must be removed and the dwelling must assume the characteristics of site-built housing.


The amount that is added to an index value to create the mortgage interest rate for an ARM; an amount (expressed as a percentage) that is used in the calculation of the purchase price for an ASAP Plus transaction.

margin differential

The margin shortage that occurs when the net mortgage margin is less than Fannie Mae’s required margin.

mark-to-market loan-to-value (MTMLTV) ratio

The gross UPB of the mortgage loan, which must include any principal forbearance UPB from a prior mortgage loan modification, divided by the current value of the property that secures the mortgage loan.

market-rate option

A post-conversion disposition option that allows the seller to determine whether it wants to redeliver a repurchased convertible ARM loan that was in an MBS pool to Fannie Mae following its conversion to a fixed-rate mortgage loan or to retain the repurchased mortgage loan for its portfolio.

master servicer

A Fannie Mae approved servicer that is contractually obligated to service one or more mortgage loans for Fannie Mae and has contracted with a subservicer under a subservicing arrangement.


mortgage-backed security

MBS commitment

An MBS commitment evidences an agreement between Fannie Mae and a lender to buy and sell, respectively, mortgage loans for inclusion in an MBS pool.

MBS Express pool

An MBS pool for which the servicer remits unscheduled principal payments to Fannie Mae on the 4th business day of the month and scheduled P&I payments on the 18th calendar day (or the preceding business day if the 18th is not a business day).

MBS Express remittance cycle

A payment cycle used for scheduled/scheduled remittance types for MBS pools that has two different remittance dates—one for unscheduled principal payments and one for scheduled P&I payments.

MBS margin

One of the factors used to establish the pool accrual rate for an ARM MBS pool on each interest rate change date. For stated-structure ARM MBS pools, it is the difference between the lowest mortgage margin in the pool and the sum of the guaranty fee and the minimum servicing fee. For weighted-average ARM MBS pools, the MBS margin may be a fixed margin that the seller specifies or a weighted-average margin. A fixed MBS margin is attained by varying the servicing fee for individual mortgage loans to equalize the differences in their mortgage margins. A weighted-average MBS margin is attained by reducing the various mortgage margins by the applicable guaranty fee and a fixed servicing fee that the seller specifies, thus developing a different MBS margin for each mortgage loan.

MBS mortgage loans

A mortgage loan (or participation interest in a mortgage loan) that is part of an MBS pool.

MBS pool

All of the mortgage loans or participation interests in mortgage loans (delivered under one or more contracts) that will back an individual issuance of MBS.

MBS pool delivery

Group or groups of mortgage loans (or participation interests in mortgages) delivered by a seller for the purpose of creating a pool to back an MBS issuance. These deliveries are accepted in one or more pool transactions, rather than being accepted as individual mortgage loans (or participation interests) to be held in Fannie Mae’s portfolio. Deliveries under this program are, therefore, referred to as MBS pool deliveries.


Mortgage Electronic Registration Systems, Inc.


Mortgage Guaranty Insurance Corporation


Making Home Affordable


mortgage insurance

MI Direct process

An MI claims process where Fannie Mae files the primary MI claims on all conventional first lien mortgage loans on which Fannie Mae bears the risk of loss and are insured under a master primary policy issued by certain participating mortgage insurers.

military indulgence

A relief provision that is extended by law (such as by the SCRA to members of the U.S. military or by any similar state law) to a borrower by reason of military service.


MERS identification number


mortgage insurance premium


Multiple Listing Service

modification and assumption agreement

A written agreement to change the interest rate when the due-on-sale (or due-on-transfer) provision of the mortgage is enforced because of a change of ownership. It also releases the previous borrower from personal liability under the mortgage loan.

modified special servicing option

A servicing option that was previously available for RD mortgage loans under which the servicer had limited exposure to losses because Fannie Mae would reimburse it for the portion of an allowable loss that RD did not pay.

monthly payment

The monthly payment of P&I collected by servicers. This may also include escrow items for T&I and is therefore also called the full monthly contractual payment.

monthly remittance

The total of the interest and principal distribution amounts that a servicer is obligated to remit to Fannie Mae on each remittance date. For scheduled/scheduled remittance types, this represents scheduled principal reductions and scheduled interest accruals, whether or not payments were collected from the borrowers. For scheduled/actual remittance types, this represents scheduled interest accruals (whether or not payments were collected from the borrowers) and actual principal collections.

mortgage insurance claims portal (MICP)

An application that allows servicers, mortgage insurers, and Fannie Mae to share a singular view of each mortgage insurance claim from liquidation through settlement.

mortgage loan

An individual secured loan that is sold to Fannie Mae as a portfolio mortgage loan or in a pool of mortgage loans underlying Fannie Mae-guaranteed MBS. The term includes a participation interest in a mortgage loan where context requires.

mortgage loan modification

The act of changing any of the terms of the mortgage by agreement between the borrower and the note holder.

Mortgage Release (deed-in-lieu of foreclosure)

A transfer of title from a delinquent borrower to the servicer in satisfaction of the mortgage debt to avoid foreclosure; also called a voluntary conveyance.

Mortgage Selling and Servicing Contract (MSSC)

The contract that establishes the basic legal relationship between a seller/servicer and Fannie Mae.


Mortgage Related Securities


Mortgage Selling and Servicing Contract


mark-to-market loan-to-value

multiple pool

An MBS pool that consists of pools of mortgage loans delivered by more than one seller; also called Fannie Majors.