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C2-2-07, Purchase Payee Codes (05/01/2024)

Introduction
This topic contains information on purchase payee codes, including:

Entering Purchase Payee Codes Into Fannie Mae’s Records

Lenders must specify a valid and appropriate payee code at delivery to have the purchase proceeds for a specific mortgage or group of mortgages transferred to the designated account.

The following steps are required to enter a payee code into Fannie Mae records.

Step Procedure
1. The lender’s authorized representative submits a Seller’s Designation of Wire Transfer Instructions ( Form 482) to Fannie Mae.
2. Fannie Mae will call the authorized representative who signed the Form 482 request to confirm validity prior to processing.
3. Fannie Mae will provide the lender’s authorized representative with the new payee code.
4. Fannie Mae updates the Loan Delivery application with the new payee code.
5. The lender informs the appropriate staff (those who submit delivery data to Fannie Mae) regarding which payee code to use for which payee arrangement.

Changing or Deleting Purchase Payee Codes From Fannie Mae’s Records

To change or delete an existing payee code, lenders must submit a new Form 482. Fannie Mae can delete or change the payee codes that are used to identify the lender’s transfer arrangements at any time. If Fannie Mae intends to delete or change the payee codes, it will give lenders notice of its intention to do so. (Changes to, or deletion of, a payee code created in connection with the execution of a Triparty Wiring Instruction Agreement must be handled in accordance with the provisions of the Agreement.)

The following steps are required to change or delete an existing payee code:

Step Procedure
1. The lender’s authorized representative completes and submits a new Form 482.
2. Fannie Mae will call the authorized representative who signed the Form 482 request to confirm validity prior to processing.
3. Fannie Mae will make the requested change within three business days after receiving the valid and completed Form 482; however, Fannie Mae cannot guarantee that this will occur in time to prevent a previously authorized transfer of funds for a mortgage that is in its purchase pipeline or to stop a wire transfer that is in process.
4. Fannie Mae contacts the lender’s authorized representative to confirm the change or deletion.

Note: In emergency situations, Fannie Mae will delete a payee code based on the lender’s authorized representative’s request; however, Fannie Mae cannot guarantee that it will be able to act quickly enough to prevent the execution of transfers that had been previously validated. The lender must then submit a Form 482 to confirm the request for the deletion.

Recent Related Announcements

The table below provides references to recently issued Announcements that are related to this topic.

Announcement  Issue Date
Announcement SEL-2024-03 May 01, 2024

 

 

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