Memorandum
TO:	All Eligible and Participating Lenders
FROM:	Erik Nore Homeownership Department Manager
DATE:	February 11, 2008
RE:	Memo No. 08-01

Fannie Mae "Adverse Market" delivery fee

On December 5, 2007, Fannie Mae released Announcement 07-21 which details an “Adverse Market Delivery Fee” (“fee”) on all mortgage loans delivered into Mortgage Backed Securities (MBS) after March 1, 2008. The fee (25bps or 0.25%) applies to all FNMA Conventional Loans that are originated under the Mortgage Revenue Bond (MRB) program, including Mortgage$aver and HERO First.

All Conventional (Mortgage$aver and HERO First) Mortgage Loans with a Loan Reservation (MBS Compliance Agreement) dated after February 1, 2008 will have a ”fee” of 25bps (0.25%) withheld from the purchase funding amount paid by the Master Servicer(s) (Countrywide Bank, FSB or CitiMortgage, Inc.) to the Originating Lender.

This fee may be charged to the borrower. It is the responsibility of the Originating Lender to assess the fee to the borrower at the time of Loan Application.

It may be necessary for the Originating Lender to re-disclose the “fee” (per applicable State and Federal regulations) to the borrower on Loan Reservation made between February 1, 2008 and February 11, 2008.

The Master Servicer(s) will not withhold the “fee” from the purchase funding amount paid to the Originating Lender on Loan Reservation(s) made prior to February 1, 2008. MFA has agreed to pay the “fee” on behalf of the borrower on all Loan Reservations prior to February 1, 2008. The Master Servicer(s) will bill MFA separately for the “fee”.

Thank you for your participation in MFA's programs. If you have any questions, please contact the Homeownership Department at 505-843-6880 or 1-800-444-6880.