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- The Fannie Mae Commitment Rate is the rate that Fannie requires for a par-priced loan.
- From the commitment rate, Fannie extracts its guarantee fee ( which has tended to average around 19bp ).
- The survey measures the national average commitment rate for 80 percent loan-to-value ratio mortgage loans during a one week period.
- The survey measures the national average commitment rate for 80 percent loan-to-value ratio mortgage loans during a one-week period.
- So, the Fannie Mae Commitment Rate is loosely the sum of the Fannie Mae current-coupon rate and Fannie Mae s guarantee fee.