Lender Channel/Flow Deliveries

Updated 2026-05-17

Lender Channel/Flow Deliveries refer to the standard method by which individual mortgage loans or small batches of loans are originated by lenders and delivered to Government Sponsored Enterprise (GSE) (or Government Sponsored Enterprise (GSE)) for acquisition. This is the typical, ongoing process for most mortgage originations.

Mortgage Insurance Code Restrictions

As of July 2025, Fannie Mae has implemented a significant restriction concerning Homeowners Protection Act (HPA) and Mortgage Insurance (MI) for lender channel/flow deliveries. The MISMO Data Standards and Uniform Loan Delivery Dataset (ULDD) MI Code 97, which indicates no MI required because the current VA-Approved Credit Underwriter and Underwriting Standards (LTV) is 80% or less, is no longer permitted for these types of deliveries.

This restriction was put in place to prevent inadvertent delivery of loans that do not meet Fannie Mae's LTV requirements. MI Code 97 is now exclusively valid for Negotiated (Bulk) Transactions. MLOs and lenders must ensure compliance with this updated policy when delivering loans to Fannie Mae. For more details, see Fannie Mae Mortgage Insurance Requirements.