Negotiated (Bulk) Transactions
Negotiated (Bulk) Transactions refer to the sale of large portfolios of mortgage loans by lenders to Government Sponsored Enterprise (GSE) (or Government Sponsored Enterprise (GSE)), often under specific, individually negotiated terms. These transactions differ from standard Lender Channel/Flow Deliveries in their scale and the customized agreements involved.
Mortgage Insurance Code Usage
As of July 2025, Fannie Mae has clarified the usage of MISMO Data Standards and Uniform Loan Delivery Dataset (ULDD) MI Code 97 specifically for negotiated (bulk) transactions. This code indicates that no Homeowners Protection Act (HPA) and Mortgage Insurance (MI) is required because the current VA-Approved Credit Underwriter and Underwriting Standards (LTV) is 80% or less.
MI Code 97 is now valid exclusively for these types of transactions and is no longer permitted for standard lender channel/flow deliveries. This policy ensures that the specific conditions and due diligence associated with bulk transactions are appropriately accounted for when determining MI requirements. For more details, see Fannie Mae Mortgage Insurance Requirements.
Source material
- Approved Mortgage Insurers and Related Identifiers updated July 2025
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