Last reviewed 10-31-2026Short-Sale.com Editorialglossary

Market-Rate Option

Fannie Mae

Updated 10-31-2026

Market-Rate Option

A post-conversion disposition option that allows the lender to determine whether it wants to redeliver a repurchased convertible adjustable-rate mortgage that was in an MBS pool to Fannie Mae following its conversion to a fixed-rate mortgage or to retain the repurchased mortgage for its portfolio.

Fannie Mae Glossary of Terms

Fannie Mae · p. 29

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