to sell mortgages under this master agreement, lender and fannie mae must also enter into one or more master conversions. in addition, depending on whether lender will be delivering mortgages under one of fannie mae ’ s cash purchase programs ( negotiated or standard ) or under fannie mae ’ s mbs program, lender and fannie mae will also need to enter into the appropriate cash commitments or mbs pricing confirmations for mbs contracts. it is not a federally - insured institution or an affiliate or subsidiary of a federally - insured institution. lender may deliver mortgages originated under the initiative in accordance with the following : mbs guaranty fee and buyup / buydown information the appropriate special feature code ( “ sfc ” ) as indicated below must be entered on the schedule of mortgages ( form 2005 ) or loan schedule ( form 1068 ), as applicable. special initiatives borrower income limitations are not applicable, however, in neighborhoods that qualify as fannieneighbors® locations ; fannieneighbors locations are specified in the selling guide. ( a geocoding service is currently available on fannie mae ’ s web site, www. efanniemae. com, to assist lenders in determining whether a particular property is in an eligible fannieneighbors area. ) for non - du manual underwriting, or manual underwriting that results from a du finding of other than “ approve / eligible ” or “ approve / ineligible, ” lender must evaluate the borrower ’ s credit history using any one of the four options set forth below : mortgage insurance requirements for smc eligible mortgages : individual loan mortgage insurance coverage is required as follows ; coverage may be provided by any eligible mortgage insurer ( i. e., the mortgage insurer for non - smc mortgages is not limited to the insurer ( s ) specified above for smc eligible mortgages ) : note : smc eligible mortgages and non - smc mortgages may not be delivered under the same pool purchase contract ( if delivered under mbs delivery ), or under the same seller / servicer branch no. ( if delivered under cash delivery ). 16. homebuyer education for all mortgages originated under these terms and conditions, lender is required to enter special feature code “ 481 ” on the loan schedule ( form 1068 ) or schedule of mortgages ( form 2005 ). for cash