Fannie Mae Selling and Servicing Policy Archives

August 29, 2017 - as we work together to support the victims of Hurricane Harvey, servicers are reminded that Fannie Mae has servicing policies to assist impacted borrowers following a disaster, such as Hurricane Harvey. For updated guidance, refer to Lender Letter LL-2017-03 Servicing Policies for Mortgage Loans Impacted by Hurricane Harvey and visit our Assistance in Disasters page for information about our policies for providing assistance to borrowers impacted by a disaster.

August 29, 2017 - the following updates were made in August Lenders are required to use Form 3749 when assigning loans to MERS in Maine, effective Jan. 1, 2018; topics in Selling Guide Part A were updated and duplicative content was removed from Servicing Guide; credit report requirements now align with industry standard reporting.

Selling Guide - PDF Version (August 29, 2017)

Servicing Guide - PDF Version (August 16, 2017)

August 16, 2017 - this update simplifies servicing by streamlining the Selling and Servicing Guides; changing sellerservicer fidelity bond and omissions insurance requirements; updating whole loan ARM margin calculations; and more.

July 25, 2017 - The following updates were made in July Policies to align with DU version 10.1 including max DTI ratio of 50, max LTV for ARMs up to 95, and simplified process for disputed tradelines; loan eligibility for borrowers with employment offers or contracts; more flexibility for borrowers with student loans, mortgages paid by others, alimony obligations, and timeshare accounts; document custody requirements streamlined; and changes to sellerservicer fidelity bond and omissions insurance requirements, effective Oct. 1, 2018.

Selling Guide - PDF Version (July 25, 2017)

July 12, 2017 - This update simplifies servicing by providing preservation procedures for properties that secure delinquent loans; clarifying inspection requirements for delinquent loans; adding and updating repair descriptions and reimbursement limits for preservation work; allowing electronic signatures on inspection reports; providing photo examples of properly completed preservation work; and more.

Servicing Guide - PDF Version (July 12, 2017)

June 21, 2017 - this update simplifies servicing by reducing post-foreclosure sale responsibilities for servicers; allowing servicers to leverage the Flex Modification program and utilize electronic notarization; streamlining the short sale process; clarifying servicer responsibilities for mortgage loan recordings and reimbursements; enhancing servicer performance ratings; removing duplicate content from the Servicing Guide; and more.

Servicing Guide - PDF Version (June 21, 2017)

June 13, 2017 - effective July 2017, the credit reporting agencies will no longer include most tax liens and civil judgments in credit reports.

May 30, 2017 - the following updates were made in May electronically notarized documents are accepted by Fannie Mae; whole loan ARM commitments now use the gross mortgage margin; over-delivery limits of whole loan commitments cannot exceed 25; more flexibility for whole loan cash back pay-offs; and copies of mortgage documents are allowable documentation.

Selling Guide - PDF Version (May 30, 2017)

May 10, 2017 - this update helps to simplify servicing and make it easier to do business with Fannie Mae. Updates include alignment with Consumer Financial Protection Bureau mortgage servicing rules; simplified escrow waiver evaluations; revised post-bankruptcy mortgage loan modification incentive fee calculations and Form 629 submission timelines; and improved review process for servicers involved with agreements with government insurers or guarantors.

Servicing Guide - PDF Version (May 10, 2017)

Selling Guide - PDF Version (April 25, 2017)

April 25, 2017 - The following updates were made in April new solutions for borrowers with student loan debt; project review waivers for certain Fannie Mae to Fannie Mae limited cash-out refinances; simplification of some cash-out refinance policies; and more.

April 12, 2017 - This update simplifies our requirements, manages risk, and responds to industry feedback. Updates include revisions to Servicing Guide B-5-01 and Form 176; instruction to servicers who engage with third-party vendors; clarification to the maximum allowable foreclosure attorney fees; and inclusion of clearboarding in property preservation descriptions and expenses.

Servicing Guide - PDF Version (April 12, 2017)

March 28, 2017 - The following updates were made in March lenders may obtain a verification report for use with the Desktop Underwriter (DU) validation service from a report supplier or a report distributor; loans with a Collateral Underwriter risk score of 2.5 or below on the appraisal are eligible for certainty on appraised value regardless of whether the loan was underwritten through DU.

Selling Guide - PDF Version (March 28, 2017)

February 28, 2017 - The following updates were made in February to simplify and clarify policies borrower-signed Form 4506-T not required if all of their income is validated through the Desktop Underwriter (DU) validation service; updates the definitions of homeownership education and housing counseling; and standardizes the calculations for monthly qualifying rental income or loss.

Selling Guide - PDF Version (February 28, 2017)

February 15, 2017 - This update makes changes to simplify servicing, reduce operational cost and risk for servicers, and increase data accuracy. Updates include relieving servicers of the responsibility to pay for HOA, condo, or co-op fees for acquired properties; elimination of transaction type 80 reporting requirements; flexible use of IRS form 4506-T or 4506T-EZ for workout options; and changes to maintaining sellerservicer eligibility.