Fannie Mae Selling and Servicing Policy Archives

January 20, 2021 - the January Servicing Guide update incorporates LL-2020-13, which extended automatic reclassification triggers from four to 24 months for most delinquent MBS mortgage loans; eliminates the requirement for reporting a delinquency status code for a disaster payment deferral if the mortgage loan is brought current; and updates our policies on remote online notarizations for the purpose of servicing or modifying a mortgage loan. 

Servicing Guide - PDF Version (January 20, 2021)

The Document Custodian Notice includes the following topics:

• Updated Annual Statement of Eligibility for Document Custodians (Form 2001)
• Annual review of Fannie Mae Active Document Custodians

January 6, 2021 – This Lender Letter reiterates lenders’ responsibilities for appraisal review and for compliance with Appraiser Independence Requirements; provides examples of appraisal findings and defects; suggests best practices for lenders’ appraisal-related underwriting and quality control processes; and points out resources to help lenders manage appraisal risk efficiently and effectively.

Provides a summary of Selling Guide, Servicing Guide and other policy related communications & updates issued in 2020.

Selling Guide - PDF Version (December 16, 2020)

December 16, 2020 - December's Selling Guide update expands eligibility to allow the sale of loans secured by single-width manufactured homes; updates requirements related to the use of retirement, government annuity, and pension income; modifies our seller/servicer eligibility standards related to minimum liquidity; updates our sale of personal assets documentation requirements; simplifies our eligibility requirements for community land trusts; removes earthquake insurance requirements in Puerto Rico and Guam; clarifies how lenders may use pro-rated tax credits toward closing; and more.

December 16, 2020 - At the direction of the Federal Housing Finance Agency (FHFA) and in collaboration with Freddie Mac, we are modifying our seller/servicer eligibility standards related to minimum liquidity. We’re no longer permitting nondepositories to use unused, undesignated, and available portions of credit lines, including those for servicing advances, as acceptable forms of liquidity.

December 10, 2020 - this Lender Letter provides temporary flexibilities to our appraisal requirements.

December 10, 2020 - this Lender Letter provides reminders and temporary flexibilities to support mortgage originations.

December 9, 2020 - The December Servicing Guide update removes the property-level earthquake insurance requirement on mortgage loans on all Puerto Rico properties, and on Guam properties constructed of masonry. It also incorporates the payment deferral policy communicated in LL-2020-05, the incentive fees for retention workout options as outlined in LL-2020-09, and updates to accurately reflect the guaranty fee and guaranty fee buydown charges drafting schedule.

Servicing Guide - PDF Version (December 9, 2020)

Updated December 9, 2020 - this Lender Letter communicates temporary policies to enable servicers to better assist borrowers impacted by COVID-19. It contains policies related to forbearance plan eligibility, post-forbearance loan modifications, suspension of credit bureau reporting for some borrowers, and suspension of foreclosure sales.

November 24, 2020 - Loan limits in 2021 are increasing. The new loan limit for most of the country will be $548,250 — a 7.42% increase over the 2020 limit — and is effective for whole loans delivered to Fannie Mae and loans in MBS pools with issue dates on or after Jan. 1, 2021.

The Document Custodian Notice includes the following topics:

• Update of the Active Document Custodians list for 2020
• Update to the Document Certification User Guide for NDC 1.28 release
• Reminder of Eligibility Criteria for Document Custodians

Updated November 18, 2020 - this Lender Letter provides a new workout solution to help borrowers impacted by a COVID-19 hardship return their mortgage to current status after up to 12 months of missed payments.

November 13, 2020 - this Lender Letter provides temporary flexibilities for selling loans in forbearance.

November 10, 2020 - The November's Servicing Guide updates reflect disaster payment deferral changes previously announced in the Evaluation Notices and payment deferral agreement. We’ve also updated some terminology for consistency.

Servicing Guide - PDF Version (November 10, 2020)

[Republished: November 10, 2020] September 9, 2020 - September’s Servicing Guide update revises the allowable foreclosure attorney fees for Hawaii, incorporates disaster payment deferral policy and references to payment deferral throughout the Guide, updates the authority to offer an initial forbearance plan of up to three months without achieving quality right party contact (QPRC) in connection with a disaster event, and removes outdated references to Master Agreements.

October 28, 2020 - this provides servicers advance notice of upcoming changes related to the criteria for automatic reclassification of MBS mortgage loans, guaranty advances, and reimbursement of principal and interest advances.

The Document Custodian Notice includes the following topics:

• 2020 Agreed Upon Procedures (AUP) – Follow up to Document Custodian Notice RDC-2020-05
• Updated Single Family Custody Operations Points of Contacts and Analyst Assignments

In Feb. 2019, we announced the retirement of ARM plans that use the 11th District monthly weighted-average cost of funds index (COFI) as computed each month by the Federal Home Loan Bank of San Francisco (FHLBank). The FHLBank previously announced their intention to cease publishing this index in Jan. 2020, with the Dec. 2019 COFI being the last published rate. They later announced an extension of the index through 2020.

October 14, 2020 - October's Servicing Guide update, the Valuation Management System (VMS) Valuation Order Template has been updated to require the foreclosure sale date be completed when a servicer is requesting the property valuation for bidding instructions. Additionally, we’ve revised the Evaluation Notices and the payment deferral agreement to incorporate clarifications regarding Home Affordable Mortgage Program (HAMP) incentives. The Evaluation Notices also include revisions based on recent policy updates.

Servicing Guide - PDF Version (October 14, 2020)