Servicing Policy Communications
Access a list of Servicing Announcements, Lender Letters and Notices to stay current on Fannie Mae's latest servicing policy updates.
| Servicing Notice - Cost of Funds Replacement Index | June 9, 2021-(Republished Oct. 20, 2021) We previously communicated that the Federal Home Loan Bank of San Francisco (FHLBank) announced that it would cease publication of its 11th District Monthly Weighted Average Cost of Funds Index (COFI) after the publication of the Dec. 2021 COFI in Jan. 2022. In anticipation of this date, we are announcing our selection of a replacement index to be used for the servicing of legacy COFI mortgage loans, called the Enterprise 11th District COFI Replacement Index. |
| Announcement SVC-2021-02 – Servicing Guide Update | March 10, 2021-This update adjusts servicer requirements for charge-off property valuation requests; incorporates a procedural change for requesting reimbursement of recording costs for mortgage loan satisfactions; clarifies the approval process to pay third parties out of insurance loss proceeds; and makes other miscellaneous updates. |
| Announcement SVC-2021-01 – Servicing Guide Update | 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. |
| Announcement SVC-2020-08 – Servicing Guide Update | 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. |
| Announcement SVC-2020-07 – Servicing Guide Update | 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. |
| Lender Letter LL-2020-02 – Impact of COVID-19 on Servicing | December 9, 2020-This Lender Letter communicates temporary policies to enable servicers to better assist borrowers impacted by COVID-19. |
| Lender Letter LL-2020-07 – COVID-19 Payment Deferral | 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. |
| Announcement SVC-2020-06 – Servicing Guide Update | November 10, 2020-The November 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. |
| Lender Letter LL-2020-13 – Automatic Reclassification of Delinquent MBS Mortgage Loans | October 28, 2020-This Lender Letter 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. |
| Servicing Notice - Extension of Cost of Funds Index | October 21, 2020-Earlier this year, the Federal Home Loan Bank of San Francisco (FHLBank) announced that it will extend its deadline for discontinuing its monthly cost of funds index (COFI) from early 2021 to early 2022. FHLBank will no longer calculate the index after the publication of the Dec. 2021 COFI in Jan.2022. This Servicer Notice provides additional detail. |
| Announcement SVC-2020-05 – Servicing Guide Update | October 14, 2020-As part of the October 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. |
| Lender Letter LL-2020-05 – Payment Deferral | October 14, 2020-This Lender Letter introduces payment deferral, a new home retention workout option that enables servicers to assist eligible borrowers who have resolved a temporary hardship and resumed their monthly contractual payments but cannot afford either a full reinstatement or repayment plan to bring the loan current. |
| Announcement SVC-2020-04 – Servicing Guide Update | September 9, 2020-(Republished November 10, 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. |
| Lender Letter LL-2020-11 – Disaster Payment Deferral | August 27, 2020-This Lender Letter introduces a new retention workout option to assist borrowers with a disaster-related hardship. |
| Announcement SVC-2020-03 – Servicing Guide Update | July 15, 2020-July’s Servicing Guide update simplifies our loss draft disbursement policies while balancing risk, revises post-disaster credit reporting requirements, authorizes servicers to not send a payment reminder notice to borrowers in an active forbearance plan, encourages servicers to make borrowers aware of our disaster recovery counseling services, and other miscellaneous updates. |
| Lender Letter LL-2020-08 – Servicer Principal and Interest Requirements Change | July 15, 2020-This Lender Letter aligns policies with Freddie Mac to limit servicer obligations to advance scheduled monthly payments to four months for scheduled/scheduled (S/S) remittance type mortgage loans and introduces a streamlined operational process that maintains our existing investor reporting requirements. |
| Lender Letter LL-2020-09 – Incentive Fees for Retention Workout Options | July 15, 2020-This Lender Letter introduces a new temporary structure for incentive fees for completed repayment plans, payment deferrals/COVID-19 payment deferrals, and Fannie Mae Flex Modifications. |
| Announcement SVC-2020-02 – Servicing Guide Update | June 10, 2020-The June Servicing Guide update includes changes to the pre-modification housing expense-to-income ratio calculation for imminent default and cash contribution, with updated instructions to servicers regarding escrow shortages that are part of the full monthly contractual payment, and an update to the Mortgage Assistance Application (Form 710). |
| Servicing Notice – Update to Retirement Date for HomeSaver Solutions Network Workout Functionality | May 20, 2020-In Servicing Notice, Advance Notice of Retirement of HomeSaver Solutions Network Workout Functionality (Oct. 30, 2019), we informed servicers that we will retire and transition the mortgage loan workout reporting and related functionality in the HomeSaver Solutions Network (HSSN) to Servicing Management Default Underwriter™ (SMDU), SMDU UI and SMDU Case Management for all workout reporting processes. In response to servicer feedback and as a result of the impact of COVID-19, we are postponing the Dec. 31, 2020 retirement date previously communicated in that Notice. |
| Announcement SVC-2020-01 – Servicing Guide Update | February 12, 2020-February’s Servicing Guide update revises the foreclosure milestone schedule, eliminates prorated foreclosure fee requirements, clarifies delinquency exception reporting, and more. |
