FAQs: Upcoming Loan Management Changes

We are transforming how servicers report activities to and receive data from Fannie Mae through several key improvements: 

1. Event-based reporting: We will streamline how servicers report loan-level transactions. When these changes become effective, you will be required to report loan-level servicing events to us in near real-time, enhancing transparency and ensuring data alignment. Examples of servicing events include contractual payments, curtailments, payment reversals, no payment, rate and payment changes, delinquency status, escrow deposits and disbursements, and mortgage insurance cancellations. As a servicer, you will no longer be required to submit Transaction Type Reports or Loan Activity Records (LARs).
   
   For delinquency reporting, you will be able to submit multiple Loan Delinquency Servicer Action Types, Loan Delinquency Loan Status, and Loan Delinquency Reasons as the activities and events occur (instead of once per month). 
   
   Reporting frequency for event-based reporting: You will be required to report standardized loan-level borrower and servicer activities to Fannie Mae the same day as the events occur, but no later than 3:00 a.m. ET the next business day. Servicing events will be processed, and results will be made available to view in our servicing solutions system in near real-time. If no payment has been received from the borrower by Calendar Day 22 (CD22) of the reporting period, you will be required to report a “no payment” event. If the 22nd calendar date falls on a weekend or holiday, the servicing event must be reported on the preceding business day. The reporting period will continue to close by 5:00 p.m. ET on Business Day 2 (BD2) of the month. Any activity reported after 5:00 p.m. ET on BD2 will be applied to the next reporting period. 
   
   Note: The event-based reporting and loan data expansion requirements published with Lender Letter LL-2025-02 are specific to investor, escrow, and delinquency reporting. Additional data requirements related to loss mitigation and liquidation reporting are in development and will be published in Q4 2025.
    
2. Expanded loan data: To support the change to event-based reporting, you will be required to report an expanded set of data attributes for servicing events. Reporting an expanded set of data attributes will provide better insight into borrower and servicer activities throughout the loan life cycle and enhance risk management capabilities. These data attributes will align with MISMO (Mortgage Industry Standards Maintenance Organization) data standards for greater consistency and integrity in loan data across the mortgage industry. 
   
   Review the requirements for event-based reporting and the expanded loan data in the Loan Management: Servicing Events and Data Requirements document. 
    
3. Principal and Interest (P&I) remittance for summary reporting Actual/Actual (A/A) mortgage loans: To simplify your responsibilities for remitting P&I payments for A/A remittance type mortgage loans, we will automatically initiate a draft of the P&I remittance amount from your custodial account two business days after successfully processing payment events reported to us. This change will create operational efficiencies, reduce administrative burdens, and eliminate the monthly shortage/surplus balance reconciliation using Schedule 3 – Reconciliation of Shortage Surplus (Form 472). Once the change becomes effective, we will settle any outstanding shortage/surplus balances. There will be no remitting or draft date changes for any other remittance types.

These changes will enhance risk management capabilities and improve the efficiency, accuracy, and overall effectiveness of loan management processes for servicers. The advantages of these changes include: 

• Better/more up-to-date view of loan state: Same day reporting will allow us to process servicing events and provide responses to you in near real-time, enhancing transparency, data alignment, and risk management capabilities as well as eliminating data discrepancies due to timing.
• Simplified delinquency and investor reporting: Eliminating redundant reporting in multiple systems will reduce reconciliations and create operational efficiencies.
• Streamlined cash management: Eliminating bifurcated processes for reporting and remitting on Actual/Actual loans will result in simplification, lower administrative overhead, and eliminate reconciliations due to shortages and surpluses when we initiate draft(s) for P&I due based on the reported payment event(s). This change also aligns our remittance processes (Fannie Mae calculates and drafts P&I) across all our remittance types (Scheduled /Scheduled and Scheduled/Actual).

These transformational changes are part of a multi-year initiative and will be delivered incrementally in a phased approach. Additional requirements, including those related to loss mitigation, liquidation reporting, and data formatting, are currently under development and are scheduled for release in Q4 2025. Detailed implementation timelines will be shared in Q3 2025.

We encourage you to review the Lender Letter and Data Requirements document to analyze how the changes will affect your current systems and processes. This includes: 

• mapping current data to the future reporting requirements to understand what you will be required to report in the future
• identifying gaps in required data against what you are currently reporting
• planning for how you will source the new data

This document covers the data requirements associated with servicing events that servicers will report and includes definitions, reporting frequency and the corresponding MISMO information that can be used for mapping purposes. You and your Technology Service Providers should use the Data Requirement document to assess impacts to existing systems and processes.

We will publish technical specifications and data formatting details as they are available. We will notify the industry of resource updates via email as they are published. We encourage you to visit our web page regularly to stay current on new materials.

We are committed to providing training and testing opportunities to ensure change readiness.

Events will need to be reported on the same day they occur, but no later than 3:00 a.m. ET on the next business day. For BD2 (Cycle Close), reporting will be due by 5:00 p.m. ET. We will publish the pre-draft notification no later than the next business day after the event is processed and will initiate the draft of the A/A remittance two business days after the event is processed in our systems. If the A/A draft date falls on a Federal Reserve holiday, it will be drafted the following business day.

See below for an example:

Weekends: 

For servicers that process transactions over the weekend, we will expect the following reporting schedule:  

• If you process transactions on Friday, you must report the event to us no later than by 3:00 a.m. ET on Saturday.
• If you process transactions on Saturday, you must report the event to us no later than by 3:00 a.m. ET on Sunday.
• If you process transactions on Sunday, you must report the event to us no later than by 3:00 a.m. ET on Monday. 

We will publish the pre-draft notification no later than Monday. This will allow you to see the remittance amount and ensure the accounts are funded ahead of the remittance being auto drafted on Tuesday. 

Holidays: 

If there is a Federal Reserve holiday, you will have a business day to review the pre-draft notification; then we will draft on the following business day. For example:

• If Monday is a holiday, you will have Tuesday to review the pre-draft notification ahead of the remittance being auto drafted on Wednesday.
• If Friday is a holiday, you will have Monday to review the pre-draft notification ahead of the remittance being auto drafted on Tuesday.

There will be no remitting changes for S/S and S/A Portfolio Mortgage Loans.

Yes, the No Payment Event is similar to the No Activity LAR reporting. If there is no payment activity on a loan during the reporting period, you must submit a No Payment Event by CD22 of that period. This submission confirms the loan’s unpaid principal balance (UPB) and the last paid installment (LPI) for the time when no payment activity occurred.

In the future state, out of cycle pay-off reversal events will not be accepted.

Currently, servicers report a single cumulative value, "Other Fees Collected Amount," on the Transaction Type 96 (LAR). Expanded detailed reporting in this area will bring greater visibility and insight into loan fees. We will be using this additional information for Accounting and Finance purposes.

You should report fees that are income generating fees and are retained by the servicer (e.g., Late Fees, Assumption Fees, Non-Sufficient Fund Fees, & Payoff Statement Fees, etc.). See “Loan Fee Type” in Allowable Values tab in the Loan Management: Servicing Events and Data Requirements document.

Delinquency reporting ensures timely and accurate tracking of a loan’s delinquency status. Expanded delinquency data improves risk management capabilities by providing a consolidated, real-time view into the status of the loan, which will eliminate the need for you to report the data into different Fannie Mae systems plus provide greater insight into borrower and servicer activities throughout the loan lifecycle.

Delinquency Status and Reason should only be reported when new information regarding the borrower’s delinquency becomes available. There is no requirement to report this monthly or at a certain interval.

Loan Delinquency Servicer Action Type - No Action Taken should be reported along with the associated reason (such as Investor Reporting Adjustment, Litigation, Foreclosure Restricted, Do Not Call) if you are unable to take the typical delinquency-related action on the loan, like sending a late charge notice. This status is expected to be reported once per reporting period by CD22 until normal loan activity can resume.

In the future state of event-based reporting, you will be able to report one loan delinquency servicer action type at a time, with multiple delinquency reasons and/or statuses. If more than one delinquency servicer action happens on the same day, report each one separately.

In the future state, we will no longer have numeric codes for delinquency reporting. Instead, you will report delinquency servicer action types, loan delinquency statuses, and borrower delinquency reasons based on the “Allowable Values” name (See Allowable Values tab in the Loan Management: Servicing Events and Data Requirements document).

We are expanding visibility into the taxes and insurance (T&I) information to strength our risk management capabilities. Enhanced insights into escrow transactional data—such as deposits and disbursements—will provide greater transparency into T&I transactions involving custodial accounts.

Visit our web page and subscribe to Selling and Servicing News emails to stay updated on changes to servicing processes and to start planning for a smooth transition.

Please direct all questions about the Lender Letter or the Servicing Event and Data Requirements to [email protected].