Master Servicing Simplification Changes

Delivering simple, streamlined solutions to servicers

Fannie Mae is making policy and operational changes to Master Servicing processes and systems. These tools are designed to help you prepare and seamlessly implement these required changes.

Master Servicing Simplification Changes webinar

Watch the recording from the recent webinars to help you prepare for upcoming Master Servicing policy and process changes, which include:

  • 2022 cash simplification changes
    • Reporting due date changes for summary reporting loans
    • LAR 96 format expansion 
  • Guaranty fee relief after four months delinquency.

Watch the recording

View the slides


Reimbursement of gross servicing fee and guaranty fee for mortgage loans with a payment deferral

Per LL 2021-12, effective Sep. 21, servicers will be able to obtain advance notice of the reimbursable amounts by utilizing Fannie Mae Connect™ or the Loan Servicing Data Utility (LSDU) application.

Elimination of advance payment of UPB at foreclosure

Per LL 2021-12, the requirement for servicers to advance payment of outstanding scheduled UPB upon completion of the foreclosure for all Scheduled/Scheduled remittance type mortgage loans for which Fannie Mae bears the foreclosure loss risk, or which are shared risk with us being responsible for marketing the property has been eliminated.

2022 Cash Simplification Changes

Per LL 2021-12, updates to the reporting due date for summary reporting mortgage loans, the transaction type 96 (LAR) format, and P&I remittance requirements for summary reporting Actual/Actual remittance type mortgage loans.

Guaranty fee relief after four months delinquency

Per LL 2021-12, for Scheduled/Scheduled remittance type mortgage loans where we bear the foreclosure loss risk, in the Loan Reporting Cycle that an Scheduled/Scheduled MBS mortgage loan becomes 120 or more days delinquent, Fannie Mae will place the mortgage loan in the Stop Delinquency Advance process.

24 Month Delinquent Loan Reclassification

Fannie Mae changed the trigger for automatic reclassification from four consecutive months delinquent to 24 consecutive months delinquent (measured by LPI date). These changes became effective for mortgage loans that become greater than four consecutive months delinquent on or after Feb. 2021 remittance activity (based on Jan. 2021 reporting activity). 

P&I Advance Changes

Effective August 2020,  Fannie Mae discontinued servicer advances of scheduled remittances of principal and interest (P&I) payments for delinquent Scheduled/Scheduled remittance type mortgage loans (delinquency advances) after four consecutive missed monthly payments for mortgage loans serviced under the special servicing option.

2020 Cash Simplification Changes

Effective August 2020, Fannie Mae made policy and operational changes to simplify and streamline the Fannie Mae cash remittance and reconciliation processes.  These changes reduced touch points and eliminated manual operations for remitting Principal and Interest (P&I) for Scheduled/Scheduled and Scheduled/Actual portfolio loans.