Master Servicing Simplification Changes
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.
24 Month Delinquent Loan Reclassification
Fannie Mae will change the trigger for automatic reclassification from four consecutive months delinquent to 24 consecutive months delinquent (measured by LPI date). These changes will become 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 to Investor Reporting
Effective with the August 2020 remittances (for the July 2020 loan activity), Fannie Mae discontinued servicer advances of scheduled remittances of principal and interest (P&I) payments for delinquent S/S remittance type mortgage loans (delinquency advances) after four consecutive missed monthly payments for mortgage loans serviced under the special servicing option.
Cash simplification changes to Investor Reporting
Effective August 2020, Fannie Mae made policy and operational changes to simplify and streamline the Fannie Mae cash remittance and reconciliation processes. These changes reduce touch points and eliminate manual operations for remitting Principal and Interest (P&I) for Scheduled/Scheduled (S/S) and Scheduled/Actual (S/A) portfolio loans.
With Lender Letter LL-2019-07 Fannie Mae announced the following cash simplification changes to Investor Reporting. Servicing Announcement SVC-2019-08 specified August 2020 as the implementation date for these changes.
Resources Announcing Upcoming Changes
- Lender Letter LL-2020-13 Automatic Reclassification of Delinquent MBS Mortgage Loans
Job Aids
Release Notes
Resources Announcing Upcoming Changes
- Lender Letter LL-2020-02 Impact of COVID-19 on Servicing
- Lender Letter LL-2020-08 Changes to Servicer Principal and Interest Advance Requirements
Job Aids
- Customer Transition Guide - P&I Advance Changes to Investor Reporting
- Fannie Mae Process Requirements - P&I Advance Changes to Investor Reporting
- Servicer P&I Advance Report Specifications
- Customer Integration Test Plan - P&I Advance Changes to Investor Reporting
- Customer Integration Test Scenarios - P&I Advance Changes to Investor Reporting
- Stop Delinquency Advance Process
- Stop Delinquency Advance Process: P&I Custodial Reconciliation Form 496
FAQs
Supporting Technologies
Resources Announcing Upcoming Changes
- Servicing Guide Announcement SVC-2019-08 Servicing Guide Updates
- Lender Letter LL-2019-07 Advance Notice of Fannie Mae-Initiated Principal and Interest Drafts for Scheduled/Scheduled and Scheduled/Actual Portfolio Mortgage Loans
Job Aids
- Fannie Mae Process Requirements - Future Cash Simplification Changes to Investor Reporting
- Test Plan - Cash Simplification Customer Integration
- Transition Guide - Future Cash Simplification Changes to Investor Reporting
- Report Specification – Future Cash Simplification Changes to Investor Reporting
- Webinar Presentation: Future Cash Simplification Changes to Investor Reporting
FAQs
Release Notes
Supporting Technologies
Past Webinar recordings