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.


[email protected] or Master Servicing at 1-800-2-FANNIE (Option 1, Option 6)

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

Job Aids

Release Notes