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 are processed in your system, but no later than 3:00 a.m. ET the next business day. Servicers should establish a reasonable daily cut-off of its work to ensure that servicing events are reported by the 3:00 am eastern time (ET) reporting timing requirement. 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. 
   
   Effective: The event-based reporting changes will be delivered incrementally. Implementation milestones are published on the Fannie Mae website, and we will communicate further details as they become available.
    
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. The Investor Reporting, Escrow and Delinquency Reporting 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. The high-level implementation timeline, including customer integration testing and Production Go-Live milestones, is available on our web page. Further details will be provided at a later date. 

We encourage you to review the Lender Letter, Data Requirements, Implementation Milestones, Technical Specifications, Servicing Changes Reference Guide, and Loan Escrow Customer Integration Test Plan documents to: 

• understand the changes implementation roadmap and key milestones,
• analyze how changes will affect your current systems and processes, with a focus on Escrow Reporting,
• map data to the future reporting requirements, identify gaps, and begin planning on how you will source new data,
• start planning for your business processes, operational changes and development activities, and
• start understanding testing requirements and begin preparing for the Loan Escrow testing period.

Several resources (data requirements, technical specifications, customer integration test plan, servicing changes reference guide, and the loan escrow application programming (API) planning guide) are available on the Fannie Mae website. These resources will be updated periodically, and additional materials will be added as details are finalized. We encourage you to visit the Fannie Mae website regularly to stay current on resource updates and begin planning and preparing for timely implementation.

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

This document covers the data requirements associated with servicing events that servicers will report and includes definitions, reporting frequency, and the corresponding MISMO and Technical Specification information that can be used for mapping purposes. It also includes the systems through which events should be submitted and provides implementation milestones and go-live dates (see Implementation timeline) for each event. You and your Technology Service Providers should use the Data Requirement document to assess impacts to existing systems and processes.

The Technical Specifications provide the JSON schema for a defined set of servicing events, along with event sample inbound reporting payloads to Fannie Mae and event sample response files from Fannie Mae. These documents will be updated periodically with:

• JSON schemas and sample payloads for additional servicing events
• Additional technical files, such as response files and sample outbound reporting files from Fannie Mae

We encourage you to visit our web page regularly to stay informed about the latest updates to technical documentation.

This guide helps you prepare for upcoming changes and includes: 

• An overview of the initiative,
• Guidance on how to prepare for the upcoming changes,
• A summary of core servicing expectations applicable to all events, including reporting timelines, remittance schedules, and submission standards, and
• Detailed guidance for the servicing events, complete with examples, business rules, and exception protocols.

It should be used alongside the Data Requirements , Technical Specifications, and Implementation Timeline to support readiness and implementation planning.