Fannie Mae: Servicing Guide Updates

Investor Update
November 8, 2017

Announcement SVC-2017-10: Servicing Guide Updates

The Fannie Mae Servicing Guide has been updated to simplify servicing and streamline processes. These changes:

  • Clarify requirements for transfers of ownership, releases of liability, and assumptions by:
  • Removing the owner-occupancy requirements for transfers of ownership that are exempt from due-on-transfer clause enforcement;
  • Increasing certainty for releases of liability by allowing servicers to use Desktop Underwriter® (DU®); the comprehensive risk assessment can help to determine if a transferee's credit and financial capacity are acceptable to release the borrower of liability; and 
  • Allowing servicers to decide on a transfer of ownership through an assumption modification.
  • Update the Cash Remittance System™ with new codes to minimize the need for clarification after remittance has occurred.

For a summary of key updates in Servicing Guide Announcement SVC-2017-10, view the executive perspectives video presented by Jenise Hight, Director of Servicing Policy, and the executive overview from Carlos Perez, Chief Credit Officer for Single-Family.

Questions about Fannie Mae Invoicing? See the updated FAQs

  • What's the difference between Fannie Mae Invoicing and LoanSphere Invoicing™?
  • How do I rebut compensation fees?
  • Is there a character limit for Rebuttal Comments?

Find out the answers to these questions and many others in the updated Fannie Mae Invoicing FAQs. Want to learn more? Be sure to check out the OnDemand eLearning modules and the User Guide on the Fannie Mae Invoicing page.

Line item updates in LoanSphere Invoicing

The LoanSphere Invoicing application, which allows servicers to submit qualified expenses for reimbursement, has been updated with new line items. Effective immediately, the new line items should be used when requesting reimbursement for the applicable property inspections. For details, see the Updates to Line Items document, available on the Servicer Expense Reimbursement page.

Updated remittance codes in the Cash Remittance System

As a component of Simplifying Servicing™, we updated the Cash Remittance System (CRS™) remittance codes. Visit the CRS page to view the updated CRS User Guide, which contains all updated codes, their definitions, and purposes. Important reminder to CRS users: Drafting instructions are required before submitting the first draft request for a particular lender/remittance code combination. Please refer to the CRS User Guide for additional instructions.

Reminder: Remitting duplicate MI premium refunds

As a result of finalized requirements for mortgage insurance (MI) companies to insure mortgage loans delivered to Fannie Mae, last year, we developed a process to identify and reconcile MI premium refunds. Servicing Guide F-1-06, Expense Reimbursement was updated to require the servicer to remit duplicate MI premium refunds to Fannie Mae through the CRS within 30 days of Fannie Mae's request in instances where Fannie Mae has determined the servicer received an MI premium refund from the mortgage insurer, as well as reimbursement of the MI premium from Fannie Mae. Reminder: With the introduction of the new CRS remittance codes, use 336 for the payment of MI premium refunds.

In mortgage lending, the personal touch still matters

Data from not just one, but two of our recent surveys show that while borrowers use digital channels for mortgage information, they also place a high value on person-to-person engagement. When asked, close to half of lenders said person-to-person engagement will be equally important in the future as it is today, while nearly 40 percent expect it to be less important. An omni-channel experience that allows consumers to move conveniently between online and personal interactions may be the best approach.

Read more about our National Housing Survey and Mortgage Lender Sentiment Survey results.

Join us at these upcoming events:

Dec. 4-5 | MBA Summit on Diversity and Inclusion | Washington, DC
Jan. 22-25 | MBA Independent Mortgage Bankers Conference | Amelia Island, FL

View more events.

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Receive regular content updates by registering at The Home Story.

Source: Fannie Mae


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