On September 8, 2021, Fannie Mae issued Servicing Guide Announcement SVC-2021-06, regarding certain updates to its Servicing Guide, including updates to Form 582 seller/servicer requirements; additional duties and responsibilities for all servicers that service a portfolio size greater than or equal to 20,000 Fannie Mae mortgage loans; and removal of the final interior inspection requirement from the Mortgage Release inspection requirements.
The updated Form 528 and related Selling Guide policies specify notification requirements regarding certain events that could have a material adverse effect relating to the seller/servicer’s origination or servicing of Fannie Mae mortgage loans, the business’s operations, or the ability to comply with the Lender Contract or the requirements of Fannie Mae’s Guides. Fannie Mae now requires a seller/servicer to submit an updated Form 582 and to email the Changes in Lender Organization mailbox within five business days of such an event.
The updated Form 582 has been published and is available for use. Sellers and servicers must comply with all associated policy changes by Oct. 1, 2021.
Fannie Mae also specified that sellers/servicers must have written disaster recovery and business continuity procedures, when contracting with a third-party vendor or service for critical business functions that could affect the seller/servicer’s ability to comply with the Lender Contract or requirements of Fannie Mae’s Guides.
In addition, Fannie Mae added additional duties for servicers that service a total portfolio size greater than or equal to 20,000 Fannie Mae mortgage loans at any time during a calendar year. To the extent the servicer utilizes third-party technology providers to perform critical servicing functions, the servicer must give not less than 180 days’ prior written notice to Fannie Mae of its intent to change that provider. The servicer must also give written notice to Fannie Mae of any termination, breach, or impairment of rights by the servicer or technology provider under such contract within five business days.
Finally, Fannie Mae has removed the requirement that servicers conduct the final interior property inspection following the receipt of the executed deed and all documents related to a Mortgage Release. With this update, Fannie Mae no longer requires servicers to obtain the final interior property inspection report before reporting its final Mortgage Release acceptance. The policy change does not apply to reverse mortgages. The date of required compliance is December 1, 2021, but Fannie Mae encouraged servicers to implement this policy change immediately.