Fannie Mae issued Servicing Guide Announcement SVC-2017-07 (Announcement), setting forth updates to the Servicing Guide. As outlined in the Announcement, Fannie Mae amended the commitment and servicing calculation of ARM margins for whole loans. Under the amended calculation, the post-rate adjustment remittance must be the index plus the net margin of the mortgage loan (rather than the index plus the required net yield of the ARM product). In addition, Fannie Mae removed and consolidated content from several topics in Servicing Guide Part A (Doing Business with Fannie Mae) pertaining to general contract terms, indemnification provisions, and the use of Fannie Mae trade name and trademarks. No policy changes were made as a result of the removed and consolidated content. The Servicing Guide updates went into effect August 16, 2017. However, the revised calculation of ARM margins for whole loans applies to whole loan ARMs committed (and subsequently delivered) to Fannie Mae as of September 11, 2017 (but will not affect ARM loan servicing until these mortgage loans become subject to their first rate resets).
Click here to view the Fannie Mae Servicing Guide Announcement
