Fannie Mae issued Servicing Guide Announcement SVC-2023-06 (Announcement), setting forth updates to the Servicing Guide. Per the Announcement, Fannie Mae:
- Removed details related to determining the required net yield for an ARM loan conversion (servicers must now contact the servicer’s Investor Reporting Representative for inquiries related to convertible ARM loans or the required net yield);
- For loans where title was transferred to an LLC, removed the timing requirement with respect to the transfer of title back to a natural person prior to refinancing the loan (instead servicers must refer to the Selling Guide for guidance on when the transfer must occur);
- Updated the Adverse Action Notice (Form 182) to include the Federal Trade Commission’s new address; and
- Updated the Special Lender Approval Form (Form 1000A) to provide an option for standard or conditional approval depending on whether the servicer will manage the renovation services in-house or leverage a third-party vendor for HomeStyle Renovation mortgages.
Note that the revisions related to net yield for an ARM loan conversion, the transfer of title involving an LLC and the Adverse Action Notice do not apply to reverse mortgage loans.
Revisions related to the required net yield policy for an ARM loan conversion are effective March 31, 2024 (servicers are, however, encouraged to implement these changes immediately). Revisions related to the Adverse Action Notice are effective March 20, 2024 (servicers are, however, encouraged to implement these changes immediately). All other revisions are effective December 20, 2023.
Click to view the Fannie Mae Servicing Guide Announcement SVC-2023-06: https://www.tenaco.com/wp-content/uploads/2023/12/Fannie-Mae-Servicing-Guide-Announcement-SVC-2023-06-12-20-2023.pdf
