Servicing Guide

Published September 9, 2020

For best results, pose your search like a question.

Guide Resources

For a comprehensive list of resources such as forms, announcements, lender letters, notices and more.

Visit Selling and Servicing Guide Communications and Forms

Customers Recommend Ask Poli

AskPoli

If you have additional questions, Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published sources.

Launch Ask Poli  

Download PDF Guide

You can also download the printable ~800 page PDF, which include links.

Download Now

For investor reporting, what are Fannie Mae's requirements for reporting an error for a single family ARM mortgage loan?

In accordance with Servicing Guide C-2.2-01, Identifying and Disclosing Adjustment Errors the servicer must verify all previous interest rate and payment adjustments were correctly handled for a mortgage loan before it corrects an identified adjustment error. Once the servicer verifies the correct interest rate or monthly payment for each adjustment date that has occurred, it must re-amortize the mortgage loan from the date of the first erroneous adjustment through the date the LPI was applied to determine whether the borrower has been overcharged or undercharged.

The servicer must follow the procedures in Re-Amortizing the Mortgage Loan in Servicing Guide F-1-01, Servicing ARM Loans to complete the re-amortization.  
The servicer must determine whether the borrower’s monthly payment needs to be changed as a result of any ARM adjustment error. If the net effect of correcting an adjustment error is an undercharge, it cannot be collected from the borrower, nor can the UPB of the mortgage loan be changed to offset it.  

The servicer must provide the following information to its Fannie Mae Investor Reporting Representative (see Servicing Guide F-4-03, List of Contacts) to support a request for a correction of any ARM adjustment error:  

  • a brief cover letter that explains the exact nature of the error, and  
  • supporting documentation for the proposed corrective action (such as copies of the servicer's ARM audit analysis for the mortgage loan, the mortgage note and ARM rider, payment history records, corrected amortization schedules, the lender's negotiated contract, purchase advices etc.).  

See also Servicing Guide F-4-03, List of Contacts for additional information. After the servicer confirms ARM adjustment error(s) and has re-amortized the mortgage loan, the servicer must correct the error(s) in its and Fannie Mae’s records. 

 

For more information see Investor Reporting Manual Chapter 4, Special Loan Handling.

Have You Tried Ask Poli?

Poli knows. Just ask.

Ask Poli features exclusive Q&As and
more—plus official Selling & Servicing
Guide
content.

Try Ask Poli

Related Articles


AskPoli

Customers Recommend Ask Poli

If you have additional questions, Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published sources.

Guide Resources

For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more.

Visit Selling and Servicing Guide Communications and Forms

X
Having Issues with Seeing this Page Correctly?

Use Firefox or Chrome   How to do a hard refresh in Internet Explorer
We recommend that you use the latest version of FireFox or Chrome.

Download Firefox
Download Chrome
  A hard refresh will clear the browsers cache for a specific page and force the most recent version of a page.
    Hold the Ctrl key and press the F5 key.
     

Email Us
If you still have Technical Support questions, feel free to emailAsk_Poli@fanniemae.com.