The servicer or Fannie Mae may terminate the servicing arrangement without cause. By giving Fannie Mae advance written notice, the servicer may terminate its contractual rights to the servicing of all Fannie Mae mortgage loans and MBS pools or participation interests in mortgage loans for all of the mortgage loans and MBS pools it is servicing without providing for a transferee servicer to assume the servicing obligations, responsibilities, and liabilities. However, when the servicer elects to terminate its contractual rights to the servicing of mortgage loans or participation interest in mortgage loans, the servicer is responsible for all reasonable and customary costs and expenses related to the transfer of servicing in connection with a termination.
The servicer’s termination of its servicing arrangement does not release it from any of its responsibilities or liabilities related to specific mortgage loans and MBS pools that Fannie Mae purchased or securitized (or contracted to purchase or securitize) before the termination, unless Fannie Mae expressly agrees in writing to release the servicer from those responsibilities or liabilities.
The termination will become effective on the last business day of the third month following the month in which the notice is given. Absent Fannie Mae’s written agreement, the servicer may not terminate its servicing rights for less than all of the mortgage loans or participation interests in mortgage loans that it is servicing for Fannie Mae.