Servicing Guide

Published June 10, 2020

The Servicing Guide is organized into parts that reflect how lenders generally categorize various aspects of their business relationship with Fannie Mae. To begin browsing, select from any of the sections below. You may also download the entire Servicing Guide in PDF format.

View All Servicing Policy Updates

Download PDF

Hint: Ask in a form of a question.

For best results, pose your search like a question.

A4-2.1-01: Preventing Defaults and Managing Delinquencies (06/08/2016)

This topic contains the following:


General Responsibilities for Preventing Defaults and Managing Delinquencies

The servicer must take the actions described in the following table in the servicing of Fannie Mae mortgage loans.

The servicer must…

Identify and distinguish the pool issue date of a MBS mortgage loan and be familiar with the varying servicing requirements applicable to those pool issue dates.


Adapt its systems to be able to identify the MBS issue dates for PFP mortgage loans in MBS pools.


Comply with all specific written direction Fannie Mae issues to an individual servicer regarding actions to be taken in connection with preventing a foreclosure, including, but not limited to, actions to be taken in connection with mortgage loan modifications, short sales, and Mortgage Releases, with respect to either

  • all mortgage loans purchased or securitized by Fannie Mae, or

  • a designated population.


Cooperate with third parties engaged by Fannie Mae to support the servicer in the fulfillment of the servicer’s obligations that may impose additional requirements.


Establish a practice for servicing delinquent mortgage loans that follows the accepted standards used by prudent servicers.


Apply the requirements of a borrower Delinquency Management Model that allows a borrower to contact one individual or a dedicated team of individuals in the servicer’s organization to obtain accurate information on the various foreclosure prevention alternatives available to the borrower. If the servicer develops a model for itself or any other investor, it must apply the requirements of the model to mortgage loans serviced for Fannie Mae.


Employ collection and foreclosure prevention strategies that are designed to meet the goal of bringing delinquent mortgage loans current in as short a time as possible.


Ensure that all notices and information provided to the borrower are clear and understandable.


Be aware of any programs that may assist a borrower in resolving their delinquencies, or of any housing counseling agencies that may help them in their debt management and provide information on and refer the borrower to those programs or agencies when it is appropriate.

Some of the servicer’s operational requirements for servicing delinquent mortgage loans are listed in the following table.

The servicer must have…

An accounting system that immediately alerts the appropriate department that a mortgage loan is delinquent.


A collection department staff that is familiar with all FHA, HUD, VA, RD, mortgage insurer, and Fannie Mae procedural and reporting requirements, if applicable.


Procedures to

  • advise the borrower on how to avoid or cure delinquencies,

  • instruct the borrower on how to obtain information about housing counseling, and

  • refer the borrower to housing counseling upon receipt of the borrower’s request.


Guidelines for the individual analysis of each delinquency.


Instructions and adequate controls for the following:

  • sending delinquency notices,

  • assessing late charges,

  • applying or returning partial payments,

  • maintaining collection histories, and

  • reporting delinquencies to credit bureaus.


Management review procedures to evaluate the borrower’s actions and the servicer’s collection efforts before the execution of a workout option or the decision to start liquidation proceedings.

Have You Tried Ask Poli?

Poli knows. Just ask.

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

Try Ask Poli

Related Articles

Have guide questions? Get answers to all of your policy questions, straight from the source.

Get Started
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