Servicing Guide

Published July 15, 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 1,200+ page PDF, which include links.

Download Now

What criteria must the servicer confirm when determining eligibility criteria for converting a first lien ARM to a fixed rate mortgage loan?

To be eligible for conversion to a fixed rate mortgage loan, the servicer must confirm that an ARM loan

  • is current (or must be brought current by the conversion date),

  • has an LTV ratio of 95% or less, and

  • satisfies any other conditions specified under a negotiated contract.

If the mortgage loan has negatively amortized, the servicer must obtain a new appraisal to determine

  • the current LTV of the property, and

  • whether the borrower will have to pay any funds to reduce the UPB to the amount required to achieve an LTV ratio equal to 95% of the current value of the property.

See below for related Q&A:

What items are required before the servicer can complete the conversion of an ARM to a fixed rate mortgage loan?

For more information please see: C-2.3-01 Processing Arm Conversions to Fixed Rate Mortgage Loans. 

 

 

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

What items are required before the servicer can complete the conversion of an ARM to a fixed rate mortgage loan?

The following table provides a list of all items required before the servicer can complete the conversion of an ARM to a fixed rate mortgage loan. ...

Read more

C-2.3-01: Processing ARM Conversions to Fixed Rate Mortgage Loans (05/15/2019)

This topic provides requirements for processing ARM loan conversions to fixed rate mortgage loans. The servicer must also follow the procedures in F-1-01,...

Read more

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.