The servicer must provide information about an ARM loan conversion when it submits its monthly investor reporting system reports to Fannie Mae. The servicer must report this information in compliance with the reporting time frames provided in the Investor Reporting Manual.
Fannie Mae may charge a compensatory fee to servicers who fail to report an ARM conversion in a timely manner. See also A1-4.2-01, Compensatory Fees Other Than Delays in the Liquidation Process.
For more information please see: C-2.3-02, Notifying Fannie Mae of Conversions for Portfolio Mortgage Loans.