Certain documents related to Fannie Mae loans must be held by a Fannie Mae-approved document custodian, which may be any of the following:
Fannie Mae's designated document custodian (DDC),
a full-service certification custodian (FCC), or
another approved custodian institution that meets the requirements in the Fannie Mae Requirements for Document Custodians guide (RDC guide).
The document custodian is acting on behalf of the seller/servicer and Fannie Mae when certifying loan documents and data at the time of acquisition by Fannie Mae. The roles and responsibilities of the document custodian are described in the RDC guide.
For whole loans and other loans held in Fannie Mae's portfolio (excluding eNotes), the seller/servicer must use Fannie Mae's DDC or FCC as the document custodian. Other loans held in Fannie Mae's portfolio includes As Soon As Pooled Plus (ASAP Plus) loans and ASAP Plus loans redelivered into MBS pools.
For MBS loans (excluding eNotes), the seller/servicer must select a Fannie Mae-approved document custodian (including the DDC or FCC).
For whole loans or MBS loans delivered as eNotes, Fannie Mae is the document custodian but has designated certain third parties to certify eNotes. The seller/servicer must use an approved third party to certify eNotes to Fannie Mae.
Fannie Mae may require a seller/servicer or document custodian to transfer documents to a different document custodian, which may be the DDC, FCC, or another eligible document custodian, even if the current custodian satisfies Fannie Mae's requirements.
The seller must add the document custodian to its profile within the Loan Delivery application. For all mortgage loans, the document custodian will certify the loans through the Document Certification application.
Each custodian arrangement must be evidenced by the execution of one of the following agreements:
|Type of Agreement||Requirements|
|Master Custodial Agreement (Form 2003)||
|Designated Custodian Master Custodial Agreement (Form 2010)||
|Master Custodial Agreement (Form 2017)||
The following table contains additional seller/servicer responsibilities regarding document custodians.
|General Responsibilities||The seller/servicer is responsible for the safekeeping of Fannie Mae custody documents and for all losses incurred by Fannie Mae because the document custodian it selected failed to perform its fiduciary responsibilities. Fannie Mae may also require the document custodian to make Fannie Mae whole if the document custodian breaches its fiduciary obligations to Fannie Mae.|
|Seller/Servicer’s Compensation of the Document Custodian||The seller/servicer must pay all fees and charges of the document custodian (including the DDC and FCC). Fannie Mae is under no obligation to pay compensation to the document custodian. Upon certification of each file delivered to a document custodian, the document custodian will bill the servicer unless the seller and servicer specify a different responsible party. Fannie Mae will look to the servicer as the responsible party if payment has not been remitted to the document custodian for services it has provided.|
A seller/servicer must establish appropriate methods for monitoring the financial viability and operational capabilities of any document custodian it uses, which include, at a minimum:
Should the financial rating fall below the minimum criteria, the seller or servicer must immediately notify their Fannie Mae Servicing Consultant and send an email notification to Fannie Mae's Custodian Oversight and Monitoring department (see E-1-03, List of Contacts). Fannie Mae will determine whether it will allow the documents to remain with the current document custodian or require them to be transferred to an acceptable document custodian.
|Providing Loan Information||The servicer must provide to the document custodian an electronic list that identifies, by Fannie Mae loan number, the loans serviced by the servicer for which the document custodian holds custodial documents within 30 days of such a request from the document custodian.|
The table below provides references to the Announcements that have been released that are related to this topic.
|Announcement SEL-2018-03||April 03, 2018|
|Announcement SEL-2017–06||July 25, 2017|
|Announcement SEL-2016–02||February 23, 2016|
|Announcement SEL-2015–13||December 15, 2015|
|Announcement SEL-2014–11||August 26, 2014|
|Announcement SEL-2013–03||April 9, 2013|
|Announcement SEL-2012–13||November 13, 2012|
|Announcement SEL-2012–10||October 2, 2012|
|Announcement SEL-2011–01||January 27, 2011|
|Announcement SEL-2010–10||August 12, 2010|
|Announcement 08–37||December 19, 2008|
|Announcement 08–32||December 10, 2008|