A4-1-02, Submission of Financial Statements and Reports (12/13/2023)

The seller/servicer must demonstrate its financial adequacy to Fannie Mae. To accomplish this, Fannie Mae requires the seller/servicer to submit the statements and the other information described in this topic. A seller/servicer’s failure to timely provide the required information may result in Fannie Mae declaring a breach of the Lender Contract

A seller/servicer must submit audited financial statements and the Authorization for Verification of Credit and Business References ( Form 1001), within 90 days after the end of the seller/servicer’s fiscal year.

The requirements for audited financial statements are described in the following table.

If the seller/servicer’s financial statements are consolidated with those of its parent or holding company, they must contain sufficient detail to enable Fannie Mae to review the seller/servicer’s financial data separately from that of the other companies.

The audited annual financial statements and the executed  Form 1001 may be sent either electronically or via hard copy to Fannie Mae’s Lender Eligibility and Compliance Unit (see  E-1-02, List of ContactsE-1-02, List of Contacts).

The following table lists additional requirements and exceptions for certain types of sellers/servicers. Unless otherwise noted, the statements and other information must be submitted within 90 days after the end of the seller/servicer’s fiscal year and electronically or via hard copy to Fannie Mae’s Lender Eligibility and Compliance Unit (see  E-1-02, List of ContactsE-1-02, List of Contacts).

Additional Requirements for Financial Information

In addition, Fannie Mae may, at any time, require a seller/servicer to submit unaudited financial statements, audited financial statements other than the annual statements (if reasonably available), or any other financial information that Fannie Mae considers necessary and reasonable.

Fannie Mae also has the right to require more frequent and more detailed financial reporting from a seller/servicer or additional financial requirements imposed by Fannie Mae on the seller/servicer.

The Lender Record Information ( Form 582) provides information needed to verify that the seller/servicer continues to meet our basic eligibility requirements as well as certifications regarding compliance with our requirements. The seller/servicer must update its Form 582 electronically when it submits its annual financial statements, and in all events no later than 90 days after the end of the seller/servicer’s fiscal year. After the initial report submission, the seller/servicer must submit updates as changes to its status occur. The seller/servicer must provide Fannie Mae with written notification in the form of an updated Form 582 and email notification to the Changes in Lender Organization mailbox (see  E-1-02, List of ContactsE-1-02, List of Contacts) within five days of the occurrence of any of the following:

• any actions pending, starting, or to the seller/servicer's knowledge, threatened against or involving the seller/servicer that could reasonably be expected to have a material adverse effect on the seller/servicer's ability to comply with provisions of the Lender Contract, its financial status, servicing operations, or mortgage operations;
• a breach of certain agreements, in accordance with  A4-1-01, Maintaining Seller/Servicer EligibilityA4-1-01, Maintaining Seller/Servicer Eligibility;
• any material and adverse change in the circumstances and qualifications that were in place for Fannie Mae's consideration at the later of:
  • the time of the seller/servicer's approval in accordance with  A4-1-01, Maintaining Seller/Servicer EligibilityA4-1-01, Maintaining Seller/Servicer Eligibility, or
  • Fannie Mae's most recent selling operational or servicing quality review; and
• any change, event, or circumstance that has or could reasonably be expected to have a material adverse effect on the lender's origination of loans, the servicing of Fannie Mae loans, or on the financial or business condition or operations of the seller/servicer, or the ability to comply with the Lender Contract.

See Fannie Mae's website for information on obtaining user IDs to access and submit the online  Form 582.