A lender’s servicing compensation when obtaining mandatory commitments is described in its applicable servicing contract. Lenders must also specify a maximum allowable servicing fee, which may differ, depending on the mortgage product.
If the lender has purchased lender-paid mortgage insurance (LPMI) on a particular loan and the premiums are paid for through periodic renewal premiums, it must increase the minimum required servicing fee by at least the amount of the mortgage insurance renewal premium.
Unless otherwise provided in the related servicing contract, every month, lenders deduct their servicing fee from the borrower’s interest payment before remitting the remainder to Fannie Mae. Lenders will receive a servicing fee from Fannie Mae only for the period during which it serviced the loan on Fannie Mae’s behalf.
The table below provides references to the Announcements that have been issued that are related to this topic.