Servicing Guide

Published June 13, 2018

A1-3-06: Automatic Reclassification of MBS Mortgage Loans (07/08/2015)

This topic contains the following:

Selecting MBS Mortgage Loans for Reclassification by Fannie Mae

Rather than requiring the servicer to repurchase certain delinquent MBS mortgage loans that are serviced under the special servicing option—those for which Fannie Mae has the entire foreclosure loss risk and those for which Fannie Mae and the servicer share the foreclosure loss risk, with Fannie Mae having the responsibility for marketing the acquired property—Fannie Mae will reclassify a mortgage loan that satisfies its selection criteria as an actual/actual remittance type portfolio mortgage loan (however, PFP mortgage loans with an original scheduled/scheduled remittance type will remain a scheduled/scheduled remittance type even after being removed from the pool). Generally, Fannie Mae will select mortgage loans that have at least three monthly payments past due for reclassification in the month when the fourth payment is delinquent. The servicer must follow the procedures in General Requirements for a Reclassified MBS Mortgage Loan in F-1-28, Reclassifying or Voluntary Repurchasing an MBS Mortgage Loan for handling the mortgage loans that Fannie Mae has selected for reclassification.

All MBS mortgage loans (regular servicing and special servicing option mortgage loans) removed from MBS pools will be held in Fannie Mae’s portfolio subject to repurchase requirement. The servicer remains responsible for the recourse obligation on a regular servicing option mortgage loan that is removed from the pool and held in Fannie Mae’s portfolio.

Changes to the Servicer’s Records

The servicer must change its internal records to reflect the appropriate reclassification remittance type, as described in the Investor Reporting Manual and F-1-28, Reclassifying or Voluntary Repurchasing an MBS Mortgage Loan.

Related Announcements

The following table provides references to Announcements that are related to this topic.

Announcements Issue Date

Announcement SVC-2015–10

July 8, 2015