To avoid the misplacement or loss of custodial documents, Fannie Mae permits the servicer to leave the custodial documents for reclassified mortgage loans with its existing document custodian, as long as the document custodian satisfies all of Fannie Mae’s eligibility criteria for document custodians. Since these reclassified mortgage loans are now Fannie Mae portfolio mortgage loans, the servicer and the document custodian are bound by the policies and procedures related to ownership of the mortgage loan documents, retention of applicable records, and guaranteed access to individual mortgage loan files and records that Fannie Mae has in place for portfolio mortgage loans.
The servicer must select a new document custodian and arrange for the orderly transfer of the custodial documents to the new document custodian if the existing document custodian
no longer satisfies Fannie Mae’s eligibility criteria for document custodians, or
becomes unable to retain custody of the custodial documents for some other reason.
The servicer must include in the transfer any documents that are being held by a law firm if the mortgage loan is subsequently reinstated.
If the servicer has difficulty in placing the documents with a new document custodian in a timely manner, the servicer must use Fannie Mae’s DDC, unless Fannie Mae agrees to some other temporary alternative arrangement.
The following table provides references to Announcements that are related to this topic.