source:
  type: guide
  id: fnma-svc-a2-1-01
  authority: Fannie Mae Servicing Guide A2-1-01 — General Servicer Duties and Responsibilities
  description: Fannie Mae Servicing Guide A2-1-01 — General Servicer Duties and Responsibilities.
  coverage_tier: operative
obligations:
- id: fnma-svc-a2-1-01-full
  canonical_id: fnma-svc-a2-1-01-full
  section: Fannie Mae Servicing Guide A2-1-01 — General Servicer Duties and Responsibilities
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide A2-1-01 — General Servicer Duties and Responsibilities
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
    snapshot_id: cf63a82bbb4adfba
    fetched_at: '2026-05-22T23:53:19Z'
    content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
    paragraph_quote: 'A2-1-01, General Servicer Duties and Responsibilities (12/17/2025)
      Introduction This topic contains the following: Overview of General Servicer
      Duties and Responsibilities Maintaining Fair Lending Data Additional Servicer
      Duties and Responsibilities for Certain Servicers Processing of Funds Delinquency
      Advances Servicing Advances Published May 13, 2026 60 Overview of General Servicer
      Duties and Responsibilities The servicer services Fannie Mae mortgage loans
      as an independent contractor and not as an agent, assignee, or representative
      of Fannie Mae. Most of the policies and standards described in the Selling and
      Servicing Guides are intended to set forth the broad parameters under which
      the servicer must exercise sound and professional judgment as a mortgage loan
      servicer in the performance of its duties. As a result, in most instances Fannie
      Mae has not set forth absolute requirements because it believes the servicer
      needs to maintain the discretion to apply appropriate judgment in dealing with
      borrowers and mortgage loans on a case by case basis, consistent with Fannie
      Mae’s servicing policies. Further, even where Fannie Mae has set forth a “requirement,”
      it has not enumerated speciﬁcally how the servicer should implement it. Fannie
      Mae generally will not object to the practices the servicer regularly applies
      so long as they are carried out in accordance with established written procedures
      that are consistent with Fannie Mae’s servicing policies. The servicer may apply
      practices used on its own portfolio of mortgage loans to Fannie Mae mortgage
      loans as long as the practices are in accordance with the servicer’s established
      written procedures and are consistent with Fannie Mae’s servicing policies.
      As a general matter, the servicer must have suﬃcient staﬃng levels, technology,
      and properly trained staﬀ (including third-party providers of its outsourced
      servicing activities and technology) to carry out all aspects of their servicing
      duties in accordance with the timing requirements of the Servicing Guide, maintain
      acceptable performance standards, and provide borrowers with assistance when
      it is requested. Furthermore, the servicer (or master servicer) must require
      the subservicer/outsource vendor to have policies and procedures for the contracted
      servicing activities, including for the orderly transfer of any contracted critical
      servicing activities upon a termination or expiration of any applicable contract;
      ensure no disruption of service, service levels, or oﬀerings from any subservicer
      or outsource vendor which may have a material adverse eﬀect on either the borrower
      or the critical servicing functions for mortgage loans serviced for Fannie Mae;
      conduct audits and QC reviews on subservicer/outsource vendor for contracted
      servicing activities, including services performed outside the United States,
      to ensure compliance with Fannie Mae requirements; conduct operational assessments
      and reviews that measure the subservicer/outsource vendor performance in various
      departments; and develop, document, and implement a formal vendor risk management
      program that meets the requirements in the Fannie Mae Information Security and
      Business Resiliency Supplement. The servicer must have eﬀective processes to
      promptly address borrower inquiries (relating to both current and delinquent
      mortgage loans) and provide timely payoﬀ quotes and refunds of escrow deposits
      after payoﬀ. To the extent consistent with the borrower’s mortgage loan documents
      and applicable laws and regulations, Fannie Mae encourages the servicer to adopt
      servicing practices that allow for an appropriate level of discretion to take
      into account the facts of a particular mortgage loan and the circumstances of
      the borrower. In performing the services and duties incident to the servicing
      of mortgage loans, the servicer must take Published May 13, 2026 61 whatever
      action necessary to protect the beneﬁcial interest of Fannie Mae and an MBS
      trust in the security property as long as it is authorized to do so by the terms
      of the mortgage loan. Among other things, this generally includes, but is not
      limited to: complying with laws (see Selling Guide, A3-2-01, Compliance With
      Laws); monitoring and paying property taxes, HOA assessments, and related expenses
      to avoid possible tax liens or other liens that may take priority over Fannie
      Mae’s mortgage lien (see B-1-01, Administering an Escrow Account and Paying
      Expenses for additional information); maintaining adequate property insurance
      to cover damage from unforeseen casualty losses; establishing and maintaining
      accounts for the deposit of borrowers’ funds; responding to borrowers’ inquiries
      (relating to both current and delinquent mortgage loans) about the terms of
      their mortgage loans or the actions the servicer has (or has not) taken in its
      servicing of the mortgage loans; making periodic property inspections to ensure
      the physical condition of the property is satisfactory, there are no apparent
      hazardous conditions (such as the presence of hazardous wastes or toxic substances)
      aﬀecting the property, and there are no apparent violations of applicable law
      that might result in a seizure or forfeiture of the property, and to determine
      and initiate the needed responsive actions (see D2-2-10, Requirements for Performing
      Property Inspections and E-3.3-03, Inspecting Properties Prior to Foreclosure
      Sale for additional information); maintaining accurate mortgage loan servicing
      and accounting records, including proper coding of mortgage loans to ensure
      proper MBS mortgage loan servicing guidelines are followed; resolving discrepancies
      identiﬁed between the servicer''s records and the data attributes submitted
      to Fannie Mae at the time of mortgage loan delivery by following the post-purchase
      adjustment process (see Selling Guide C1-2-02, Loan Data and Documentation Delivery
      Requirements); collecting and promptly remitting any and all amounts due Fannie
      Mae; taking prompt and appropriate action to resolve or prevent a delinquency,
      including any action necessary to liquidate a defaulted mortgage loan (see Parts
      D and E for additional information); performing certain administrative functions
      related to an acquired property when Fannie Mae so requests (see E-4.3-01, Managing
      the Property Post-Foreclosure Sale for additional information); advancing reasonable
      amounts, if necessary, to cover expenses arising in connection with any of the
      duties described above; and providing timely payoﬀ quotes and refunds of escrow
      deposits after payoﬀ. The servicer must use good judgment and take the actions
      described in the following table. ✓ The servicer must... Exercise sound professional
      judgment as the mortgage loan servicer in the performance of its duties. Published
      May 13, 2026 62 ✓ The servicer must... Use its discretion to apply appropriate
      judgment in dealing with borrowers and mortgage loans on a case-by-case basis,
      consistent with Fannie Mae’s servicing policies. Perform speciﬁc administrative
      responsibilities and business obligations in the overall conduct of its mortgage
      loan operations as described in the Servicing Guide. Service all mortgage loans
      in a sound, businesslike manner. Protect against fraud, misrepresentation, or
      negligence by any parties involved in the mortgage loan servicing process. See
      also Selling Guide A3-4-03, Preventing, Detecting, and Reporting Mortgage Fraud
      for more requirements, and visit Fannie Mae''s Mortgage Fraud Prevention website
      for additional resources. Have adequate controls and QC procedures in place.
      Fannie Mae’s basic servicing policies do not change on the basis of its lien
      position. Maintaining Fair Lending Data For mortgage loans originated on or
      after March 1, 2023, the servicer must maintain the following fair lending data
      elements in a queryable format for each mortgage loan if obtained during the
      origination process: race of borrower(s), ethnicity of borrower(s), age of borrower(s),
      gender of borrower(s), and preferred language of borrower(s). Note: In the event
      of a future transfer of ownership or assumption of the mortgage loan, the servicer
      is authorized, but not required, to update these data elements. Additional Servicer
      Duties and Responsibilities for Certain Servicers The following provisions apply
      to all master servicers and subservicers that own and/or service a total portfolio
      size greater than or equal to 20,000 mortgage loans at any time during a calendar
      year. To the extent the servicer relies on any third-party technology provider
      for the performance of critical servicing functions, the servicer must provide:
      not less than 180 days’ prior written notice to Fannie Mae of its intent to
      change such third-party technology provider, together with, upon Fannie Mae’s
      written request, the servicer’s transition plan for Published May 13, 2026 63
      such change; and within 5 business days after its occurrence, written notice
      to Fannie Mae of any termination, breach, or impairment of rights by servicer
      or the technology provider of or under such contract. These obligations are
      in addition to, not in lieu of, the servicer’s obligations to notify Fannie
      Mae under Selling Guide A4-1-01, Maintaining Seller/Servicer Eligibility. Critical
      servicing functions include services and processes that directly impact the
      servicing of a mortgage loan (e.g., mortgage loan payment processing, remitting,
      accounting, and reporting, etc.), providing servicing solutions to a borrower
      in need, or the timely and accurate reporting to Fannie Mae or other entities.
      Such transition plan must describe the steps the servicer is undertaking to
      ensure an orderly transfer of critical servicing functions to a new technology
      service provider so there is no interruption to borrowers and Fannie Mae and
      account for continuity of technology service from the original third-party technology
      service provider. In addition, in all contracts with third-party technology
      providers for critical servicing functions, the servicer must ensure Fannie
      Mae is provided within ﬁve business days with copies of any termination, notice
      of default, breach or non-performance or any notice of impairment of rights,
      in each case sent to the servicer; and such third-party technology provider
      acknowledges Fannie Mae’s ownership interest in the Fannie Mae mortgage loans
      (including all associated ﬁles and data) and agrees to reasonably cooperate
      with any transfer of such mortgage loans to a new servicer, technology service
      provider or servicing platform, as may be required by or directed by Fannie
      Mae, upon payment of reasonable and customary transition fees. Processing of
      Funds The servicer’s authorization to receive, handle, or dispose of funds representing
      mortgage loan payments (for principal, interest, and tax and insurance escrow
      deposits) or of other funds or assets related to the mortgage loans it services
      for Fannie Mae or to the properties secured by those mortgage loans is limited
      to those servicing actions that are expressly authorized in the Servicing Guide
      or in the Lender Contract. Because these funds and assets are owned by Fannie
      Mae and other parties (such as the borrower, a participating seller/servicer,
      or an MBS holder, if applicable), the servicer, in its handling of these funds,
      is acting on behalf of and as a ﬁduciary for, Fannie Mae and other parties,
      as their respective interests may appear; the servicer is not acting as a debtor
      of Fannie Mae. If the servicer takes any action with respect to these funds
      or assets that is not expressly authorized, such as the withdrawal or retention
      of mortgage loan payment funds Fannie Mae is due as an oﬀset against any claim
      the servicer may have against Fannie Mae, the servicer is not only violating
      the provisions of the Servicing Guide and the Lender Contract, but also is violating
      the rights of any and all other parties that have a beneﬁcial interest in the
      funds. Such action is therefore prohibited and will be considered a breach of
      the Lender Contract. Delinquency Advances Because the servicer of scheduled/actual
      and scheduled/scheduled remittance type mortgage loans generally must remit
      funds to Fannie Mae when they are scheduled to be remitted rather than when
      they are actually Published May 13, 2026 64 collected, there may be times when
      the funds collected are not suﬃcient to make the servicer’s required payment.
      In those cases, the servicer must advance its own funds to cover funds due for
      delinquent mortgage loans if the funds have not been collected. Funds advanced
      for this purpose are referred to as “delinquency advances.” See C-3-01, Responsibilities
      Related to Remitting P&I Funds to Fannie Mae for additional requirements related
      to delinquency advances including details of when the servicer must advance
      principal and interest depending on the mortgage loan type and servicing option.
      The servicer must make a delinquency advance if the funds on deposit in the
      servicer’s P&I custodial account on the day the monthly remittance is due to
      Fannie Mae are less than the amount of the required monthly remittance. To avoid
      using its own funds, the servicer is authorized to use funds it has on hand
      for any prepaid P&I installments, principal curtailments, and payoﬀs to oﬀset
      payment (or interest) shortfalls that occur as the result of mortgage loan delinquencies.
      The servicer must maintain monthly records of all P&I advances for delinquent
      mortgage loans (including those in the Stop Delinquency Advance process) and
      perform appropriate monthly reconciliation activities. Regardless of the mortgage
      loan type or applicable servicing option, the servicer may reimburse itself
      for its delinquency advances from borrower collections that are subsequently
      deposited to the P&I custodial account. Servicing Advances The servicer must
      pay all out-of-pocket costs and expenses incurred in performing its servicing
      obligations, such as those related to the following: preservation and protection
      of the security property (see the Property Preservation Matrix and Reference
      Guide for additional information), enforcement of judicial proceedings, and
      management and disposition of acquired properties. Funds advanced for this purpose
      are referred to as “servicing advances.” Servicing advances may be recovered
      from the borrower, insurance proceeds, claims settlements, or other available
      sources, except as described below. Fannie Mae will reimburse the servicer for
      certain unrecovered losses under the following circumstances: when the expense
      relates to protection of the security or foreclosure costs for a portfolio mortgage
      loan, or for an MBS mortgage loan serviced under the special servicing option.
      Fannie Mae will not reimburse the servicer for unrecovered losses for costs,
      losses, or other items the servicer agreed to hold Fannie Mae harmless against
      under its warranties or indemniﬁcation agreements or for advances made in connection
      with litigation or proceedings Fannie Mae did not approve (if its approval was
      speciﬁcally required). In no event may the servicer recover its servicing advances
      for a speciﬁc mortgage loan from the P&I payments for another mortgage loan
      or from the T&I deposits in another borrower’s account. Recent Related Announcements
      The table below provides references to recently issued Announcements that are
      related to this topic. Published May 13, 2026 65 Announcements Issue Date Announcement
      SVC-2025-07 December 17, 2025 Announcement SVC-2025-01 February 12, 2025 Announcement
      SVC-2024-06 November 13, 2024 Announcement SVC-2023-02 April 12, 2023 Announcement
      SVC-2022-06 August 10, 2022 Announcement SVC-2022-05 July 13, 2022 Announcement
      SVC-2021-06 September 8, 2021 Announcement SVC-2019-05 July 10, 2019'
  judgment: false
