source:
  type: guide
  id: fnma-svc-a2-3-03
  authority: Fannie Mae Servicing Guide A2-3-03 — Yield Diﬀerential Adjustments
  description: Fannie Mae Servicing Guide A2-3-03 — Yield Diﬀerential Adjustments.
  coverage_tier: operative
obligations:
- id: fnma-svc-a2-3-03-full
  canonical_id: fnma-svc-a2-3-03-full
  section: Fannie Mae Servicing Guide A2-3-03 — Yield Diﬀerential Adjustments
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide A2-3-03 — Yield Diﬀerential Adjustments
    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: A2-3-03, Yield Diﬀerential Adjustments (08/16/2017) When the
      interest rate of a ﬁxed-rate mortgage loan is greater than Fannie Mae’s required
      yield, it allows the servicer to retain all or part of this diﬀerence. A similar
      concept applies for ARM loans when the mortgage margin — or net mortgage margin
      for net yield commitments — exceeds Fannie Mae’s required commitment margin.
      The exact amount of the diﬀerence that the servicer may retain —which is called
      a yield diﬀerential adjustment —is determined by the policy Fannie Mae had in
      eﬀect when it issued its commitment to purchase the mortgage loan. In addition,
      ARM loans may have a short-term yield diﬀerential until the ﬁrst interest rate
      change if the “base interest rate” or “net mortgage rate” exceeds Fannie Mae’s
      required yield. The exact amount of yield diﬀerential adjustment that the servicer
      may retain is usually determined by the policy that was in eﬀect when Fannie
      Mae issued its commitment to purchase the mortgage loan. See F-2-05, Historical
      Yield Diﬀerential Adjustment Provisions for Fannie Mae’s present yield diﬀerential
      adjustment policy and a historical record of the various yield diﬀerential adjustment
      policies that may apply to mortgage loans in the servicer’s portfolio. Yield
      diﬀerential adjustments may be changed, or eliminated altogether, under the
      conditions described in the following table. Published May 13, 2026 89 If Fannie
      Mae… Then… sells the mortgage loan or an interest in it any yield diﬀerential
      adjustment will be eliminated —although Fannie Mae’s pooling of portfolio mortgage
      loans to form an MBS will not aﬀect the servicer’s yield diﬀerential adjustment.
      terminates the servicer’s right to service the mortgage loan (either with cause
      or without cause) any yield diﬀerential adjustment will be eliminated, unless
      Fannie Mae agrees otherwise in writing. purchased an ARM loan at a discount
      the yield diﬀerential adjustment will be eliminated when the ﬁrst interest rate
      adjustment occurs. See F-2-05, Historical Yield Diﬀerential Adjustment Provisions
      for an exception to this policy. purchased an ARM loan at par the yield diﬀerential
      adjustment may be reduced when the ﬁrst interest rate change occurs. See F-2-05,
      Historical Yield Diﬀerential Adjustment Provisions for an explanation of how
      the new yield diﬀerential adjustment is determined. Additionally, if the servicer
      chooses to terminate its servicing responsibility under the terms of the Lender
      Contract, any yield diﬀerential adjustment will be eliminated, unless Fannie
      Mae agrees otherwise in writing. Recent Related Announcements There are no recently
      issued Announcements related to this topic.
  judgment: false
