source:
  type: guide
  id: fnma-sel-b8-3-02
  authority: Fannie Mae Selling Guide B8-3-02 — Special Note Provisions and Language
    Requirements
  description: Fannie Mae Selling Guide B8-3-02 — Special Note Provisions and Language
    Requirements.
  coverage_tier: operative
obligations:
- id: fnma-sel-b8-3-02-full
  canonical_id: fnma-sel-b8-3-02-full
  section: Fannie Mae Selling Guide B8-3-02 — Special Note Provisions and Language
    Requirements
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B8-3-02 — Special Note Provisions and Language
      Requirements
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B8-3-02, Special Note Provisions and Language Requirements (06/03/2020)
      Introduction This topic contains information on special note provisions and
      language requirements, including: Late Charges for Conventional Mortgages Requirement
      for Unit Number Mandatory Arbitration Late Charges for Conventional Mortgages
      The note for a conventional ﬁrst mortgage must include information about the
      late charge to be assessed for any payment that is not received by the 15th
      day after it becomes due. The amount of the late charge must meet the following
      requirements: The amount must be permissible under applicable law. The late
      charge must be a minimum of 0% and up to 5% of the principal and interest (P&I)
      payment. Requirement for Unit Number If the subject property is a condo or other
      property type that is identiﬁed by a unit number, the unit number must be included
      in the property address on the note. Mandatory Arbitration Mandatory arbitration
      is a loan provision or an agreement accompanying the loan that requires the
      borrower to submit to arbitration any disputes arising out of or relating in
      any way to the mortgage transaction. Mortgages that are subject to mandatory
      arbitration are ineligible for sale to, or securitization by, Fannie Mae unless
      the mandatory arbitration provision provides that, in the event of a transfer
      or sale of the mortgage or an interest in the mortgage to Fannie Mae, the mandatory
      arbitration clause immediately and automatically becomes null and void and cannot
      be reinstated. The lender must provide the borrower with written notice of the
      waiver provision within 60 days of the transfer or sale of the mortgage to Fannie
      Mae. That notice must contain substantially the following language: Pursuant
      to your mortgage documents, Fannie Mae is hereby notifying you that an interest
      in your loan has been transferred or sold to Fannie Mae and therefore the mandatory
      arbitration clause of your Published May 6, 2026 897 loan, requiring that you
      submit to arbitration to resolve any dispute arising out of or relating in any
      way to your mortgage, is immediately null and void. The lender and servicer
      shall maintain a copy of such notice in the mortgage ﬁle. Recent Related Announcements
      The table below provides references to recently issued Announcements that are
      related to this topic. Announcements Issue Date Announcement SEL-2020-03 June
      03, 2020'
  judgment: false
