source:
  type: regulation
  id: fnma-svc-c-2
  authority: "FNMA Servicing Guide C-2 — Servicing ARM Loans"
  description: 'Servicing Guide Chapter C-2 sets ARM loan servicing responsibilities, change notices, and buydown expiration notification timing.

    '
obligations:
- id: fnma-svc-c-2-arm-change-notice-pre-effective-date
  canonical_id: fnma-svc-c-2-arm-change-notice-pre-effective-date
  section: "FNMA Servicing Guide C-2.1-02 — Notifying the Borrower Regarding Interest Rate and/or Payment Changes"
  description: '[LENDER], as servicer of an ARM loan, must notify the borrower before

    the effective date of any change to the mortgage loan interest rate or

    monthly payment in accordance with applicable law and the mortgage loan

    security instrument. When the interest rate and the monthly payment

    change at different intervals, separate notices are required for each

    change.

    '
  type: do
  audit_question: For every ARM interest rate or monthly payment change on a Fannie Mae ARM loan, can [LENDER] evidence a borrower notice sent before the change effective date, compliant with applicable law and the security instrument, with separate notices issued where rate and payment change at different intervals?
  workflow_phase: servicing
  owner_role: default_servicing_analyst
  secondary_owner_role: compliance_officer
  cadence: per-event
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - fnma
  - servicing-guide
  - arm
  - change-notice
  - promoted
  primary_source:
    tier: 1
    authority: FNMA Servicing Guide C-2.1-02
    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: "The servicer of an ARM loan must notify the borrower before the eﬀective date of any change to the mortgage"
    drafter_attestation: 'Copied verbatim from FNMA Servicing Guide snapshot cf63a82bbb4adfba (chapter C-2) at 2026-05-22.

      '
  promoted_at: '2026-05-23T00:25:10+00:00'
  promoted_from: fnma-svc-c-2-roundb-v1.yaml
  program_review: Does the program ensure ARM rate/payment-change notices go to the borrower before the change effective date per applicable law and the security instrument, with separate notices when rate and payment change at different intervals?
  file_review: For ARM rate/payment changes, confirm a pre-effective-date notice (and separate notices where rate and payment change on different intervals).
  judgment: false
- id: fnma-svc-c-2-buydown-expiration-90-day-notice
  canonical_id: fnma-svc-c-2-buydown-expiration-90-day-notice
  section: "FNMA Servicing Guide C-2.1-02 — Notifying the Borrower Regarding Interest Rate and/or Payment Changes"
  description: 'For a Fannie Mae ARM loan subject to a temporary interest rate buydown

    plan, [LENDER] must send notification detailing the pending interest

    rate increase to the borrower 90 days prior to the payment change.

    '
  type: do
  audit_question: For every Fannie Mae ARM loan subject to a temporary interest rate buydown plan that is about to expire, can [LENDER] evidence a borrower notice detailing the pending interest rate increase sent 90 days prior to the payment change?
  workflow_phase: servicing
  owner_role: default_servicing_analyst
  secondary_owner_role: compliance_officer
  cadence: per-event
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - fnma
  - servicing-guide
  - arm
  - buydown
  - 90-day-notice
  - promoted
  primary_source:
    tier: 1
    authority: FNMA Servicing Guide C-2.1-02
    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: temporary interest rate buydown plan to the borrower 90 days prior to the payment change.
    drafter_attestation: 'Copied verbatim from FNMA Servicing Guide snapshot cf63a82bbb4adfba (chapter C-2) at 2026-05-22.

      '
  promoted_at: '2026-05-23T00:25:10+00:00'
  promoted_from: fnma-svc-c-2-roundb-v1.yaml
  program_review: Does the program ensure that for ARM loans with a temporary buydown plan, a notice detailing the pending rate increase is sent 90 days before the payment change?
  file_review: For buydown-plan ARM loans nearing expiration, confirm the rate-increase notice 90 days before the payment change.
  judgment: false
_promotion_history:
- promoted_at: '2026-05-23T00:25:10+00:00'
  candidate_path: C:\Users\earlc\broker-tools\obligations\_remediation\_round_b_drafts\fnma-svc-c-2-roundb-v1.yaml
  candidates_promoted: 2
  candidates_skipped_existing: 0
