source:
  type: regulation
  id: fnma-svc-a1-4
  authority: "FNMA Servicing Guide A1-4 — Breach of Contract and Nonperformance"
  description: 'Servicing Guide Chapter A1-4 defines what constitutes a breach of the servicer''s contractual obligations, the remedies Fannie Mae may exercise, and the imposition of compensatory fees.

    '
obligations:
- id: fnma-svc-a1-4-custodial-deposit-first-business-day
  canonical_id: fnma-svc-a1-4-custodial-deposit-first-business-day
  section: "FNMA Servicing Guide A1-4.1-01 — Defining a Breach of Contract"
  description: '[LENDER], as servicer, must deposit all funds collected for the mortgage

    loans into the proper custodial account not later than the first business

    day following their receipt, and must remit all funds due Fannie Mae

    within the required time frames; failure to do so constitutes a breach

    of the Lender Contract and exposes [LENDER] to Fannie Mae''s remedies

    (indemnification, repurchase, make-whole, compensatory fees).

    '
  type: do
  audit_question: Can [LENDER] evidence that all funds collected for Fannie Mae mortgage loans are deposited into the proper custodial account no later than the first business day following receipt, and that all funds due Fannie Mae are remitted within the required time frames?
  workflow_phase: servicing
  owner_role: default_servicing_analyst
  secondary_owner_role: compliance_officer
  cadence: continuous
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - fnma
  - servicing-guide
  - breach-of-contract
  - custodial-account
  - promoted
  primary_source:
    tier: 1
    authority: "FNMA Servicing Guide A1-4.1-01 — Defining a Breach of Contract"
    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 failure to deposit all funds collected for the mortgage loans into the proper custodial\naccount not later than the ﬁrst business day following their receipt, or\nthe failure to remit all funds due Fannie Mae within the required time frames;"
    drafter_attestation: 'Copied verbatim from FNMA Servicing Guide snapshot cf63a82bbb4adfba (chapter A1-4) at 2026-05-22.

      '
  promoted_at: '2026-05-23T00:25:08+00:00'
  promoted_from: fnma-svc-a1-4-roundb-v1.yaml
  program_review: Does the program ensure all funds collected are deposited to the proper custodial account no later than the first business day after receipt, and all funds due Fannie Mae are remitted within the required timeframes (failure = breach)?
  file_review: Sample collection/deposit records; confirm first-business-day custodial deposit and timely remittance to Fannie Mae.
  judgment: false
- id: fnma-svc-a1-4-diligent-default-action
  canonical_id: fnma-svc-a1-4-diligent-default-action
  section: "FNMA Servicing Guide A1-4.1-01 — Defining a Breach of Contract"
  description: '[LENDER] must take prompt and diligent action consistent with applicable

    law to collect sums past due on mortgage loans and to take any other

    diligent action that Fannie Mae or acceptable industry practice

    reasonably requires with respect to mortgage loans that are in default,

    including diligent action consistent with applicable law to foreclose

    any mortgage loan that is in default.

    '
  type: do
  audit_question: For every delinquent Fannie Mae mortgage loan, can [LENDER] evidence prompt and diligent collection action consistent with applicable law, and for loans in default, can [LENDER] evidence diligent action to foreclose consistent with Fannie Mae timelines and applicable law?
  workflow_phase: servicing
  owner_role: default_servicing_analyst
  secondary_owner_role: foreclosure_specialist
  cadence: per-default-event
  consequence: ''
  tags:
  - round-b
  - regulator-direct
  - fnma
  - servicing-guide
  - breach-of-contract
  - diligence
  - default
  - promoted
  primary_source:
    tier: 1
    authority: "FNMA Servicing Guide A1-4.1-01 — Defining a Breach of Contract"
    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 failure to take prompt and diligent action consistent with applicable law to collect sums past

      due on the mortgage loans or to take any other diligent action that Fannie Mae or acceptable

      industry practice reasonably requires with respect to mortgage loans that are in default; or'
    drafter_attestation: 'Copied verbatim from FNMA Servicing Guide snapshot cf63a82bbb4adfba (chapter A1-4) at 2026-05-22.

      '
  promoted_at: '2026-05-23T00:25:08+00:00'
  promoted_from: fnma-svc-a1-4-roundb-v1.yaml
  program_review: Does the program facilitate prompt, diligent, law-consistent action to collect past-due sums and, for defaulted loans, diligent action to foreclose per FNMA timelines and applicable law?
  file_review: Review delinquent/default file notes for prompt diligent collection and foreclosure action; the compliance person judges whether the action was diligent and law-consistent.
  judgment: true
_promotion_history:
- promoted_at: '2026-05-23T00:25:08+00:00'
  candidate_path: C:\Users\earlc\broker-tools\obligations\_remediation\_round_b_drafts\fnma-svc-a1-4-roundb-v1.yaml
  candidates_promoted: 2
  candidates_skipped_existing: 0
