source:
  type: guide
  id: fnma-sel-a4-1-01
  authority: Fannie Mae Selling Guide A4-1-01 — Maintaining Seller/Servicer Eligibility
  description: Fannie Mae Selling Guide A4-1-01 — Maintaining Seller/Servicer Eligibility.
  coverage_tier: operative
obligations:
- id: fnma-sel-a4-1-01-full
  canonical_id: fnma-sel-a4-1-01-full
  section: Fannie Mae Selling Guide A4-1-01 — Maintaining Seller/Servicer Eligibility
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide A4-1-01 — Maintaining Seller/Servicer Eligibility
    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: 'A4-1-01, Maintaining Seller/Servicer Eligibility (02/05/2025)
      Introduction This topic contains information on maintaining seller/servicer
      eligibility, including: Maintaining Seller/Servicer Eligibility Deﬁnitions Minimum
      Requirements Additional Financial Requirements Recourse Obligation Business
      Continuity Management and Disaster Recovery Audit and Management Control Requirements
      Written Policies and Procedures Management of Vendors and Other Third-party
      Service Providers Maintaining Seller/Servicer Eligibility To maintain eligibility,
      the seller/servicer must comply with the minimum requirements described in this
      topic. If a seller/servicer fails to maintain any of these requirements or fails
      to comply with its Lender Contract, such failure is a breach of the Lender Contract.
      In addition, the circumstances and qualiﬁcations that were in place for Fannie
      Mae’s consideration at the time of Published May 6, 2026 134 the seller/servicer’s
      approval generally must not adversely change after approval. If a seller does
      not meet the minimum loan sale requirement below, the seller''s approval to
      sell loans to Fannie Mae will be terminated and access to all technology that
      is licensed only to approved sellers will be terminate within 60 days. If a
      servicer does not meet the minimum loan servicing requirement below, the servicer''s
      approval to service loans for Fannie Mae will be terminated and access to all
      technology that is licensed only to approved servicers will be terminated. Once
      terminated as a seller or a servicer, the entity must go through the seller/servicer
      application process to become an approved seller or servicer again and be eligible
      to sell or service loans. Fannie Mae will review the application documentation
      and determine whether the seller or servicer meets the then current eligibility
      requirements. Contact the Onboarding Team (see E-1-02, List of Contacts) for
      additional information. Note: Sellers/servicers are not required to purchase
      or own Fannie Mae stock as a condition of eligibility (as stated in the Mortgage
      Selling and Servicing Contract). Deﬁnitions The following table provides the
      deﬁnition of terms related to maintaining seller/servicer eligibility as described
      in the minimum requirements below. Term Deﬁnition Adjusted net worth Adjusted
      Net Worth is deﬁned as: • total equity capital as determined by Generally Accepted
      Accounting Principles (GAAP); minus • goodwill and other intangible assets (excluding
      mortgage servicing rights); minus • aﬃliated receivables; minus • pledged assets
      net of associated liabilities; minus • deferred tax assets net of associated
      deferred tax liabilities. Note: If the deferred tax liabilities are greater
      than the deferred tax assets, then the deduction from the Adjusted Net Worth
      will be zero. Allowable liquidity Allowable liquidity includes: • unrestricted
      cash and cash equivalents; • unpledged, available-for-sale or held-for-trading
      investment grade securities limited to the following: ⚬ Fannie Mae, Freddie
      Mac, and Ginnie Mae MBS; ⚬ obligations of GSEs; ⚬ U.S. Treasury obligations;
      and • 50% of the unused portion of committed servicing advance lines of credit
      of one- to four-unit residential ﬁrst lien mortgage loans serviced for Fannie
      Mae, Freddie Mac, and Ginnie Mae. Large non-depository sellers/servicers An
      entity servicing $50 billion or more in residential ﬁrst lien mortgage servicing
      UPB plus other servicing UPB as determined at the end of each calendar quarter.
      Long-term corporate family rating A long-term rating that reﬂects the relative
      likelihood of a default on a corporate family''s debt and debt- like obligations
      and the expected ﬁnancial loss suﬀered in the event of default from a rating
      agency. Long-term senior unsecured debt rating A rating assigned to a ﬁnancial
      obligation with an original maturity of one year or more that reﬂects the likelihood
      of a default on contractually promised payments on senior unsecured debts and
      the expected ﬁnancial loss suﬀered in the event of default on such dents from
      a rating agency. Published May 6, 2026 135 Term Deﬁnition Other servicing UPB
      The outstanding UPB of a seller/servicer''s portfolio of one- to four-unit residential
      ﬁrst lien mortgage loans the seller/servicer is contractually obligated to service
      for all investors other than Fannie Mae, Freddie Mac, and Ginnie Mae, plus the
      following regardless of the investor: • second lien mortgage loans; • funded
      home equity lines of credit; • reverse mortgage loans; and • construction and
      land development mortgage loans The outstanding UPB of mortgage loans serviced
      by a seller/servicer under a subservicing arrangement is excluded. Rating agency
      An entity that is a "Nationally Recognized Statistical Rating Organization"
      as deﬁned by Section 78c(a) of Title 15 of the United States Code (15 U.S.C.
      78c(a)). Residential ﬁrst lien mortgage servicing UPB The outstanding UPB of
      a seller/servicer''s portfolio of one- to four-unit residential ﬁrst lien mortgage
      loans the seller/servicer is contractually obligated to service for Fannie Mae,
      Freddie Mac, or Ginnie Mae, as applicable, excluding; • funded home equity lines
      of credit, • reverse mortgage loans, and • construction and land developments
      mortgage loans. The outstanding UPB of mortgage loans serviced by a seller/servicer
      under a subservicing arrangement is excluded. Servicer rating An evaluation
      of a seller/servicer for its capacity to carry out servicing business, which
      is diﬀerent from evaluations of ﬁnancial instruments or credit standing of corporations,
      from a rating agency. Servicer ratings may be conducted based upon the type
      of servicing actions performed, including evaluations for entities that act
      as primary servicers, special servicers or master servicers. Minimum Requirements
      Sellers/servicers must comply with the minimum requirements described in the
      following table. Category Description Loan Sales A seller must sell at least
      12 loans to Fannie Mae during the prior calendar year. Loan Servicing A servicer
      must service at least one loan for Fannie Mae as of December 31 of the prior
      calendar year. Published May 6, 2026 136 Category Description Minimum Net Worth
      (applicable to depository and non-depository sellers/servicers) All depository
      and non-depository sellers/servicers must maintain at all times an Adjusted
      Net Worth of at least $2.5 million, plus an amount equal to or greater than
      the sum of the following: • 0.25% of the portion of the seller/servicer''s Residential
      First Lien Mortgage Servicing UPB serviced for Fannie Mae and Freddie Mac, plus
      • 0.35% of the portion of the seller/servicer''s Residential First Lien Mortgage
      Servicing UPB serviced for Ginnie Mae, plus • 0.25% of the Other Servicing UPB
      See Seller Eligibility Criteria for Servicing Marketplace in A3-3-02, Concurrent
      Servicing Transfers for additional requirements for SMP lenders. For entities
      such as nonproﬁt corporations whose ﬁnancial reporting requirements or standards
      do not facilitate calculation of Adjusted Net Worth, Fannie Mae will use equivalent
      ﬁnancial data to determine compliance with the minimum net worth requirements.
      Minimum Capital Requirements (applicable to depository sellers/servicers) Sellers/servicers
      that are depository institutions are required to meet at all times the minimum
      regulatory capital requirements of their primary regulator. Minimum Capital
      Requirements (applicable to non-depository sellers/servicers) Non-depository
      sellers/servicers must maintain at all times a minimum Adjusted New Worth/total
      assets ratio of 6%, or equivalent, as determined by Fannie Mae. Minimum Liquidity
      (applicable to non-depository sellers/servicers) Non-depository sellers/servicers
      must maintain at all times an Allowable Liquidity at a level equal to or greater
      than the sum of the following: • 0.07% of the portion of the seller/servicer''s
      Residential First Lien Mortgage Servicing UPB serviced for Fannie Mae and Freddie
      Mac with scheduled/scheduled or scheduled/actual remittance types, plus • 0.035%
      of the portion of the seller/servicer''s Residential First Lien Mortgage Servicing
      UPB serviced for Fannie Mae and Freddie Mac with actual/actual remittance types,
      plus; • 0.10% of the portion of the seller/servicer''s Residential First Lien
      Mortgage Servicing UPB serviced for Ginnie Mae, plus • 0.035% of the Other Servicing
      UPB. Origination Liquidity (applicable to certain non-depository sellers/servicers)
      Non-depository seller/servicers who originate greater than $1 billion in one-
      to four-unit residential ﬁrst lien mortgage loans (excluding reverse mortgages,
      one- to four-unit residential construction-to- permanent loans to home buyers,
      and lot loans to consumers) in the most recent four-quarter period must maintain
      an origination liquidity of 0.5% of the sum of the following: • one- to four-unit
      residential ﬁrst lien mortgage loans (excluding reverse mortgages, one- to-four-
      unit residential construction-to-permanent loans to home buyers, and lot loans
      to consumers) held for sale, at lower of cost or market; plus • one- to four-unit
      residential ﬁrst lien mortgage loans (excluding reverse mortgages, one- to-four-
      unit residential construction-to-permanent loans to home buyers, and lot loans
      to consumers) held for sale, at fair value; plus • UPB of interest rate lock
      commitments after fallout adjustments. Additional Requirements for Large Non-depository
      Sellers/Servicers In addition to the minimum requirements for non-depository
      sellers/servicers above, Large Non-depository sellers/servicers must comply
      with the requirements described in the following table. Published May 6, 2026
      137 Category Description Supplemental Liquidity In additional to the minimum
      liquidity requirements for non-depository seller/servicers above, Large Non-depository
      sellers/servicers must maintain supplemental Allowable Liquidity at all times
      at a level equal to a greater to or greater than the sum of the following: •
      0.02% of the portion of the seller/server''s Residential First Lien Mortgage
      Servicing UPB serviced for Fannie Mae and Freddie Mac, and • 0.05% of the portion
      of the seller/servicer''s Residential First Lien Mortgage Servicing UPB serviced
      for Ginnie Mae. Capital and Liquidity Plan Within 90 days after the end of each
      calendar year, Large Non-depository sellers/servicers must submit a plan to
      Fannie Mae that describes how the seller/servicer intends to manage its capital
      and liquidity in a manner consistent with Fannie Mae requirements. The capital
      and liquidity plan must include the following at a minimum: • a description
      of the seller/servicer''s corporate governance over the capital and liquidity
      planning process, such as oversight responsibilities of senior management and
      its board of directors, and a discussion of the seller/servicer''s risk management
      framework; • a description of the processes to monitor and measure liquidity
      risks, such as business activity reports and ﬁnancial forecast and cashﬂow projections;
      • capital and liquidity contingency funding plans, including providing for testing
      and reaﬃrmation of such plans at least annually; • an annual liquidity stress
      test, including a stress test of the value of mortgage servicing rights in an
      adverse scenario as developed by the seller/servicer, or as prescribed by Fannie
      Mae, or both; and • a requirement to provide written notice to Fannie Mae ⚬
      within ﬁve business days following any material change to or material deviation
      from the plan; and ⚬ within one business day of any material changes during
      times of stress. Note: The seller/servicer is authorized to run the stress test
      either in-house or using a third-party vendor. To submit the capital and liquidity
      plans to Fannie Mae, sellers/servicers must contact their Fannie Mae customer
      account team for further instructions. Third-party Servicer Rating Large Non-depository
      seller/servicer''s must maintain a Rating Agency rating as follows: • Sellers/servicers
      servicing equal to or greater than $50 billion in Residential First Lien Mortgage
      Service UPB plus Other Servicing UPB must have one primary Servicer Rating or
      master Servicer Rating, as applicable; • Sellers/servicers servicing greater
      than $100 billion in Residential First Lien Mortgage Servicing UPB must have:
      ⚬ one primary Servicer Rating or master Servicer Rating, as applicable; and
      ⚬ one Long-term Senior Unsecured Debt Rating or Long-term Corporate Family Rating.
      • Sellers/servicers servicing greater than $150 billion in Residential First
      Lien Mortgage Servicing UPB plus Other Servicing UPB must have: ⚬ one primary
      Servicer Rating or master Servicing Rating, as applicable; and ⚬ issued by two
      Rating Agencies, a Long-term Senior Unsecured Debt Rating or a Long-term Corporate
      Family Rating. Additional Financial Requirements Fannie Mae may, at any time
      based on its view of a seller/servicer’s ﬁnancial strength or its assessment
      of market conditions or other relevant factors, impose additional ﬁnancial requirements,
      including enhanced net Published May 6, 2026 138 worth, capital, or liquidity
      requirements, as well as provisions related to the items in the Additional Financial
      Requirements table below. Any additional requirements Fannie Mae imposes may
      apply to a particular seller/servicer, a deﬁned group or type of seller/servicer,
      or all sellers/servicers. A seller/servicer’s failure to comply with any additional
      requirements may result in Fannie Mae declaring a breach of the Lender Contract.
      Fannie Mae may declare a breach of the Lender Contract if any of the circumstances
      described in the following table occur. Category Description Material Decline
      in Lender Adjusted Net Worth Typically, a decline is material if Lender Adjusted
      Net Worth declines by more than 25% over a quarterly reporting period or by
      more than 40% over two-consecutive quarterly reporting periods. Decline in Proﬁtability
      Four or more consecutive quarterly losses accompanied by a decline in Lender
      Adjusted Net Worth of 30% or more during the same period. Cross-Default Provisions
      The occurrence of any of the following (to the extent not cured within any applicable
      cure period in the applicable agreement): • a breach by the seller/servicer
      on a credit or funding facility, including warehouse or servicing advance lines
      of credit; • a breach by any seller/servicer’s aﬃliate or related entity in
      any of its obligations with Fannie Mae, including parental guarantees; • a breach
      of any agreements with any other creditors where such breach involves an amount
      that exceeds 3% of the seller/servicer’s Lender Adjusted Net Worth; • a breach
      of, or an impairment of any rights contained in any agreement that is material
      to the seller/servicer''s origination of loans eligible for sale to Fannie Mae,
      servicing of Fannie Mae loans, the ﬁnancial or business condition or operations
      of the seller/servicer, or the seller/servicer''s ability to comply with the
      Lender Contract; • the occurrence of any change event, or circumstance which
      has or could reasonably be expected to have a material adverse eﬀect on the
      seller/servicer''s origination of loans, servicing of Fannie Mae loans, on the
      ﬁnancial or business condition or operations of the seller/servicer, or the
      ability to comply with the Lender Contract. An impairment of rights is any event
      that may restrict the ability of the seller or servicer to conduct its business,
      continue to sell loans, or service any loan assets in the regular course of
      its business. The seller/servicer must provide Fannie Mae with written notiﬁcation
      in the form of an updated Lender Record Information ( Form 582) submission and
      email notiﬁcation to the Changes in Lender Organization mailbox (see E-1-02,
      List of Contacts) within ﬁve business days of the occurrence of any of the foregoing.
      Recourse Obligation Fannie Mae may permit a seller/servicer to take on credit
      recourse obligations, provided the seller/servicer meets certain requirements.
      Fannie Mae will assess the ﬁnancial strength of the seller/servicer to determine
      whether the seller/servicer can take on credit recourse obligations and, if
      permitted, whether the seller/servicer must post collateral or provide other
      forms of risk reduction measures to secure the additional obligations. Business
      Continuity Management and Disaster Recovery Published May 6, 2026 139 Fannie
      Mae requires seller/servicer to have a Business Continuity Plan. This plan must
      include Business Continuity Procedures and Disaster Recovery Procedures, as
      deﬁned in the Supplement. It must also identify business processes critical
      to the continuation of services and operations including those necessary to
      comply with obligations the seller/servicer has to Fannie Mae under the Lender
      Contract. The seller/servicer''s Business Continuity Plan, Business Continuity
      Procedures and Disaster Recovery Procedures must meet the requirements of the
      Supplement. Additionally, the seller/servicer must ensure it and any subservicers,
      third-party originators, outsourcing ﬁrms, and third-party vendors used by the
      seller/servicer implement and maintain disaster recovery and business continuity
      procedures. These procedures must ensure the ability to regain critical business
      operations if there is a disruption or disaster. This includes back-up systems,
      procedures and processes in the event of the expiration or termination of any
      contract that is material for seller/servicer''s servicing of Fannie Mae loans,
      origination of loans for sale to Fannie Mae, or ability to comply with the Lender
      Contract. The lender must provide a copy of its Business Continuity Plan and
      Business Continuity Procedures to Fannie Mae upon Fannie Mae''s written request.
      Audit and Management Control Requirements The seller/servicer must have internal
      audit and management control procedures to evaluate and monitor the overall
      quality of its loan production and servicing processes, as applicable. At a
      minimum: The procedures must be independent of all key functions of the loan
      manufacturing process and the servicing processes that they review, so that
      such procedures provide an objective and unbiased evaluation that adds value
      and improves the seller/servicer’s operations. The seller/servicer’s lines of
      reporting must reﬂect the independence of the audit process at all levels, resulting
      in activities that are conducted in an unbiased manner and without quality compromises
      resulting from internal inﬂuences or conﬂicts of interest. The audit function
      must not share any reporting lines with the functional areas that it reviews.
      The audit function must report directly to the seller/servicer’s senior management
      and/or board of directors. Exceptions are permitted in situations in which the
      size of the seller/servicer’s organization is insuﬃcient to support adequate
      resources to allow for separation of these functions. In those situations, the
      seller/servicer’s audit plan must include the rationale for the lack of separation
      as well as the controls that have been established to mitigate the risks associated
      with the lack of separation of these functions. The procedures must be consultative,
      so that they help the seller/servicer accomplish its objectives by bringing
      a systematic, disciplined approach to evaluating and improving the eﬀectiveness
      of risk management, control, and governance processes. Written Policies and
      Procedures The seller should have eﬀective and fully documented written policies
      and/or procedures that ensure that its staﬀ, and any outsourcing and third-party
      vendors used by the seller, consistently comply with Fannie Mae''s requirements.
      This may include providing training to its staﬀ and reviewing staﬃng needs on
      an ongoing basis. Published May 6, 2026 140 Management of Vendors and Other
      Third-party Service Providers Lenders must have written procedures for the approval
      and management of vendors and other third-party service providers. The procedures
      must comply with the business continuity requirements in the Supplement if the
      seller/servicer or any subservicer contracts with a vendor or third-party service
      provider for any critical servicing functions or ability to comply with the
      Lender Contract. Recent Related Announcements The table below provides references
      to recently issued Announcements that are related to this topic. Announcements
      Issue Date Announcement SEL-2025-01 February 05, 2025 Announcement SEL-2024-03
      May 01, 2024 Announcement SEL-2023-10 November 01, 2023 Announcement SEL-2023-02
      March 01, 2023 Announcement SEL-2022-10 December 14, 2022 Announcement SEL-2021-11
      December 15, 2021 Announcement SEL-2021-10 November 03, 2021 Announcement SEL-2021-08
      September 01, 2021 Announcement SEL-2020-07 December 16, 2020'
  judgment: false
