source:
  type: guide
  id: fnma-svc-a2-1-02
  authority: Fannie Mae Servicing Guide A2-1-02 — Servicer's Duties and Responsibilities
    Related to MBS Mortgage Loans
  description: Fannie Mae Servicing Guide A2-1-02 — Servicer's Duties and Responsibilities
    Related to MBS Mortgage Loans.
  coverage_tier: operative
obligations:
- id: fnma-svc-a2-1-02-full
  canonical_id: fnma-svc-a2-1-02-full
  section: Fannie Mae Servicing Guide A2-1-02 — Servicer's Duties and Responsibilities
    Related to MBS Mortgage Loans
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide A2-1-02 — Servicer's Duties and Responsibilities
      Related to MBS Mortgage Loans
    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: 'A2-1-02, Servicer’s Duties and Responsibilities Related to MBS
      Mortgage Loans (12/09/2020) Introduction This topic contains the following:
      Nature of the MBS Trust Prohibited Actions Servicing Requirements of MBS Mortgage
      Loans Nature of the MBS Trust The MBS Trust Agreements and the Trust Indentures
      clarify and document the various roles and capacities of Fannie Mae, including
      its responsibilities regarding the servicing of MBS mortgage loans. MBS mortgage
      loans are subject to a Trust Indenture or a Trust Agreement. The MBS trust documents
      are the governing documents for a Fannie Mae MBS trust and include key servicing
      requirements; set forth Fannie Mae’s roles as issuer, master servicer, guarantor,
      and trustee; and Published May 13, 2026 66 describe the servicer’s role as the
      direct servicer. Under the MBS Trust Agreements and the Trust Indentures, mortgage
      loans and the proceeds of those mortgage loans are held by Fannie Mae as trustee
      for the beneﬁt of the MBS trusts and their beneﬁcial owners, the MBS investors.
      The servicer is responsible for servicing MBS mortgage loans for the MBS trusts
      that own the mortgage loans. Fannie Mae is also the master servicer for the
      MBS trusts, and, in that capacity, contracts with the servicer as the direct
      servicer and has the responsibility for assuring that servicing is performed
      in accordance with the Trust Agreement or the Trust Indenture, as applicable.
      Daily servicing operations are performed by the direct servicers pursuant to
      the MSSC, the Servicing Guide, the MBS commitment and any other applicable agreement
      (such as a variance or special requirement) applicable to the purchase and servicing
      of mortgage loans in MBS trusts. The Trust Agreement uses the term “Servicing
      Contract” to refer to any of the agreements between the servicer and Fannie
      Mae relating to the servicing of MBS mortgage loans. By servicing MBS mortgage
      loans, the servicer agrees that a successor to Fannie Mae as master servicer
      for the MBS trusts automatically will succeed to the rights of Fannie Mae under
      any Servicing Contract and will have authority to enforce the terms and conditions
      of the applicable Servicing Contract, including the authority to terminate the
      servicer, in accordance with the terms of the Servicing Contract, and to appoint
      a replacement servicer; and Fannie Mae as trustee, on behalf of the trusts,
      and Fannie Mae as guarantor are third-party beneﬁciaries of the Servicing Contract
      between that servicer and Fannie Mae as master servicer, with the authority
      to enforce such contract under certain conditions. The servicer’s duties and
      responsibilities and its obligations under the Lender Contract do not change
      on the basis of whether the mortgage loan is a portfolio or MBS mortgage loan.
      Fannie Mae has ﬁduciary responsibilities to MBS certiﬁcate holders, and as such
      it imposes certain restrictions on the servicer’s authority as it relates to
      servicing MBS mortgage loans (some of which also may apply to mortgage loans
      that are not securitized). Prohibited Actions The servicer must not take the
      following actions with respect to an MBS mortgage loan: Sell or hypothecate
      the mortgage loan (or a participation interest in a mortgage loan), other than
      repurchasing it for its own account under the provisions of Chapter A1–3, Repurchases,
      Indemniﬁcations, and Make Whole Payment Requests. Modify any of the terms of
      the mortgage loan (including the extension of a future advance or a release
      of a borrower from liability), unless either Fannie Mae agrees to a mortgage
      loan modiﬁcation as a means of preventing foreclosure of the mortgage loan,
      or the servicer releases the borrower from liability in connection with an eligible
      property transfers as outlined in D1-4.1-02, Allowable Exemptions Due to the
      Type of Transfer. Repurchase or reclassify any MBS mortgage loan for the purpose
      of modifying any of the terms of the mortgage loan (including the extension
      of a future advance or a release of a borrower from liability), or Published
      May 13, 2026 67 for any other reason, unless Fannie Mae speciﬁcally permits
      or requires repurchase or reclassiﬁcation, or unless Fannie Mae speciﬁcally
      agrees. See D2-3.1-02, Conditions of a First and Second Lien Mortgage Loan Modiﬁcation
      for an MBS Mortgage Loan for additional information. Defer the exercise of any
      right to accelerate the mortgage loan debt, except as is consistent with Fannie
      Mae’s policy of considering certain types of transfers of ownership as exempt
      transactions or agreeing to forbearance or a repayment plan, or when considering
      mortgage loan modiﬁcations or payment deferrals for delinquent borrowers. See
      Section D1–4.1, Information Related to Transfers of Ownership Applicable to
      All Mortgage Loans for additional information. Exercise any “call option” provided
      for by the terms of a conventional mortgage loan, unless Fannie Mae normally
      requires such options to be exercised for mortgage loans in its portfolio. See
      D1-5-01, Call Options and Cross-Default Provisions for additional information.
      Release all or any portion of the property from the mortgage lien, except in
      accordance with the terms of the mortgage loan, an approved partial release,
      or under a court order or decree, and then only to the extent that Fannie Mae
      allows for, for mortgage loans in its portfolio. Accept a voluntary Mortgage
      Release under any conditions other than those Fannie Mae allows for, for mortgage
      loans in its portfolio, as described in D2-3.3-02, Fannie Mae Mortgage Release
      (Deed-in-Lieu of Foreclosure). Exercise any “put option” provided by a mortgage
      loan, such as the optional assignment of certain FHA Section 221 mortgage loans
      following their twentieth anniversary. Change an ARM index or the manner in
      which the index values are selected, unless speciﬁcally provided for in the
      mortgage loan documents. See Chapter C-2, Servicing ARM Loans and Chapter A1–3,
      Repurchases, Indemniﬁcations, and Make Whole Payment Requests for additional
      information. Servicing Requirements of MBS Mortgage Loans The following mortgage
      loans, when securitized into an MBS pool directly from Fannie Mae’s portfolio
      (referred to as PFP mortgage loans), must be serviced as MBS mortgage loans:
      all mortgage loans that have been sold to Fannie Mae as whole mortgage loans,
      and any MBS mortgage loan that was reclassiﬁed into Fannie Mae’s portfolio.
      Note: This requirement does not change the servicer’s existing reporting and
      remitting requirements for these mortgage loans nor does it change the custodial
      depository requirements for the applicable remittance type under which these
      mortgage loans are serviced. Fannie Mae notiﬁes the servicer of mortgage loans
      that have been securitized into an MBS pool. The servicer must code all of these
      mortgage loans in their records as MBS mortgage loans as soon as possible and
      service them in accordance with the provisions of the Servicing Guide applicable
      to MBS mortgage loans. The servicing requirements of an MBS Trust Agreement
      or Trust Indenture vary depending on the MBS trust documents under which a particular
      MBS mortgage loan was pooled. The following table describes the four categories
      of MBS trust documents. Published May 13, 2026 68 Category of MBS Trust Documents
      Description 1980’s Indentures The various ﬁxed-rate or ARM Trust Indentures
      (each a “1980’s Indenture”) for MBS mortgage loan pools with issue dates up
      to and including May 1, 2007. 2007 Second Amended Trust Agreement The 2007 Second
      Amended Trust Agreement applies to MBS mortgage loan pools with issue dates
      from June 1, 2007 through December 1, 2008. 2009 Amended Trust Agreement The
      2009 Amended Trust Agreement applies to MBS mortgage loan pools with issue dates
      from January 1, 2009 through May 1, 2016. 2016 Second Amended Trust Agreement
      The 2016 Second Amended Trust Agreement applies to MBS mortgage loan pools with
      issue dates on or after June 1, 2016. Not all workout options will be available
      for all MBS mortgage loans. Since the availability of a particular workout option
      for an MBS mortgage loan depends on the MBS trust documents under which that
      mortgage loan was pooled, the servicer must identify the issue date of the MBS
      in order to determine whether a workout option is available to a borrower. The
      use of one type or a combination of workout options is determined by facts and
      circumstances related to the particular mortgage loan and the borrower, as such
      facts and circumstances may change from time to time and include, but are not
      limited to: whether the workout option is available for the MBS mortgage loan
      based on which MBS trust documents apply to the MBS mortgage loan; and the applicable
      Servicing Guide provisions or, in the absence of Servicing Guide provisions,
      customary servicing practices of prudent servicers in servicing and administering
      mortgage loans for their own portfolios. In the Servicing Guide or through its
      contracts with servicers, Fannie Mae from time to time may limit the availability
      and application of certain servicing terms stated in a trust document. Thus,
      the Servicing Guide may be more restrictive than the MBS trust documents with
      respect to servicing provisions, but neither the Servicing Guide nor any contractual
      agreement (including variances and waivers) with a servicer may be more expansive
      than or otherwise inconsistent with the MBS trust documents. Recent Related
      Announcements The table below provides references to recently issued Announcements
      that are related to this topic. Announcements Issue Date Announcement SVC-2020-07
      December 9, 2020 Published May 13, 2026 69 Announcements Issue Date Announcement
      SVC-2020-04 September 9, 2020 A2-1-03, Servicer''s Duties and Responsibilities
      Related to Mortgage Loans with Resale Restrictions or Shared Equity Transactions
      (02/12/2025) Introduction This topic describes additional requirements only
      applicable to servicers. Overview Servicing Mortgage Loans Subject to Resale
      Restrictions or Shared Equity Transactions Overview This topic describes additional
      requirements only applicable to servicers. See Selling Guide Section B5-5.2,
      Loans with Resale Restrictions and Section B5-5.3, Shared Equity Transactions
      for information on resale restriction mortgage loans and shared equity transactions.
      Servicing Mortgage Loans Subject to Resale Restrictions or Shared Equity Transactions
      The servicer must service mortgage loans subject to resale restrictions (as
      described in Selling Guide Section B5-5.2, Loans with Resale Restrictions) or
      shared equity transactions (as described in Selling Guide Section B5-5.3, Shared
      Equity Transactions) in accordance with this Guide, the mortgage loan documents,
      the recorded resale restriction agreement or any shared equity transaction agreement,
      as applicable, and in compliance with applicable law. Any resale restrictions,
      including those related to a shared equity transaction, as applicable, must
      not impair the servicer''s ability to carry out its general servicing duties
      and responsibilities in accordance with this Guide, including, but not limited
      to managing escrows, providing delinquency management and loss mitigation, and
      conducting default servicing including managing foreclosure proceedings. The
      servicer must notify its Fannie Mae Servicing Representative (see F-4-02, List
      of Contacts) if it becomes aware of any such impairments related to a mortgage
      loan. Failure by the parties to comply with any requirements of a resale restriction
      agreement or a shared equity Published May 13, 2026 70 transaction agreement,
      including, but not limited to the following, as applicable, must not impair
      the servicer''s ability to carry out its obligations under this Guide, the mortgage
      loan documents, and applicable law: determining eligible homeowner or occupancy
      status, property maintenance and improvements, maintaining property and ﬂood
      insurance, payment of fees and assessments, determining the property value and
      resale price, transfers to eligible transferees, the exercise of purchase option
      rights, and providing proper notiﬁcations to the borrower or servicer. The servicer
      shall have no obligation to enforce the terms and conditions of any resale restriction
      agreement or shared equity transaction agreement, as applicable. However, the
      servicer must cooperate with the shared equity program provider in carrying
      out its servicing-related obligations under any shared equity transaction agreement
      or the Community Land Trust Ground Lease Rider, as applicable. Pursuant to the
      terms of any resale restriction agreement or shared equity transaction agreement,
      as applicable, the servicer shall have the right but not the obligation to work
      with the borrower during an event of default under such agreement in order to
      protect the interests of Fannie Mae. Additionally, the servicer is authorized,
      but not required, to participate in any arbitration or mediation between the
      parties to any such agreement that the servicer believes may impact the servicing
      of the mortgage loans as required by this Guide. Unless the servicer has the
      borrower''s prior written authorization, and only as permitted by applicable
      law, the servicer must not provide any notices required to be provided to the
      borrower in accordance with this Guide to any other party to the resale restriction
      agreement or shared equity transaction agreement, as applicable, including,
      but not limited to: notices provided in connection with early delinquency outreach
      and loss mitigation, legal notices, such as breach and acceleration letters,
      and any notice of foreclosure sale or Mortgage Release. However, the servicer
      must give notices of delinquency and any other notices to the shared equity
      program provider in accordance with the terms of any shared equity transaction
      agreement or the Community Land Trust Ground Lease Rider, as applicable, for
      purposes of preventing any disruption to the servicer in carrying out its obligations
      to assist a borrower who is facing default, including oﬀering a workout option
      in accordance with the Guide. Shared Equity Transactions - Purchase Option A
      shared equity transaction agreement or Community Land Trust Ground Lease Rider,
      as applicable, may grant a program provider or its designee a purchase option
      or right of ﬁrst refusal option to purchase the property securing the mortgage
      loan in the event of a proposed transfer of the property by the borrower, upon
      commencement of foreclosure proceedings after the borrower''s failure to resolve
      a delinquency including through a workout option, or upon the servicer''s acquisition
      of the property at foreclosure sale or through a Mortgage Release, after satisfying
      all amounts due under the mortgage loan. The servicer is responsible for adhering
      to Fannie Mae''s established processes and time frames for completing routine
      foreclosure proceedings. See E-3.2, Initiating and Processing Foreclosure Proceedings
      for additional information. Published May 13, 2026 71 Additionally, the servicer
      must notify Fannie Mae of the shared equity program provider''s acquisition
      of the property pursuant to a purchase option. See E-4.1-01, Notifying Fannie
      Mae of an Acquired Property for additional information. Shared Equity Transactions
      - Excess Proceeds The servicer must cooperate with the shared equity program
      provider to pay any excess proceeds due to the shared equity program provider
      in accordance with the terms of the shared equity transaction agreement. Excess
      proceeds are any proceeds that result from an eminent domain proceeding, foreclosure
      sale, Mortgage Release, or other transfer of the property securing the mortgage
      loan after the repayment in full of all amounts due under the mortgage and otherwise
      satisfying any of the borrower''s deﬁned maximum resale price interest in the
      property as described in the shared equity transaction agreement. Recent Related
      Announcements The table below provides references to recently issued Announcements
      that are related to this topic. Announcements Issue Date Announcement SVC-2025-01
      February 12, 2025 Announcement SVC-2024-04 July 10, 2024 Announcement SVC-2023-03
      May 10, 2023'
  judgment: false
