source:
  type: guide
  id: fnma-sel-a3-3-02
  authority: Fannie Mae Selling Guide A3-3-02 — Concurrent Servicing Transfers
  description: Fannie Mae Selling Guide A3-3-02 — Concurrent Servicing Transfers.
  coverage_tier: operative
obligations:
- id: fnma-sel-a3-3-02-full
  canonical_id: fnma-sel-a3-3-02-full
  section: Fannie Mae Selling Guide A3-3-02 — Concurrent Servicing Transfers
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide A3-3-02 — Concurrent Servicing Transfers
    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: 'A3-3-02, Concurrent Servicing Transfers (05/01/2024) Introduction
      This topic contains information on concurrent servicing transfers, including:
      Concurrent Servicing Transfers Servicer Eligibility Criteria Servicing Assignment
      Contract Notiﬁcation of Concurrent Servicing Transfers Termination of Concurrent
      Servicing Transfers Servicing Marketplace Servicer Eligibility Criteria for
      Servicing Marketplace Seller Eligibility Criteria for Servicing Marketplace
      Servicing Marketplace (SMP) Bifurcation Terms and Conditions Concurrent Servicing
      Transfers A concurrent servicing transfer (also known as a transfer of servicing
      concurrent with delivery) occurs when a selling lender transfers the servicing
      rights for a loan to a Fannie Mae–approved servicer at the same time it sells
      the loan to Fannie Mae. This is an “automatic” transfer because Fannie Mae’s
      prior approval of the transaction is not required. If the selling lender is
      servicing the loans prior to delivery and will not be servicing the loans after
      delivery, the selling lender may automatically transfer servicing to a lender
      that is eligible to service them for Fannie Mae, and has agreed to do so, eﬀective
      concurrently with delivery of the loans to Fannie Mae. The lender must notify
      Fannie Mae at the time of loan delivery that servicing has been transferred.
      Additionally, the selling lender may designate the servicing lender as Fannie
      Mae’s servicer for the loans by notifying Fannie Mae at the time of delivery
      if: the selling lender is not servicing the loans prior to delivery because
      it has contracted with another lender (the “servicing lender”) to service the
      loans for the selling lender; Published May 6, 2026 108 the selling lender will
      not be servicing the loans after delivery; the servicing lender is eligible
      to service the loans for Fannie Mae; and the servicing lender agrees to service
      the loans for Fannie Mae, which requires the contractual servicing relationship
      be with Fannie Mae instead of with the seller. If the servicing lender wants
      the contractual servicing relationship to be with the selling lender instead
      of with Fannie Mae, even after delivery of the loans to Fannie Mae, the selling
      lender must become Fannie Mae’s servicer (as “master servicer”), and the servicing
      lender must become a “subservicer.” (See A3-3-03, Other Servicing Arrangements,
      and the Servicing Guide.) A transfer of servicing that becomes eﬀective concurrent
      with delivery of the loans to Fannie Mae must be implemented in accordance with
      the requirements in the Servicing Guide. After Fannie Mae has purchased or securitized
      a loan, Fannie Mae must approve all subsequent assignments of servicing related
      to that loan before the servicing can be transferred. See the Servicing Guide
      for additional requirements. Servicer Eligibility Criteria The transferee servicer
      must meet Fannie Mae’s eligibility criteria that apply to a lender that becomes
      Fannie Mae’s servicer in a post-delivery transfer of servicing as described
      in the Servicing Guide. Servicing Assignment Contract The servicing transfer
      agreement between the lender and the transferee servicer must provide (among
      other requirements) that: the eﬀective date for transfer of the servicing of
      the loans will be no later than the date Fannie Mae funds the whole loan delivery
      or issues the MBS; Fannie Mae may request and obtain (at any time) a copy of
      such agreement; and the agreement must provide, for the stated beneﬁt of Fannie
      Mae, that the transferee servicer, as of the eﬀective date: accepts the servicing
      portfolio and agrees to service the loans in accordance with all Fannie Mae
      requirements; assumes responsibility for all of the lender’s contractual obligations
      related to all servicing duties, obligations and responsibilities related to
      the loans that arose prior to the delivery of the loans to Fannie Mae; has performed
      due diligence review(s) of the servicing portfolio to its satisfaction, which
      includes examination of the books, records, and custodial accounts of the lender
      with respect to the servicing portfolio; assumes full responsibility to Fannie
      Mae for the correctness of such books and records; and represents and warrants
      that the provisions of any agreement between the servicer and any other party
      providing for servicing the loans will not continue after the date on which
      Fannie Mae funds Published May 6, 2026 109 the whole loan delivery or issues
      the MBS. By accepting a transfer of servicing, the transferee servicer agrees
      to the above matters and represents and warrants that they are correct (as applicable),
      even in those cases in which the contractual relationship between the lender
      and the transferee servicer is such that no agreement to assign the servicing
      is legally necessary at the time the loans are delivered to Fannie Mae. Further,
      by designating another lender as servicer of the loans on the applicable loan
      schedule, the lender represents and warrants that with respect to such loans:
      the servicer has agreed to the above matters and represents and warrants that
      they are correct (as applicable), and the provisions of any agreement between
      the lender and any other party providing for servicing of the loans will not
      continue after the date on which Fannie Mae funds the whole loan delivery or
      issues the MBS. However, the lender is not released from any liabilities to
      Fannie Mae with respect to the loans or the servicing of them prior to the delivery
      of the loans to Fannie Mae. The lender and the servicer will be jointly and
      severally liable to Fannie Mae for the obligations and liabilities related to
      the loans or the servicing of them that arise before delivery of the loans to
      Fannie Mae. In addition to the requirements of this section, a transfer of servicing
      that becomes eﬀective concurrent with delivery of the loans to Fannie Mae must
      be implemented in accordance with Fannie Mae’s requirements in the Servicing
      Guide. After Fannie Mae has purchased or securitized a loan, Fannie Mae must
      approve all subsequent assignments of servicing related to that loan before
      the servicing can be transferred. Notiﬁcation of Concurrent Servicing Transfers
      The lender must notify Fannie Mae of the transferee servicer by entering the
      transferee servicer''s nine-digit Fannie Mae seller/servicer number into the
      Loan Delivery application. Termination of Concurrent Servicing Transfers If
      a concurrent servicing transfer does not meet Fannie Mae’s eligibility standards
      as stated in this Guide and in the Servicing Guide, Fannie Mae is entitled to
      terminate the transferee’s servicing with respect to the aﬀected loans in order
      to transfer servicing of the loans to another servicer, pursuant to Fannie Mae''s
      rights under the MSSC. The lender is obligated for all losses incurred by Fannie
      Mae resulting from the lender’s designation of an ineligible servicer. For additional
      information about concurrent servicing transfers, see the Servicing Guide. Servicing
      Marketplace The Servicing Marketplace is a committing platform that provides
      a standardized process for sellers and Published May 6, 2026 110 servicers who
      engage in concurrent servicing transfer transactions. Seller and servicer obligations
      for loans sold and servicing acquired via the Servicing Marketplace will be
      bifurcated under the terms and conditions below. Servicer Eligibility Criteria
      for Servicing Marketplace The transferee servicer must: meet Fannie Mae’s eligibility
      criteria that apply to a lender that becomes Fannie Mae’s servicer in a post-
      delivery transfer of servicing as described in the Servicing Guide, and obtain
      Fannie Mae''s approval to participate in Servicing Marketplace. See A2-1-01,
      Contractual Obligations for Sellers/Servicers for additional information. Seller
      Eligibility Criteria for Servicing Marketplace In order to be eligible as a
      seller for Servicing Marketplace, at a minimum, sellers must meet and maintain
      an Adjusted Net Worth, calculated in accordance with A4-1-01, Maintaining Seller/Servicer
      Eligibility, of at least $2.5 million, plus an amount equal to the greater of:
      the sum of the following: 0.25% of the Residential First Lien Mortgage Servicing
      UPB serviced for Fannie Mae and Freddie Mac, plus 0.35% of the Residential First
      Lien Mortgage Servicing UPB serviced for Ginnie Mae, plus 0.25% of the Other
      Servicing UPB, or 0.25% of the UPB of whole loans purchased by Fannie Mae that
      were committed in the preceding 36 months via Servicing Marketplace. The minimum
      Adjusted Net Worth does not include loans serviced under a subservicing arrangement
      - that is, for which the seller/servicer is contractually obligated to service
      for another servicer. If these minimum requirements are met, Fannie Mae may,
      but is not required to, approve and activate the seller for Servicing Marketplace.
      A seller may view whether it has seller access to Servicing Marketplace by logging
      into the Fannie Mae whole loan committing application. Fannie Mae, in its discretion
      at any time, may terminate a seller’s participation in Servicing Marketplace,
      which will be eﬀective immediately. Servicing Marketplace (SMP) Bifurcation
      Terms and Conditions Using SMP in Fannie Mae’s whole loan committing application,
      lenders may arrange for a concurrent sale of servicing to an approved Fannie
      Mae servicer. See C2-1.3-01, Servicing Marketplace, for additional information.
      A lender approved as a seller for SMP transactions is directly liable to Fannie
      Mae for the obligations and liabilities related to the SMP loans, including
      all selling representations and warranties required to be made by a seller,
      and for obligations and liabilities related to servicing of the SMP loans that
      arise before delivery of the loans to Fannie Mae. The servicer retained by the
      lender concurrent with Fannie Mae’s acquisition of the loan (and any transferee
      servicer to whom servicing rights and obligations with respect to an SMP loan
      have been transferred by the servicer with approval from Fannie Mae) is responsible
      for the servicing duties, obligations and responsibilities related to the loan
      that arise both prior to Fannie Mae’s acquisition of the loan and Published
      May 6, 2026 111 thereafter, but otherwise the servicer (and any transferee servicer
      as previously described in this paragraph) has no liability and is not responsible
      for breaches of any of the selling lender’s selling representations, warranties,
      obligations or liabilities related to the SMP loans. The lender’s sale of SMP
      loans to Fannie Mae is subject to the following requirements: Upon the sale
      of a SMP loan to Fannie Mae, the lender makes all representations and warranties
      required to be made by a seller under this Selling Guide. The lender acknowledges
      and agrees that: Fannie Mae is entitled to enforce directly against the lender,
      and the lender is liable for, any and all remedies (including, without limitation,
      repurchase) for a breach of the lender’s obligations and liabilities related
      to the SMP loans. Fannie Mae is under no obligation to enforce or attempt to
      enforce any such remedies against the servicer. Without limiting the provisions
      of the Guides, the lender must resolve repurchase requests with respect to SMP
      loans within the time and manner required by the Servicing Guide. Failure to
      do so may result in termination of the lender’s approval to participate in SMP,
      as well as any other remedies Fannie Mae may elect to pursue. Notwithstanding
      anything to the contrary in the Lender Contract or any other agreement between
      the lender and Fannie Mae, by its sale of SMP loans to Fannie Mae, the lender:
      authorizes Fannie Mae to disclose from time to time to the applicable servicer
      any information (and any related assessments and analyses developed by Fannie
      Mae) that Fannie Mae may have concerning the lender (including, for example,
      information related to the lender’s ﬁnancial condition and relationship with
      Fannie Mae), the SMP loans, the servicing of SMP loans and related quality control
      reports, and waives any requirement that Fannie Mae maintain the conﬁdentiality
      of such information to the extent such requirement would otherwise prohibit
      such disclosure; and shall have no rights or claims against Fannie Mae in connection
      with such disclosure or transfer of information, and waives any and all claims
      arising out of or based upon the conﬁdential nature of such information. The
      lender acknowledges that Fannie Mae may, at its sole discretion: from time to
      time, amend or supplement Fannie Mae’s procedures and requirements for the purchase
      of SMP loans, by publishing such amendments or supplementary material in the
      Selling Guide or in other written communications; and terminate the lender’s
      approval to participate in SMP by delivering notice to the lender at any time.
      The servicer of SMP loans sold to Fannie Mae is subject to the following requirements:
      The servicer must service all SMP loans in accordance with the requirements
      of the Servicing Guide. The servicer waives all rights of recourse against Fannie
      Mae regarding any sale, transfer or acceptance of SMP loan servicing. If the
      servicer desires to transfer servicing of any SMP loan, it must comply with
      the terms of the Servicing Guide and clearly identify all such loans in its
      request for Fannie Mae''s approval of a transfer of servicing. Fannie Mae is
      authorized to disclose from time to time to the applicable seller any information
      provided by the servicer concerning SMP loans, including any SMP loan servicing
      and quality control reports. The servicer waives any requirement that Fannie
      Mae maintain the conﬁdentiality of such information to the extent such requirement
      would otherwise prohibit such disclosure. In addition, the servicer agrees that
      it Published May 6, 2026 112 has no rights or claims against Fannie Mae in connection
      with such disclosure or transfer of information and waives all claims arising
      out of or based upon the conﬁdential nature of any such information. The servicer
      may be asked to provide to the applicable seller certain performance data relating
      to SMP loans which have experienced delinquency and for which there is an increased
      risk that Fannie Mae or a third party may seek repurchase or other remedies
      (At Risk loans). The servicer agrees that, in connection with any disclosure
      of performance data for At Risk loans it elects to provide to a seller: The
      servicer is solely responsible for performing (and has performed) its own analysis
      of, and determination that any disclosures of performance data are in compliance
      with the Gramm-Leach- Bliley Act privacy rules and other applicable legal requirements.
      In making disclosures of performance data, the servicer has not relied upon
      any representations or legal advice of Fannie Mae, whether oral or written,
      regarding compliance with privacy laws. The servicer may limit the seller''s
      use of such data to improve its origination processes to prevent future fraud,
      risk control/estimation of potential repurchase, make whole or indemniﬁcation
      obligations in connection with such At Risk loans or such other purpose as the
      servicer deems appropriate. Fannie Mae, at its sole discretion, may: from time
      to time, amend or supplement Fannie Mae''s procedures and requirements for the
      purchase of SMP loans, by publishing such amendments or supplementary material
      in this Guide or in other written communications; and terminate the servicer''s
      approval to participate in SMP by delivering notice to the servicer at any time.
      The provisions of the Guides relating to SMP loans (including that the servicer
      has no liability and is not responsible for breaches of any of the selling lender''s
      selling representations, warranties, obligations or liabilities related to the
      SMP loans) will survive termination of the servicer''s participation in SMP
      but only as to SMP loans for which the servicer acquired the related loan servicing
      prior to the termination of its participation in SMP. Recent Related Announcements
      The table below provides references to recently issued Announcements that are
      related to this topic. Announcements Issue Date Announcement SEL-2024-03 May
      01, 2024 Announcement SEL-2023-07 August 02, 2023 Announcement SEL-2023-02 March
      01, 2023 Announcement SEL- 2022-04 May 04, 2022 Announcement SEL-2021-10 November
      03, 2021 Announcement SEL-2021-02 March 03, 2021 Published May 6, 2026 113 Announcements
      Issue Date Announcement SEL-2019-09 December 04, 2019'
  judgment: false
