source:
  type: guide
  id: fnma-svc-a2-7-02
  authority: Fannie Mae Servicing Guide A2-7-02 — Pledge of Servicing Rights and Transfer
    of Interest in Servicing Income
  description: Fannie Mae Servicing Guide A2-7-02 — Pledge of Servicing Rights and
    Transfer of Interest in Servicing Income.
  coverage_tier: operative
obligations:
- id: fnma-svc-a2-7-02-full
  canonical_id: fnma-svc-a2-7-02-full
  section: Fannie Mae Servicing Guide A2-7-02 — Pledge of Servicing Rights and Transfer
    of Interest in Servicing Income
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide A2-7-02 — Pledge of Servicing Rights and
      Transfer of Interest in Servicing Income
    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: 'A2-7-02, Pledge of Servicing Rights and Transfer of Interest
      in Servicing Income (11/25/2015) Introduction This topic contains the following:
      Overview Pledges of Servicing Rights Security Agreement Acknowledgment Agreement
      Transfer of an Interest in Servicing Income Purchase and Sale, Security, or
      Financing Agreement Subordination of Interest Agreement Overview Fannie Mae
      will permit the seller/servicer to enter into one of the following transactions,
      provided that the purpose for the transaction is a purpose permitted by Fannie
      Mae, as described below, and the seller/servicer obtains the prior written consent
      of Fannie Mae, in its sole discretion: 1. a pledge or grant of a security interest
      in the servicing rights to all or part of its Fannie Mae servicing portfolio,
      including mortgage loans in MBS pools (a “pledge of servicing”); 2. a sale,
      assignment, transfer, pledge, or hypothecation of all or any portion of its
      compensation in excess of the amount needed to service mortgage loans for Fannie
      Mae (“excess servicing compensation”); or 3. a sale, assignment, transfer, pledge,
      or hypothecation of all or any portion of its right to receive reimbursement
      of servicing advances. Note: A transaction described in item 2 or 3 is referred
      to as a “transfer of an interest in servicing income.” The seller/servicer is
      authorized to enter into a pledge of servicing or a transfer of an interest
      in servicing income for the following purposes only: Published May 13, 2026
      104 to fund the acquisition of and performance of required servicing activities
      for additional servicing and/or servicing portfolios; to provide collateral
      for warehouse lines of credit; or to eﬀect the purchase of all or substantially
      all of the assets of a mortgage banking company, including a management buyout
      of its existing company or a buyout of the controlling ownership interests of
      existing shareholders. The seller/servicer must request Fannie Mae’s prior approval
      of a speciﬁc pledging transaction or transfer of an interest in servicing income
      at least 30 days prior to the proposed eﬀective date. Pledges of Servicing Rights
      A pledge of servicing transaction between the seller/servicer and the secured
      creditor must be documented by a security agreement determined by the seller/servicer
      and the secured creditor. The seller/servicer, the secured creditor, and Fannie
      Mae must also execute an acknowledgment agreement acceptable to Fannie Mae which
      sets forth the rights and responsibilities of the seller/servicer, the secured
      creditor, and Fannie Mae. Security Agreement The seller/servicer pledging its
      servicing rights and the secured party to whom the rights are pledged must enter
      into a legally binding security agreement. Fannie Mae does not specify the precise
      terms or provisions that must be included in the security agreement. However,
      since the terms and provisions of the acknowledgment agreement (which is executed
      by the seller/servicer, the secured creditor, and Fannie Mae) will prevail if
      there are any conﬂicts or inconsistencies between the security agreement and
      the acknowledgment agreement, both parties executing the security agreement
      should make every eﬀort to ensure that there are no conﬂicts or inconsistencies
      between the two agreements. Each request for approval of a proposed pledge of
      servicing must include a copy of the related proposed security agreement. The
      seller/servicer and the secured creditor may amend the security agreement after
      Fannie Mae approves the transaction without obtaining Fannie Mae''s prior consent,
      as long as all representations and warranties made by the seller/servicer and
      the secured party in the acknowledgment agreement will apply to such amendment,
      and the acknowledgment agreement does not specify that Fannie Mae’s prior written
      consent is required prior to any change in particular provisions of the security
      agreement. The secured creditor must include in any ﬁnancing statement it ﬁles
      for recordation in connection with the security agreement a statement, in the
      form set forth in the acknowledgment agreement, that the security interest described
      in the ﬁnancing statement is subject and subordinate to all rights, powers,
      and prerogatives of Fannie Mae under, and in connection with the terms of the
      acknowledgment agreement, and the Lender Contract, which rights, powers, and
      prerogatives include, without limitation, the right of Fannie Mae to terminate
      the seller/servicer’s Lender Contract with or without cause and the right to
      sell, or have transferred, the seller/servicer’s Fannie Mae servicing rights
      as therein provided. The secured creditor must also adhere to the requirements
      listed in the following table. Published May 13, 2026 105 ✓ The secured creditor
      must... Provide copies of the executed security agreement and any recorded ﬁnancing
      statement to Fannie Mae’s Mortgage Servicing Rights Pledges division (see F-4-02,
      List of Contacts). File for recording a proper release of the recorded ﬁnancing
      statement within ﬁve business days after the eﬀective date of the termination,
      transfer, or extinguishment of the security interest, and must notify Fannie
      Mae’s Mortgage Servicing Rights Pledges division (see F-4-02, List of Contacts)
      of the ﬁling if • the security interest is released or extinguished, or • the
      pledged servicing rights are transferred to the secured creditor as a result
      of the seller/servicer’s default under the security agreement or in accordance
      with the terms of the acknowledgment agreement. Acknowledgment Agreement Fannie
      Mae will not approve any request for a pledge of servicing unless the seller/servicer,
      the secured creditor, and Fannie Mae execute an acknowledgment agreement. The
      servicer may request the basic form of acknowledgment agreement (which may be
      modiﬁed by Fannie Mae to describe the particular pledge transaction and include
      any other terms and conditions to Fannie Mae’s approval of such transaction,
      in its sole discretion), from Fannie Mae’s Mortgage Servicing Rights Pledges
      division (see F-4-02, List of Contacts). Under the terms of the acknowledgment
      agreement, the secured creditor''s security interest is subordinate to all of
      Fannie Mae’s rights, powers, and prerogatives under the acknowledgment agreement
      and the Lender Contract. The secured creditor has no claim or entitlement as
      a secured creditor against Fannie Mae, and Fannie Mae has no duty or obligation
      to the secured creditor, except as otherwise expressly provided in the acknowledgment
      agreement. The acknowledgment agreement provides that if the secured party sells
      one or more participations in the loans made pursuant to the security agreement,
      the participants shall beneﬁt under the security agreement and the acknowledgment
      agreement solely through the secured party. The secured creditor may request
      that Fannie Mae transfer the servicing of the mortgage loans for which servicing
      rights have been pledged if the secured party elects to enforce its security
      interest or any remedy for the seller/servicer’s default under the security
      agreement, if the secured creditor has a valid power of attorney authorizing
      it to make the transfer request on the seller/servicer’s behalf. The secured
      creditor may request that the servicing be transferred to the secured creditor
      (as long as it is an approved Fannie Mae servicer), or such other Fannie Mae–approved
      servicer as the secured creditor designates. The transfer of servicing request
      will be evaluated, processed, and documented under Fannie Mae’s general procedures
      for servicing transfers, unless Fannie Mae agrees to modify a speciﬁc requirement
      or amend a particular document. Fannie Mae will not unreasonably withhold its
      consent to a transfer that is proposed by the secured party. If Fannie Mae ﬁnds
      the proposed transferee servicer unacceptable, it will work with the secured
      Published May 13, 2026 106 party to ﬁnd another transferee servicer that is
      acceptable; provided, however, that Fannie Mae shall retain the right to establish
      conditions to the approval of any such transfer in its sole discretion. Fannie
      Mae has the right, under the terms of its contracts with the seller/servicer,
      to terminate, sell, or transfer the servicing that has been pledged. If Fannie
      Mae exercises that right, it may recognize a right of the secured creditor to
      request that it be retained to service the pledged servicing rights and assume
      the obligations and liabilities of the seller/servicer to Fannie Mae on such
      terms and conditions as may be prescribed by Fannie Mae. If Fannie Mae exercises
      its right to terminate, sell, or transfer the servicing that has been pledged,
      subject to any such right of assumption of the secured party, Fannie Mae will
      either market and sell the pledged servicing in a manner it deems appropriate,
      or retain the pledged servicing and have the market value (the “appraised market
      value”) established by a qualiﬁed market leader in servicing valuations selected
      by Fannie Mae. Under the terms of the acknowledgment agreement, the servicing
      rights that have been pledged will be at all times after such termination, sale,
      or transfer eﬀected by Fannie Mae in accordance with its contractual provisions
      with the seller/servicer, free and clear of the secured creditor''s security
      interest. When Fannie Mae exercises its right to terminate, sell, or transfer
      servicing that has been pledged, it may select the secured creditor or its designee
      to act as the new servicer or subservicer of the mortgage loans, or another
      Fannie Mae–approved servicer. Fannie Mae will notify the secured creditor after
      it terminates the seller/servicer’s servicing rights that have been pledged.
      Fannie Mae will notify the secured creditor of its right to claim all or part
      of any remaining sales proceeds, appraised market value, or any applicable contract
      termination fees if it has a valid power of attorney from the seller/servicer
      authorizing it to request distribution of the sales proceeds, appraised market
      value, or any applicable contract termination fees, to the extent that Fannie
      Mae is fully reimbursed for all costs and expenses related to the determination
      of appraised market value or the sale or transfer and for any actual and projected
      amounts that are or may be due for obligations not met under the Lender Contract.
      The secured creditor’s failure to execute the acknowledgment agreement may impair
      its ability to claim any portion of the sales proceeds, appraised market value,
      or any applicable contract termination fees if Fannie Mae terminates the servicer’s
      contract and sells the servicing portfolio and will impair its ability to request
      Fannie Mae to transfer the mortgage loans for which the servicing rights are
      pledged to another servicer if the servicer defaults under the security agreement.
      The servicer’s failure to seek Fannie Mae’s approval for a pledge of servicing
      or to execute the acknowledgment agreement could result in a suspension of its
      selling and servicing rights or in the termination of its Lender Contract, if
      it proceeds with an unauthorized pledge of its servicing rights. Transfer of
      an Interest in Servicing Income A transfer of an interest in servicing income
      transaction between the seller/servicer and the purchaser or ﬁnancier must be
      documented by a purchase and sale, security, or ﬁnancing agreement in a form
      determined by the seller/servicer and the purchaser or ﬁnancier. The seller/servicer,
      the purchaser or ﬁnancier, and Fannie Mae must also execute a subordination
      of interest agreement acceptable to Fannie Mae, which sets forth the rights
      and responsibilities of the seller/servicer, the purchaser or ﬁnancier, and
      Fannie Mae. Published May 13, 2026 107 Purchase and Sale, Security, or Financing
      Agreement The seller/servicer that seeks to transfer an interest in servicing
      income and the purchaser or ﬁnancier to whom the interest in servicing income
      is transferred must enter into a legally binding purchase and sale, security,
      or ﬁnancing agreement. Fannie Mae does not specify the precise terms or provisions
      that must be included in the purchase and sale, security, or ﬁnancing agreement.
      However, since the terms and provisions of the subordination of interest agreement
      (which is executed by the seller/servicer, the purchaser or ﬁnancier, and Fannie
      Mae) will prevail if there are any conﬂicts or inconsistencies between the purchase
      and sale, security, or ﬁnancing agreement and the subordination of interest
      agreement, both parties executing the purchase and sale, security, or ﬁnancing
      agreement must make every eﬀort to ensure that there are no conﬂicts or inconsistencies
      between the two agreements. The seller/servicer must include with each request
      for approval of a proposed transfer of an interest in servicing income a copy
      of the related proposed purchase and sale, security, or ﬁnancing agreement.
      The seller/servicer and the purchaser or ﬁnancier may amend the purchase and
      sale, security, or ﬁnancing agreement after Fannie Mae approves the transaction
      without obtaining Fannie Mae’s prior consent, as long as all representations
      and warranties made by the seller/servicer and the purchaser or ﬁnancier in
      the subordination of interest agreement will apply to such amendment; and the
      subordination of interest agreement does not specify that Fannie Mae’s prior
      written consent is required prior to any change in particular provisions of
      the purchase and sale, security, or ﬁnancing agreement. The purchaser or ﬁnancier
      must include in any ﬁnancing statement it ﬁles for recordation in connection
      with the purchase and sale, security, or ﬁnancing agreement a statement, in
      the form set forth in the subordination of interest agreement, that the security
      interest described in the ﬁnancing statement is subject and subordinate to all
      rights, powers, and prerogatives of Fannie Mae under, and in connection with
      the terms of the subordination of interest agreement and the Lender Contract.
      This includes, without limitation, the right of Fannie Mae to terminate the
      seller/servicer’s Lender Contract with or without cause and the right to sell,
      or have transferred, the seller/servicer’s Fannie Mae servicing rights as therein
      provided. The following table provides further instructions to the purchaser
      or ﬁnancier with regard to document submissions requirements. ✓ The purchaser
      or ﬁnancier must... Provide copies of the executed purchase and sale, security,
      or ﬁnancing agreement and any recorded ﬁnancing statement to Fannie Mae’s Mortgage
      Servicing Rights Pledges division (see F-4-02, List of Contacts). File for recording
      a proper release of the recorded ﬁnancing statement within ﬁve business days
      after the eﬀective date of the termination, transfer, or extinguishment of the
      security interest, notifying Fannie Mae’s Mortgage Servicing Rights Pledges
      division (see F-4-02, List of Contacts) of the ﬁling if the security interest
      is released or extinguished. Published May 13, 2026 108 Subordination of Interest
      Agreement Fannie Mae will not approve any request for the transfer of an interest
      in servicing income unless Fannie Mae, the seller/servicer, and the purchaser
      or ﬁnancier execute a subordination of interest agreement acceptable to Fannie
      Mae. Under the terms of the subordination of interest agreement, the purchaser
      or ﬁnancier’s interest is subordinate to all of Fannie Mae’s rights, powers,
      and prerogatives under the subordination of interest agreement and the Lender
      Contract. The purchaser or ﬁnancier has no claim or entitlement as a secured
      creditor against Fannie Mae, and Fannie Mae has no duty or obligation to the
      purchaser or ﬁnancier, except as otherwise expressly provided in the subordination
      of interest agreement. The subordination of interest agreement will provide
      that if the purchaser or ﬁnancier sells one or more participations in the interests
      acquired pursuant to the purchase and sale, security, or ﬁnancing agreement,
      the participants will beneﬁt under the purchase and sale, security, or ﬁnancing
      agreement and the subordination of interest agreement solely through the purchaser
      or ﬁnancier. Fannie Mae has the right, under the terms of its contracts with
      the seller/servicer, to terminate, sell, or transfer the servicing which creates
      the interest in servicing income. Under the terms of a subordination of interest
      agreement relating to the transfer of an interest in excess servicing compensation,
      the purchaser’s or ﬁnancier’s right to any interest in such excess servicing
      compensation and any payments with respect thereto will exist only as long as
      the seller/servicer is the servicer of the mortgage loans as to which an interest
      in excess servicing compensation has been transferred and is not in default
      of its obligations to Fannie Mae. In the case of a subordination of interest
      agreement relating to the transfer of an interest in the right to receive reimbursement
      of servicing advances, any servicing advances made by the seller/servicer prior
      to the termination, sale or transfer of the related servicing by Fannie Mae
      will be reimbursed by Fannie Mae in accordance with the terms of the seller/servicer’s
      Lender Contract. If the transfer of an interest in servicing income is secured
      by the seller/servicer’s pledge of all or part of its Fannie Mae servicing portfolio,
      the subordination of interest agreement will also contain provisions, similar
      to those described in the Acknowledgment Agreement that set forth the rights
      and responsibilities of the seller/servicer, the purchaser or ﬁnancier, and
      Fannie Mae with respect to the pledged servicing. The servicer’s failure to
      seek Fannie Mae’s approval for a transfer of an interest in servicing income
      or to execute the subordination of interest agreement could result in a suspension
      of its selling and servicing rights or in the termination of its Lender Contract,
      if it proceeds with an unauthorized transfer of an interest in servicing income.
      Recent Related Announcements There are no recently issued Announcements related
      to this topic. Published May 13, 2026 109'
  judgment: false
