source:
  type: guide
  id: fnma-svc-c-2.2-01
  authority: Fannie Mae Servicing Guide C-2.2-01 — Identifying and Disclosing Adjustment
    Errors
  description: Fannie Mae Servicing Guide C-2.2-01 — Identifying and Disclosing Adjustment
    Errors.
  coverage_tier: operative
obligations:
- id: fnma-svc-c-2.2-01-full
  canonical_id: fnma-svc-c-2.2-01-full
  section: Fannie Mae Servicing Guide C-2.2-01 — Identifying and Disclosing Adjustment
    Errors
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide C-2.2-01 — Identifying and Disclosing Adjustment
      Errors
    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: 'C-2.2-01, Identifying and Disclosing Adjustment Errors (11/12/2014)
      Introduction This topic contains the following: Overview Re-Amortizing the Mortgage
      Loan Calculating the New, Correct Monthly Payments Overview The servicer must
      verify all previous interest rate and payment adjustments were correctly handled
      for a mortgage loan before it corrects an identiﬁed adjustment error. When the
      servicer conﬁrms either an individual ARM adjustment error, or the cumulative
      eﬀect of several ARM adjustment errors, the servicer must make arrangements
      within 60 days to correct the error(s) in its and Fannie Mae’s records, adjust
      the borrower’s current interest rate and/or monthly payment without waiting
      for the next scheduled interest rate and/or monthly payment adjustment date
      (taking into consideration Fannie Mae’s policy on the applicability of any interest
      rate or payment caps speciﬁed in the mortgage loan documents), and notify the
      borrower about the eﬀect of the correction. If the servicer is unable to resolve
      an ARM adjustment error within 20 days of having received a borrower inquiry
      concerning the matter, it must send the borrower an interim response. The servicer
      must not report the correction of an ARM adjustment error or make an eﬀort to
      correct an erroneous remittance until it has discussed the speciﬁcs of the correction
      with its Fannie Mae Investor Reporting Representative (see F-4-02, List of Contacts).
      The servicer must follow all applicable procedures in Correcting ARM Adjustment
      Errors in F-1-01, Servicing ARM Loans. Re-Amortizing the Mortgage Loan Once
      the servicer veriﬁes the correct interest rate or monthly payment for each adjustment
      date that has occurred, it must re-amortize the mortgage loan to determine whether
      the borrower has been overcharged or undercharged. The mortgage loan must be
      re-amortized from the date of the ﬁrst erroneous adjustment through the date
      the LPI was applied. The servicer must follow the procedures in Re-amortizing
      the Mortgage Loan in F-1-01, Servicing ARM Loans to complete the re-amortization.
      Published May 13, 2026 222 Calculating the New, Correct Monthly Payments The
      servicer must determine whether the borrower’s monthly payment needs to be changed
      as a result of any ARM adjustment error. If the net eﬀect of correcting an adjustment
      error is an undercharge, it cannot be collected from the borrower, nor can the
      UPB of the mortgage loan be changed to oﬀset it. The servicer must follow the
      procedures in Calculating the New Monthly Payment After an Adjustment Error
      and Determining the Amount of an Under- or Overcharge Related to an Adjustment
      Error in F-1-01, Servicing ARM Loans to calculate the correct monthly payment.
      Recent Related Announcements There are no recently issued Announcements related
      to this topic.'
  judgment: false
