source:
  type: guide
  id: fnma-sel-c3-2-02
  authority: Fannie Mae Selling Guide C3-2-02 — Selecting a Servicing Option
  description: Fannie Mae Selling Guide C3-2-02 — Selecting a Servicing Option.
  coverage_tier: operative
obligations:
- id: fnma-sel-c3-2-02-full
  canonical_id: fnma-sel-c3-2-02-full
  section: Fannie Mae Selling Guide C3-2-02 — Selecting a Servicing Option
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide C3-2-02 — Selecting a Servicing Option
    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: 'C3-2-02, Selecting a Servicing Option (04/01/2009) Introduction
      This topic provides information about the two options lenders must choose from
      when deciding how they wish to service loans pooled into MBS. These options
      include: Impact of Servicing Option Selection on Guaranty Fees Regular Servicing
      Option Special Servicing Option Impact of Servicing Option Selection on Guaranty
      Fees Guaranty fees are aﬀected by the servicing option chosen by the lender.
      Generally, the guaranty fee for pooled loans serviced under the Regular Servicing
      option is typically lower than for pooled loans serviced under the Special Servicing
      option. Regular Servicing Option Under the Regular Servicing option (identiﬁed
      by foreclosure risk code L), the lender assumes the entire risk of loss from
      a borrower default while servicing the mortgage and, as a result, is charged
      a lower guaranty fee. The lender also agrees to provide for a successor to this
      agreement if it transfers its responsibilities for servicing the mortgage to
      another servicer. Special Servicing Option Under the Special Servicing option
      (identiﬁed by foreclosure risk code F), Fannie Mae assumes the risk of loss
      from a borrower default. Fannie Mae reimburses the lender for its share of the
      lender’s unrecovered advances for delinquencies and advances related to servicing
      the mortgages. See the Servicing Guide for more information about both options.
      Recent Related Announcements There are no recently issued Announcements related
      to this topic.'
  judgment: false
