source:
  type: regulation
  id: fnma-svc-a4-1-02
  authority: "FNMA Servicing Guide A4-1-02 — Establishing Custodial Bank Accounts"
  description: 'FNMA Servicing Guide A4-1-02 governs custodial bank accounts for

    servicer-held P&I and T&I funds: mandatory custodial-account holding

    for portfolio and MBS loan funds, servicer responsibility for

    safekeeping at all times (including FNMA-recovery liability for any

    loss), monthly status reporting to FNMA, eligible custodial

    depository criteria (FDIC/NCUSIF insured, well-capitalized,

    financial ratings), continuous depository-eligibility monitoring,

    and 3-business-day FNMA notification if depository falls below

    eligibility thresholds. Fills FNMA Servicing A4-1-02 gap.

    '
obligations:
- id: fnma-svc-a4-1-02-hold-funds-in-custodial-bank-account
  canonical_id: fnma-svc-a4-1-02-hold-funds-in-custodial-bank-account
  section: "FNMA Servicing Guide A4-1-02 — Hold mortgage-loan funds in custodial bank account"
  description: '[LENDER] (servicer) shall hold in a custodial bank account any

    funds it receives for a portfolio mortgage loan or a MBS mortgage

    loan. Commingling of borrower escrow/P&I funds with the servicer''s

    operating funds is a Servicing Guide breach. The custodial

    structure protects FNMA''s beneficial interest in borrower funds

    regardless of servicer financial health.

    '
  type: do
  audit_question: For every FNMA-owned/MBS-pooled mortgage loan, can [LENDER] evidence (via bank statements, depository agreements, and reconciliation logs) that borrower funds are held in segregated custodial bank accounts and not commingled with [LENDER]'s operating funds?
  workflow_phase: general_servicing_ops
  owner_role: chief_servicing_officer
  secondary_owner_role: treasury_manager
  cadence: continuous
  consequence: Commingling is a Servicing Guide breach and exposes borrower funds to seizure by servicer creditors; FNMA enforcement risk.
  tags:
  - round-d
  - regulator-direct
  - fnma
  - servicer-operations
  - custodial-accounts
  - no-commingling
  - promoted
  primary_source:
    tier: 1
    authority: "FNMA Servicing Guide A4-1-02 — Overview"
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
    snapshot_id: f662f911b3ddaf1d
    fetched_at: '2026-05-25T14:09:40Z'
    content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
    paragraph_quote: 'The servicer must hold in a custodial bank account any funds it receives for a portfolio mortgage loan or a MBS mortgage loan.

      '
    drafter_attestation: 'Copied verbatim from snapshot f662f911b3ddaf1d. A4-1-02 hold-funds-

      in-custodial-account operative requirement.

      '
  promoted_at: '2026-05-25T18:50:14+00:00'
  promoted_from: fnma-svc-a4-1-02-roundd-v1.yaml
  program_review: Does the program ensure all funds received for a portfolio or MBS mortgage loan are held in segregated custodial bank accounts, with no commingling with operating funds?
  file_review: Review bank statements, depository agreements, and reconciliations; confirm borrower funds are segregated and not commingled.
  judgment: false
- id: fnma-svc-a4-1-02-safekeeping-custodial-funds-at-all-times
  canonical_id: fnma-svc-a4-1-02-safekeeping-custodial-funds-at-all-times
  section: "FNMA Servicing Guide A4-1-02 — Servicer responsibility for safekeeping at all times"
  description: '[LENDER] (servicer) shall be responsible for the safekeeping of

    custodial funds at all times. EVEN IF [LENDER] has complied with

    all of the requirements of the Servicing Guide, Fannie Mae will

    hold [LENDER] responsible for any loss of funds deposited in a

    custodial account and any damages Fannie Mae incurs because of

    delays in obtaining the funds from the custodial account. This

    strict-liability allocation is operationally significant.

    '
  type: do
  audit_question: Can [LENDER] evidence the safekeeping controls (depository monitoring, segregation, reconciliation, depository-failure response procedures) it operates over custodial funds and demonstrate it understands the FNMA strict-liability allocation for custodial fund losses?
  workflow_phase: general_servicing_ops
  owner_role: chief_servicing_officer
  secondary_owner_role: treasury_manager
  cadence: continuous
  consequence: Custodial-fund loss or recovery delay triggers FNMA make-whole liability against servicer, irrespective of compliance with other Servicing Guide rules.
  tags:
  - round-d
  - regulator-direct
  - fnma
  - servicer-operations
  - custodial-accounts
  - safekeeping-strict-liability
  - promoted
  primary_source:
    tier: 1
    authority: "FNMA Servicing Guide A4-1-02 — Overview"
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
    snapshot_id: f662f911b3ddaf1d
    fetched_at: '2026-05-25T14:09:40Z'
    content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
    paragraph_quote: 'The servicer is responsible for the safekeeping of custodial funds at all times.

      '
    drafter_attestation: 'Copied verbatim from snapshot f662f911b3ddaf1d. A4-1-02

      safekeeping-at-all-times operative requirement. Strict-liability

      elaboration (loss + delay damages) paraphrased in description.

      '
  promoted_at: '2026-05-25T18:50:14+00:00'
  promoted_from: fnma-svc-a4-1-02-roundd-v1.yaml
  program_review: Does the program operate safekeeping controls (depository monitoring, segregation, reconciliation, depository-failure response) reflecting FNMA's strict-liability allocation for custodial fund losses even with full Guide compliance?
  file_review: Review the safekeeping controls; the compliance person judges whether they are adequate given strict liability for custodial-fund loss.
  judgment: true
- id: fnma-svc-a4-1-02-monthly-status-of-funds
  canonical_id: fnma-svc-a4-1-02-monthly-status-of-funds
  section: "FNMA Servicing Guide A4-1-02 — Monthly status of funds report to Fannie Mae"
  description: '[LENDER] (servicer) shall provide Fannie Mae with a status of the

    funds in the custodial account at the end of each month. The

    monthly status report is operational: it lets FNMA reconcile

    custodial balances against expected scheduled/actual remittances.

    '
  type: do
  audit_question: Can [LENDER] produce monthly custodial-account status submissions to Fannie Mae for the audit period, with evidence of timely transmission and reconciliation against FNMA expected-balance records?
  workflow_phase: investor_reporting
  owner_role: investor_reporting_manager
  secondary_owner_role: treasury_manager
  cadence: monthly
  consequence: Missing or late status reports impair FNMA reconciliation and trigger Servicer Performance scorecard penalties.
  tags:
  - round-d
  - regulator-direct
  - fnma
  - servicer-operations
  - custodial-accounts
  - monthly-status-report
  - promoted
  primary_source:
    tier: 1
    authority: "FNMA Servicing Guide A4-1-02 — Overview"
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
    snapshot_id: f662f911b3ddaf1d
    fetched_at: '2026-05-25T14:09:40Z'
    content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
    paragraph_quote: 'The servicer must provide Fannie Mae with a status of the funds in the custodial account at the end of each month.

      '
    drafter_attestation: 'Copied verbatim from snapshot f662f911b3ddaf1d. A4-1-02 monthly-

      custodial-status-report operative requirement.

      '
  promoted_at: '2026-05-25T18:50:14+00:00'
  promoted_from: fnma-svc-a4-1-02-roundd-v1.yaml
  program_review: Does the program ensure a custodial-account status is provided to Fannie Mae at the end of each month, reconcilable against expected remittances?
  file_review: Confirm monthly custodial-status submissions for the period and reconciliation against FNMA expected-balance records.
  judgment: false
- id: fnma-svc-a4-1-02-monitor-depository-ratings
  canonical_id: fnma-svc-a4-1-02-monitor-depository-ratings
  section: "FNMA Servicing Guide A4-1-02 — Monitor custodial depository ratings continuously"
  description: '[LENDER] (servicer) shall monitor depository institution ratings

    based on the frequency used by the ratings agency for publishing

    and updating rating changes to determine the continued eligibility

    of a depository institution. Eligible depository criteria include

    FDIC/NCUSIF insurance, "well capitalized" regulator rating, and

    specified S&P / Moody''s / IDC / KBRA-KFI minimum thresholds (which

    vary by depository asset size and remittance type).

    '
  type: do
  audit_question: Can [LENDER] produce its depository-ratings monitoring log showing rating-change pickups for every custodial-account-holding depository, with evidence the monitoring frequency matches each ratings agency's publication cycle?
  workflow_phase: vendor_management
  owner_role: treasury_manager
  secondary_owner_role: vendor_management
  cadence: continuous
  consequence: Missed depository downgrade leads to ineligible-depository condition without remediation; custodial-fund-risk + Servicing Guide breach.
  tags:
  - round-d
  - regulator-direct
  - fnma
  - servicer-operations
  - custodial-accounts
  - depository-monitoring
  - promoted
  primary_source:
    tier: 1
    authority: "FNMA Servicing Guide A4-1-02 — Eligible Custodial Depositories"
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
    snapshot_id: f662f911b3ddaf1d
    fetched_at: '2026-05-25T14:09:40Z'
    content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
    paragraph_quote: 'The servicer must monitor these ratings based on the frequency used by the ratings agency for publishing and updating rating changes to determine the continued eligibility of a depository institution.

      '
    drafter_attestation: 'Copied verbatim from snapshot f662f911b3ddaf1d. A4-1-02 monitor-

      depository-ratings operative requirement. Specific rating

      thresholds (S&P A-3/BBB-, Moody''s P-3/Baa3, IDC 75/125, KBRA C/C+,

      FDIC/NCUSIF, well-capitalized) paraphrased in description.

      '
  promoted_at: '2026-05-25T18:50:14+00:00'
  promoted_from: fnma-svc-a4-1-02-roundd-v1.yaml
  program_review: Does the program ensure depository ratings are monitored at each ratings agency's publication frequency to determine continued eligibility (FDIC/NCUSIF insurance, well-capitalized, S&P/Moody's/IDC/KBRA-KFI thresholds by size/remittance type)?
  file_review: Review the depository-ratings monitoring log; confirm rating-change pickups at the agencies' publication cadence for each custodial depository.
  judgment: false
  feeds:
  - fnma-svc-a4-1-02-notify-fnma-3-business-days-depository-failure
- id: fnma-svc-a4-1-02-notify-fnma-3-business-days-depository-failure
  canonical_id: fnma-svc-a4-1-02-notify-fnma-3-business-days-depository-failure
  section: "FNMA Servicing Guide A4-1-02 — Notify FNMA within 3 business days of depository eligibility failure"
  description: '[LENDER] (servicer) shall notify Fannie Mae within three business

    days when its custodial depository fails to meet Fannie Mae''s

    eligibility requirements. Prompt notification triggers FNMA''s

    remediation menu (custodial-fund transfer, depository change,

    etc.) before borrower funds are exposed.

    '
  type: do
  audit_question: If a custodial depository fell below eligibility during the audit period, can [LENDER] evidence (a) detection date and (b) FNMA notification within 3 business days of detection?
  workflow_phase: vendor_management
  owner_role: treasury_manager
  secondary_owner_role: chief_servicing_officer
  cadence: per-depository-eligibility-event
  consequence: Late depository-failure notification exposes borrower funds to seizure-by-failed-bank risk; FNMA make-whole liability against servicer.
  tags:
  - round-d
  - regulator-direct
  - fnma
  - servicer-operations
  - custodial-accounts
  - 3-business-day-notification
  - promoted
  primary_source:
    tier: 1
    authority: "FNMA Servicing Guide A4-1-02 — Remedies for Ineligible Custodial Depository"
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
    snapshot_id: f662f911b3ddaf1d
    fetched_at: '2026-05-25T14:09:40Z'
    content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
    paragraph_quote: 'The servicer must notify Fannie Mae within three business days when its custodial depository fails to meet Fannie

      '
    drafter_attestation: 'Copied verbatim from snapshot f662f911b3ddaf1d. A4-1-02 3-business-

      day-notification operative requirement. Quote truncated before

      "Mae''s" U+2019 curly apostrophe; the eligibility-requirements tail

      paraphrased in description.

      '
  promoted_at: '2026-05-25T18:50:15+00:00'
  promoted_from: fnma-svc-a4-1-02-roundd-v1.yaml
  program_review: Does the program ensure Fannie Mae is notified within three business days when a custodial depository fails eligibility?
  file_review: For any depository eligibility failure, confirm the detection date and FNMA notification within 3 business days.
  judgment: false
_promotion_history:
- promoted_at: '2026-05-25T18:50:15+00:00'
  candidate_path: obligations\_remediation\round-d-investor-guides\fnma-svc-a4-1-02-roundd-v1.yaml
  candidates_promoted: 5
  candidates_skipped_existing: 0
