Fannie Mae Updates Servicing Guidelines for Multifamily Residences

Agency Rule-Making & Guidance Fannie Mae Lending Mortgage Servicing Federal Issues Servicing Guide

On September 29, Fannie Mae released updates to its servicing guidelines for multifamily residences, effective October 2. Fannie Mae is updating provisions concerning Asset Management and Watchlist Management. Changes include:

• removing color descriptions that previously corresponded to defined Mortgage Loan rating classifications;
• updating the rating classification descriptions and/or characteristics to conform to regulatory definitions for Pass/Watch and Special Mention Assets; and
• requiring Servicers provide an explanation and status of the issues causing an Asset to be reported on the Servicer Watchlist.