Fannie Mae Selling Guide A2-3.3-01 — Compensatory Fees

Fannie Mae Selling Guide A2-3.3-01 — Compensatory Fees

A2-3.3-01, Compensatory Fees (07/30/2013) Introduction This topic contains information on the following subjects: Imposition of Compensatory Fees Compensatory Fees for the Late Payment of Commitment, Pair-Off, or Extension Fees Compensatory Fees for Failure to Comply with Commitment Provisions Compensatory Fees for Failure to Identify Mortgage Loans Subject to Loan-Level Price Adjustments Imposition of Compensatory Fees If a lender fails to comply with a specific requirement for origination, delivery, or servicing of loans, or if Fannie Mae determines that the lender’s overall performance is unsatisfactory, Fannie Mae may impose a fee to compensate Fannie Mae for damages and to emphasize the importance Fannie Mae places on a particular aspect of a lender’s performance. The compensatory fee may relate to the action the lender took, or failed to Published May 6, 2026 59 take, for a specific mortgage, or the impact that the lender’s deficiencies may have on Fannie Mae. Charging a compensatory fee does not limit Fannie Mae’s right to exercise any other remedy. See the Servicing Guide for additional information about compensatory fees. Compensatory Fees for the Late Payment of Commitment, Pair-Off, or Extension Fees Fannie Mae may impose a compensatory fee for late payment of commitment, pair-off, or extension fees. Such fee may be charged when a draft is returned unpaid by Fannie Mae’s ACH agent, or when Fannie Mae receives wire-transferred funds more than five business days after the date of the commitment or request for the pair-off or extension. The compensatory fee is the greater of $50 or a daily interest charge equal to the prime rate plus 3% of the fee that is due. The prime rate will be as published in The Wall Street Journal’s prime rate index (or an equivalent source) in effect on the date the commitment was issued, or the pair-off or extension took place. Fannie Mae will draft the appropriate compensatory fee—along with the past due commitment, pair-off, or extension fee—directly from the lender’s designated bank account. (See C2-1.1-02, General Information about Mandatory Commitment Pricing and Fees.) Compensatory Fees for Failure to Comply with Commitment Provisions Fannie Mae’s whole loan commitment terms are flexible so that lenders can comply with them under normal circumstances without difficulty. For example, to make good delivery on a mandatory commitment, lenders must deliver loans for which the total unpaid principal balance falls within specific tolerance parameters (for details, see C2-2-01, General Requirements for Good Delivery of Whole Loans). These flexibilities are provided to account for unusual circumstances beyond the lender’s control that prevent the lender from honoring its contractual obligations. However, Fannie Mae may impose compensatory fees when it has reason to believe that the lender had control over the situation or failed to comply with Fannie Mae requirements in an effort to take advantage of changing market conditions. Many factors are considered before imposing these compensatory fees; therefore, the exact fee to be charged depends on the lender’s overall performance, the lender’s explanation for its noncompliance, whether the lender has a history of noncompliance, and the amount of any previous compensatory fee that Fannie Mae imposed. Compensatory Fees for Failure to Identify Mortgage Loans Subject to Loan-Level Price Adjustments If a lender consistently fails to identify or incorrectly identifies mortgage loans that are subject to loan-level price adjustments, Fannie Mae may impose a compensatory fee. Published May 6, 2026 60 Fannie Mae will take the following factors into consideration: the lender’s overall performance, the lender’s explanation for its noncompliance, previous instances of noncompliance, and the amount of any previous compensatory fee that Fannie Mae imposed. Recent Related Announcements There are no recently issued Announcements related to this topic. Chapter A2-4, Loan Files and Records Introduction This chapter includes information on the loan files and records that lenders must maintain in connection with each mortgage loan that is sold to Fannie Mae, as well as the ownership of those records, Fannie Mae access to the records, and record retention and storage requirements. It also describes Fannie Mae’s requirements for electronic records, signatures, and transactions. Section A2-4.1, Establishment, Ownership, and Retention of Loan Files and Records

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