Fannie Mae Selling Guide B8-3-02 — Special Note Provisions and Language Requirements
Fannie Mae Selling Guide B8-3-02 — Special Note Provisions and Language Requirements.
Verbatim regulatory text
Verbatim provisions from Fannie Mae Selling Guide B8-3-02 — Special Note Provisions and Language Requirements — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Fannie Mae Selling Guide B8-3-02 — Special Note Provisions and Language Requirements
B8-3-02, Special Note Provisions and Language Requirements (06/03/2020) Introduction This topic contains information on special note provisions and language requirements, including: Late Charges for Conventional Mortgages Requirement for Unit Number Mandatory Arbitration Late Charges for Conventional Mortgages The note for a conventional first mortgage must include information about the late charge to be assessed for any payment that is not received by the 15th day after it becomes due. The amount of the late charge must meet the following requirements: The amount must be permissible under applicable law. The late charge must be a minimum of 0% and up to 5% of the principal and interest (P&I) payment. Requirement for Unit Number If the subject property is a condo or other property type that is identified by a unit number, the unit number must be included in the property address on the note. Mandatory Arbitration Mandatory arbitration is a loan provision or an agreement accompanying the loan that requires the borrower to submit to arbitration any disputes arising out of or relating in any way to the mortgage transaction. Mortgages that are subject to mandatory arbitration are ineligible for sale to, or securitization by, Fannie Mae unless the mandatory arbitration provision provides that, in the event of a transfer or sale of the mortgage or an interest in the mortgage to Fannie Mae, the mandatory arbitration clause immediately and automatically becomes null and void and cannot be reinstated. The lender must provide the borrower with written notice of the waiver provision within 60 days of the transfer or sale of the mortgage to Fannie Mae. That notice must contain substantially the following language: Pursuant to your mortgage documents, Fannie Mae is hereby notifying you that an interest in your loan has been transferred or sold to Fannie Mae and therefore the mandatory arbitration clause of your loan, requiring that you submit to arbitration to resolve any dispute arising out of or relating in any way to your mortgage, is immediately null and void. The lender and servicer shall maintain a copy of such notice in the mortgage file.
Operationalizing Fannie Mae Selling Guide B8-3-02 — Special Note Provisions and Language Requirements
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Source of record: https://claudeforcompliance.com/regs/fnma-sel-b8-3-02/
· register fnma-sel-b8-3-02 · Claude for Compliance. Free to read and download;
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