Fannie Mae Servicing Guide A2-1-02 — Servicer's Duties and Responsibilities Related to MBS Mortgage Loans

Fannie Mae Servicing Guide A2-1-02 — Servicer's Duties and Responsibilities Related to MBS Mortgage Loans

A2-1-02, Servicer’s Duties and Responsibilities Related to MBS Mortgage Loans (12/09/2020) Introduction This topic contains the following: Nature of the MBS Trust Prohibited Actions Servicing Requirements of MBS Mortgage Loans Nature of the MBS Trust The MBS Trust Agreements and the Trust Indentures clarify and document the various roles and capacities of Fannie Mae, including its responsibilities regarding the servicing of MBS mortgage loans. MBS mortgage loans are subject to a Trust Indenture or a Trust Agreement. The MBS trust documents are the governing documents for a Fannie Mae MBS trust and include key servicing requirements; set forth Fannie Mae’s roles as issuer, master servicer, guarantor, and trustee; and Published May 13, 2026 66 describe the servicer’s role as the direct servicer. Under the MBS Trust Agreements and the Trust Indentures, mortgage loans and the proceeds of those mortgage loans are held by Fannie Mae as trustee for the benefit of the MBS trusts and their beneficial owners, the MBS investors. The servicer is responsible for servicing MBS mortgage loans for the MBS trusts that own the mortgage loans. Fannie Mae is also the master servicer for the MBS trusts, and, in that capacity, contracts with the servicer as the direct servicer and has the responsibility for assuring that servicing is performed in accordance with the Trust Agreement or the Trust Indenture, as applicable. Daily servicing operations are performed by the direct servicers pursuant to the MSSC, the Servicing Guide, the MBS commitment and any other applicable agreement (such as a variance or special requirement) applicable to the purchase and servicing of mortgage loans in MBS trusts. The Trust Agreement uses the term “Servicing Contract” to refer to any of the agreements between the servicer and Fannie Mae relating to the servicing of MBS mortgage loans. By servicing MBS mortgage loans, the servicer agrees that a successor to Fannie Mae as master servicer for the MBS trusts automatically will succeed to the rights of Fannie Mae under any Servicing Contract and will have authority to enforce the terms and conditions of the applicable Servicing Contract, including the authority to terminate the servicer, in accordance with the terms of the Servicing Contract, and to appoint a replacement servicer; and Fannie Mae as trustee, on behalf of the trusts, and Fannie Mae as guarantor are third-party beneficiaries of the Servicing Contract between that servicer and Fannie Mae as master servicer, with the authority to enforce such contract under certain conditions. The servicer’s duties and responsibilities and its obligations under the Lender Contract do not change on the basis of whether the mortgage loan is a portfolio or MBS mortgage loan. Fannie Mae has fiduciary responsibilities to MBS certificate holders, and as such it imposes certain restrictions on the servicer’s authority as it relates to servicing MBS mortgage loans (some of which also may apply to mortgage loans that are not securitized). Prohibited Actions The servicer must not take the following actions with respect to an MBS mortgage loan: Sell or hypothecate the mortgage loan (or a participation interest in a mortgage loan), other than repurchasing it for its own account under the provisions of Chapter A1–3, Repurchases, Indemnifications, and Make Whole Payment Requests. Modify any of the terms of the mortgage loan (including the extension of a future advance or a release of a borrower from liability), unless either Fannie Mae agrees to a mortgage loan modification as a means of preventing foreclosure of the mortgage loan, or the servicer releases the borrower from liability in connection with an eligible property transfers as outlined in D1-4.1-02, Allowable Exemptions Due to the Type of Transfer. Repurchase or reclassify any MBS mortgage loan for the purpose of modifying any of the terms of the mortgage loan (including the extension of a future advance or a release of a borrower from liability), or Published May 13, 2026 67 for any other reason, unless Fannie Mae specifically permits or requires repurchase or reclassification, or unless Fannie Mae specifically agrees. See D2-3.1-02, Conditions of a First and Second Lien Mortgage Loan Modification for an MBS Mortgage Loan for additional information. Defer the exercise of any right to accelerate the mortgage loan debt, except as is consistent with Fannie Mae’s policy of considering certain types of transfers of ownership as exempt transactions or agreeing to forbearance or a repayment plan, or when considering mortgage loan modifications or payment deferrals for delinquent borrowers. See Section D1–4.1, Information Related to Transfers of Ownership Applicable to All Mortgage Loans for additional information. Exercise any “call option” provided for by the terms of a conventional mortgage loan, unless Fannie Mae normally requires such options to be exercised for mortgage loans in its portfolio. See D1-5-01, Call Options and Cross-Default Provisions for additional information. Release all or any portion of the property from the mortgage lien, except in accordance with the terms of the mortgage loan, an approved partial release, or under a court order or decree, and then only to the extent that Fannie Mae allows for, for mortgage loans in its portfolio. Accept a voluntary Mortgage Release under any conditions other than those Fannie Mae allows for, for mortgage loans in its portfolio, as described in D2-3.3-02, Fannie Mae Mortgage Release (Deed-in-Lieu of Foreclosure). Exercise any “put option” provided by a mortgage loan, such as the optional assignment of certain FHA Section 221 mortgage loans following their twentieth anniversary. Change an ARM index or the manner in which the index values are selected, unless specifically provided for in the mortgage loan documents. See Chapter C-2, Servicing ARM Loans and Chapter A1–3, Repurchases, Indemnifications, and Make Whole Payment Requests for additional information. Servicing Requirements of MBS Mortgage Loans The following mortgage loans, when securitized into an MBS pool directly from Fannie Mae’s portfolio (referred to as PFP mortgage loans), must be serviced as MBS mortgage loans: all mortgage loans that have been sold to Fannie Mae as whole mortgage loans, and any MBS mortgage loan that was reclassified into Fannie Mae’s portfolio. Note: This requirement does not change the servicer’s existing reporting and remitting requirements for these mortgage loans nor does it change the custodial depository requirements for the applicable remittance type under which these mortgage loans are serviced. Fannie Mae notifies the servicer of mortgage loans that have been securitized into an MBS pool. The servicer must code all of these mortgage loans in their records as MBS mortgage loans as soon as possible and service them in accordance with the provisions of the Servicing Guide applicable to MBS mortgage loans. The servicing requirements of an MBS Trust Agreement or Trust Indenture vary depending on the MBS trust documents under which a particular MBS mortgage loan was pooled. The following table describes the four categories of MBS trust documents. Published May 13, 2026 68 Category of MBS Trust Documents Description 1980’s Indentures The various fixed-rate or ARM Trust Indentures (each a “1980’s Indenture”) for MBS mortgage loan pools with issue dates up to and including May 1, 2007. 2007 Second Amended Trust Agreement The 2007 Second Amended Trust Agreement applies to MBS mortgage loan pools with issue dates from June 1, 2007 through December 1, 2008. 2009 Amended Trust Agreement The 2009 Amended Trust Agreement applies to MBS mortgage loan pools with issue dates from January 1, 2009 through May 1, 2016. 2016 Second Amended Trust Agreement The 2016 Second Amended Trust Agreement applies to MBS mortgage loan pools with issue dates on or after June 1, 2016. Not all workout options will be available for all MBS mortgage loans. Since the availability of a particular workout option for an MBS mortgage loan depends on the MBS trust documents under which that mortgage loan was pooled, the servicer must identify the issue date of the MBS in order to determine whether a workout option is available to a borrower. The use of one type or a combination of workout options is determined by facts and circumstances related to the particular mortgage loan and the borrower, as such facts and circumstances may change from time to time and include, but are not limited to: whether the workout option is available for the MBS mortgage loan based on which MBS trust documents apply to the MBS mortgage loan; and the applicable Servicing Guide provisions or, in the absence of Servicing Guide provisions, customary servicing practices of prudent servicers in servicing and administering mortgage loans for their own portfolios. In the Servicing Guide or through its contracts with servicers, Fannie Mae from time to time may limit the availability and application of certain servicing terms stated in a trust document. Thus, the Servicing Guide may be more restrictive than the MBS trust documents with respect to servicing provisions, but neither the Servicing Guide nor any contractual agreement (including variances and waivers) with a servicer may be more expansive than or otherwise inconsistent with the MBS trust documents. Recent Related Announcements The table below provides references to recently issued Announcements that are related to this topic. Announcements Issue Date Announcement SVC-2020-07 December 9, 2020 Published May 13, 2026 69 Announcements Issue Date Announcement SVC-2020-04 September 9, 2020 A2-1-03, Servicer's Duties and Responsibilities Related to Mortgage Loans with Resale Restrictions or Shared Equity Transactions (02/12/2025) Introduction This topic describes additional requirements only applicable to servicers. Overview Servicing Mortgage Loans Subject to Resale Restrictions or Shared Equity Transactions Overview This topic describes additional requirements only applicable to servicers. See Selling Guide Section B5-5.2, Loans with Resale Restrictions and Section B5-5.3, Shared Equity Transactions for information on resale restriction mortgage loans and shared equity transactions. Servicing Mortgage Loans Subject to Resale Restrictions or Shared Equity Transactions The servicer must service mortgage loans subject to resale restrictions (as described in Selling Guide Section B5-5.2, Loans with Resale Restrictions) or shared equity transactions (as described in Selling Guide Section B5-5.3, Shared Equity Transactions) in accordance with this Guide, the mortgage loan documents, the recorded resale restriction agreement or any shared equity transaction agreement, as applicable, and in compliance with applicable law. Any resale restrictions, including those related to a shared equity transaction, as applicable, must not impair the servicer's ability to carry out its general servicing duties and responsibilities in accordance with this Guide, including, but not limited to managing escrows, providing delinquency management and loss mitigation, and conducting default servicing including managing foreclosure proceedings. The servicer must notify its Fannie Mae Servicing Representative (see F-4-02, List of Contacts) if it becomes aware of any such impairments related to a mortgage loan. Failure by the parties to comply with any requirements of a resale restriction agreement or a shared equity Published May 13, 2026 70 transaction agreement, including, but not limited to the following, as applicable, must not impair the servicer's ability to carry out its obligations under this Guide, the mortgage loan documents, and applicable law: determining eligible homeowner or occupancy status, property maintenance and improvements, maintaining property and flood insurance, payment of fees and assessments, determining the property value and resale price, transfers to eligible transferees, the exercise of purchase option rights, and providing proper notifications to the borrower or servicer. The servicer shall have no obligation to enforce the terms and conditions of any resale restriction agreement or shared equity transaction agreement, as applicable. However, the servicer must cooperate with the shared equity program provider in carrying out its servicing-related obligations under any shared equity transaction agreement or the Community Land Trust Ground Lease Rider, as applicable. Pursuant to the terms of any resale restriction agreement or shared equity transaction agreement, as applicable, the servicer shall have the right but not the obligation to work with the borrower during an event of default under such agreement in order to protect the interests of Fannie Mae. Additionally, the servicer is authorized, but not required, to participate in any arbitration or mediation between the parties to any such agreement that the servicer believes may impact the servicing of the mortgage loans as required by this Guide. Unless the servicer has the borrower's prior written authorization, and only as permitted by applicable law, the servicer must not provide any notices required to be provided to the borrower in accordance with this Guide to any other party to the resale restriction agreement or shared equity transaction agreement, as applicable, including, but not limited to: notices provided in connection with early delinquency outreach and loss mitigation, legal notices, such as breach and acceleration letters, and any notice of foreclosure sale or Mortgage Release. However, the servicer must give notices of delinquency and any other notices to the shared equity program provider in accordance with the terms of any shared equity transaction agreement or the Community Land Trust Ground Lease Rider, as applicable, for purposes of preventing any disruption to the servicer in carrying out its obligations to assist a borrower who is facing default, including offering a workout option in accordance with the Guide. Shared Equity Transactions - Purchase Option A shared equity transaction agreement or Community Land Trust Ground Lease Rider, as applicable, may grant a program provider or its designee a purchase option or right of first refusal option to purchase the property securing the mortgage loan in the event of a proposed transfer of the property by the borrower, upon commencement of foreclosure proceedings after the borrower's failure to resolve a delinquency including through a workout option, or upon the servicer's acquisition of the property at foreclosure sale or through a Mortgage Release, after satisfying all amounts due under the mortgage loan. The servicer is responsible for adhering to Fannie Mae's established processes and time frames for completing routine foreclosure proceedings. See E-3.2, Initiating and Processing Foreclosure Proceedings for additional information. Published May 13, 2026 71 Additionally, the servicer must notify Fannie Mae of the shared equity program provider's acquisition of the property pursuant to a purchase option. See E-4.1-01, Notifying Fannie Mae of an Acquired Property for additional information. Shared Equity Transactions - Excess Proceeds The servicer must cooperate with the shared equity program provider to pay any excess proceeds due to the shared equity program provider in accordance with the terms of the shared equity transaction agreement. Excess proceeds are any proceeds that result from an eminent domain proceeding, foreclosure sale, Mortgage Release, or other transfer of the property securing the mortgage loan after the repayment in full of all amounts due under the mortgage and otherwise satisfying any of the borrower's defined maximum resale price interest in the property as described in the shared equity transaction agreement. Recent Related Announcements The table below provides references to recently issued Announcements that are related to this topic. Announcements Issue Date Announcement SVC-2025-01 February 12, 2025 Announcement SVC-2024-04 July 10, 2024 Announcement SVC-2023-03 May 10, 2023

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