FNMA Servicing Guide A2-3 — Servicer Compensation

fnma-svc-a2-3

FNMA Servicing Guide A2-3 covers servicer compensation structure — servicing fees, ancillary fee retention (late charges, fees for specified servicing activities, yield differential adjustments, prepayment premiums under negotiated contracts), the cost-bears allocation, the negative-amortization fee-calculation rule, and the flat prohibition on sale, assignment, transfer, pledge, or hypothecation of servicing compensation or rights except per A2-7-02. Fills the long-standing A3 compensation library gap.

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source:
  type: regulation
  id: fnma-svc-a2-3
  authority: FNMA Servicing Guide A2-3 — Servicer Compensation
  description: |
    FNMA Servicing Guide A2-3 covers servicer compensation structure —
    servicing fees, ancillary fee retention (late charges, fees for
    specified servicing activities, yield differential adjustments,
    prepayment premiums under negotiated contracts), the cost-bears
    allocation, the negative-amortization fee-calculation rule, and the
    flat prohibition on sale, assignment, transfer, pledge, or
    hypothecation of servicing compensation or rights except per A2-7-02.
    Fills the long-standing A3 compensation library gap.
obligations:
  - id: fnma-svc-a2-3-no-pledge-or-sale-of-servicing-compensation
    canonical_id: fnma-svc-a2-3-no-pledge-or-sale-of-servicing-compensation
    section: FNMA Servicing Guide A2-3-01 — Prohibition on pledge / sale / transfer of servicing compensation
    description: |
      [LENDER] (servicer) shall NOT sell, assign, transfer, pledge, or
      hypothecate its servicing compensation (or any portion thereof),
      nor enter into any agreement that would result in such a sale,
      assignment, transfer, pledge, or hypothecation of that income or
      of [LENDER]'s servicing rights — except under the specific
      conditions and circumstances set forth at A2-7-02 (Pledge of
      Servicing Rights and Transfer of Interest in Servicing Income).
    type: refrain
    audit_question: For every agreement [LENDER] has entered into that touches its servicing compensation or servicing rights, can [LENDER] evidence either (a) the agreement does not effect a sale / assignment / transfer / pledge / hypothecation, or (b) the agreement is structured per the A2-7-02 conditions?
    program_review: Does the program ensure servicing compensation/rights are not sold, assigned, transferred, pledged, or hypothecated except under the A2-7-02 conditions?
    file_review: Review any agreement touching servicing compensation/rights; confirm it either effects no transfer/pledge or is structured per A2-7-02.
    judgment: false
    feeds: []
    workflow_phase: general_servicing_ops
    owner_role: legal_counsel
    secondary_owner_role: compliance_officer
    cadence: continuous
    consequence: FNMA reps-and-warranties breach; potential cancellation of servicing approval; investor claim recovery.
    tags:
      - round-d
      - regulator-direct
      - fnma
      - servicer-compensation
      - servicing-rights
      - prohibited-transactions
      - promoted
    primary_source:
      tier: 1
      authority: FNMA Servicing Guide A2-3-01 — Servicer Compensation
      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 may not sell, assign, transfer, pledge, or hypothecate its servicing compensation (or any portion of it) or enter into any agreement that would result in the sale, assignment, transfer, pledge, or hypothecation of
      drafter_attestation: |
        Copied verbatim from snapshot f662f911b3ddaf1d. A2-3-01 servicing-
        rights-pledge prohibition clause. A2-7-02 exception paraphrased
        in description.
    promoted_at: '2026-05-25T17:56:47+00:00'
    promoted_from: fnma-svc-a2-3-roundd-v1.yaml
  - id: fnma-svc-a2-3-neg-am-fee-on-accrued-interest
    canonical_id: fnma-svc-a2-3-neg-am-fee-on-accrued-interest
    section: FNMA Servicing Guide A2-3-01 — Negative amortization servicing-fee calculation
    description: |
      When a mortgage loan is undergoing negative amortization, [LENDER]
      (servicer) shall base its servicing fee on the interest amount
      that is ACCRUED, rather than on the amount that was actually
      collected. This protects FNMA's economic interest by ensuring the
      servicer is not over-compensated relative to the deferred-interest
      reality of the loan.
    type: do
    audit_question: For every negatively-amortizing FNMA-owned loan in [LENDER]'s portfolio, can [LENDER] evidence that the servicing fee was computed on accrued interest (per A2-3-01) rather than on actually-collected interest?
    program_review: Does the program ensure the servicing fee on a negatively-amortizing loan is based on accrued interest, not collected interest?
    file_review: For neg-am loans, confirm the servicing fee was computed on accrued interest.
    judgment: false
    feeds: []
    workflow_phase: general_servicing_ops
    owner_role: payment_processing_specialist
    secondary_owner_role: compliance_officer
    cadence: per-monthly-cycle
    consequence: Over-charged servicing fees on neg-am loans must be refunded; reps-and-warranties exposure.
    tags:
      - round-d
      - regulator-direct
      - fnma
      - servicer-compensation
      - negative-amortization
      - servicing-fee-calculation
      - promoted
    primary_source:
      tier: 1
      authority: FNMA Servicing Guide A2-3-01 — Calculating and Collecting Servicing Fees
      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: |
        when a mortgage loan is undergoing negative amortization, servicing fees must be based on the interest amount that is accrued, rather than on the amount that was actually collected.
      drafter_attestation: |
        Copied verbatim from snapshot f662f911b3ddaf1d. A2-3-01 negative-
        amortization servicing-fee operative clause.
    promoted_at: '2026-05-25T17:56:47+00:00'
    promoted_from: fnma-svc-a2-3-roundd-v1.yaml
  - id: fnma-svc-a2-3-servicer-bears-servicing-cost
    canonical_id: fnma-svc-a2-3-servicer-bears-servicing-cost
    section: FNMA Servicing Guide A2-3-01 — Servicer bears the cost of servicing
    description: |
      As provided in the Lender Contract, [LENDER] (servicer) BEARS the
      cost of servicing mortgage loans sold to Fannie Mae, except as
      expressly provided otherwise in Fannie Mae's Guides. The servicing
      fee that Fannie Mae pays plus the other authorized revenue sources
      (late charges, specified-activity fees, yield differential
      adjustments, negotiated prepayment premiums) are intended to
      compensate the servicer for a variety of standard servicing
      activities — there is no separate cost-reimbursement absent
      explicit Guide authorization.
    type: do
    audit_question: Does [LENDER]'s servicer-compensation accounting acknowledge that [LENDER] bears the cost of servicing FNMA-owned loans (with revenue limited to the authorized fee + ancillary sources), absent express Guide-provided cost reimbursement?
    program_review: Does the program's compensation accounting acknowledge the servicer bears servicing cost (revenue limited to the fee + authorized ancillary sources) absent express Guide-provided reimbursement?
    file_review: Review the servicer-compensation accounting; confirm no cost reimbursement was taken absent explicit Guide authorization.
    judgment: false
    feeds: []
    workflow_phase: general_servicing_ops
    owner_role: compliance_officer
    secondary_owner_role: chief_financial_officer
    cadence: continuous
    consequence: Unjustified cost-reimbursement claims to FNMA are reps-and-warranties breach.
    tags:
      - round-d
      - regulator-direct
      - fnma
      - servicer-compensation
      - cost-allocation
      - promoted
    primary_source:
      tier: 1
      authority: FNMA Servicing Guide A2-3-01 — Servicer Compensation
      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 bears the cost of servicing mortgage loans sold to Fannie Mae, except as expressly provided otherwise in Fannie Mae
      drafter_attestation: |
        Copied verbatim from snapshot f662f911b3ddaf1d. A2-3-01 servicer-
        bears-cost operative clause. Quote stops before "'s Guides" to
        avoid the U+2019 curly apostrophe; the Guide-exception is
        paraphrased in description.
    promoted_at: '2026-05-25T17:56:48+00:00'
    promoted_from: fnma-svc-a2-3-roundd-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-25T17:56:48+00:00'
    candidate_path: obligations\_remediation\round-d-investor-guides\fnma-svc-a2-3-roundd-v1.yaml
    candidates_promoted: 3
    candidates_skipped_existing: 0

Verbatim regulatory text (3)

Verbatim provisions from FNMA Servicing Guide A2-3 — Servicer Compensation — 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.

FNMA Servicing Guide A2-3-01 — Prohibition on pledge / sale / transfer of servicing compensation

The servicer may not sell, assign, transfer, pledge, or hypothecate its servicing compensation (or any portion of it) or enter into any agreement that would result in the sale, assignment, transfer, pledge, or hypothecation of

Source: FNMA Servicing Guide A2-3-01 — Servicer Compensation · source URL · snapshot f662f911b3ddaf1d

FNMA Servicing Guide A2-3-01 — Negative amortization servicing-fee calculation

when a mortgage loan is undergoing negative amortization, servicing fees must be based on the interest amount that is accrued, rather than on the amount that was actually collected.

Source: FNMA Servicing Guide A2-3-01 — Calculating and Collecting Servicing Fees · source URL · snapshot f662f911b3ddaf1d

FNMA Servicing Guide A2-3-01 — Servicer bears the cost of servicing

the servicer bears the cost of servicing mortgage loans sold to Fannie Mae, except as expressly provided otherwise in Fannie Mae

Source: FNMA Servicing Guide A2-3-01 — Servicer Compensation · source URL · snapshot f662f911b3ddaf1d