The process for changes servicers on a loan owned or guaranteed by the Federal National Mortgage Association is changing.
Mortgage servicers are required to obtain Fannie Mae’s prior written approval for all loans transferred from one sub-servicer to another by the master servicer.
Prior approval is also required when servicing is transferred from the master servicer to a sub-servicer or from the sub-servicer to the master servicer.
But the secondary lender is adding new requirements, according to Servicing Guide Announcement SVC-2013-29.
Fannie said that its Form 659, Request for Approval of Servicing Transfer, now requires the transferee servicer to indicate if there will be a sub-servicer involved in the servicing transfer.
In addition, as part of the transfer of servicing review, the Washington, D.C.-based company will also evaluate the performance and capacity of any sub-servicer that the transferee servicer elects to utilize.
The new policy impacts all transfer of servicing requests submitted on or after March 1, 2014.
