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A4-1-03, Report of Changes in the Seller/Servicer’s Organization (05/01/2024)

Introduction
This topic contains information on the reporting of changes in the seller/servicer’s organization.

Report of Changes in the Seller/Servicer’s Organization

The seller/servicer must send us 60 days’ advance written notice of any proposed major change in its organization to allow us adequate time to provide our prior written approval or notice of non-objection or objection, where required. The written notice must include copies of any filings with, or approvals from, the seller/servicer’s state or other regulatory authority. The seller/servicer is also required to provide immediate written notice to us if a regulatory agency assumes a participatory role in the management of the seller/servicer’s operations.

A seller/servicer’s failure to provide adequate written notice of or obtain prior written approval or notice of non-objection (where required) for such contemplated changes is a breach of the Lender Contract.

The seller/servicer must contact its customer account team for additional guidance or may email the notice to the Changes in Lender Organization mailbox (see E-1-02, List of ContactsE-1-02, List of Contacts).

In addition to advance written notice, major changes of the following types require Fannie Mae’s prior written approval of or notice of non-objection before the change is made.

Type of Change
  Any mergers, consolidations, or reorganizations
  The sale of all or substantially all of the seller/servicer’s assets or the purchase of all or substantially all of the assets of another Fannie Mae-approved seller or servicer
  Any substantial change in ownership (including a new owner or partner with a 5% or more interest), regardless of whether it is by direct or indirect means (indirect means include any change in the ownership of the seller/servicer’s parent, any owner of the parent, or any other beneficial owner of the seller/servicer that does not own a direct interest in the seller/servicer)
  A change in an organization’s legal structure or charter

Other major changes require advance written notification in the form of an email to the Changes in Lender Organization mailbox (see E-1-02, List of ContactsE-1-02, List of Contacts), but do not require Fannie Mae’s prior written approval or notice of non-objection. Examples of those types of changes are described below.

Examples
  The change of any senior management personnel (including principal officers or decision makers)
  A significant change in the lender’s financial position
  A change in the legal name of the lender’s organization
  A change in the address of its principal place of business

Recent Related Announcements

The table below provides references to recently issued Announcements that are related to this topic.

Announcements Issue Date
Announcement SEL-2024-03 May 01, 2024