A2-1-01, Contractual Obligations for Sellers/Servicers (08/02/2023)

Role of MSSC

After Fannie Mae approves a seller or servicer or seller/servicer, both parties execute the Mortgage Selling and Servicing Contract (MSSC) and any other relevant agreements. The continuation of that relationship depends on both parties honoring the mutual promises in the Lender Contract.

The MSSC establishes the basic legal relationship between a seller, servicer or seller/servicer and Fannie Mae and

• establishes the entity as an approved seller of mortgages and participation interests or an approved servicer of mortgages or both; and

• incorporates by reference the Selling Guide, the Servicing Guide, the Requirements for Document Custodians, Software Subscription Agreement, Manuals, Announcements, Lender Letters, Release Notes, Notices, directives and other documents which may be incorporated by reference into the Guides, all as amended or supplemented from time to time.

Special Seller/Servicer Approval and MSSC Addendum

Certain loan types or processes require special approval. The following special approvals will be documented by an addendum to the Mortgage Selling and Servicing Contract (MSSC) between Fannie Mae and the seller/servicer:

• co-op share loans,

• HomeStyle Renovation mortgages,

• electronic mortgages (eMortgages), and

• bifurcation servicer in Servicing Marketplace (SMP).

Sellers/servicers may request approval to sell these loans or acquire servicing in SMP through their Fannie Mae customer account team. Sellers/servicers may not sell or service these loan types unless they obtain the applicable special approval and execute any additional agreements required by Fannie Mae. Sellers/servicers that apply for special approval to sell HomeStyle Renovation mortgages must also complete a Special Lender Approval Form (Form 1000A).

Fannie Mae reserves the right to cease approving sellers/servicers, or for purchasing any or all of the loan types listed above from any or all sellers/servicers, and to cease approving servicers for acquisition, or allowing the transfer of servicing in SMP. The decision to no longer purchase such loans or permit the acquisition of servicing in SMP may result in an amendment to, or the termination of, the special approval. Fannie Mae will provide the affected seller/servicer with reasonable notice of this decision. If the decision affects a seller/servicer's ability to fulfill any required mandatory delivery amount under its Lender Contract, Fannie Mae will consider alternatives through which the seller/servicer can fulfill its delivery obligation.

Lender Contract: Integration and Non-Divisibility

The MSSC and all of the documents referenced above, together with any other agreements with Fannie Mae that provide for additional obligations to Fannie Mae, such as commitments, variances, special requirements, technology agreements, and collateral agreements, are together referred to as the “Lender Contract” and form a single, integrated contract.

A servicer or seller/servicer’s benefits and obligations to service loans under the Lender Contract are integrated and cannot be separated from the seller’s or seller/servicer’s benefits and obligations to sell loans under the Lender Contract.

Fannie Mae relies on this integration and non-divisibility in entering into, and continuing to be bound by, the Lender Contract and in consenting to a servicing transfer.

Amendments to the Guides

All of Fannie Mae’s communications (Guides, Manuals, Announcements, Lender Letters, Release Notes, and Notices and directives) are incorporated into the Guides by reference, and are effective on the dates specified in such documents. Certain information and requirements posted on Fannie Mae's website are also incorporated by reference into the Guides.

Fannie Mae transmits communications to sellers, servicers and seller/servicers by posting them on Fannie Mae’s corporate website (or other websites as Fannie Mae may establish in the future). Fannie Mae also publishes some communications (for convenience) via AllRegs.

General Contract Terms

The following table describes some general contract terms.