This topic describes some of the seller’s, servicer’s and seller/servicer’s contractual arrangements, including:
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.
Certain mortgage loan types 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, and
electronic mortgages (eMortgages).
Sellers/servicers may request approval to deliver these loans through their Fannie Mae customer account team. Sellers/servicers may not deliver 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 deliver HomeStyle Renovation mortgages must also complete a Special Lender Approval Form (Form 1000A).
Fannie Mae reserves the right to cease approving sellers/servicers for or accepting deliveries of any or all of the mortgage loan types listed above from any or all sellers/servicers. The decision to no longer accept deliveries 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.
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.
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.
The following table describes some general contract terms.
|GENERAL CONTRACT TERMS|
|Joint and Several Responsibility||Unless Fannie Mae otherwise agrees in writing,
upon the transfer of servicing loans:
|Terminology and General Conventions||
|Glossary of Defined Terms||A glossary of defined terms is included in the Guides.|
|Independent Contractor||The servicer services Fannie Mae loans as an independent contractor and not as an agent, assignee, or representative of Fannie Mae.|
|Assignment||A seller, servicer or seller/servicer
may not, without Fannie Mae’s prior written consent, assign:
Fannie Mae may assign its participation interest in any mortgage and all rights in the mortgages owned under the Lender Contract or any other instruments.
|No Third Party Beneficiaries||No borrower or other third party is a third party beneficiary of the Lender Contract or obtains any rights through the Lender Contract or any of our seller, servicer or seller/servicer communications.|
|Notice of Termination||Any notice of termination of the Lender Contract or any component must be in writing and delivered by hand, electronic mail (with electronic confirmation of delivery), overnight express or similar service (fees prepaid), or first-class United States registered or certified mail with return receipt requested (postage prepaid), to the applicable party at its address specified in the MSSC (which may be changed by written notice).|
|Governing Law||New York state law without regard to its conflict of law rules.|