A2-4.1-01, Establishing Loan Files (09/04/2024)

The seller must establish the individual mortgage loan file “loan file” when it originates a loan and clearly identifies each file with Fannie Mae’s loan number (and Fannie Mae’s participation and participation percentage interest and MBS pool number, if applicable). The loan file consists of the loan origination file, the loan custodial file, and the loan servicing file held by the seller, servicer, or a prior servicer arising from or related to the origination, sale, securitization, or servicing of a loan or acquired property, as applicable. The loan file includes all records needed to service the loan and support the validity of the loan, and must be readily accessible in connection with the servicing of the loan.

The loan origination file consists of the following:

• all documents, records and reports used to support the underwriting decision required by the Lender Contract;

• any documentation required by Fannie Mae or by law relating to the loan arising from or related to the origination, closing, sale, securitization, or delivery of a loan; and

• documents that are required as part of the post-closing mortgage loan file documentation requirements in the Selling Guide.

The following tables describe the documents included in the loan origination file and whether an original or a copy is required.

An asset verification report may be provided to DU for assessment for various purposes. Retention requirements will differ depending on the purpose of the assessment. The following table provides different examples of uses for asset verification reports and what they must contain.

Servicers that have collateral documents for manufactured home loans with application dates prior to August 24, 2003 must retain all such documents, but they are not required to obtain these documents if they do not already have possession of them.

For a manufactured home with an application date on or after August 24, 2003, collateral documents include the following:

In order to be prepared to meet special servicing and default management requirements for loans secured by manufactured homes, the servicer must ensure that all loans secured by manufactured homes are identified on their internal systems. If it comes to the attention of the servicer that it is servicing a loan secured by a manufactured home that was delivered to Fannie Mae without notation of Special Feature Code 235 (which is required to identify that property type), the servicer must initiate a post-purchase adjustment. See Fannie Mae’s website for additional information.

The seller/servicer must use the loan origination file to accumulate other pertinent servicing and liquidation information, including, the following:

• property inspection reports,

• copies of delinquency repayment plans,

• copies of disclosures of ARM loan interest rate and payment changes,

• documents related to insurance loss settlements, and

• foreclosure notices.

The loan custodial file consists of the custodial documents and all documents, books, records, and reports, in any format, required to be retained by the document custodian pursuant to the Servicing Guide or other Fannie Mae requirements.

The loan servicing file (including the file maintained with respect to an acquired property) consists of all documents, books, records, reports, and payment and escrow histories, in any format, arising from or related to the servicing of the mortgage loan or acquired property by the current servicer or any prior servicer. This includes those required at any time by the Lender Contract or an insurer and documents and records set forth in the Servicing Guide. The loan servicing file must also include copies of all documents or records that are used to evaluate a borrower and the property condition when determining the eligibility for a workout option.