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T4 FANNIE_MAE High Confidence Guidance

Announcement SVC-2025-06 – Servicing Guide Update

Alignment with Bankruptcy Rule 3002.1 amendments and clarification of existing GSE servicing requirements

LOW
Impact Level
Top: Compliance (2)

Advisory Assessment

Impact. This Fannie Mae servicing guide update revises bankruptcy procedures and fee structures, requiring updates to your allowable attorney fee schedules and renaming certain bankruptcy notice responses. The most substantial change establishes a voluntary repurchase requirement for recourse or indemnified loans before bankruptcy cramdowns take effect.

Risk. With effective dates already passed, your institution faces immediate examination exposure if bankruptcy servicing procedures and fee schedules remain outdated. Loan-level compliance gaps will surface during any GSE quality control reviews or regulatory examinations focused on bankruptcy servicing practices.

Recommended Action. Legal should immediately audit current bankruptcy attorney fee agreements against the updated Fannie Mae schedule and confirm all required procedure updates are in place. Operations needs to verify that bankruptcy servicing workflows reflect the cramdown policy clarifications and notice renaming requirements that took effect months ago.

Watch. Monitor upcoming GSE quality control sampling for any findings related to these bankruptcy procedure changes, as enforcement activity typically follows expired implementation deadlines. Track whether Freddie Mac issues parallel guidance that could require additional procedural alignment.

Classification

Regulatory Program
GSE Servicing Requirements
Doc Type
Guidance
Effective Date
2025-12-01
Days to Action
-227
Comment Deadline
Published
2025-11-12

Urgency Basis

Earliest effective date was December 1, 2025, which is over 180 days past the current date of May 19, 2026

Operational Context

Flags
Legal Review Required
Affected Functions
Compliance Operations Legal
Institution Applicability
All

Impact by Category

Compliance
2
Operational
2
Data Governance
0
Model Risk
0
Reporting & Disclosure
1
Capital & Liquidity
0
Consumer Protection
1
Third-Party Risk
1

Key Requirements

- Update allowable bankruptcy attorney fee schedules to include Response to Motion to Determine Status fee by December 1, 2025 - Rename Response to Final Cure Payment Notice to Response to Trustee's Notice of Disbursements Made - Implement voluntary repurchase requirement for recourse/indemnified loans before bankruptcy cramdowns by February 1, 2026 - Update bankruptcy servicing procedures to reflect cramdown policy clarification

Scoring Rationale

This is a routine GSE servicing guide update with incremental changes to bankruptcy procedures and attorney fees. The compliance score reflects new obligations but limited scope. Operational impact is low, affecting primarily bankruptcy servicing workflows. The guidance nature and limited scope justify the low aggregate score, though the effective dates have already passed as of the current reference date.

Scored: 2026-05-19T04:01:21.393Z Model: claude-sonnet-4-20250514 Confidence: High Aggregate Score: 1.4
AI Analysis Disclosure — This record, including its scores, impact assessments, and Advisory Assessment (impact, risk, and recommended actions), was generated by an AI model and may contain errors or omissions. The Advisory Assessment is a starting point for analysis, not a substitute for professional judgment. Effective dates, applicability determinations, impact assessments, and any recommended actions should be independently verified against primary regulatory source documents and reviewed by qualified compliance or legal personnel before taking compliance action. This output does not constitute legal or compliance advice.