Servicing Notice - UGI Merger

Impact. This merger requires you to reconfigure servicing systems to recognize the new combined UGI entity and update all vendor management documentation to reflect the post-merger counterparty structure. Your servicing operations will need to implement revised reporting protocols and data flows that align with Fannie Mae's updated requirements for the merged entity.

Risk. Vendor management sits at the center of exposure here, as inadequate third-party risk reassessment could trigger GSE examination findings around counterparty oversight. Your servicing systems face the highest operational risk if configuration changes aren't properly tested before the June effective date, potentially disrupting loan data flows or payment processing.

Recommended Action. Start with vendor management to initiate the third-party risk reassessment and begin documenting the post-merger entity structure. Operations should simultaneously inventory all system touchpoints where UGI appears in servicing workflows to map the required configuration changes and testing timeline.

Watch. Monitor for additional Fannie Mae implementation guidance that typically follows merger notices within 60-90 days. Track whether other GSEs issue similar notices for UGI, which would broaden the scope of required system and process changes across your servicing portfolio.