Lender Letter LL-2025-02 Advance Notice of Changes to Servicing Processes and Systems

Impact. Fannie Mae is signaling upcoming changes to its servicing processes and systems that will require operational adjustments across your loan servicing platform. Your institution will need to modify internal workflows, update system configurations, and potentially renegotiate third-party servicer arrangements to maintain GSE compliance once the detailed requirements emerge.

Risk. Third-party risk management presents the highest exposure, particularly if your current servicer agreements lack sufficient flexibility for GSE-mandated system changes. Operations teams may also face disruption if they begin planning without clear implementation timelines or technical specifications.

Recommended Action. Loan Servicing should immediately engage Fannie Mae representatives to clarify the scope and timeline of these changes, while Vendor Management reviews existing servicer contracts for modification clauses and system upgrade requirements. Document all current servicing processes to establish a baseline for upcoming changes.

Watch. Monitor Fannie Mae communications for the detailed implementation notice, which should include specific system requirements, compliance deadlines, and technical specifications. The extended timeline suggests this is foundational work for broader servicing modernization, so additional related guidance will likely follow.