WASHINGTON (5/26/15)--New operational and financial eligibility requirements for all current and potential single-family mortgage sellers and servicers were issued last week by Fannie Mae and Freddie Mac.
Fannie and Freddie have been directed by the Federal Housing Finance Agency (FHFA), as part of their conservatorship scorecards, to update their standards for mortgage servicers.
The financial requirements, which will become effective Dec. 31, include a minimum net worth base of $2.5 million plus 25 basis points of unpaid principal balance for the total of one- to four-unit residential mortgages being serviced.
Depository institutions must continue to comply with the regulatory standards for minimum capital ratio and minimum liquidity.
A number of servicer operational requirements have been enhanced, with the changes effective Sept. 1. These include expectations for master servicers and their servicing agents, transferor and transferee servicers, notification of class action legal proceedings and servicer quality control programs.
According to the FHFA, Fannie and Freddie will communicate updated requirements to sellers and servicers in their respective guides, bulletins and announcements, and through best practices documents provide additional clarity about Fannie and Freddie expectations.