Fannie Mae has released Servicing Guide Announcement SVC-2025-01, detailing significant updates to information security, business continuity, and shared equity policies. These changes, effective February 12, 2025, emphasize the importance of enhanced cybersecurity standards and streamlined procedures for shared equity transactions.
Strengthening Cybersecurity and Business Resiliency
In alignment with the Selling Guide Announcement SEL-2025-01, Fannie Mae has introduced comprehensive cybersecurity and business resiliency requirements for servicers and seller/servicers. The key areas covered in the updated policy include:
Information Security
Incident Management
Business Resiliency
New Compliance Requirements
Under these updates, servicers must adhere to an expanded Information Security and Business Resiliency Supplement, which is now incorporated into the Selling Guide, Servicing Guide, and Consolidated Technology Guide. The supplement outlines obligations regarding:
Information Security Programs
Cybersecurity Incident Management
Business Continuity Management
A crucial addition is the requirement that servicers report any cybersecurity incidents affecting their operations or third parties within 36 hours of discovery.
Implementation Timeline
Although servicers are encouraged to adopt these new standards immediately, full compliance is required by August 12, 2025. Additional resources, including a dedicated Supplement Information Webpage, provide guidance on compliance timelines and implementation strategies.
Shared Equity Program Simplifications
In addition to cybersecurity changes, Fannie Mae has introduced shared equity clarifications. These updates aim to simplify the registration and documentation requirements for community land trusts by:
Allowing the use of Freddie Mac’s equivalent form as an alternative to Fannie Mae’s Community Land Trust Ground Lease Rider (Form 2100).
Standardizing terminology by referring to the Community Land Trust Ground Lease Rider generically, rather than by specific form numbers.
Creating a glossary definition for the Community Land Trust Ground Lease Rider, ensuring clarity in documentation.
These changes provide greater flexibility and ease of compliance for servicers handling shared equity transactions.
Affected Sections of the Servicing Guide
The updates impact multiple sections of the Servicing Guide, including:
General Servicer Duties and Responsibilities (A2-1-01)
Compliance with Requirements and Laws (A2-1-09)
Maintaining Seller/Servicer Status (A3-1-01)
Staffing, Training, Procedures, and Quality Control (A-4-1-01)
References to Fannie Mae’s Website (F-4-01)
Shared Equity Transactions and Resale Restrictions (A2-1-03)
Acronyms and Glossary Updates (F-3-03)
Next Steps for Servicers
Fannie Mae advises servicers with questions regarding these changes to contact their Account Team, Portfolio Manager, or the Single-Family Servicer Support Center at 1-800-2FANNIE (1-800-232-6643). Additionally, the Ask Poli resource provides direct answers to policy-related inquiries.
Conclusion
These updates reflect Fannie Mae’s commitment to strengthening cybersecurity protocols and enhancing operational clarity for shared equity transactions. As compliance deadlines approach, servicers should take proactive steps to implement these changes and ensure smooth adherence to the new guidelines.
For full details, servicers are encouraged to review the updated Servicing Guide and related documents available on Fannie Mae’s official website.
Our Expertise in Mortgage Servicing Compliance
With deep industry knowledge and a proven track record, BlackWolf Advisory Group provides:
Cybersecurity and Business Resiliency Assessments – We evaluate your current security frameworks and incident response protocols to ensure compliance with Fannie Mae’s new cybersecurity requirements.
Servicing Policy Implementation – We assist in updating internal procedures and documentation to align with Fannie Mae's Servicing Guide changes, ensuring your team is well-prepared.
Regulatory Compliance Audits – We conduct thorough reviews to help servicers meet Fannie Mae’s expectations and reduce risk exposure.
Training and Quality Control Programs – Our tailored training ensures that your staff understands and implements new servicing policies effectively.
With BlackWolf Advisory Group, servicers can proactively address compliance challenges, strengthen cybersecurity measures, and optimize operational efficiency while ensuring full adherence to Fannie Mae's evolving guidelines.