FNMA Servicing Guide A2-3-04 / A2-3-05 / A2-3-06 — Late Charge Reporting / Prohibited & Allowable Servicing Fees / Prepayment Premiums

fnma-svc-a2-3-fees

FNMA Servicing Guide A2-3-04, A2-3-05, and A2-3-06 govern fees and premiums: monthly late-charge collection reporting via FNMA investor reporting system; categorically prohibited servicer fees (borrower disputes, routine collections, repayment/forbearance arrangement, breach letters, reinstatement-record updates); allowable additional-work fees (ownership change, insurance replacement, release, expedited service, duplicate payoff statements, phone pay, assumption consummation); ARM-adjustment fee restrictions; ARM-to-fixed conversion processing-fee caps ($100/$250); transfer-of-ownership and assumption fee schedule (cost-based + reasonableness); prepayment-premium prohibition except negotiated-contract loans; no-prepayment-premium-on-default- acceleration rule. Fills FNMA Servicing A2-3 fee chapter gap.

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source:
  type: regulation
  id: fnma-svc-a2-3-fees
  authority: FNMA Servicing Guide A2-3-04 / A2-3-05 / A2-3-06 — Late Charge Reporting / Prohibited & Allowable Servicing Fees / Prepayment Premiums
  description: |
    FNMA Servicing Guide A2-3-04, A2-3-05, and A2-3-06 govern fees and
    premiums: monthly late-charge collection reporting via FNMA
    investor reporting system; categorically prohibited servicer fees
    (borrower disputes, routine collections, repayment/forbearance
    arrangement, breach letters, reinstatement-record updates);
    allowable additional-work fees (ownership change, insurance
    replacement, release, expedited service, duplicate payoff
    statements, phone pay, assumption consummation); ARM-adjustment
    fee restrictions; ARM-to-fixed conversion processing-fee caps
    ($100/$250); transfer-of-ownership and assumption fee schedule
    (cost-based + reasonableness); prepayment-premium prohibition
    except negotiated-contract loans; no-prepayment-premium-on-default-
    acceleration rule. Fills FNMA Servicing A2-3 fee chapter gap.
obligations:
  - id: fnma-svc-a2-3-04-report-late-charges-monthly
    canonical_id: fnma-svc-a2-3-04-report-late-charges-monthly
    section: FNMA Servicing Guide A2-3-04 — Report monthly late charges collected via FNMA investor reporting
    description: |
      [LENDER] (servicer) shall report the amount of late charges it
      collects each month for a given mortgage loan as part of the
      monthly activity information it provides through Fannie Mae's
      investor reporting system. Late charge reporting is part of
      [LENDER]'s monthly investor-reporting submission.
    type: do
    audit_question: Can [LENDER] reconcile (via investor reporting system submissions) every monthly late-charge collected against the per-loan amount reported to Fannie Mae?
    program_review: Does the program ensure monthly late charges collected per loan are reported through FNMA's investor reporting system as part of the monthly activity submission?
    file_review: Reconcile collected late charges against the per-loan amounts reported in investor reporting submissions.
    judgment: false
    feeds: []
    workflow_phase: investor_reporting
    owner_role: investor_reporting_manager
    secondary_owner_role: chief_servicing_officer
    cadence: monthly
    consequence: Under-reporting late charges shorts FNMA economics; over-reporting invites reconciliation discrepancies; both are Servicing Guide breaches.
    tags:
      - round-d
      - regulator-direct
      - fnma
      - servicer-operations
      - investor-reporting
      - late-charge-reporting
      - promoted
    primary_source:
      tier: 1
      authority: FNMA Servicing Guide A2-3-04 — Late charge reporting
      source_class: fnma-guide
      source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
      snapshot_id: f662f911b3ddaf1d
      fetched_at: '2026-05-25T14:09:40Z'
      content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
      paragraph_quote: |
        The servicer must report the amount of late charges it collects each month for a given mortgage loan as part of
      drafter_attestation: |
        Copied verbatim from snapshot f662f911b3ddaf1d. A2-3-04 monthly-
        late-charge-reporting operative phrase. Quote truncated before
        "the monthly activity information it provides through Fannie
        Mae's investor reporting system" (U+2019 in "Mae's"); the
        investor-reporting-system delivery tail paraphrased in description.
    promoted_at: '2026-05-25T20:47:39+00:00'
    promoted_from: fnma-svc-a2-3-fees-roundd-v1.yaml
  - id: fnma-svc-a2-3-05-no-borrower-fee-for-prohibited-servicing-activities
    canonical_id: fnma-svc-a2-3-05-no-borrower-fee-for-prohibited-servicing-activities
    section: FNMA Servicing Guide A2-3-05 — Prohibited servicing fees (disputes, collections, repayment plans, breach letters, reinstatement records)
    description: |
      [LENDER] (servicer) is NOT authorized to charge the borrower fees
      relating to the following activities: (1) handling borrower
      disputes; (2) facilitating routine borrower collections; (3)
      arranging repayment or forbearance plans; (4) sending borrowers
      notices (sometimes called "demand" or "breach" letters) relating
      to nonpayment of principal, interest, taxes, or insurance in
      advance of a formal acceleration notice; and (5) updating
      records to "reinstate" a mortgage loan that has been brought
      current.
    type: refrain
    audit_question: For every borrower fee [LENDER] assessed during a servicing relationship, can [LENDER] evidence the fee is NOT for any prohibited activity (dispute handling, routine collections, repayment-plan arrangement, pre-acceleration breach letters, reinstatement-record updates)?
    program_review: Does the program ensure no borrower fee is charged for any prohibited activity — dispute handling, routine collections, repayment/forbearance arrangement, pre-acceleration breach/demand letters, or reinstatement-record updates?
    file_review: Sample assessed borrower fees; confirm none maps to a prohibited activity.
    judgment: false
    feeds: []
    workflow_phase: general_servicing_ops
    owner_role: chief_servicing_officer
    secondary_owner_role: compliance_officer
    cadence: continuous
    consequence: Charging prohibited fees is a Servicing Guide breach + UDAAP/state-law exposure; reputational risk in CFPB exams.
    tags:
      - round-d
      - regulator-direct
      - fnma
      - servicer-operations
      - prohibited-fees
      - udaap-risk
      - promoted
    primary_source:
      tier: 1
      authority: FNMA Servicing Guide A2-3-05 — Prohibited Fees for Servicing
      source_class: fnma-guide
      source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
      snapshot_id: f662f911b3ddaf1d
      fetched_at: '2026-05-25T14:09:40Z'
      content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
      paragraph_quote: |
        The servicer is not authorized to charge the borrower fees relating to the following activities:
      drafter_attestation: |
        Copied verbatim from snapshot f662f911b3ddaf1d. A2-3-05 prohibited-
        servicing-fees operative chapeau. The five enumerated prohibited
        activities paraphrased in description (with operator-quoted
        "demand"/"breach"/"reinstate" terms preserved for compliance-
        officer clarity).
    promoted_at: '2026-05-25T20:47:39+00:00'
    promoted_from: fnma-svc-a2-3-fees-roundd-v1.yaml
  - id: fnma-svc-a2-3-05-no-arm-rate-or-payment-change-fees
    canonical_id: fnma-svc-a2-3-05-no-arm-rate-or-payment-change-fees
    section: FNMA Servicing Guide A2-3-05 — No fees for ARM interest rate or payment changes
    description: |
      [LENDER] (servicer) may NOT charge fees for the interest rate or
      payment changes that are required periodically for ARM loans.
      [LENDER] may charge a processing fee to cover the administrative
      costs of converting an ARM loan to a fixed-rate mortgage loan,
      LIMITED to $100 for most ARM plans or $250 for ARM plans that
      include a monthly conversion option. Routine ARM resets are
      uncompensable.
    type: refrain
    audit_question: Can [LENDER] evidence (via fee schedules + Borrower account audits) that no fees were charged for routine ARM rate or payment changes? For any ARM-to-fixed conversion processing fees, were the $100 (most plans) / $250 (monthly-conversion plans) caps respected?
    program_review: Does the program ensure no fee is charged for routine ARM rate/payment changes, and that any ARM-to-fixed conversion processing fee respects the $100 (most plans) / $250 (monthly-conversion plans) caps?
    file_review: Review fee schedules and ARM borrower accounts; confirm no routine-reset fees and that conversion fees stayed within the $100/$250 caps.
    judgment: false
    feeds: []
    workflow_phase: general_servicing_ops
    owner_role: chief_servicing_officer
    secondary_owner_role: compliance_officer
    cadence: per-arm-adjustment-or-conversion
    consequence: Charging Borrowers for ARM resets is a Servicing Guide breach + UDAAP risk; over-cap conversion processing fees similarly breach.
    tags:
      - round-d
      - regulator-direct
      - fnma
      - servicer-operations
      - arm-loans
      - no-rate-change-fee
      - conversion-fee-cap
      - promoted
    primary_source:
      tier: 1
      authority: FNMA Servicing Guide A2-3-05 — Additional Fee Assessment Guidelines (ARM adjustments)
      source_class: fnma-guide
      source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
      snapshot_id: f662f911b3ddaf1d
      fetched_at: '2026-05-25T14:09:40Z'
      content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
      paragraph_quote: |
        may not charge fees for the interest rate or payment changes that are required periodically for ARM loans
      drafter_attestation: |
        Copied verbatim from snapshot f662f911b3ddaf1d. A2-3-05 no-ARM-
        rate-change-fee operative restriction. The $100/$250 ARM-to-fixed
        conversion-processing-fee caps paraphrased in description.
    audit_function: null
    promoted_at: '2026-05-25T20:47:39+00:00'
    promoted_from: fnma-svc-a2-3-fees-roundd-v1.yaml
  - id: fnma-svc-a2-3-05-fha-va-assumption-fee-follow-agency-max
    canonical_id: fnma-svc-a2-3-05-fha-va-assumption-fee-follow-agency-max
    section: FNMA Servicing Guide A2-3-05 — FHA/VA assumption fees follow agency-specific maximums
    description: |
      For assumptions of FHA or VA mortgage loans, [LENDER] (servicer)
      shall follow FHA or VA requirements regarding the maximum
      allowable assumption fees for these government mortgage loans.
      Government-loan assumption fees are governed by agency
      schedules, not FNMA's conventional-loan reasonable-fee
      schedule.
    type: do
    audit_question: For every FHA or VA mortgage loan assumption [LENDER] processed, can [LENDER] evidence the assumption fee did NOT exceed the applicable FHA or VA maximum?
    program_review: Does the program ensure FHA/VA loan assumption fees follow the applicable FHA or VA maximums rather than the conventional reasonable-fee schedule?
    file_review: For FHA/VA assumptions, confirm the assumption fee did not exceed the applicable agency maximum.
    judgment: false
    feeds: []
    workflow_phase: general_servicing_ops
    owner_role: chief_servicing_officer
    secondary_owner_role: compliance_officer
    cadence: per-fha-va-assumption
    consequence: Over-cap assumption fees on FHA/VA loans breach agency rules + Servicing Guide; can trigger refund obligations + agency enforcement.
    tags:
      - round-d
      - regulator-direct
      - fnma
      - servicer-operations
      - assumption-fees
      - fha-va-agency-caps
      - promoted
    primary_source:
      tier: 1
      authority: FNMA Servicing Guide A2-3-05 — Additional Fee Assessment Guidelines (FHA/VA assumptions)
      source_class: fnma-guide
      source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
      snapshot_id: f662f911b3ddaf1d
      fetched_at: '2026-05-25T14:09:40Z'
      content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
      paragraph_quote: |
        must follow FHA or VA requirements regarding the maximum allowable assumption fees for these government mortgage loans.
      drafter_attestation: |
        Copied verbatim from snapshot f662f911b3ddaf1d. A2-3-05 FHA/VA-
        assumption-fee-follow-agency-max operative requirement.
    promoted_at: '2026-05-25T20:47:40+00:00'
    promoted_from: fnma-svc-a2-3-fees-roundd-v1.yaml
  - id: fnma-svc-a2-3-06-no-prepayment-premium-except-negotiated-contract
    canonical_id: fnma-svc-a2-3-06-no-prepayment-premium-except-negotiated-contract
    section: FNMA Servicing Guide A2-3-06 — No prepayment premium except under negotiated-contract loans
    description: |
      [LENDER] (servicer) shall NOT collect prepayment premiums from
      the borrower when a mortgage loan is paid in full. The
      categorical no-prepayment-premium rule applies UNLESS the
      mortgage loan was delivered under a negotiated contract that
      specifically permitted enforcement of the prepayment-premium
      provisions of the mortgage documents. Even then, no prepayment
      premium may be charged when the mortgage debt is accelerated
      as a result of the Borrower's default.
    type: refrain
    audit_question: For every loan [LENDER] paid in full, can [LENDER] evidence (a) no prepayment premium collected — OR (b) negotiated-contract authorization existed AND the payoff was NOT a default-acceleration payoff?
    program_review: Does the program ensure no prepayment premium is collected on payoff, accounting for the negotiated-contract carve-out and the prohibition on charging a premium when the debt is accelerated on default?
    file_review: For paid-in-full loans, confirm no prepayment premium — or negotiated-contract authorization existed and the payoff was not a default-acceleration payoff.
    judgment: false
    feeds: []
    workflow_phase: general_servicing_ops
    owner_role: chief_servicing_officer
    secondary_owner_role: compliance_officer
    cadence: per-payoff
    consequence: Collecting an unauthorized prepayment premium is a Servicing Guide breach + state-law/UDAAP exposure; charging on default-acceleration payoff is doubly improper.
    tags:
      - round-d
      - regulator-direct
      - fnma
      - servicer-operations
      - prepayment-premium
      - no-default-acceleration-charge
      - promoted
    primary_source:
      tier: 1
      authority: FNMA Servicing Guide A2-3-06 — Prepayment Premiums
      source_class: fnma-guide
      source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
      snapshot_id: f662f911b3ddaf1d
      fetched_at: '2026-05-25T14:09:40Z'
      content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
      paragraph_quote: |
        The servicer must not collect prepayment premiums from the borrower when a mortgage loan is paid in full
      drafter_attestation: |
        Copied verbatim from snapshot f662f911b3ddaf1d. A2-3-06 no-
        prepayment-premium operative restriction. Negotiated-contract
        carve-out + no-charge-on-default-acceleration rule paraphrased in
        description (avoids U+2019 in "borrower's default" and U+2014
        em-dash).
    promoted_at: '2026-05-25T20:47:40+00:00'
    promoted_from: fnma-svc-a2-3-fees-roundd-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-25T20:47:40+00:00'
    candidate_path: obligations\_remediation\round-d-investor-guides\fnma-svc-a2-3-fees-roundd-v1.yaml
    candidates_promoted: 5
    candidates_skipped_existing: 0

Verbatim regulatory text (5)

Verbatim provisions from FNMA Servicing Guide A2-3-04 / A2-3-05 / A2-3-06 — Late Charge Reporting / Prohibited & Allowable Servicing Fees / Prepayment Premiums — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

FNMA Servicing Guide A2-3-04 — Report monthly late charges collected via FNMA investor reporting

The servicer must report the amount of late charges it collects each month for a given mortgage loan as part of

Source: FNMA Servicing Guide A2-3-04 — Late charge reporting · source URL · snapshot f662f911b3ddaf1d

FNMA Servicing Guide A2-3-05 — Prohibited servicing fees (disputes, collections, repayment plans, breach letters, reinstatement records)

The servicer is not authorized to charge the borrower fees relating to the following activities:

Source: FNMA Servicing Guide A2-3-05 — Prohibited Fees for Servicing · source URL · snapshot f662f911b3ddaf1d

FNMA Servicing Guide A2-3-05 — No fees for ARM interest rate or payment changes

may not charge fees for the interest rate or payment changes that are required periodically for ARM loans

Source: FNMA Servicing Guide A2-3-05 — Additional Fee Assessment Guidelines (ARM adjustments) · source URL · snapshot f662f911b3ddaf1d

FNMA Servicing Guide A2-3-05 — FHA/VA assumption fees follow agency-specific maximums

must follow FHA or VA requirements regarding the maximum allowable assumption fees for these government mortgage loans.

Source: FNMA Servicing Guide A2-3-05 — Additional Fee Assessment Guidelines (FHA/VA assumptions) · source URL · snapshot f662f911b3ddaf1d

FNMA Servicing Guide A2-3-06 — No prepayment premium except under negotiated-contract loans

The servicer must not collect prepayment premiums from the borrower when a mortgage loan is paid in full

Source: FNMA Servicing Guide A2-3-06 — Prepayment Premiums · source URL · snapshot f662f911b3ddaf1d