Lender Letter (LL-2026-05)

To: All Fannie Mae Single-Family Servicers Advance Notice of Changes to Servicing Processes and Systems

Fannie Mae is transforming how servicers report and manage loan-level activity through a multi-year servicing platform transformation initiative. With this Lender Letter, Fannie Mae incorporates policies previously communicated in LL-2025-02 (updated Dec. 17, 2025) and introduces additional policy requirements associated with the servicing platform transformation initiative. In addition, certain previously communicated policies have been reorganized for clarity. For a consolidated description of updates included in this Lender Letter and LL-2025-02, refer to the Change Control Log. These changes are not applicable to reverse mortgage loans.

June 24, 2026

With this Lender Letter we are:

• reorganizing the content in event-based reporting
• communicating the escrow reporting requirements

Event-based reporting

Servicers will be required to report loan-level servicing events to Fannie Mae in near real-time to enhance transparency and ensure data alignment. Examples of loan-level servicing events include, but are not limited to, the following:

• contractual payments,
• curtailments,
• payment reversals,
• no payment,
• rate & payment changes,
• delinquency status,
• escrow and fees, and
• mortgage insurance cancellations.

Servicers will no longer be required to submit Transaction Type Reports or Loan Activity Records (LARs). For delinquency reporting, servicers will be able to submit multiple Servicer Action Types, Delinquency Loan Status, and Borrower Delinquency Reasons.

The following table outlines servicer responsibilities related to reporting loan-level servicing events to Fannie Mae.

The reporting period will close at 5:00 p.m. eastern time on the second business day of the month. Any activity reported after 5:00 p.m. eastern time on the second business day of the month will be applied to the next reporting period.

Note: Aligned with current policy, the servicer will be required to submit foreclosure reporting events to Fannie Mae no later than the next business day after the event is processed in the servicer’s systems. For forbearance plan and repayment plan reporting, details on reporting timing requirements will be provided later.

Effective: The event-based reporting changes will be delivered incrementally. Implementation milestones are published on the Fannie Mae website, and further details will be communicated as they become available.

Escrow reporting

Establishing initial escrow balances and reporting escrow activity

Escrow payments are collected by a servicer as part of a borrower’s monthly mortgage payment to pay property taxes, homeowners’ insurance, and other escrowed items on the borrower’s behalf. The servicer must establish initial escrow balances in the Fannie Mae Servicing Platform for all existing active and inactive mortgage loans with an escrow balance. Initial escrow balances are established by submitting a separate Escrow Setup event for each applicable escrow item category type. See the Servicing Changes Reference Guide for additional information.

After the initial escrow balance setup has been completed, the servicer must report escrow deposit and escrow disbursement events on the same day the servicing activity is processed in the servicer’s system, in accordance with the event-based reporting requirements described above.

Escrow events will be processed, and results made available in near real-time, including escrow balances, submission status, exceptions, and loan position.

Establishing escrow for newly acquired loans

For newly acquired loans, servicers must establish escrow balances when the loan is onboarded to the Fannie Mae Servicing Platform by reporting an Escrow Setup event for each applicable escrow item category type. Following completion of the escrow setup, the servicer must report all subsequent escrow activity in accordance with the event-based reporting requirements described above.

Note: Servicers are reminded that the escrow reporting data attributes along with technical specifications have been added to the Fannie Mae website.

Effective: Servicers may begin reporting escrow events to the Fannie Mae Servicing Platform on July 18, 2026, but must comply with escrow reporting requirements by Dec. 1, 2026.

Loan data expansion (Updated Dec. 17, 2025)

As previously communicated in LL-2025-02, servicers will be required to report an expanded set of data attributes for servicing events. Reporting a more complete set of data attributes will provide better insight into borrower and servicer activities throughout the loan life cycle and enhance risk management capabilities. Data attributes for investor, escrow and delinquency reporting will align with Mortgage Industry Standards Maintenance Organization (MISMO) data standards for greater consistency and integrity in loan data across the mortgage industry.

Note: Data attributes for forbearance plans, repayment plans, and foreclosure reporting have been added to the Fannie Mae website, along with technical specifications for data formatting related to investor, escrow and delinquency reporting. For more details on all servicing events, refer to the Fannie Mae website.

Effective: The loan data expansion changes will be delivered incrementally. Implementation milestones are published on the Fannie Mae website, and further details will be communicated as they become available.

P&I remittance for summary reporting Actual/Actual mortgage loans (Updated Dec. 17, 2025)

As previously communicated in LL-2025-02, we will automatically initiate a draft of the Principal and Interest (P&I) remittance amount from the servicer’s custodial account two business days after successfully processing payment events reported to Fannie Mae. This change will create operational efficiencies, reduce administrative burdens, and eliminate the monthly shortage/surplus balance reconciliation using Schedule 3 – Reconciliation of Shortage Surplus (Form 472). Once the change becomes effective, we will settle-up any outstanding shortage/surplus balances. There are no remitting or draft date changes for any other remittance types.

Effective: Implementation milestones are published on the Fannie Mae website, and further details will be communicated as they become available.

Reference materials

Servicers are:

• encouraged to visit the Fannie Mae website regularly to stay current on these changes, review frequently asked questions and other resources and begin planning and preparing for timely implementation.
• encouraged to subscribe to Fannie Mae’s Selling and Servicing News to stay abreast of updates related to upcoming changes to Fannie Mae’s servicing processes and systems.
• reminded to continue adhering to the servicing policies outlined in the Guide and the Investor Reporting Manual until Fannie Mae provides the implementation timeline for such changes in future Guide communications.

Change Control Log

The following table provides a consolidated description of the updates that have been made to this Lender Letter and LL-2025-02.