BLOG

Question:  Is a Fannie Mae Seller/Servicer required to update its Lender Record Information (Form 582) if there are changes to the organization?

Answer: 

Yes.  Fannie Mae’s Lender Record Information (Form 582) provides information necessary to verify that the seller/servicer continues to meet basic eligibility requirements, as well as certifications regarding compliance with Fannie Mae’s requirements.  If there are changes to the Lender's Record Information, the seller/servicer must update Form 582 and provide Fannie Mae with email notification advising of the “Changes to the Lender Organization” mailbox (organization_change@fanniemae.com) within five (5) business days of the occurrence of any of the following:

• Any actions pending, starting, or to the seller/servicer's knowledge, threatened against or involving the seller/servicer that could reasonably be expected to have a material adverse effect on the seller/servicer's ability to comply with provisions of the Lender Contract, its financial status, servicing operations, or mortgage operations; 
• A breach of certain agreements, in accordance with A4-1-01, Maintaining Seller/Servicer Eligibility; 
• Any material and adverse change in the circumstances and qualifications that were in place for Fannie Mae's consideration at the later of: 
  • the time of the seller/servicer's approval in accordance with A4-1-01, Maintaining Seller/Servicer Eligibility, or 
  • Fannie Mae's most recent selling operational or servicing quality review; and 
• Any change, event, or circumstance that has or could reasonably be expected to have a material adverse effect on the lender's origination of loans, the servicing of Fannie Mae loans, or on the financial or business condition or operations of the seller/servicer, or the ability to comply with the Lender Contract; or
• Any change in principal officers, or any change in owners or partners with a direct or indirect interest of 5% or more in the company.

The seller/servicer must also update its Form 582 electronically no later than 90 days after the end of the seller/servicer’s fiscal year.

Reminders: 

• A seller/servicer must also comply with Fannie Mae’s Report of Changes in a Seller/Servicer’s Organization requirements (A4-1-03), which requires the seller/servicer to provide 60 days’ advance written notice of any proposed major change in its organization to allow Fannie Mae adequate time to provide prior written approval or notice of non-objection or objection, where required. The written notice must include copies of any filings with, or approvals from, the seller/servicer’s state or other regulatory authority.  
• A seller/servicer is also required to provide immediate written notice to Fannie Mae if a regulatory agency assumes a participatory role in the management of the seller/servicer’s operations.

The seller/servicer must either contact its customer account team for additional guidance on these notices or email the “Changes to the Lender Organization” mailbox (organization_change@fanniemae.com).