Fannie Mae Custodial Agreement
The transferring service provider must provide the existing document custodian and the new document custodian with a data file containing certain credit level information for each loan for which depositary documents are transferred. The service provider must include the documentation for each loan transferred in a separate loan file. When the repairer sends individual files, they need to connect them (or package them) to the test credit to ensure that the new document custodian can map the documents to what is delivered in each box. If an assignee manager does not want to use the same custodian who held the custodian documents for the loans included in a service transfer, he must notify Fannie Mae of the change in custody terms when applying for support authorization or sub-service transfer (Form 629). The transferred service provider should not submit a custody agreement signed by the new custodian(s) until it has received notification that the transfer of support has been approved. The depositary may not disclose depositary documents for entire loans or MBS loans unless it receives a written request (including in electronic form) containing substantially the same information that is essentially required under the request for disclosure or return of documents (Form 2009). The service provider of a Fannie Mae loan may transfer related custody documents to any custodian with whom it has entered into a master custody agreement (Form 2017). The service provider must send a request to Fannie Mae`s custodian monitoring team and provide the name of the seller and assignee, as well as the list of loans requested for transfer (see E-1-03, Contact List). Fannie Mae will grant permission for the transfer, for which the service provider is responsible for the assignee and the custodian of the transfer documents. The service provider shall make appropriate arrangements for the secure transfer of custody documents to the facilities of the new depositary and for the payment of all costs associated with the transfer.
Each custodian agreement must be proven by the execution of a custodial framework agreement (Form 2017). Form 2017 covers custody agreements for full loans and MBS loans. The Seller/Service Provider will send the completed 2017 form to the document custodian for execution. Upon receipt, the custodian of the documents will send the seller/service provider additional documents to be completed. After the documentation and integration is complete, Fannie Mae and the document custodian run Form 2017. A copy of the completed 2017 form will be returned to the seller/service provider for registration. Support (whether or not there is a change in custody of documents). For whole loans or MBS loans delivered as electronic notes, Fannie Mae is the custodian of the documents, but has hired some third parties to certify the electronic notes. The seller/repairer must use an approved third party to certify Fannie Mae eNotes. The following table provides references to published ads that relate to this topic. Certain documents related to Fannie Mae loans must be kept by a Fannie Mae approved document manager. The Document Manager acts on behalf of the Seller/Service Provider and Fannie Mae in the certification of documents and credit data at the time of acquisition by Fannie Mae.
The roles and responsibilities of the document custodian are described in the Fannie Mae Requirements Guide for Document Custodians (RDC Guide). For full loans and MBS loans (excluding eNotes), the seller/service provider must use one of Fannie Mae`s active document managers. If the financial evaluation is below the minimum criteria, the seller or service provider must immediately inform their Fannie Mae Service Advisor and send an email notification to Fannie Mae`s Monitoring and Surveillance Department (see E-1-02, Contact List). Fannie Mae will decide whether the documents will remain in the hands of the current custodian or whether they should be handed over to an acceptable document custodian. A vendor/service provider shall establish appropriate methods to monitor the financial viability and operational capabilities of all document custodians it uses, including at least the following: The following table contains the additional responsibilities of the seller/service provider with respect to document custodians. an annual review of the custodian`s internal audit information and documents by the existing service provider for a new document custodian or see E-2-01, Custodial Documents Required for Additional Documentation Requirements. Fannie Mae may request a seller/repairer or document custodian to transfer documents to another document custodian, even if the current custodian meets Fannie Mae`s requirements. a quarterly review of the depositary`s financial rating (or the credit ratings of its parent or subsidiary where the depositary bank is not a supervised institution). For a complete list of authorized document custodians, see Fannie Mae`s Active Document Custodians. The seller must add the document custodian to their profile in the loan delivery application.
For all mortgages, the custodian certifies the loans by requesting certification of the documents. . . . .