5 ways to maximize your partnership with Fannie Mae
By Jeff Bounds | December 13, 2016
Whether you’re new to Fannie Mae or reactivating your partnership, you can take simple steps during the approval process to ensure a smooth transition to working with the company.
1. Build in Time for Sub-servicer Approval
If you use an outside vendor for servicing, it can take up to 120 days to get both you and your sub-servicer set up to onboard loans with the sub-servicer’s platform, says Bill Cragg, customer sales support manager at Fannie Mae.
Boarding newly delivered loans to Fannie Mae onto the sub-servicer’s platform is what takes the most set-up time. “Most sub-servicers will not set up the bank accounts until they are absolutely sure the seller has the ability to upload the loan data necessary for the sub-servicer to do the monthly reporting and remitting,” says Cragg.
“We strongly encourage you to begin the onboarding as soon as possible.”
2. Return Form 2010 Promptly
Under the USA Patriot Act enacted after the 9/11 attacks, third-party custodians like BNY Mellon – the document custodian for Fannie Mae’s loan purchases – must perform financial due diligence before working with new lenders. That process can take up to 60 days, says Cragg.
To keep the process moving, new lenders should sign and return Form 2010 to BNY Mellon right away. Form 2010 is the first step in forging the master custodial agreement governing the three-party contractual relationship between BNY Mellon, Fannie Mae, and the lender.
Once BNY Mellon receives your signed form, they begin the process of onboarding. And once they complete the process, they provide access to their website. “If you are a reactivated lender, please ensure you have current user IDs and passwords to BNY Mellon’s website,” Cragg adds.
3. Expect a Short Interruption with UCDP Access
Once approved, you might experience interruptions of up to 48 hours when accessing the Uniform Collateral Data Portal® (UCDP®). The application, by law, holds appraisal documents on loans purchased by Fannie Mae and Freddie Mac.
The interruptions happen when customers that already use the UCDP platform receive approval to sell loans to Fannie Mae as lenders. In those instances, the outside vendor that administers UCDP discontinues the lender’s access and re-establishes access under the newly approved seller and/or servicer number, Cragg notes. That process that can take 24 to 48 hours.
The primary causes for a longer delay are when the technology manager administrator has changed jobs or left the company, or the password has expired. So know who your technology manager administrator is and make sure their password is current.
“Lenders should work with their account teams to ensure limited impact to their access to UCDP after they become approved,” says Cragg.
4. Stay in Touch With Your Account Team
Every lender should keep their Fannie Mae account team current on their business plans and activity during the onboarding process. That will help ensure they are getting the solutions that meet their business needs, says Thomas Collins, a director in Fannie Mae’s Single-Family Business.
“We want to know and understand your business,” he says.
5. Sign up for Email Notifications
Fannie Mae is a large company with many teams working on both policy and technology updates. You should regularly communicate with your account team and read Business News. You also can sign up for updates through Selling News and Servicing News and The Home Story, a Fannie Mae website that covers the industry more broadly.
Jeff Bounds is a freelance writer based in Dallas. He has been writing about financial topics since the early 1990s.