Fannie Mae's Latest Servicing Updates and AI Governance Framework

On April 8, 2026, Fannie Mae announced recent updates, with the key highlights noted below:

Lender Letter (LL-2026-04) - Governance framework on use of artificial intelligence and machine learning: Lender Letter LL-2026-04 Governance Framework on use of Artificial Intelligence and Machine Learning. This Lender Letter issues a governance framework for Fannie Mae Seller/Servicers’ use of artificial intelligence and/or machine learning in their origination and/or servicing practices. Given the evolving nature of these technologies, Fannie Mae continues to monitor ongoing developments and related requirements. Effective: 120 days from publication

Servicing Guide Announcement (SVC-2026-03): Announcement SVC-2026-03 – Servicing Guide Update Incorporation of Lender Letter LL-2026-01 - Updates to retention workout options and disaster-related foreclosure proceedings policy: We updated the Servicing Guide to incorporate policy updates introduced on Feb. 11, 2026, in Lender Letter LL-2026-01, updates to retention workout options and disaster-related foreclosure proceedings policy. Please also note that D2-3.2-01, Forbearance Plan has been reorganized for clarity and flow. There are no additional policy changes within the topic other than those announced in Lender Letter LL-2026-01. Effective: The servicer must implement these policies on and after May 1, 2026 for all:

• forbearance plan term structuring,

• forbearance plan term extensions for borrowers with a disaster-related hardship,

• Fannie Mae Flex Modification evaluations, and

• referrals of mortgage loans for disaster-impacted properties to foreclosure proceedings and initiations of any judicial or non-judicial foreclosure process, moves for a foreclosure judgment or order of sale, or executions of a foreclosure sale for such mortgage loans.

Training - Updated Property Insurance Requirements for Servicers: Flexibility, Simplicity:

April 23, 2026- 1pm EST.