Document Update: Buydown Agreement (Cx25)

Pursuant to FNMA Servicing Guide Announcement SVC-2025-05, servicers are now required to apply available interest rate buydown funds to reduce borrower arrearages when completing a Fannie Mae Flex Modification, subject to the terms and conditions of the applicable buydown agreement.

To ensure compliance with this requirement, a specific provision has been added to Cx25 (Buydown Agreement) expressly permitting the use of buydown funds for the reduction of arrearages in connection with a loan modification.

This change is available for testing on Stage & Stage 2 servers and will take effect on December 24, 2025. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.

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The preceding is for informational purposes only and is not and may not be construed as legal advice. No third-party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action.