Navigating agency approval requirements is one of the most complex steps in launching a servicing operation. We guide you through every requirement, document, and submission to get you approved and operational.
Start Your Approval Process →Combined, these three agencies back over 70% of all U.S. residential mortgage originations. Agency approval is the gateway to retaining servicing on the majority of loans you originate.
To retain and service agency-backed loans—the vast majority of the U.S. mortgage market—you must be an approved seller/servicer with the relevant agencies. Without approval, you cannot build the servicing portfolio that drives your Sustainability Quotient.
Fannie Mae, Freddie Mac, and Ginnie Mae back over 70% of all U.S. mortgages. Agency approval unlocks the ability to retain servicing on the majority of loans you originate.
Mortgage Servicing Rights (MSRs) are valuable assets. Agency approval lets you retain and grow an MSR portfolio that generates recurring income and increases your company's enterprise value.
Agency approval signals to borrowers, investors, and counterparties that your organization meets the highest standards of financial strength, operational capability, and compliance.
Each agency has distinct requirements, timelines, and ongoing obligations. We help you understand and satisfy all three.
Conventional Conforming
FNMA
Seller/Servicer approval for conventional conforming loans under the Fannie Mae Selling Guide and Servicing Guide.
| Minimum Net Worth | $2.5 million base net worth plus 25 basis points of the unpaid principal balance of the servicing portfolio |
| Liquidity Requirements | Minimum liquid assets of 3.5 basis points of the total UPB of the Fannie Mae servicing portfolio |
| Quality Control Plan | Comprehensive written QC plan covering pre-funding, post-closing, and servicing quality control processes |
| Technology & Systems | Approved loan origination and servicing systems capable of meeting Fannie Mae data delivery and reporting requirements |
| E&O / Fidelity Bond | Required insurance coverage meeting Fannie Mae minimums for E&O and fidelity bond protection |
Ongoing Obligations
Annual recertification, quarterly financial reporting, adherence to the Fannie Mae Servicing Guide, and participation in the Servicer Total Achievement and Rewards (STAR) program.
Conventional Conforming
FHLMC
Seller/Servicer approval under the Single-Family Seller/Servicer Guide with distinct technology and operational standards.
| Minimum Net Worth | $2.5 million base net worth plus 25 basis points of the total UPB of the Freddie Mac servicing portfolio |
| Liquidity Requirements | Minimum liquid assets of 3.5 basis points of the total UPB of the Freddie Mac servicing portfolio |
| Guide Compliance | Full compliance with the Single-Family Seller/Servicer Guide, including all servicing, default management, and reporting requirements |
| Freddie Mac Connect | Registration and operational use of Freddie Mac's technology portal for loan delivery, reporting, and servicer communications |
| Performance Profile | Ongoing performance monitoring through Freddie Mac's Servicer Success scorecard program |
Ongoing Obligations
Annual recertification, quarterly financial reporting, adherence to the Freddie Mac Seller/Servicer Guide, and participation in the Servicer Success program with regular performance reviews.
FHA, VA & USDA Loans
GNMA
Issuer approval for mortgage-backed securities backed by FHA, VA, and USDA loans with the most rigorous standards in the industry.
| Minimum Net Worth | $2.5 million base net worth plus 35 basis points of the outstanding Ginnie Mae MBS portfolio (higher than GSE requirements) |
| Liquidity Requirements | Minimum liquid assets of 10 basis points of the outstanding Ginnie Mae MBS portfolio—significantly higher than GSE requirements |
| Prerequisite Approvals | Must hold active FHA Direct Endorsement, VA Automatic, and/or USDA lender approvals as a prerequisite to Ginnie Mae issuer status |
| MBS Guide Compliance | Full compliance with the Ginnie Mae MBS Guide, including pool assembly, certification, and ongoing reporting requirements |
| Counterparty Risk | Demonstrated ability to advance principal and interest payments to MBS investors in the event of borrower default—a critical Ginnie Mae obligation |
Important Note on Ginnie Mae
Ginnie Mae has significantly tightened its approval and oversight standards in recent years. New issuers face enhanced scrutiny, and the application process is more demanding than the GSEs. Expert guidance is especially valuable here.
A side-by-side comparison of the key financial and operational thresholds for each agency
| Requirement | Fannie Mae | Freddie Mac | Ginnie Mae |
|---|---|---|---|
| Base Net Worth | $2.5 million | $2.5 million | $2.5 million |
| Portfolio Net Worth Add-On | 25 bps of UPB | 25 bps of UPB | 35 bps of UPB |
| Minimum Liquidity | 3.5 bps of UPB | 3.5 bps of UPB | 10 bps of UPB |
| Loan Types Covered | Conventional Conforming | Conventional Conforming | FHA, VA, USDA |
| Prerequisite Approvals | None | None | FHA/VA/USDA Lender |
| Annual Recertification | Yes | Yes | Yes |
| Complexity Level | Moderate | Moderate | High |
Requirements are subject to change. Always verify current thresholds with the respective agency or your consultant.
Agency approval applications are complex, document-intensive, and unforgiving of errors. Our consultants have guided hundreds of companies through the process—we know exactly what each agency expects.
We evaluate your current financial position, operational infrastructure, and compliance posture against each agency's requirements—identifying gaps before you apply.
We help compile and review every document in your application package—financial statements, QC plans, policy manuals, organizational charts, and more—ensuring completeness and accuracy.
Each agency requires comprehensive written policies and procedures. We develop bespoke policy manuals that satisfy agency requirements and reflect your actual operations.
Our Washington, DC proximity gives us direct access to agency staff. We help you navigate agency questions, respond to deficiency letters, and manage the review process.
Approval is not a one-time event. We support your annual recertification filings, financial reporting, and guide updates to keep you in good standing year after year.
Assess readiness against agency requirements
Address financial, operational, and policy gaps
Prepare complete application packages
Submit and manage agency review
Support ongoing compliance
New operational performance standards require enhanced default management capabilities and expanded borrower outreach protocols for all Ginnie Mae issuers.
Fannie Mae's updated Servicing Guide clarifies loss mitigation waterfall requirements and introduces new timelines for borrower evaluation.
Freddie Mac's technology portal adds automated delinquency reporting and real-time servicer performance dashboards for approved seller/servicers.
Both GSEs and Ginnie Mae have increased documentation requirements for new applicants, with particular focus on QC plan depth and technology infrastructure.
Industry experts outline the strategic case for pursuing all three agency approvals simultaneously to maximize portfolio retention opportunities.
The Federal Housing Finance Agency's proposed rule would align Fannie Mae and Freddie Mac seller/servicer capital requirements with Basel III frameworks.
Headlines are representative of current industry coverage. Visit source publications for full articles.
Whether you're targeting one agency or all three, we'll help you build the operational foundation, policy documentation, and financial profile needed to get approved and stay approved.
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