On September 29, Fannie Mae released updates to its servicing guidelines for multifamily residences, effective October 2. Fannie Mae is updating provisions concerning Asset Management and Watchlist Management. Changes include:

• removing color descriptions that previously corresponded to defined Mortgage Loan rating classifications;
• updating the rating classification descriptions and/or characteristics to conform to regulatory definitions for Pass/Watch and Special Mention Assets; and
• requiring Servicers provide an explanation and status of the issues causing an Asset to be reported on the Servicer Watchlist.