Modernization in Motion: What Servicers Need to Know About Servicing Elevated Right Now
New reporting, testing, and readiness requirements are here. Here’s how servicers can stay ahead.
By now, most servicers are aware that Fannie Mae’s Servicing Elevated initiative is more than a routine compliance update.
The first phase introduces new escrow event reporting requirements, new testing obligations, and new readiness expectations that will affect every acting servicer working with Fannie Mae loans. The question we hear most often is simple: What should we be doing right now?
Here are the priorities we’re encouraging customers to focus on today.
Understand What’s Changing
The biggest change in this phase of Servicing Elevated is the move toward event-based reporting.
Historically, servicing organizations submitted information through more traditional reporting processes. Going forward, Fannie Mae is expanding both the frequency and scope of data it collects, beginning with escrow event reporting. For LoanServ customers, this effectively means moving toward daily reporting of escrow-related activity and supporting new event-level reporting requirements.
This isn’t simply a reporting change. It affects data quality, testing, operational processes, and readiness activities.
Don’t Wait To Begin Testing Preparation
One of the most important things servicers should understand is that certain testing activities are already underway. Fannie Mae requires all acting servicers to complete UI testing scenarios, regardless of whether a technology provider is handling API transmission on their behalf. That’s a customer responsibility, and it’s one of the first activities organizations should complete.
Organizations should also ensure they understand Fannie Mae’s Implementation Readiness Tracker requirements and the milestones associated with customer readiness reporting.
Know The Timeline
While timelines continue to evolve as testing progresses, the current roadmap includes several key milestones.
- Sagent technical testing: June 29 through July 10, 2026
- Pilot customer testing: July 13 through August 7, 2026
- Customer Release Testing (CRT): August 10 through September 10, 2026
- LoanServ production go-live: October 23, 2026
- Testing completion deadline: November 13, 2026
The organizations that begin preparation early will be in a much stronger position as these milestones approach.
Prepare For Attestation
One requirement that sometimes receives less attention is attestation. Under Fannie Mae’s testing model, servicers are responsible for validating that Fannie Mae’s recorded escrow balances, loan counts, and payment amounts align with their own records. Attestation is not optional. It is part of the readiness and exit criteria required to complete the testing process.
Successful completion requires coordination between operations, servicing teams, and testing resources well before production.
Focus On Data Quality
Many of the issues that surface during testing are ultimately data issues.
That’s why we’re encouraging customers to review escrow classifications, reporting logic, and data mapping now rather than waiting for test execution. Recent readiness sessions have focused heavily on escrow-type mapping, reporting categories, lender consent requirements, and validation activities because these areas directly influence successful reporting outcomes.
The earlier potential issues are identified, the easier they are to resolve.
Use The Resources Available To You
One of the advantages of preparing now is that support resources are already available.
Throughout the year we’ve hosted readiness webinars, customer working sessions, and recurring office hours designed specifically to help customers navigate Servicing Elevated requirements. These sessions provide direct access to product, compliance, and implementation experts while creating opportunities to learn from questions other servicers are asking.
Organizations that engage early tend to move through testing with fewer surprises and greater confidence.
Looking Ahead
Servicing Elevated is the first phase of a broader modernization effort that will continue evolving over the coming years. That’s why my advice is simple: Don’t wait.
Review the requirements. Engage in testing. Understand your readiness obligations. Ask questions early. Build internal alignment now. Servicers that take those steps today will be far better positioned when production deadlines arrive and even better prepared for the phases that follow.
Catch up on Modernization in Motion series here, and read the previous edition: Readiness is a Strategy, Not a Product where our Chief Compliance + Customer Success Officer, Matt Tully dives into the details of how mortgage servicers can build lasting readiness through adaptable technology, disciplined operations, and strategic partnership.