Servicing Guide

Published June 13, 2018

A2-3-04: Late Charges as Compensation (11/12/2014)

The servicer may collect any late charges that are provided for in the mortgage instrument as long as they are consistent with federal and state laws. Also, see C-1.1-01, Servicer Responsibilities for Processing Mortgage Loan Payments for Fannie Mae requirements regarding late charges.

The servicer must report the amount of late charges it collects each month for a given mortgage loan as part of the monthly activity information it provides through Fannie Mae’s investor reporting system. See the Investor Reporting Manual for additional information.