The servicer must remit interest to Fannie Mae on scheduled/actual remittance type mortgage loans and must remit P&I on scheduled/scheduled remittance type mortgage loans regardless of whether it actually receives payments from the borrower. For a delinquent mortgage loan, the servicer must advance the remittance until the delinquent mortgage loan is reclassified as actual/actual remittance or removed from the MBS pool.
The servicer of portfolio mortgage loans and most participation pool mortgage loans that Fannie Mae holds in its portfolio must advance interest on delinquent mortgage loans only through the third month of delinquency.
Actual/actual biweekly loan activity must be reported to Fannie Mae daily as received. For MBS pools that consist of biweekly payment mortgage loans, the servicer must deposit the difference between the interest collected from the borrowers and the interest due on the pool into its designated draft account.
The servicer must remit funds to Fannie Mae for a mortgage loan with biweekly payments when
a full installment of P&I has accumulated for a mortgage loan that has an actual/actual remittance type, or
the biweekly payment is scheduled to be remitted (whether or not it was collected from the borrower) for a mortgage loan that has a scheduled/actual or scheduled/scheduled remittance type.
If the servicer holds the buydown funds, the servicer must remit to Fannie Mae the interest buydown funds along with the payment received from the borrower as a full contractual payment each month.
If Fannie Mae holds the buydown funds for a first lien mortgage loan that it purchased for its portfolio, Fannie Mae will automatically apply funds that it holds toward the interest due each month. Therefore, the servicer must adjust its individual mortgage loan records to reflect the application of Fannie Mae’s portion of the payment.
The servicer must return any money it has held in association with an interest buydown to Fannie Mae, when either
the buydown term ends, or
the mortgage loan is liquidated, whichever occurs first.
The servicer must exercise due diligence to ensure that it discovers over-remittances as soon as possible. Once the servicer discovers an over-remittance, it should promptly notify Fannie Mae by submitting a documented claim for a refund.
The following table provides references to Announcements that are related to this topic.
|Announcement SVC-2017–01||January 18, 2017|