Remitting a P&I Payment to Fannie Mae for a Summary Reporting Actual/Actual Mortgage Loan

The servicer must report its remittances for summary reporting actual/actual remittance type mortgage loans to Fannie Mae in the CRS in accordance with C-3-01, Responsibilities Related to Remitting P&I Funds to Fannie Mae.

The servicer must report its remittances to Fannie Mae via CRS

  • whenever the total amount collected is greater than $2,500 after the servicer deducts its servicing fees,

  • at least once a month if the total amount collected was less than $2,500 after the servicer deducts its servicing fees, and/or

  • on the first work day of each month if there were any collections on the last work day in the preceding month that were not remitted because they were received after the 4 p.m. ET deadline for electronically transmitting remittance transactions to Fannie Mae.

The following table outlines requirements if the servicer does not receive its collection activity reports in time to ensure that accumulated collections can be remitted to Fannie Mae in accordance with Fannie Mae’s required schedule.

The servicer must...

Make a reasonable estimate of the funds due.

Base its remittance transmission on that estimate.

The servicer must calculate its estimate by using either

  • its preceding remittance transmission amount, or

  • management reports that show its past average remittance for that particular day of the month.

When the actual collection report is available, the servicer must adjust its remittance by

  • immediately remitting any additional funds that are due, or

  • reducing its next remittance transmission by the overremitted amount.

Note: The detailed reporting actual/actual mortgage loans do not follow the same remittance guidelines as the summary reporting actual/actual remittances. For details, also see Remitting P&I Payments to Fannie Mae for Detailed Reporting, Actual/Actual Mortgage Loans.

Remitting a P&I Payment to Fannie Mae for a Detailed Reporting Actual/Actual Mortgage Loan

The following table provides instructions for detailed reporting for actual/actual mortgage loans in accordance with C-3-01, Responsibilities Related to Remitting P&I Funds to Fannie Mae.

The servicer must...

Report any activity daily, as received. Any activity reported automatically initiates a draft of the remittance amount from the servicer’s custodial account within 48 hours.

Report mortgage loan activity to Fannie Mae through SURF as transactions occur. Transactions may include P&I payments, curtailments, payoffs, etc.

Remitting a P&I Payment to Fannie Mae for a Scheduled/Actual Mortgage Loan

Instructions for remitting P&I payments to Fannie Mae for scheduled/actual remittance type mortgage loans are provided in the following table, in accordance with C-3-01, Responsibilities Related to Remitting P&I Funds to Fannie Mae.

The servicer must...

Report its remittance for all funds due to Fannie Mae via the CRS in time for the funds to be available for Fannie Mae’s use by the 20th calendar day of each month.

Note: If the 20th calendar day is not a business day, the servicer must report these remittances by the preceding business day.

Transmit the remittance transaction via CRS by 4 p.m. ET on the 19th of each month.

Note: If the 19th calendar day is not a business day, the servicer must transmit the remittance transaction before 4 p.m. ET on the last preceding day.

Remitting a P&I Payment to Fannie Mae for a Scheduled/Scheduled Mortgage Loan

The procedure for remitting P&I payments for scheduled/scheduled remittance type mortgage loans differs based on the type of mortgage loan (portfolio or MBS). For MBS mortgage loans, the procedure differs based on the type of remittance cycle (standard, RPM, or MBS Express).

The following table provides remitting instructions for scheduled/scheduled remittance type mortgage loans in accordance with C-3-01, Responsibilities Related to Remitting P&I Funds to Fannie Mae.

Mortgage Loan Type The servicer must...

Portfolio mortgage loan

  • Make all funds due Fannie Mae available for Fannie Mae’s use by the 18th calendar day of the month, and

    Note: If the 18th calendar day is not a business day, the servicer must report these remittances by the preceding business day.

  • Transmit the remittance transaction via CRS by 4 p.m. ET on the 17th of each month.

MBS mortgage loan

Determine the date by which funds must be available for Fannie Mae’s use based on which remittance cycle (and, in some instances, on which remittance date) the servicer selected when it created the MBS pool.

Note: To assist a servicer in ensuring it will have sufficient funds on hand in its drafting account, Fannie Mae will provide the Remittance Detail – P&I Report for P&I remittances and the Remittance Detail – Gfee report for guaranty fee remittances by the third business day on Fannie Mae’s website.

Remittance Cycle Remittance Requirements
Standard Funds must be available for drafting on the 18th calendar day of the month, or the preceding business day if the 18th is not a business day.
  • For pools that have a sixth day of the month designated remittance date, the funds must be available for drafting on the fifth day of the month.

  • For pools that have other designated remittance dates, the funds must be available for drafting on the designated remittance date (or the preceding business day if the designated remittance date is not a business day).

RPM Funds must be available for drafting through the applicable remittance system on the designated remittance date.
MBS Express Funds are remitted on two difference dates and under two different remittance systems. The date and remittance system depend on the type of funds being remitted.
  • Remittances related to unscheduled principal (payoffs, curtailments, repurchases, and other removals) must be in the servicer’s designated draft account in time for Fannie Mae to draft them on the fourth business day of the month after they were collected.

  • Remittances related to scheduled P&I must be in the servicer’s designated draft account in time for Fannie Mae to draft them on the 18th calendar day of the month or the preceding business day if the 18th is not a business day.

Remitting through the CRS

The CRS relies on remittance codes, which are unique to specific transactions, to identify monies related to the individual remittances the servicer reports. (See the CRS User Guide for a list of these codes.) Each remittance type code must be linked to a single drafting account. This account can be either the P&I custodial account for the applicable remittance type or a consolidated drafting account the servicer uses for MBS P&I or for all other remittance types.

In CRS, the servicer must provide drafting instructions to Fannie Mae by 3 p.m. ET and remit the draft amount at any time up until Fannie Mae’s cut-off time at 4 p.m. ET. The servicer is authorized to change the information for individual drafts at any time prior to its transmission of the information to Fannie Mae. After drafting instructions and remittance amount are provided to Fannie Mae, Fannie Mae will then draft the servicer’s designated drafting account using the ACH system.

The following table summarizes the reporting requirements the servicer must use when remitting funds in CRS, in accordance with C-3-01, Responsibilities Related to Remitting P&I Funds to Fannie Mae.

Mortgage Loan Type The servicer must report remittances...

Portfolio mortgage loans with actual/actual remittance

Via summary reporting when collections are enough to require the funds be remitted to Fannie Mae. Fannie Mae will draft the related funds from the servicer’s designated drafting account on the following business day.

Via detailed reporting, daily, as received. This initiates a draft of the remittance amount from the servicer’s custodial account on the next business day after loan activity is reported.

Portfolio mortgage loans with scheduled/actual or scheduled/scheduled remittance

On the business day before the applicable remittance due date, Fannie Mae will draft the related funds from the servicer’s designated drafting account on the following business day.

MBS mortgage loans with RPM remittance and MBS Express remittance

Note: For additional information on compensatory fees that may be assessed for late remittances, also see A1-4.2-01, Compensatory Fees Other Than Delays in the Liquidation Process.

Remitting a Special Remittance

The servicer must report special remittances for all mortgage loans it services to Fannie Mae via CRS, in accordance with C-3-01, Responsibilities Related to Remitting P&I Funds to Fannie Mae.

There are several remittance type codes the servicer can use for reporting special remittances to Fannie Mae. (See the CRS User Guide for a list of remittance type codes). Each special remittance must have a corresponding Fannie Mae loan number provided in CRS.

Each remittance type code must be linked to a single drafting account. See F-1-03, Establishing and Implementing Custodial Accounts for additional information on establishing drafting arrangements.

Remitting Short Sale Proceeds

For portfolio mortgage loans, PFP mortgage loans, and special servicing option MBS mortgage loans, the servicer must remit short sale proceeds to Fannie Mae in accordance with C-1.2-02, Processing Short Sale Proceeds, by taking the actions described in the following table.

The servicer must...

Remit the short sale proceeds via CRS as a special remittance using special remittance code 357.

Note: Do NOT submit as code 001, 002, or 003.

Remit any borrower cash contributions and/or promissory note associated with the short sale using special remittance code 324.

Remit the short sale proceeds to Fannie Mae within two business days of the servicer’s receipt of the net sale proceeds, but no later than three business days after the short sale.

Include the Fannie Mae loan number where indicated.

Contact its assigned Fannie Mae Investor Reporting Representative (see F-4-03, List of Contacts) with any questions related to remitting short sale proceeds.

For regular servicing option MBS mortgage loans, shared-risk special servicing option MBS mortgage loans, regular servicing option RD mortgage loans, or any mortgage loans subject to some type of recourse or other credit enhancement arrangement, the servicer must remit the short sale proceeds just as it would remit a full payoff of any other regular servicing option MBS mortgage loan since the servicer must absorb any losses and expenses related to the short sale.

Also see Reporting a Liquidation to Fannie Mae in the Investor Reporting Manual for instructions on how to remove the mortgage loan from Fannie Mae’s active accounting records.

Remitting MBS Guaranty Fees and Charges

Fannie Mae initiates drafts for guaranty fees, guaranty fee buydown charges, and deposits for guaranty fee buyup charges. The following table lists the steps the servicer must follow to enable successful drafts/deposits for guaranty fees and buydown/buyup charges, in accordance with C-3-01, Responsibilities Related to Remitting P&I Funds to Fannie Mae.

Step Servicer Action
1

Designate a custodial bank account from which Fannie Mae will draft the fees. See F-1-03, Establishing and Implementing Custodial Accounts for detailed requirements.

2

Complete an Authorization for Automatic Transfer of Funds (Form 1072) to authorize Fannie Mae to draft/deposit the fees from the designated account.

3

Retrieve the electronic draft notice (or “bill”) from Fannie Mae’s website. This notice shows the amount due for the guaranty fees, any guaranty fee buydown charges, any adjustment to offset any guaranty fee buyup payment that Fannie Mae owes the servicer, and the total net amount due Fannie Mae.

4

Review the draft notice for accuracy. If the net of the fees and charges the servicer calculates does not agree with the amount shown on the draft notice, the servicer must contact its Fannie Mae Investor Reporting Representative (see F-4-03, List of Contacts) immediately to provide details on the amount and nature of the discrepancy. Fannie Mae will review its records to validate the discrepancy the servicer identified and make any necessary adjustments to the bill.

5

Remit the fees and charges to the designated custodial account so they are available to Fannie Mae on the seventh calendar day of the month, or on the preceding business day if the seventh is not a business day.

Remitting Other Fees and Charges

All other fees and charges due Fannie Mae, such as upfront commitment fees or pair-off or extension fees, must all be deposited into a single custodial account that has been designated as the draft account on Form 1072. Sufficient funds must be in the account at all times to ensure the amount scheduled to be drafted on a specific date will be available when the draft actually takes place. The following table provides additional information regarding when Fannie Mae will draft certain other fees, in accordance with C-3-01, Responsibilities Related to Remitting P&I Funds to Fannie Mae.

Type of Fee Fannie Mae will draft the account...

Upfront commitment fees related to negotiated case commitments

The day following the request for the contract, without providing any advance notification.

Fees related to pair-offs, or extensions of cash commitments or contracts that are request by a seller/servicer

The business day following the seller/servicer’s request for the pair-off or extension.

Fannie Mae will draft the account on the business day following the extended expiration date or following the expiration of the additional time period it allows for processing pending purchases before an automatic pair-off takes place, if the fees relate to

  • an automatic five-day extension of a commitment or contract, or

  • an automatic pair-off of the remaining balance of an expired commitment or contract.

Fannie Mae will provide the seller/servicer with advance notification of its draft.

Remitting to Fannie Mae for a Delinquent MBS Mortgage Loan

If an MBS mortgage loan is delinquent, the servicer must ensure that Fannie Mae receives the scheduled P&I payment when it is due, in accordance with Remitting to Fannie Mae for Delinquent Mortgage Loans in C-3-01, Responsibilities Related to Remitting P&I Funds to Fannie Mae. The servicer can either

  • use funds it has on hand for any prepaid P&I installments, curtailments, and payoffs to offset payment shortfalls that occur as the result of mortgage loan delinquencies; or

  • advance its own funds to cover the payment shortfalls, if there are insufficient collects on hand from prepaid P&I installments, curtailments, and payoffs not yet due to Fannie Mae.

To ensure it has adequate controls over this process, the servicer must maintain a record of all delinquency advances that were funded by prepaid installments in any given month and perform appropriate reconciliations of this activity.

Remitting Payoff Proceeds

The following table provides the schedule and remittance requirements for remitting mortgage loan payoff proceeds to Fannie Mae, in accordance with C-3-02, Remitting Payoff Proceeds.

Mortgage Loan Type Requirements for Remitting Payoff Proceeds

Actual/Actual Remittance Type Mortgage Loan

If the payoff proceeds are greater than $2,500, they must be remitted to Fannie Mae immediately. Otherwise, the servicer must remit the payoff proceeds under the servicer’s regular remittance schedule. The servicer must remit

  • the UPB;

  • the full amount of the interest due, up to but not including, the payoff date;

  • FHA servicer charges, if applicable; and

  • any prepayment premium, if applicable.

Note: The servicer may deduct its applicable servicing fees and any unapplied buydown funds Fannie Mae may be holding.

Scheduled/Actual Remittance Type Mortgage Loan

The servicer must remit the payoff proceeds to Fannie Mae as part of its regular monthly remittance, by the 20th day of the month following the month in which they were received, or any other negotiated remittance date.

The servicer must remit Fannie Mae’s share of

  • the UPB;

  • one-half of one month’s interest, calculated at the net certificate yield of the PTR for a whole mortgage loan; and

  • any prepayment premium, if Fannie Mae agreed that such a premium could be collected and requires it to be remitted to Fannie Mae.

Scheduled/Scheduled Remittance Type Mortgage Loan

The servicer must remit the payoff proceeds as part of its regular monthly remittance

  • on the standard remittance day of the 18th calendar day of the month following the month in which they were received;

  • by the early remittance day the servicer specified under the RPM for MBS remittances; or

  • by the 4th business day of the month, if the loan is in an MBS Express pool.

The remittance amount to Fannie Mae will vary by mortgage loan type as follows:

  • Portfolio mortgage loans:

    • scheduled UPB of the mortgage loan, and

    • a full month’s interest calculated at the PTR of the mortgage loan.

  • MBS mortgage loans:

    • a full month’s interest calculated at the pass-through rate of the mortgage loan unless the liquidation was process on the first business day and reported to Fannie Mae by the second business day, and

    • any prepayment premium, if Fannie Mae agreed that such a premium could be collected and requires it to be remitted to Fannie Mae.

Note: Because the servicer is required to remit a full month’s interest to Fannie Mae, the servicer must use its own funds to cover the difference between the interest Fannie Mae is due and the interest collected from the borrower when a mortgage loan is paid off before the end of the month.

For FHA Title I loans, the scheduled for remitting funds depends on the remittance type for the mortgage loan. The servicer must remit

  • the UPB, and

  • the full amount of interest due through the end of the payoff month.

    Note: The servicer may deduct its applicable servicing fee.

Remitting Third-Party Sales Proceeds to Fannie Mae

The servicer must remit all third-party sales proceeds to Fannie Mae regardless of whether or not the sale is finalized or falls through in accordance with E-3.5-02, Handling Third-Party Sales.

If the sale is finalized, the amount that must be remitted to Fannie Mae is the lesser of:

  • the reserve price; or

  • the total mortgage indebtedness, including the UPB of the mortgage loan and interest (based on the applicable PTR) for the period from the due date of the LPI to the latter of the liquidation or settlement date.

However, if state law requires that the sheriff deduct fees from the sale proceeds, the servicer must remit the proceeds less such deductions to Fannie Mae along with an itemization of the deducted fees.

The servicer must submit arequest for expense reimbursement for any reimbursable expenses.

The servicer must not submit any sales proceeds that remain after Fannie Mae has been paid the amount it is due—and after the servicer has been reimbursed for its expenses and advances—because these proceeds must be distributed as provided for under local statutory requirements.

Any premium refunds (minus the portion that may be required to reimburse Fannie Mae or the servicer for advances Fannie Mae made) must be disbursed as shown in the following table.

If the mortgage loan is... Then the payment must be made to the...

FHA

third-party purchaser

Conventional, VA, or RD

borrower

For a VA mortgage loan, the servicer must file a claim under the guaranty if the third party’s bid was more than VA’s “upset price,” but less than the total indebtedness. The servicer also may file a claim under FHA’s claim without conveyance procedure for an FHA mortgage loan that was endorsed for insurance on or after November 30, 1983. For additional information, see Section E0–4.5, Filing MI Claims for Liquidated Properties.

Remitting a Settlement Received for an MBS Mortgage Loan

The servicer must remit any claim or sales proceeds it receives to Fannie Mae in accordance with E-3.5-01, Reclassifying or Removing MBS Mortgage Loans Post-Foreclosure, by adhering to the instructions shown in the following table.

The servicer must...

Immediately deposit the funds into its scheduled/scheduled MBS P&I custodial account.

Report the receipt of funds in its accounting reports for the current month.

Remit funds to Fannie Mae on the remittance date in the month following their receipt.

Regardless of whether a claim settlement received is a full or partial settlement, the servicer must purchase the mortgage loan from the MBS pool upon receipt.

If the servicer receives only a partial settlement because the claim is paid in installments (as is the case for FHA claims), the servicer must advance its corporate funds to purchase the mortgage loan from the MBS pool (retaining for its own account the partial settlement as well as all future installments of the claim settlement).

Determining the Payoff Date for a Scheduled/Scheduled Mortgage Loan

The following table outlines how the servicer must determine the payoff date.

If... Then...

a scheduled/scheduled remittance type mortgage loan payoff is handled by a settlement attorney or closing agent

the servicer can consider the mortgage loan as being paid off on the settlement (or closing) date, even if it does not receive the funds for several days.

a mortgage loan payoff comes directly from the borrower

the servicer can consider the mortgage loan paid off on the day the servicer receives the funds.

Related Announcements

The following table provides references to Announcements that are related to this topic.

Announcements Issue Date
Announcement SVC-2017-10 November 8, 2017
Announcement SVC-2017–01 January 18, 2017
Announcement SVC–2015–03 February 11, 2015