Servicing Guide

Published June 13, 2018

F-2-03: Compensatory Fee Calculation Examples (03/09/2016)

This exhibit contains compensatory fee calculation examples.

Compensatory Fee Calculation Examples

The following examples illustrate how compensatory fees will be calculated using the following formula:

UPB x (Daily PTR/365) x Number of Days Delayed.

Example #1: Mortgage Loan-Level Compensatory Fee Analysis Resulting in a Compensatory Fee: In this mortgage loan-level example, the servicer exceeded Fannie Mae's allowable foreclosure time frame and would be billed a compensatory fee in the amount of $728.77.

Property Located in Florida

UPB

$100,000

PTR

4.75%

LPI

02/01/2013

Property Located in Florida

Foreclosure Sale Date

10/15/2015

Servicer's Overall State Foreclosure Time Frame

986 days

Fannie Mae's Overall Allowable Foreclosure Time Frame for Florida

930 days

Allowable Delays Reported

0 days

Number of Days Over Allowable Foreclosure Time Frame

56 days

Compensatory Fee (or Credit)

($100,000)(.0475/365)*(56) = $728.77

Example #2: Mortgage Loan-Level Compensatory Fee Analysis Not Resulting in a Compensatory Fee: In this mortgage loan-level example, the servicer performed under Fannie Mae's allowable foreclosure time frame by 53 days, so a compensatory fee would not be assessed against the servicer for this mortgage loan. The $1,524.66 credit could be used to offset a compensatory fee assessed for over-standard performance on another mortgage loan in this state and in the same billing period.

Property Located in Colorado

UPB

$200,000

PTR

5.25%

LPI

10/01/2015

Foreclosure Sale Date

12/01/2016

Servicer's Overall State Foreclosure Time Frame

427 days

Fannie Mae's Overall Allowable Foreclosure Time Frame for Colorado

450 days

Allowable Delays Reported

30 days

Number of Days Under Allowable Foreclosure Time Frame

– 53 days

Compensatory Fee (or Credit)

($200,000)(.0525/365)*(-53) = ($1,524.66)

Example #3: State-Level Netting That Does Not Result in a Compensatory Fee: In this example, the servicer's performance on the 10 mortgage loans was under-standard as compared to Fannie Mae's allowable foreclosure time frame. As such, a compensatory fee would not be assessed against the servicer in this state; there would not be a credit issued to the servicer in the form of cash, nor could the $350 be applied as a credit against a compensatory fee invoice for this servicer in the future.

Foreclosed Mortgage Loans Compensatory Fee or Credit
1 $900
2 $800
3 ($1,800)
4 ($600)
5 $400
6 $600
7 $1,000
8 ($850)
9 $450
10 ($1,250)

Net amount of compensatory fee (or credit), in aggregate by state.

($350)

Example #4: State-Level Netting Resulting in a Compensatory Fee: In this example, the servicer's performance exceeded Fannie Mae's allowable foreclosure time frame on the 10 mortgage loans and it would therefore be billed a compensatory fee of $2,150.

Foreclosed Mortgage Loans Compensatory Fee or Credit
1 $1,200
2 $800
3 ($1,000)
4 ($600)
5 $1,000
6 $600
7 $1,500
8 ($850)
9 $450
10 ($950)

Net amount of compensatory fee (or credit), in aggregate by state.

$2,150

Related Announcements

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

Announcements

Issue Date

Announcement SVC–2016–02

March 9, 2016

Announcement SVC–2015–13

October 14, 2015