Investor Reporting Reconciliation Job Aids

 

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Performing the Mortgage Portfolio Reconciliation - Schedule 1

The monthly mortgage portfolio reconciliation enables you to identify and resolve any differences between your internal trial balance totals and Fannie Mae’s records relating to loan count, P&I installments, and unpaid principal balance (UPB).  

Note: You must perform a separate mortgage portfolio reconciliation for each remittance type.

To prepare for a mortgage portfolio reconciliation, assemble the following:

  • Lender Recap Report: Section I: Portfolio Summary (available in Fannie Mae Connect™) or SURF's Portfolio Summary report found in the Report section.
  • Remittance Update Report (Fannie Mae Connect).
  • Part I, Section A: Portfolio Summary.
  • Part I, Section B: Rejected Transactions.
  • Part I, Section D: Loans Added to SURF.
  • Fannie Mae's Trial Balance Report (Fannie Mae Connect).
  • Your company's Trial Balance Report.

To complete the mortgage portfolio reconciliation, follow these steps:

  1. Identify differences. Compare totals for loan count, P&I installment, and UPB in Section A of the Remittance Update Report with the totals from your company’s trial balance.

    If the totals agree, your reconciliation is complete, although you still need to sign and submit the reconciliation form.

    If any of the totals do not agree, proceed with Step 2.
  2. Research differences. Compare the loan detail records from your company’s trial balance with Fannie Mae’s Trial Balance Report to identify loans that may be contributing to the discrepancy in P&I installment, loan count, or UPB.

    Check any unresolved hard rejects listed in Section B of the Remittance Update Report and note the reason for each reject.

    An unresolved hard reject means Fannie Mae did not update the loan to reflect the UPB and last paid installment (LPI) date you reported as well as the following:
  • For Actual/Actual loans, a hard reject means Fannie Mae did not apply the P&I remittance you reported.
  • For Scheduled/Scheduled loans, Fannie Mae did apply scheduled P&I remittances to update the scheduled UPB.
  1. Resolve differences. Determine whether each data discrepancy reflects an error in your records or ours.

    If your records are in error, simply correct them. If you reported a transaction in error and we rejected it, you can correct the transaction in the next reporting period.

    If Fannie Mae’s records are in error, the action needed depends on the type of error.
  • For loans liquidated in error, contact your Fannie Mae Investor Reporting Business Analyst to request that the loan be reinstated.
  • If a loan has been paid in full at or prior to maturity (action code 60) or a loan has been repurchased and you have not reported this action, report it as soon as possible using the true Action Date.
  • For action codes 70 and above, contact Fannie Mae's National Property Disposition Center at 1-800-2FANNIE (800-232-6643).

When Fannie Mae’s records are in error, provide the backup documentation you used to determine whose information was correct (for example, a copy of the mortgage note). If the information you provided at loan delivery needs to be corrected, you may also need to provide a copy of the Schedule of Mortgages and the loan history. The Data Change Rules Matrix shows proper documentation needed to submit Post Purchase Adjustments.

  1. Complete reconciliation forms. Document your mortgage portfolio reconciliation by completing one of the following:

These interactive forms, and detailed instructions for completing them, are posted on the Guide Forms page on FannieMae.com.

Complete these forms as follows:

    • Record the Fannie Mae loan number for each loan causing a discrepancy. 
    • Indicate who should make the correction (F = Fannie Mae; S = Servicer).
    • Enter a concise explanation of the difference (which will help you keep a record of why data changes have been made), including pertinent information needed to process an adjustment or corrective action. Attach appropriate documentation to support any adjustment.
    • Assess the impact, if any, of this loan on the discrepancy in fixed installment, loan count, UPB or Effect on Shortage/Surplus (leave blank any field where there is no impact).

      Fixed Installment: Enter the difference between the P&I for this loan on your records and ours. This figure will be positive if an amount must be added to Fannie Mae's total, or negative if it must be subtracted.

      Loan Count: Enter a "1" if the loan is to be added to Fannie Mae’s count, or a "-1" if this loan should be removed from our count.

      Unpaid Principal Balance: Enter the difference between the UPB for this loan on your records and ours. Again, enter a positive number if the amount must be added to Fannie Mae's total, or a negative number if the amount must be subtracted.

      Effect on Shortage/Surplus (does not apply to Scheduled/Scheduled MBS loans): Enter the cumulative effect of the shortage or surplus. Keep in mind that if the loan is hard rejecting, the funds have not been applied; therefore, there is a surplus for this loan. If the loan updated, but we applied more P&I than you remitted, there will be a shortage. These figures will compound each month that the reject remains unresolved.

      For portfolio mortgages only, carry forward the total effect on your Shortage/Surplus account to line 1 of Form 472: Schedule 3, Reconciliation of Shortage/Surplus.

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