C-3-01, Responsibilities Related to Remitting P&I Funds to Fannie Mae (07/13/2022)

The servicer must remit all funds that are due to Fannie Mae for that month under the schedule established for each remittance type and, if applicable, remittance cycle. Depending on the mortgage loan type and individual circumstances, required remittances may include, but are not limited to:

• Scheduled P&I or actual P&I payments collected;
• Guaranty fees and charges;
• Claim, sale or payoff proceeds;
• Special remittances; or
• Other fees and charges.

If the servicer does not remit funds due to Fannie Mae on or before the remittance due date, Fannie Mae may impose a compensatory fee.

The servicer must follow the procedures in  F-1-20, Remitting and Accounting to Fannie MaeF-1-20, Remitting and Accounting to Fannie Mae  and Fannie Mae’s Investor Reporting Manual for detailed instructions. See also A2-1-01, General Servicer Duties and ResponsibilitiesA2-1-01, General Servicer Duties and Responsibilities  for additional information on the servicer’s remittance responsibilities, including for delinquent mortgage loans.

The servicer must remit P&I to Fannie Mae on scheduled/scheduled remittance type MBS mortgage loans regardless of whether it actually receives payments from the borrower. The following table further describes the servicer’s remittance responsibilities, depending on the mortgage loan servicing option.

The servicer must remit scheduled principal and/or interest to Fannie Mae for a delinquent portfolio mortgage loan in accordance with the table below, regardless of whether it actually receives payments from the borrower.

For remitting amounts collected for actual/actual mortgage loans, refer to  F-1-20, Remitting and Accounting to Fannie MaeF-1-20, Remitting and Accounting to Fannie Mae.

Actual/actual biweekly mortgage loan activity must be reported to Fannie Mae daily as received. For mortgage loans with a biweekly payment, the servicer must deposit the difference between the interest collected from the borrowers and the interest due on the loan 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.