E-2.1-11, Remitting P&I for MBS Mortgage Loans That Are Part of a Bankruptcy (07/13/2022)

Unless Fannie Mae has placed the mortgage loan in the Stop Delinquency Advance process, the servicer must report and remit the P&I to Fannie Mae each month as scheduled under the original terms of the mortgage loan as long as any mortgage loan remains in its MBS pool, regardless of servicing option or delinquency status. See  C-3-01, Responsibilities Related to Remitting P&I Funds to Fannie MaeC-3-01, Responsibilities Related to Remitting P&I Funds to Fannie Mae. See also  E-2.3-03, Handling Cramdowns of the Mortgage DebtE-2.3-03, Handling Cramdowns of the Mortgage Debt  for more information regarding P&I remittance on loans subject to cramdowns in bankruptcy, and  F-1-20, Remitting and Accounting to Fannie MaeF-1-20, Remitting and Accounting to Fannie Mae for details on the Stop Delinquency Advance process.

For example, an MBS mortgage loan in an MBS pool issued prior to June 1, 2007 that is current (or has not been in a continuous state of delinquency for at least four consecutive payment due dates) in the month in which the Order of Confirmation is entered will remain in its MBS pool.

The following table outlines the time frame within which a servicer may purchase a regular servicing option mortgage loan from an MBS pool.

A regular servicing option MBS mortgage loan that has been repurchased from its MBS pool is not eligible for redelivery.

The following table outlines the time frame within which a special servicing option mortgage loan may be reclassified from an MBS pool.

The mortgage loan may already appear on Fannie Mae’s list of delinquent mortgage loans due for reclassification. If not, the servicer must contact its Fannie Mae Servicing Representative (see F-4-02, List of ContactsF-4-02, List of Contacts) to request that the mortgage loan be added to the reclassifications scheduled for the month in which the plan is confirmed. If the opportunity to do so in the current month has expired, the servicer may request that the mortgage loan be added to the reclassifications for the following month.