F-1-20, Remitting and Accounting to Fannie Mae (11/13/2024)

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 MaeC-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 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.

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 MaeC-3-01, Responsibilities Related to Remitting P&I Funds to Fannie Mae.

The servicer must make all P&I payments due to Fannie Mae for scheduled/actual remittance type mortgage loans available for drafting on the 20th calendar day of each month (or the preceding business day if the 20th is not a business day), in accordance with 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. Funds drafted will be based on all mortgage loan activity reported for the prior month.

Note: To assist the servicer in ensuring it will have sufficient funds in its drafting account, Fannie Mae will provide the electronic draft notice on its website by the third business day of each month.

The servicer of a scheduled/scheduled mortgage loan must remit scheduled P&I to Fannie Mae in accordance with  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.

Remittance Requirements

The procedure for remitting required P&I payments for scheduled/scheduled remittance type mortgage loans differs based on the type of mortgage loan (portfolio or MBS). The following table provides remitting instructions for scheduled/scheduled remittance type mortgage loans.

For MBS mortgage loans, the procedure differs based on the type of remittance cycle (standard, RPM, or MBS Express). The following table provides remittance requirements based on the remittance cycle specific to MBS mortgage loans.

Stop Delinquency Advance Process

When a special servicing option portfolio or MBS mortgage loan with a scheduled/scheduled remittance type becomes four consecutive months delinquent, Fannie Mae will place it in the Stop Delinquency Advance process and suspend drafting delinquency advances from the servicer’s custodial account.  While the mortgage loan is in the Stop Delinquency Advance process, the servicer must continue to:

• report mortgage loan activity to Fannie Mae; and
• advance guaranty fees and excess servicing fees, as applicable.

If the servicer collects one or more full contractual payments while the mortgage loan remains in the Stop Delinquency Advance process, Fannie Mae will draft these funds and first apply them to recover advances made by Fannie Mae on behalf of the servicer. Once Fannie Mae has recovered all its advances, the servicer may then retain subsequent contractual payments to recover delinquent P&I advances it has made.

Fannie Mae will remove a mortgage loan from the Stop Delinquency Advance process under certain events, including those set forth in the following table.  The table also summarizes additional servicer responsibilities, and the actions Fannie Mae will take, depending on how the mortgage loan exits the process. 

The CRS relies on remittance codes, which are unique to specific transactions, to identify monies related to the individual remittances the servicer reports. (See Fannie Mae's 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 account the servicer uses for MBS P&I or for all other remittance types.

In the CRS, the servicer must provide bank instructions to Fannie Mae by 8 p.m. ET, one day prior to the effective date 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 bank instructions and remittance amount are provided to Fannie Mae, Fannie Mae will then draft the servicer’s designated account using the ACH system.

The following table summarizes the reporting requirements the servicer must use when remitting funds in CRS for mortgage loans with an actual/actual remittance type, in accordance with 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.

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 ProcessA1-4.2-01, Compensatory Fees Other Than Delays in the Liquidation Process.

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 MaeC-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 CRS User Guide for a list of remittance type codes). Each special remittance must have a corresponding Fannie Mae loan number entered in CRS.

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

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 ProceedsC-1.2-02, Processing Short Sale Proceeds, by taking the actions described in the following table.

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.

Fannie Mae initiates drafts for guaranty fees, guaranty fee buydown charges, and deposits for guaranty fee buyup charges, in accordance with 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.

Remittance Requirements

The following table lists the steps the servicer must follow to enable successful drafts/deposits for guaranty fees and buydown/buyup charges.

Guaranty Fee Relief Process

When a scheduled/scheduled remittance type MBS mortgage loan becomes four consecutive months delinquent, Fannie Mae will place the mortgage loan in the Guaranty Fee Relief process and suspend drafting guaranty fees from the servicer’s custodial account. While the mortgage loan is in the Guaranty Fee Relief process, the servicer must continue to report mortgage loan activity to Fannie Mae.

If the servicer collects one or more full contractual payments while the mortgage loan is in the Guaranty Fee Relief process, Fannie Mae will draft the guaranty fee amount associated with the contractual payment.  Fannie Mae will first apply such funds to recover the outstanding guaranty fees due to Fannie Mae. Once Fannie Mae has recovered all its outstanding guaranty fees, the servicer may then retain subsequent guaranty fee amounts to recover delinquent guaranty fee advances it has made.

Fannie Mae will remove a mortgage loan from the Guaranty Fee Relief process under certain events, including those set forth in the following table.  The table also summarizes additional servicer responsibilities, and the actions Fannie Mae will take, depending on how the mortgage loan exits the process.

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 and entered into the CRS. The servicer must deposit the funds for the applicable fees or charges to be remitted prior to the date on which Fannie Mae will draft the funds. 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 MaeC-3-01, Responsibilities Related to Remitting P&I Funds to Fannie Mae.

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 ProceedsC-3-02, Remitting Payoff Proceeds.

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.

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 SalesE-3.5-02, Handling Third-Party Sales.

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

• up to 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; or
• the restricted resale price (as determined in accordance with the resale restriction agreement or shared equity transaction agreement, as applicable).

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 a request 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.

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.

The servicer must remit any claim or sales proceeds it receives to Fannie Mae, by adhering to the instructions shown in the following table.

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