Servicing Guide

Published September 9, 2020

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Updated Are servicers expected to advance principal and interest (P&I) payments on mortgage loans subject to a forbearance plan?

The servicer must remit P&I on scheduled/scheduled remittance type mortgage loans regardless of whether it receives payments from the borrower, until if and when a loan is purchased out of the MBS trust by Fannie Mae. Upon the loan being purchased out of the MBS trust, Fannie Mae will reimburse the servicer for advances made, usually within three to two four days.

See 4-02, Reporting a Mortgage Loan After Reclassification of the Investor Reporting Manual and Servicing Guide A1-3-06: Automatic Reclassification of MBS Mortgage Loans and F-1-26, Reclassifying or Voluntary Repurchasing an MBS Mortgage Loan for more information.

Note: This FAQ is from the Fannie Mae COVID-19 Frequently Asked Questions.

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