Servicing Guide

Published June 10, 2020

The Servicing Guide is organized into parts that reflect how lenders generally categorize various aspects of their business relationship with Fannie Mae. To begin browsing, select from any of the sections below. You may also download the entire Servicing Guide in PDF format.

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Future Cash Simplification Changes to Investor Reporting - Customer Transition Plan - Post Transition Period (Settle-Up Process)

Post Transition Period (Settle-Up Process)
During the October 2020 processing period, servicers will focus on concluding the settle-up process activities for any outstanding Shortage/Surplus balances established as of July CD27 for the June 2020 loan activity period for S/A and S/S portfolio loans.  Servicers will have a three-month grace period to request any Shortage/Surplus adjustments with appropriate documentation (using the current documentation guidelines for SSAs) to clear any Schedule 3 reconciling items.  Analysts may perform adjustments until October BD2, three months after the June loan activity reporting period.  At the end of the three-month grace period, Fannie Mae will draft any outstanding Shortages as part of the Fannie initiated P&I drafts on October CD18 for S/S and October CD20 for S/A portfolio loans.

 After October BD2, Fannie Mae will not process any cash adjustments related to any outstanding surplus balances.  For these surplus balances to be reimbursed, the cash adjustments need to be processed on or before October BD2.  

  • Settle-Up Example:
    • Outstanding settle-up S/S shortage balance of $20,000 at the end of the June 2020 loan activity reporting period, FM will process a cash adjustment to collect the funds due by October BD2 at the end of the three-month grace period 
    • Cash adjustment will be netted against the S/S P&I cash draft on October CD18
    • The September loan activity reporting period P&I cash draft is $50,000 (LAR Processing + Borrower Contribution + Misc. Adjustments for September activity) and the outstanding settle-up S/S shortage balance as of July CD27 for the loan activity through the June 2020 reporting period is the $20,000 resulting in a total P&I cash draft will be $50,000 + $20,000 = $70,000 on October CD18

Settle-Up Process 

Key Milestone

October Processing Month – Post Transition 

(Settle-Up Process with Servicers)

16

Friday 10/2/2020

(Oct BD2)

  • Settle-Up adjustments cash cycle closed for S/A & S/S portfolio loans 

The last time Fannie Mae will allow any adjustments for the June 2020 activity reporting period balances established as of July CD27.  The three- month settle-up adjustment period for any schedule 3 reconciliation items will be closed on the 2nd business day of October for Scheduled/Actual (S/A) and Scheduled/Scheduled (S/S) portfolio loans.

17

Friday 10/16/2020

(Oct CD18)

 

  • FNMA to initiate any Settle-Up adjustments S/S cash draft

The last time Fannie Mae will initiate draft servicers on the 18th calendar day for S/S cash (i.e., MRS) for any adjustments established as part of the Settle-Up process for the June 2020 loan activity reporting period balances determined on July CD27.

Fannie Mae will initiate S/S Principal & Interest drafts for September loan activity reporting LAR processing.  This draft amount will also include any outstanding S/S shortage balances for the June 2020 loan activity reporting following the three-month grace period.

18

Tuesday 10/20/2020

(Oct CD20)

 

  • FNMA to initiate any Settle-Up adjustments S/A cash draft

The last time Fannie Mae will initiate draft servicers on the 20th calendar day for S/A cash for any adjustments established as part of the Settle-Up process for the June 2020 loan activity reporting period balances determined on July CD27.

Fannie Mae will initiate S/A Principal & Interest drafts for September loan activity reporting LAR processing.  This draft amount will also include any outstanding S/A shortage balances for the June 2020 loan activity reporting following the three-month grace period.

For More Information
Servicers should contact future_of_servicing@fanniemae.com, their Servicing Consultant, Portfolio Manager or call 1-800-2FANNIE (1-800-232-6643, Option 1, Option 6) with any questions regarding this transition guide.  

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