Interest payments related to scheduled/actual biweekly payment mortgage loans must be sent to Fannie Mae each month whether or not they are collected from the borrower. Interest payments related to actual/actual biweekly payment mortgage loans must be reported to Fannie Mae as received. Because biweekly mortgage loans in Fannie Mae's portfolio are accounted for as the scheduled/actual and actual/actual remittance types and those in MBS pools as the scheduled/scheduled remittance type, the calculations for determining the amount of interest due differ slightly (since the interest for an MBS mortgage loan is based on a scheduled UPB because the payments had to be sent to Fannie Mae even though they may not have been collected from the borrower). The following table provides further instructions to determine the interest payment for a biweekly payment mortgage loan depending upon the mortgage loan remittance type.
Interest on the regularly scheduled biweekly payment, which is reported separately from the curtailment, is calculated as described in the following table.
Note: Actual/actual biweekly loans are amortized every 14 days using a 365-day basis year for interest calculation.
For more information see Investor Reporting Manual Chapter 2-04, Reporting Specific Payment Transactions to Fannie Mae (02/14/2018).