The amount of principal paid when a borrower pays off his or her mortgage loan is the same regardless of the remittance or delivery type of the mortgage loan. However, the principal payment to Fannie Mae will differ depending on whether the servicer is required to send Fannie Mae:
• actual principal collections, or
• scheduled principal reductions.
The different calculation methods are explained in the following table.
Note: If the mortgage loan has principal forbearance, the servicer must add the forbearance amount to the UPB before multiplying by Fannie Mae’s percentage interest.
For more information see Investor Reporting Manual Chapter 2-04, Reporting Specific Payment Transactions to Fannie Mae (02/14/2018)