Mortgage loans sold to Fannie Mae as cash purchases may have been purchased at par, at a discount or at a premium price. Mortgage loans sold to Fannie Mae as part of a SWAP MBS pool are purchased at par. When determining the principal that needs to be repurchased, the price of the mortgage loan will need to be considered. The following table explains how to calculate the principal to report on the LAR Transaction Code 96.
Note: If the mortgage loan has principal forbearance, the servicer must add the forbearance amount to the UPB before multiplying by the purchase price and/or 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)