If Fannie Mae reclassifies a delinquent scheduled/scheduled remittance type special servicing option MBS mortgage loan as an actual/actual remittance type mortgage loan that Fannie Mae will hold in its portfolio, Fannie Mae will reimburse the servicer its delinquency advances for scheduled P&I once Fannie Mae completes the reclassification.
With the exclusion of PFP mortgage loans with a scheduled/scheduled remittance type, MBS mortgage loans (regular and special servicing option mortgage loans) removed from MBS pools in this manner will become actual/actual remittance type mortgage loans that Fannie Mae will hold in its portfolio, identifying them by
- the Fannie Mae loan number,
- the servicer’s loan number,
- and the property address.
The servicer must adjust the remittance type in their systems to actual/actual and report a LAR reflecting the loan as actual/actual before the interim reporting end date. If a valid A/A LAR has not been processed by the interim reporting end date, the Loan Activity Rejects report will show an exception of “Missing LAR – Loan Reclass” in the first report produced for the day. PFP mortgage loans with an original scheduled/scheduled remittance type will remain a scheduled/scheduled remittance type even after being removed from the pool. The servicer does not need to report a LAR after the reclassification unless the servicer has not reported a LAR for the reporting period.
For more information Investor Reporting Manual Chapter 4, Special Loan Handling