Chapter 2, Reporting Payment Transactions
A payment transaction is required for all summary reporting mortgage loans each month regardless of whether a payment is received or not. A payment transaction for detailed reporting mortgage loans is only required when a payment is received.
See below for subtopic: 204, Reporting Specific Payment Transactions to Fannie Mae (02/14/2018):
Reporting a Payment, Curtailment or No Payment
Reporting a Payoff to Fannie Mae
Reporting a Mortgage Loan Liquidation to Fannie Mae
Recovering Advanced Interest on a Liquidated Delinquent Scheduled/Actual Mortgage Loan
To see other subtopics for Chapter 2, Reporting Payment Transcations, please click on any of the topics below:
201, Reporting Due Dates (01/18/2017)
202, Reporting a Transaction Type 96 (Loan Activity Record) (01/18/2017)
203, Reporting a Transaction Type 97 (Extended Loan Activity Record) (01/18/2017)
204, Reporting Specific Payment Transactions to Fannie Mae (02/14/2018)
Reporting a Payment, Curtailment or No Payment
Each reporting period the servicer is required to inform Fannie Mae of any borrower payment activity (or no payment) that occurred for the Reporting Period. This information includes the Loan Activity Status, the Payment Collection Activity, and any Fees that were collected, if applicable. For all payment transactions that are not liquidations, the servicer must report the following for the Loan Activity Status:
 Action Code = either 00 for eighty character fixed width file format or 02 for ANSI X12 file format.
 Action Date = any date within the month of the Reporting Period for which the activity is to be applied (monthly reporting).
 Note: When reporting an Action Code of 00 or 02, the Action Date Month and Year must be aligned to the Activity Period being reported.
In order to report the Payment Collection activity, the servicer must know the characteristics of the mortgage loan and how it was delivered to Fannie Mae. The calculation of P&I will vary depending on the remittance type and reporting method. The different calculation methods are explained below.
Calculating Monthly Principal Payments
If the mortgage loan is… 
To determine the principal remittance amount for a monthly payment mortgage loan, the servicer must… 
actual/actual or a scheduled/actual remittance type 
subtract the current month's actual UPB from the prior month's actual UPB and multiply the result by Fannie Mae's percentage interest. 
scheduled/scheduled remittance type (regardless of whether it is a portfolio mortgage loan or an MBS mortgage loan) 
subtract the current month's scheduled UPB from the prior month's scheduled UPB and multiply the result by Fannie Mae's percentage interest. 
Calculating Biweekly Principal Payments
If the mortgage loan is… 
To determine the principal remittance amount for a biweekly payment mortgage loan, the servicer must… 
a scheduled/actual biweekly payment mortgage loan 
subtract the current month's actual UPB from the prior month's actual UPB and multiply the result by Fannie Mae's percentage interest. 
an actual/actual biweekly payment mortgage loan 
subtract the current actual UPB from the UPB as of the last reported loan activity and multiply the result by Fannie Mae's percentage interest. 
Calculating Monthly Interest Payments
Interest payments due to Fannie Mae each mont for monhtly payment mortgage loans vary depending on the remittance type of the mortgage loan. For an actual/actual remittance type mortgage loan, the servicer must send Fannie Mae interest only if it is actually collected from the borrower. For a scheduled/actual or a scheduled/scheduled remittance type mortgage loan, the servicer must send Fannie Mae interest whether or not it is collected from the borrower. The calculations used for determining the amount of interest due are similar, except that the interest for a scheduled/scheduled remittance type mortgage loan will be based on a scheduled UPB since principal payments for that type of mortgage loan must be sent to Fannie Mae whether or not they are collected.
The following table provides further instructions to determine the interest payment for a monthly payment mortgage loan depending upon the mortgage loan remittance type.
If the mortgage loan is… 
Then the servicer must use this calculation… 
an actual/actual or a scheduled/actual remittance type 
(Prior Month's Actual UPB x Passthrough Rate) ÷ 12 x Fannie Mae's Percentage Interest = Passthrough Interest Remittance Amount 
a scheduled/scheduled remittance type 
(Prior Month's Scheduled UPB x Passthrough Rate) ÷ 12 x Fannie Mae's Percentage Interest = Scheduled Interest Remittance Amount 
actual/actual remittance type that is prepaid 
(Prior Month’s Actual UPB x Passthrough Rate) ÷ 12 x (number of months prepaid) x (Fannie Mae's Percentage Interest) = Passthrough Interest Remittance Amount 
is a scheduled/actual remittance type that is prepaid 
(Prior Month’s Actual UPB x Passthrough Rate) ÷ 12 x (Fannie Mae's Percentage Interest) = Passthrough Interest Remittance Amount. 
 Note: The receipt of a curtailment in a given month will not affect the interest calculation for that month. The servicer must compute interest for the current month based on the previous month's ending UPB (if the mortgage loan has an actual/actual or a scheduled/actual remittance type) or on the prior month's scheduled UPB (if the mortgage loan has a scheduled/scheduled remittance type).
Calculating Biweekly Interest Payments
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.
If the biweekly payment mortgage loan is… 
Then the servicer must use this calculation… 
a scheduled/actual remittance type 
(Prior Month's Actual UPB x Passthrough Rate) ÷ 12 x Fannie Mae's Percentage Interest = Passthrough Interest Remittance Amount 
an actual/actual remittance type 
(Actual UPB x Passthrough Rate/365) x 14 days x Fannie Mae's Percentage Interest = Passthrough Interest Remittance Amount* 
a scheduled/scheduled remittance type MBS mortgage loan 
(Prior Month's Scheduled UPB x Passthrough Rate) ÷ 12 x Fannie Mae's Percentage Interest = Scheduled Interest Remittance Amount 
Interest on the regularly scheduled biweekly payment, which is reported separately from the curtailment, is calculated as described in the following table.
Step 
Servicer Actions 
1 
Use the UPB prior to receipt of curtailment and calculate interest up to but not including the date of the curtailment. 
2 
Use the UPB after the curtailment to calculate the remaining interest for the payment period. 
3 
Report the total interest calculated. 
 Note: Actual/actual biweekly loans are amortized every 14 days using a 365day basis year for interest calculation.
Calculating Actual UPB
The actual UPB of a mortgage loan in a given month is calculated the same way for all remittance or delivery types except actual/actual biweekly. To determine the current month's actual UPB of a mortgage loan except actual/actual biweekly, the servicer must use the following calculation:
Previous Month's UPB 

 
Current Month's Principal Collection 
= 
Current Month's UPB 
To determine the current actual UPB of an actual/actual biweekly mortgage loan, the servicer must use this calculation:
Previous reported UPB 

 
Current principal collected 
= 
Current UPB 
This current UPB must equal the UPB on the servicer's trial balance at the end of the activity month.
Calculating Scheduled UPB
The servicer must calculate a scheduled UPB only for:
 monthly payment portfolio mortgage loans that are the scheduled/scheduled remittance type, and
 biweekly and monthly payment scheduled/scheduled remittance type mortgage loans that are in MBS pools.
The calculations are the same for both delivery types; however, they will differ depending on the due date of the mortgage loan installments and whether the mortgage loan payments are:
 current,
 delinquent, or
 prepaid.
A. Monthly payments due on first day of month. When a monthly payment mortgage loan has payments due on the first day of each month, the scheduled UPB is generally equal to the actual UPB of the mortgage loan amortized to one month beyond the reporting period. The different calculation methods are explained in the following table.
If the mortgage loan is… 
The servicer must calculate the ending scheduled UPB as follows: 
current 

delinquent 

prepaid for one month 
No calculation is necessary. The scheduled UPB is equal to the actual UPB. 
prepaid two or more months 

B. Monthly payments due on any other day of the month. When a monthly payment mortgage loan has payments due on any day other than the first day of each month, the scheduled UPB will differ based on the mortgage loan status. The different calculation methods are explained in the following table.
If the mortgage loan is… 
The servicer must calculate the ending scheduled UPB as follows: 
current 
No calculation is necessary. The scheduled UPB is equal to the actual UPB. 
delinquent 

prepaid 

C. Biweekly payments. When a mortgage loan provides for biweekly payments, the scheduled UPB is equal to the actual UPB after all biweekly payments due on or before the first day of the month following the reporting month are credited (whether or not they were actually collected).
D. Calculations Related to Daily Simple Interest Loans. Interest accrues daily (based upon a 365day year) up to but not including the date a payment is received that reduces principal. Then, starting on the date the principal was reduced, interest accrues on the new balance. The following example provides an illustration of the calculation the servicer must complete.
Example:
 Balance as of March 5 (and assuming interest is fully satisfied to this date): $10,000.00
 Payment of $500.00 received on March 24 (effective date = March 24 with interest accrued through March 23)
 Interest rate = 5.5%
 Fannie Mae's system will calculate interest on $10,000.00 for 19 days (March 5 to March 24) @ 5.5%.10,000.00 x 0.055/365 x 19 = 28.63
 $28.63 would be applied to interest and $471.37 would go to principal, bringing the new UPB to $9,528.63.
 Starting on March 24, Fannie Mae's system would calculate interest on the new UPB, $9,528.63.
When a payment is made by the borrower, the servicer must satisfy accrued interest first, then principal with the payment effective, driving the interest calculation.
Reporting a Payoff to Fannie Mae
Upon receiving P&I that will satisfy the outstanding UPB of the mortgage loan, the servicer must submit a LAR with an Action Code 60 on the first business day after the servicer processes the transaction on its system.
Calculating the Principal Balance Paid Off
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.
If the mortgage loan is… 
To determine the principal balance paid off, the servicer must… 
an actual/actual (except actual/actual biweekly) or scheduled/actual remittance type 
multiply the prior month's actual UPB by Fannie Mae's percentage interest. 
a scheduled/scheduled remittance type (regardless of whether it is a portfolio mortgage loan or an MBS mortgage loan) 
multiply the prior month's scheduled UPB by Fannie Mae's percentage interest. 
an actual/actual biweekly mortgage loan 
multiply the actual UPB, as of the last reported loan activity, by Fannie Mae's percentage interest 
 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.
Calculating Interest Paid Off
The amount of interest collected when a borrower pays off his or her mortgage loan is determined by:
 the type of mortgage loan, and
 the date of the payoff.
The interest due Fannie Mae, however, also will differ depending on the remittance type of the mortgage loan.
The various calculation methods for mortgage loans that are actual/actual remittance type are shown in the following table.
If the mortgage loan is actual/actual remittance type and… 
Then the servicer must compute interest… 
a VA, RD, FHA Title I, FHA mortgage loans closed on or after 1/21/2015, or conventional first or second lien mortgage loan 
from the LPI date up to, but not including, the date the payoff funds are received, using this calculation:

an FHA mortgage loan or HUDguaranteed Section 184 mortgage loan 
from the LPI due date up to the date of payoff (if the funds are received on an installment due date) or through the end of the month due date (if the funds are received after an installment due date), using this calculation:

 Note: A full month of interest will be based on a 360day year, while a partial month's interest will be based on a 365day year.
For mortgage loans that are scheduled/actual remittance type and for mortgage loans that are scheduled/scheduled remittance type, the type of mortgage loan and the date of the payoff has no effect on the interest due Fannie Mae. The calculations to be used for scheduled/actual and scheduled/scheduled remittance types are shown in the following table.
If the mortgage loan is… 
Then Fannie Mae is due… 
scheduled/actual remittance type 
onehalf of one month's interest, this servicer must calculate this amount as follows: (Prior Month's UPB x Passthrough Rate) ÷ 24 x Fannie Mae's Percentage Interest = Payoff Interest

scheduled/scheduled remittance type 
one full month's interest, the servicer must calculate this amount as follows: (Prior Month's Scheduled UPB x Passthrough Rate) ÷ 12 x Fannie Mae's Percentage Interest = Scheduled Payoff Interest (also see Servicing Guide C302, Remitting Payoff Proceeds. 
As outlined in the Servicing Guide, Fannie Mae must approve a mortgage loan to be repurchased. Once approved, the servicer must adhere to the following guidelines when submitting the repurchase LAR transaction.
Action Code 
The servicer must report this Action Code … 
With an Action Date 
65 
In the next Transaction Type 96 it transmits to Fannie Mae through Fannie Mae’s investor reporting system 
that is within the current activity period. 
67 
Repurchasing an ARM loan where the modification feature is being exercised 
that is within the current activity period. 
Calculating the Principal to Repurchase
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.
If the mortgage loan is… 
To determine the principal to be repurchased, the servicer must… 
an actual/actual (excluding biweekly) or a scheduled/actual remittance type portfolio mortgage loan (sold as cash) 

a scheduled/scheduled remittance type portfolio mortgage loan (sold as cash) 

an actual/actual biweekly mortgage loan 

a scheduled/scheduled remittance type loan sold into SWAP MBS security 

an actual/actual remittance type loan that was reclassified from a SWAP MBS security 

 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.
Calculating Interest Repurchased
When an actual/actual remittance type mortgage loan is repurchased, Fannie Mae is due interest from the LPI date up to, but not including, the repurchase date. However, when a scheduled/actual or a scheduled/scheduled remittance type mortgage loan is repurchased, Fannie Mae is due a full month of interest in all cases. A full month of interest will be based on a 360day year, while a partial month's interest will be based on a 365day year. The following table provides additional instructions for calculating the repurchase interest due Fannie Mae based on the remittance type of the mortgage loan.
If the mortgage loan is… 
Then the servicer must calculate repurchase interest as follows… 
an actual/actual remittance type 

a scheduled/actual remittance type 
(Prior Month's UPB x Passthrough Rate) ÷ 12 x Fannie Mae's Percentage Ownership = Repurchase Interest 
a scheduled/scheduled remittance type portfolio or MBS mortgage loan 
(Prior Month's Scheduled UPB x Passthrough Rate) ÷ 12 x Fannie Mae's Percentage Interest = Scheduled Repurchase Interest 
Reporting a Mortgage Loan Liquidation to Fannie Mae
A loan liquidation is classified as an event that removes the mortgage loan from the Fannie Mae investor reporting system without full payment. Actions included in this category are Foreclosure Sales, a Mortgage Release, Third Party Sale, Short Sale, etc. The Action Codes and related descriptions are provided in the following table.
Action Code 
The servicer must report this Action Code for… 
70 
Chargeoff/Liquidated Held for Sale for Uninsured Properties:
Note: The servicer must transmit a Transaction Type 96 LAR to Fannie Mae if the servicer repurchases an acquired property after it submits an REOgram™ to Fannie Mae. Note: The servicer must not report an action code that reflects “repurchase” or “payoff” since the liquidation actually relates to the disposition of the property that was “held for sale.” The servicer also must report the repurchase proceeds as “special remittance.” 
71 
Liquidated ThirdParty Sale / Condemnation / Short Sale, including when:

72 
Chargeoff/Liquidated – Foreclosure Sale Held for Insured Properties:

Calculating the Principal to Liquidate the Mortgage Loan
The amount of principal required to be reported to Fannie Mae to effectively pay off the mortgage loan varies based on the remittance type of the mortgage loan. The different calculation methods are explained in the following table.
If the mortgage loan is… 
The principal amount to report to liquidate the loan is… 
an actual/actual (except actual/actual biweekly) or scheduled/actual remittance type 
the prior month’s actual UPB multiplied by Fannie Mae’s percentage interest. 
a scheduled/scheduled remittance type 
the prior month’s scheduled UPB multiplied by Fannie Mae’s percentage interest. 
an actual/actual biweekly mortgage loan 
the prior month’s actual UPB, as of the last reported loan activity multiplied by Fannie Mae’s percentage interest. 
 Note: For an actual/actual, scheduled/actual or an actual/actual biweekly remittance type loan, if there is movement in the Loan’s LPI date or Actual UPB, the change in the UPB will need to be accounted for in the principal amount to be reported.
 Also, 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.
Calculating the Interest to Liquidate the Mortgage Loan
The amount of interest the servicer must report when a mortgage loan is liquidated is also dependent upon the remittance type of the mortgage loan. The calculation method used to determine the amount of interest to report is shown in the following table.
If the mortgage loan is… 
The principal amount to report to liquidate the loan is… 
an actual/actual remittance type (excludes biweekly loans) 
No LPI Movement
Forward LPI Movement
Backward LPI Movement

an actual/actual biweekly mortgage loan 
No LPI Movement
Forward LPI Movement
Backward LPI Movement

a scheduled/actual remittance type 
Advancing
Recovering
Not advancing

a scheduled/scheduled remittance type 
The prior month’s scheduled UPB multiplied by Fannie Mae’s percentage interest times the Lender Pass Through Rate / 12. 
Recovering Advanced Interest on a Liquidated Delinquent Scheduled/Actual Mortgage Loan
For scheduled/actual remittances, the servicer must pass through one more months’ worth of interest than the number of delinquent installments.
The servicer must pass through to Fannie Mae:
 one month's interest for the reporting period that includes the LPI date for the mortgage loan, and
 one month's interest for each successive month of delinquency.
For delinquent mortgage loans, the servicer is authorized to recover its advances for delinquent interest during the fourth month of delinquency. To recover this interest advance, the servicer must report a negative interest remittance amount for the mortgage loan when reporting the Transaction Type 96 LAR for the month in which the mortgage loan becomes four months delinquent. This amount represents the first three months of advanced interest. Fannie Mae will reimburse the servicer for the additional month of interest it advances (fourth month) after the servicer reports the loan liquidation (as Action Code 70, 71, or 72) with Transaction Type 96 (Summary Loans) or Transaction Type 96 and 97 (Detailed Reporting Loans) LAR.
The following table illustrates the correct timing for reporting delinquencies, advancing interest, and recovering advanced interest for an S/A whole mortgage loan or a participation pool mortgage loan (other than one that was part of a concurrent mortgage loan sale) that had an LPI date of April 2017:
Mortgage LPI 
Reporting Period 

Date: April 2017 
April 2017 
May 2017 
June 2017 
July 2017 
August 2017 
Mortgage Status 
Current 
1 mo. Delq. 
2 mo. Delq. 
3 mo. Delq. 
4 mo. Delq. 
Interest Sent to Fannie Mae 
1 mo. 
1 mo. 
1 mo. 
1 mo. 
3 mos.* 
Delinquent Interest 
Interest Recovery 
 Note: The remaining one month of interest will be paid to servicer after it reports the liquidation of the mortgage loan.
Related Announcements
The following table provides references to Announcements that are related to this topic.
Announcements 
Issue Date 
February 14, 2018 
To see other subtopics for Chapter 2, Reporting Payment Transcations, please click on any of the topics below:
201, Reporting Due Dates (01/18/2017)
202, Reporting a Transaction Type 96 (Loan Activity Record) (01/18/2017)
203, Reporting a Transaction Type 97 (Extended Loan Activity Record) (01/18/2017)