Servicing Guide

Published September 9, 2020

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2020 Investor Reporting and Remitting Calendar

INVESTOR REPORTING ACTION CODES

Loan Activity Report Action Codes (Transaction Type 96) 

Action Code 00 – Non-Liquidation payment or non-payment

Action Code 60 – Borrower Payoff/Investor Payoff. To report that a loan has been paid-in-full, either at, or prior to, maturity or to report that the scheduled balance on an MBS-pooled loan has amortized to zero. In both cases, the unpaid principal balance (UPB) is reported on the Loan Activity Report (LAR) as zero. The Action Date is the date the payoff funds were received or the date that the scheduled balance amortized to zero.

Action Code 65 – Repurchase. Used to report that the lender is repurchasing the loan. For Scheduled/Scheduled (S/S), please refer to Fannie Mae's Servicing Guide at https://www.fanniemae.com/content/guide/servicing/index.html. See the 2014 Servicing Guide, Part A, Subpart 1, Chapter 3, and Part F, Chapter 2. For Scheduled/Actual (S/A), the Action Date is the end of the month of the repurchase. For Actual/Actual (A/A), the Action Date is the date the repurchase proceeds were remitted to Fannie Mae.

Action Code 70 – Liquidation Held for Sale. Used to report that a loan has been foreclosed or a deed-in-lieu of foreclosure has been accepted, and the property is either held for sale or assigned to the VA as a No Upset case. The following will also fall into this category: 1. All conventional uninsured properties, 2. All VA No Upset/No Bid cases, even if the property is assigned to the VA as a No Upset, 3. All FHA coinsured cases with Section of the Act - 244, 4. Any kind of liquidation where it is known that the property will be Held for Sale. The Action Date is the date of the foreclosure sale or, for deed-in- lieu, the date the deed was accepted by the servicer.

Action Code 71 – Liquidated 3rd Party Sale/Condemnation/Preforeclosure Sale/Assigned to FHA/VA. Used to report a foreclosure sale where a third-party purchaser has acquired the property, when a condemnation of the property has occurred, or a preforeclosure sale has been approved. The Action Date is the date of the foreclosure sale, the date of the legal notice of condemnation, or for preforeclosure sale, the date the sale is final. The reported Last Paid Installment (LPI) date may be prepaid, current, or delinquent.

Action Code 72 – Liquidated-Pending Conveyance. Used to report that a loan has been foreclosed, or a deed-in-lieu had been accepted, and the property may be conveyed to FHA/VA/MI. The following will also fall into this category: 1. All conventional insured cases, including those in redemption, 2. FHA/VA loans in redemption unless for some known reason the property will be held for sale (in which case the reporting Action Code would be 70). The Action Date is the date of the foreclosure sale or, for deed-in-lieu, the date the deed was accepted by the servicer.  The reported LPI date must be at least three months delinquent.

 

Mortgage Insurance Discontinuance Codes (Transaction Type 89, reported via SURF upload)

Action Code 51 – Mortgage Insurance (MI) Cancelled by Homeowner based on Original Value. Used to report a borrower-initiated cancellation based on the original value of the property (or, in the case of a second mortgage, the value of the property at the time the second mortgage was originated).

Action Code 52 – MI Cancelled by Homeowner based on Current Value. Used to report a borrower-initiated cancellation based on the current appraised value of the property.

Action Code 53 – MI Auto Terminated by Servicer. Used to report an automatic termination (regardless of whether the termination is based on the scheduled loan-to-value ratio or the date that is the mid-point of the amortization period).

Action Code 54 – MI Terminated – Used to report termination due to High Risk.

Note: The Action Date for all MI Discontinuation Types listed above, is the date of the MI Discontinuance or MI termination. Additionally, any invalid transactions related to Transaction Type 89 are available in Loan Servicing Data Utility (LSDU) under Loan Activity Search.

 

Guidelines for Action Code Use

Proper Action Code reporting often requires close coordination between the Foreclosure, Collection, Payoff, and Investor Reporting departments. A loan's Foreclosure Loss Risk Code should be reviewed in determining its liquidation Action Code. Assigning the correct liquidation Action Code and Action Date for a loan at the first occurrence will eliminate the need for its "Reinstatement”. The Foreclosure Loss Risk Code is available in LSDU under the Credit Enhancement tab. An Action Code for a loan should only be reported once, unless the loan does not update on Fannie Mae's records. Send notification (Datagram) via Western Union™ to Fannie Mae's regional office within 24 hours of the execution of a deed-in-lieu of foreclosure, or on the day of a foreclosure sale. For Action Code 70, 71 or 72, the UPB reported on the LAR cannot be zero (must equal the Actual UPB as of the loan’s LPI date).

 

Helpful Servicing Tips

•    Review Loan Level Rejects using the Loan Servicing Data Utility (LSDU) to review and correct looan level rejects.
•    Report Removal Transactions daily, by the first business day after the servicer processes the transaction on their system.
•    Report Tran 83 - New Scheduled Rate and/or Payment Change on a loan by the 5th BD after the scheduled rate calculation date.
•    Report Loan Activity (LPI and UPB) for all new loans sold to Fannie Mae even if there was no loan-level activity by Interim Reporting End Date.
•    Compare the Purchase Advice/Final Schedule of Mortgages with the data on your system to make sure Fannie Mae has correct information.
•    Use the Cash Remittance System to designate specific bank accounts from which your Fannie Mae cash remittances can be automatically drafted on the date you designate.
•    Review the Servicing Section on the Fannie Mae Single-Family Business Portal to get information about key events and processing schedules, and to access your draft notification and monthly  reports.

For More Information or Assistance please dial 1-800-2FANNIE (1-800-232-6643)

Single Famly Lenders, Sellers, Mortgage Brokers, or Servicers press 1, then select from the following sub-options: 
1)    For Technology Application assistance, press 1
2)    For Selling Guide questions, press 2
3)    For Servicing Guide questions or general servicing questions, press 3
4)    For Loan Delivery and Acquisitions, press 4
5)    For Bailee Letter or Document Certification, press 5
6)    For Master Servicing (Investor Reporting), press 6   
7)    For all other inquiries, press 7

For more information please see: 2020 Investor Reporting and Remitting Calendar 

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If you have additional questions, Fannie Mae customers can visit Ask Poli to get information from other Fannie Mae published sources.

Guide Resources

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Visit Selling and Servicing Guide Communications and Forms

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