Servicing Guide

The Servicing Guide is organized into parts that reflect how lenders generally categorize various aspects of their business relationship with Fannie Mae. To begin browsing, select from any of the sections below. You may also download the entire Servicing Guide in PDF format.

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C-3-01: Responsibilities Related to Remitting P&I Funds to Fannie Mae (01/18/2017)

The servicer must remit all funds that are due to Fannie Mae for that month under the schedule established for each remittance type and, if applicable, remittance cycle. If the servicer does not remit funds due to Fannie Mae on or before the remittance due date, Fannie Mae may impose a compensatory fee.

The servicer must follow the procedures in F-1-21, Remitting and Accounting to Fannie Mae and Fannie Mae’s Investor Reporting Manual for detailed instructions.

This topic contains the following:


Remitting to Fannie Mae for Delinquent MBS Mortgage Loans

The servicer must remit interest to Fannie Mae on scheduled/actual remittance type mortgage loans and must remit P&I on scheduled/scheduled remittance type mortgage loans regardless of whether it actually receives payments from the borrower. For a delinquent mortgage loan, the servicer must advance the remittance until the delinquent mortgage loan is reclassified as actual/actual remittance or removed from the MBS pool.


Remitting to Fannie Mae for Delinquent Portfolio Mortgage Loans

The servicer of portfolio mortgage loans and most participation pool mortgage loans that Fannie Mae holds in its portfolio must advance interest on delinquent mortgage loans only through the third month of delinquency.


Remitting to Fannie Mae for Biweekly Payments

Actual/actual biweekly loan activity must be reported to Fannie Mae daily as received. For MBS pools that consist of biweekly payment mortgage loans, the servicer must deposit the difference between the interest collected from the borrowers and the interest due on the pool into its designated draft account.

The servicer must remit funds to Fannie Mae for a mortgage loan with biweekly payments when

  • a full installment of P&I has accumulated for a mortgage loan that has an actual/actual remittance type, or

  • the biweekly payment is scheduled to be remitted (whether or not it was collected from the borrower) for a mortgage loan that has a scheduled/actual or scheduled/scheduled remittance type.


Remitting to Fannie Mae for Mortgage Loans with Interest Rate Buydowns

If the servicer holds the buydown funds, the servicer must remit to Fannie Mae the interest buydown funds along with the payment received from the borrower as a full contractual payment each month.

If Fannie Mae holds the buydown funds for a first lien mortgage loan that it purchased for its portfolio, Fannie Mae will automatically apply funds that it holds toward the interest due each month. Therefore, the servicer must adjust its individual mortgage loan records to reflect the application of Fannie Mae’s portion of the payment.

The servicer must return any money it has held in association with an interest buydown to Fannie Mae, when either

  • the buydown term ends, or

  • the mortgage loan is liquidated, whichever occurs first.


Processing Over-Remittances

The servicer must exercise due diligence to ensure that it discovers over-remittances as soon as possible. Once the servicer discovers an over-remittance, it should promptly notify Fannie Mae by submitting a documented claim for a refund.

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