Servicing Guide

Published November 10, 2020

For best results, pose your search like a question.

Guide Resources

For a comprehensive list of resources such as forms, announcements, lender letters, notices and more.

Visit Selling and Servicing Guide Communications and Forms

Customers Recommend Ask Poli

AskPoli

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

Launch Ask Poli  

Download PDF Guide

You can also download the printable ~800 page PDF, which include links.

Download Now

What are the requirements for remitting payoff proceeds to Fannie Mae?

The servicer must determine the appropriate schedule and the correct amount of funds due to Fannie Mae based on the mortgage loan’s remittance type and remittance cycle.

The following table provides the schedule and remittance requirements for remitting mortgage loan payoff proceeds to Fannie Mae, in accordance with C-3-02, Remitting Payoff Proceeds. 

Mortgage Loan Type Requirements for Remitting Payoff Proceeds

Actual/Actual Remittance Type Mortgage Loan

If the payoff proceeds are greater than $2,500, they must be remitted to Fannie Mae immediately. Otherwise, the servicer must remit the payoff proceeds under the servicer’s regular remittance schedule. The servicer must remit

  • the UPB;

  • the full amount of the interest due, up to but not including, the payoff date;

  • FHA servicer charges, if applicable; and

  • any prepayment premium, if applicable.

Note: The servicer may deduct its applicable servicing fees and any unapplied buydown funds Fannie Mae may be holding.

Scheduled/Actual Remittance Type Mortgage Loan

The servicer must remit the payoff proceeds to Fannie Mae as part of its regular monthly remittance, by the 20th day of the month following the month in which they were received, or any other negotiated remittance date.

The servicer must remit Fannie Mae’s share of

  • the UPB;

  • one-half of one month’s interest, calculated at the net certificate yield of the PTR for a whole mortgage loan; and

  • any prepayment premium, if Fannie Mae agreed that such a premium could be collected and requires it to be remitted to Fannie Mae.

Scheduled/Scheduled Remittance Type Mortgage Loan

The servicer must remit the payoff proceeds as part of its regular monthly remittance

  • on the standard remittance day of the 18th calendar day of the month following the month in which they were received;

  • by the early remittance day the servicer specified under the RPM for MBS remittances; or

  • by the 4th business day of the month, if the loan is in an MBS Express pool.

The remittance amount to Fannie Mae will vary by mortgage loan type as follows:

  • Portfolio mortgage loans:

    • scheduled UPB of the mortgage loan, and

    • a full month’s interest calculated at the PTR of the mortgage loan.

  • MBS mortgage loans:

    • a full month’s interest calculated at the pass-through rate of the mortgage loan unless the liquidation was process on the first business day and reported to Fannie Mae by the second business day, and

    • any prepayment premium, if Fannie Mae agreed that such a premium could be collected and requires it to be remitted to Fannie Mae.

Note: Because the servicer is required to remit a full month’s interest to Fannie Mae, the servicer must use its own funds to cover the difference between the interest Fannie Mae is due and the interest collected from the borrower when a mortgage loan is paid off before the end of the month.

For FHA Title I loans, the scheduled for remitting funds depends on the remittance type for the mortgage loan. The servicer must remit 

  • the UPB, and
  • the full amount of interest due through the end of the payoff month. 

Note: The servicer may deduct its applicable servicing fee. 

For more information please see Servicing Guide F-1-21, Remitting and Accounting to Fannie Mae. and C-3-02, Remitting Payoff Proceeds. 

Have You Tried Ask Poli?

Poli knows. Just ask.

Ask Poli features exclusive Q&As and
more—plus official Selling & Servicing
Guide
content.

Try Ask Poli

Related Articles


AskPoli

Customers Recommend Ask Poli

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

Guide Resources

For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more.

Visit Selling and Servicing Guide Communications and Forms

X
Having Issues with Seeing this Page Correctly?

Use Firefox or Chrome   How to do a hard refresh in Internet Explorer
We recommend that you use the latest version of FireFox or Chrome.

Download Firefox
Download Chrome
  A hard refresh will clear the browsers cache for a specific page and force the most recent version of a page.
    Hold the Ctrl key and press the F5 key.
     

Email Us
If you still have Technical Support questions, feel free to emailAsk_Poli@fanniemae.com.