The servicer of a portfolio mortgage loan or a special servicing option MBS mortgage loan must reimburse Fannie Mae in the following circumstances:
if certain costs in the claim are disallowed;
if the amount of interest payable is cut off solely because the servicer did not follow the required procedures for conveyance or claim filing; or
if any payments the servicer owes the insurer or guarantor (for premiums, surcharges, etc.) are netted against the benefits paid to Fannie Mae.
For more information please see: E-4.5-01: Filing MI Claims for Conventional Mortgage Loans or for Other Mortgage Loans for which Fannie Mae Bears the Risk of Loss