F-3-16, Acronyms and Glossary of Defined Terms: P (10/11/2023)

principal and interest

Public Access to Court Electronic Records

A process under which a lender that is unable to meet the terms of a mandatory delivery commitment either pays Fannie Mae a fee or, under certain circumstances for whole loans transactions, receives cash back from Fannie Mae, calculated against the unused portion of the commitment.

price-adjusted loan

The instrument that evidences an undivided interest in mortgages and obligations secured thereby.

An individual interest in a mortgage loan, as specified in the applicable participation certificate.

The group of mortgage loans that back a participation certificate. Fannie Mae purchases only a percentage interest in each of the mortgage loans. That interest is the same percentage that is specified on the participation certificate.

A mortgage loan that is part of a participation pool that Fannie Mae purchased for its portfolio.

The rate at which interest is paid to Fannie Mae for a mortgage loan. For mortgage loans held in Fannie Mae’s portfolio, it is the lower of the required yield or the mortgage interest rate after deduction of a minimum servicing fee.

A retention workout option that defers past-due P&I payments and certain other amounts advanced as a non-interest bearing balance, due and payable at maturity of the mortgage loan or earlier upon the sale or transfer of the property, refinance of the mortgage loan, or payoff of the interest-bearing UPB.

The percentage rate used to calculate the monthly payment when the payment will not fully amortize the mortgage. It differs from the interest accrual rate.

Permanent Change of Station

Project Eligibility Review Service

Pooled from Portfolio

principal, interest, taxes, and insurance

principal, interest, taxes, insurance, and other assessments

Private Mortgage Insurance

A collection of mortgage loans (or participation interests) delivered pursuant to one or more MBS commitments that secure an individual issuance of MBS.

The rate of interest that accrues to the security holder of a stated-structure ARM MBS pool. It is subject to change in accordance with adjustments to the index.

The first day of the month in which MBS are issued.

See MBS commitment definition.

Any MBS transaction between Fannie Mae and a seller in which Fannie Mae purchases a group of mortgage loans or participation interests from the seller for the sole purpose of backing all or part of an issuance of MBS.

A PFP mortgage loan is a mortgage loan that has been securitized into an MBS pool directly from Fannie Mae’s portfolio. Such mortgage loan was either sold to Fannie Mae as a whole loan mortgage loan or is an MBS mortgage loan that was reclassified into Fannie Mae’s portfolio prior to being re-pooled.

A mortgage loan purchased by Fannie Mae to hold in its mortgage portfolio.

For a particular remittance date, Fannie Mae’s share of the aggregate principal portions of the monthly installments for mortgage loans in an MBS pool that became due from the second day of the preceding month to and including the first day of the remittance month (whether or not they were actually collected) and those unscheduled principal recoveries that were collected during the month preceding the month in which the remittance is made. This is the principal amount that will be drafted from the servicer’s custodial account.

A portion of the UPB that does not accrue interest, also referred to as a non-interest bearing balance, that is payable upon the earliest of the maturity of a mortgage loan modification, sale or transfer of the property, refinance of the mortgage loan, or payoff of the interest-bearing UPB

A condo, PUD, or co-op housing project.

Refers to Fannie Mae technology used to manage expense reimbursements, REOgram confirmations, and pre-foreclosure preservation.

Consists of the land, all improvements erected on the land, including any replacements or additions erected after the origination of the mortgage loan, and all easements, appurtenances, and fixtures that are part of the property or the improvements.

pass-through rate

planned unit development

The date on which Fannie Mae disburses the purchase proceeds for a whole loan delivery; the date on which Fannie Mae purchases a pool or mortgage loan in an early funding transaction.

The percentage of par that Fannie Mae applies to the UPB of a mortgage submitted as a whole loan delivery to determine the amount of the purchase proceeds; the amount that Fannie Mae will pay the lender on the purchase date for a pool or mortgage loan being purchased in an early funding transaction.