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F-3-19, Acronyms and Glossary of Defined Terms: S (12/20/2023)

sale date

For post-delivery servicing transfers, the date on which the ownership of the servicing rights and the legal liability for the servicing of Fannie Mae mortgage loans transfer from one servicer to another.

scheduled UPB

The dollar amount of the current UPB of the mortgage loan amortized through the month following the current reporting period, without consideration of Fannie Mae's acquired percentage (unfactored) and excluding any principal forbearance amount (deferred principal).

scheduled/actual remittance type

A method of sending monthly payments to Fannie Mae requiring servicers to remit the scheduled interest due (whether or not it is collected from borrowers) and the actual principal payments that it collects from borrowers.

scheduled/scheduled remittance type

A method of sending monthly payments to Fannie Mae requiring servicers to remit the scheduled interest due and the scheduled principal due (whether or not payments are collected from borrowers).


Servicemembers Civil Relief Act


An ownership interest in a pool of mortgage loans, which is evidenced by a book-entry account within the Federal Reserve’s book-entry system.

security balance

The balance for an MBS mortgage loan (or a participation interest in an MBS mortgage loan) that is determined by reducing Fannie Mae’s share of the issue date principal balance of the mortgage loan by its share of any principal distribution amounts included in subsequent monthly remittances; the balance for an MBS pool that represents the aggregate security balance of all the mortgage loans (or participation interests) in the pool as of any date, which is equal to the aggregate issue date principal balances of the mortgage loans (or participation interests) less any subsequent principal distribution amounts.


The Servicing Guide uses the term “seller/servicer” to refer to a seller and/or servicer that may be any or all of the parties involved in the origination, sale, delivery, and/or servicing of any type of Fannie Mae mortgage loan.


A Fannie Mae approved servicer that is contractually obligated to service one or more mortgage loans for Fannie Mae. Also refers to a subservicer if there is a subservicing arrangement.

servicing alternative remedy

Remedies other than repurchase of the identified mortgage loan including, after foreclosure, the acquired property that compensates Fannie Mae for damages, expenses, and losses resulting from the identified servicing defect. The costs associated with calculating any servicing alternative could include, but are not limited to

servicing compensation

The income that the servicer receives for the collection of payments and management of operational procedures related to a mortgage loan. It includes a base servicing fee, plus late charges, fees charged for certain servicing activities, yield differential adjustments or excess yield, and, sometimes, prepayment premiums.

servicing contract

Any of the agreements between the servicer and Fannie Mae relating to the servicing of MBS mortgage loans.

servicing correction

An action taken by the seller/servicer that demonstrates that the identified servicing defect either (1) did not, in fact, exist, or (2) has been corrected in the time frame specified by Fannie Mae, such that the servicing defect is no longer considered by Fannie Mae to be a servicing defect.

servicing defect

A loan-level deficiency based on a servicing violation resulting from a breach of a term contained in the Lender Contract in effect at the time of the servicing violation.

servicing remedy

An action to resolve a servicing defect elected by Fannie Mae per the Lender Contract which may be either a servicing alternative remedy or a repurchase.

servicing repurchase defect

A servicing defect attributable to a servicing violation for which a demand for a repurchase servicing remedy could be issued without first issuing a notice of servicing defect or a demand for a servicing alternative remedy. Servicing repurchase defects shall be limited to servicing defects that

servicing spread

The fixed percentage amount for each mortgage loan or participation interest in a weighted-average ARM MBS pool that consists of the guaranty fee and the servicing fee. It cannot be less than the sum of the minimum allowable servicing fee and the guaranty fee applicable to the pool, nor greater than the sum of the maximum allowable servicing fee and the guaranty fee.

servicing violation

A breach of any servicer requirement or obligation contained in the Lender Contract related to servicing functions including, but not limited to


Fannie Mae's Single-Family Credit Portfolio Management


special feature code


Special Flood Hazard Area

short sale

A procedure wherein Fannie Mae agrees to the borrower’s selling of their property for an amount less than that which is owed to Fannie Mae in order to avoid a foreclosure.


Securities Industry and Financial Markets Association

single pool

An MBS pool that consists of mortgage loans or participation interests delivered by a single seller.

single-family mortgage loan

A mortgage loan secured by a property that contains one to four residential dwelling units.


Secured Overnight Financing Rate

special remittance

A remittance, which generally is of a nonrecurring nature for an individual mortgage loan, that relates to a mortgage loan that has been liquidated through a short sale or foreclosure sale or the acceptance of a Mortgage Release (deed-in-lieu of foreclosure). It also may relate to a mortgage loan that has been paid in full, a mortgage loan for which Fannie Mae has advanced funds to protect its security, or a mortgage loan still in Fannie Mae’s portfolio that requires a purchase adjustment.

special requirement

A negotiated agreement for the delivery of certain special mortgage loan products or other mortgage loans that were originated with terms that are at variance with standard Fannie Mae pricing and operational requirements.

special servicing option

A guaranty fee option for an MBS pool under which Fannie Mae assumes the entire risk of loss from a borrower default; a servicing option for RD-guaranteed mortgages under which Fannie Mae will bear all losses not recovered from the RD. (See recourse for an equivalent term for a whole loan delivery.)

standard remittance cycle

A payment cycle used for scheduled/scheduled remittance types for MBS pools that requires the scheduled and unscheduled payments to be remitted to Fannie Mae on the 18th calendar day of each month (or on the preceding business day if the 18th is not a business day).

step-rate mortgage loan

A mortgage loan where the initial modified interest rate set at the time of the mortgage loan modification is a below market interest rate that is fixed for a specified period of time, then increases until it reaches its determined market interest rate. Once the market interest rate is achieved it remains fixed for the remaining term of the mortgage loan.

Stop Delinquency Advance process

The process under which Fannie Mae will suspend drafting scheduled P&I advances from the servicer’s custodial account when a special servicing option portfolio or MBS mortgage loan with a scheduled/scheduled remittance type becomes four consecutive months delinquent.


A Fannie Mae approved servicer that is contractually obligated to a master servicer to perform substantially all of the ongoing servicing activities for one or more mortgage loans for the master servicer.

subservicing arrangement

An arrangement wherein the master servicer of one or more Fannie Mae mortgage loans hires a subservicer to subservice substantially all of its servicing functions.

subservicing transfer

A transfer of the physical servicing of one or more Fannie Mae mortgage loans from a master servicer to a subservicer, from a subservicer to another subservicer, or from a subservicer back to the master servicer for substantially all of the Fannie Mae required servicing functions.

sum of the digits interest calculation

See rule of 78s. 

supervised lender

A financial institution that is a member of the Federal Reserve System, or an institution whose accounts are insured by the FDIC or the NCUA.