October 14, Fannie Mae s Investor Reporting Manual

Transcription

1 Fannie Mae Investor Reporting Manual October 14, 2015 Fannie Mae s Investor Reporting Manual i

2 Fannie Mae Copyright Notice (1) 2015 Fannie Mae. No part of this publication may be reproduced in any form or by any means without Fannie Mae s prior written permission, except as may be provided herein or unless otherwise permitted by law. Limited permission to reproduce this publication in print in whole or in part and limited permission to distribute electronically parts of this publication are granted to Fannie Mae-approved lenders, servicers, and other mortgage finance professionals, strictly for their own use in originating mortgages, selling mortgages to Fannie Mae, or servicing mortgages for Fannie Mae. Fannie Mae may revoke these limited permissions by written notice to any or all Fannie Mae-approved users. Trademarks are the property of their respective owners. A full version of this publication is available on Fannie Mae's website. If there should ever be a difference between this publication as it appears on the AllRegs website and the version published by Fannie Mae, the difference is an error. In such event, the Fannie Mae version of this publication shall be deemed the correct authoritative version. Material discrepancies between the two versions, identified by Fannie Mae or otherwise brought to our attention, may be addressed by Announcement. (2) Disclaimer: This publication is posted on the AllRegs website of Mortgage Resource Center, Inc., ( MRC ) under license from and with the express permission of Fannie Mae. MRC is the exclusive third-party electronic publisher of this publication. Fannie Mae makes no representation or warranty regarding any of the features, functionality, or other contents of the AllRegs website. You acknowledge and agree (individually and on behalf of the entity for which you are accessing this publication, You ) that You may not make any claim against Fannie Mae or MRC for any errors, and: (i) neither Fannie Mae nor MRC shall be liable to You for any losses or damages whatsoever resulting directly or indirectly from any errors, and (ii) MRC expressly disclaims any warranty as to the results to be obtained by You from use of the AllRegs website, and MRC shall not be liable to You for any damages arising directly or indirectly out of the use of the AllRegs website by You. Fannie Mae s Investor Reporting Manual ii

3 Preface This Investor Reporting Manual (Manual) outlines Fannie Mae's requirements for the mortgage loan accounting system it uses for reporting on the status of one- to four-unit mortgage loans either held in its portfolio or pooled in an MBS. (The Fannie Mae investor reporting system is also used for multifamily mortgage loans that are in MBS pools). This Manual is incorporated into the Servicing Guide by reference. In the event that the Manual and the Servicing Guide are conflicting, the servicer must follow the requirements set forth in the Servicing Guide. Content Organization This Manual is organized into the following chapters: Chapter 1: General Requirements Chapter 2: Reporting Specific Transactions Chapter 3: Special Reporting Requirements Chapter 4: Formulas and Calculations Chapter 5: Fannie Mae-Generated Reports Chapter 6: Correction of Errors To learn more about the details on the content included in a chapter, see the Table of Contents. Effective Dates for the Manual Each topic within the Manual is followed by a date shown in parentheses. With the publication of the new Manual, this date will represent the date of the most recent Servicing Announcement that amended content within an individual topic. The servicer must refer to the individual Announcement to locate the policy effective date. Access Options The Manual is available on AllRegs and in Adobe PDF format on Fannie Mae s website. Related Announcements, Lender Letters, and Notices may be obtained through a variety of mediums, including: using a free electronic version on the AllRegs website through a link from Fannie Mae s website; a subscription paid directly to AllRegs for an enhanced electronic version with additional features and a higher degree of functionality (than the free version); and in PDF format on Fannie Mae s website. Fannie Mae s Investor Reporting Manual iii

4 Amendments to the Manual Fannie Mae may at any time alter or waive any of the requirements of this Manual, impose other additional requirements, or rescind or amend any and all material set forth in this Manual. The servicer must ensure that its staff is thoroughly familiar with the content and requirements of the Manual as it now exists and as it may be changed. Notification of Changes and Manual Updates Fannie Mae notifies servicers of changes and updates to its Manual policies and procedures, as communicated in Announcements, Lender Letters, and Notices, in two ways: posting the documents on Fannie Mae s website and the AllRegs website, and ing notification of those postings to servicers that subscribe to Fannie Mae s subscription service and select the option Servicing News. Forms, Exhibits, and Content Incorporated by Reference The Manual provides information about the specific forms servicers must use to fulfill Fannie Mae s requirements. Servicers can access the actual forms on Fannie Mae s website. Some materials are only referenced in the Manual and are posted in their entirety on Fannie Mae s website. All forms and exhibits whether it currently exists or is subsequently created referenced in the Manual now or later are legally a part of this Manual, the Servicing Guide and Fannie Mae s contract with its servicers. Technical Issues In the event of technical difficulties or system failures with Fannie Mae s website, the delivery of the Servicing News option of Fannie Mae s subscription service, or the AllRegs website, users may contact the following resources: For Fannie Mae s website and Fannie Mae s subscription service, use the Contact Us link on the website to ask questions or obtain more information or contact Fannie Mae s Single-Family Technology Support at For the AllRegs website, submit an support request from the website or contact AllRegs Customer Service at When Questions Arise The Manual provides information about normal and routine investor reporting matters. Servicers must address questions relevant to a particular situation not covered in the Manual to its Fannie Mae Investor Reporting Representative. Fannie Mae s Investor Reporting Manual iv

5 Table of Contents Chapter 1, General Requirements , Using Machine-Processable Input (11/12/2014)... 1 Processing All Other Transactions , Performing Monthly Reconciliations (11/12/2014)... 3 Submitting Formal Reconciliations... 3 Handling Unreconciled Shortages and Surpluses , Requesting Audit Confirmations (11/12/2014)... 4 Chapter 2, Reporting Specific Transactions , Reporting a Transaction Type 96 (Loan Activity Record) (11/12/2014) , Reporting a Transaction Type 97 (Extended Loan Activity Record) (11/12/2014) , Reporting a Transaction Type 81 (Lender Loan I.D. Change Record) (11/12/2014) , Reporting a Transaction Type 82 (Loan Address Change Record) (11/12/2014) , Reporting a Transaction Type 83 (Payment/Rate Change Record) (11/12/2014) , Reporting a Transaction Type 80 (Subservicer Arrangement Record) (06/10/2015) , Reporting a Transaction Type 32 (Servicing Transfer Record) (11/12/2014) , Mapping Fannie Mae Investor Reporting System Records to EDI Investor Reporting Transaction Set 203 (11/12/2014) Chapter 3, Special Reporting Requirements , Reporting a Mortgage Loan Modification (11/12/2014) , Reporting ARM Interest Rate and Monthly Payment Changes (11/12/2014) Reporting for Scheduled/Actual Remittance Types Reporting for Scheduled/Scheduled Remittance Types , Recovering Delinquency Advances (11/12/2014) Seeking Reimbursement for Scheduled/Actual Remittance Types Seeking Reimbursement for Scheduled/Scheduled Remittance Types , Reinstating Seriously Delinquent Mortgage Loans (11/12/2014) Fannie Mae s Investor Reporting Manual v

6 3-05, Reporting Military Indulgence to Fannie Mae (11/12/2014) , Reporting a Liquidation to Fannie Mae (10/14/2015) , Reversing Curtailments/Removals (11/12/2014) , Reporting Mortgage Loans with Interest in Advance (11/12/2014) , Reporting Mortgage Loans with Odd Due Dates (11/12/2014) , Reporting During the First Reporting Cycle for Same Month MBS Mortgage Loans (11/12/2014) , Reporting the Discontinuance of Mortgage Insurance (11/12/2014) , Reporting MBS Security Balances (11/12/2014) Chapter 4, Formulas and Calculations , Mathematical Formulas (11/12/2014) , Calculations Related to Principal Payments (05/20/2015) Calculating Monthly Principal Payments Calculating Biweekly Principal Payments Calculating the Principal Balance Paid Off Calculating the Principal Balance Repurchased Calculating Actual UPB Calculating Scheduled UPB Calculating the Security Balance Calculating the Pool Deficiency Amount , Calculations Related to Interest Payments (11/12/2014) Calculating Monthly Interest Payments Calculating Biweekly Interest Payments Calculating Interest Paid Off Calculating Interest Repurchased , Calculations Related to Pass-through Rates (11/12/2014) Determining Pass-through Rates for Converted ARMs Determining Pass-through Rates for ARM Adjustments Determining Weighted-Average Pass-through Rates , Calculations Related to Servicing Fee/Excess Yield (11/12/2014) , Calculations Related to Weighted-Average Guaranty Fee (11/12/2014) , Exhibits (11/12/2014) Fannie Mae s Investor Reporting Manual vi

7 Exhibit 1: Monthly Fixed Installment Formula Exhibit 2: Regular Amortization Formula Exhibit 3: Negative Amortization Formula Exhibit 4: Reverse Amortization Formula Exhibit 5: Servicing Fee/Yield Differential Adjustment Formula Chapter 5, Using Fannie Mae Generated Reports , The Lender Recap Report (11/12/2014) , The Remittance Update Report (11/12/2014) , The Monthly Payment/Rate Change Report (11/12/2014) , The Final Maturity Due Report (11/12/2014) , The Trial Balance Report (11/12/2014) , The Shortage/Surplus Analysis Report (11/12/2014) , The Pool Deficiency Summary/Guaranty Fees to be Paid Report (11/12/2014) , The Pool-to-Security Reconciliation Detail Report (11/12/2014) Chapter 6, Correcting Reporting Errors , Correcting Liquidation Transactions (11/12/2014) Correcting an Erroneous Payoff/Repurchase Transaction Changing Receivable Control File Transactions to Payoff/Repurchase Transactions Changing Receivable Control File Transactions to Referral Transactions Changing Receivable Control File Transaction to Different Receivable Control File Transaction , Correcting ARM Adjustment Errors (11/12/2014) Correcting Portfolio Mortgage Loans vs. MBS Mortgage Loans Correcting Interest Rate and Payment Change Errors Correcting an Interest Rate Change Error Only Correcting a Payment Change Error Only Fannie Mae s Investor Reporting Manual vii

8 Chapter 1, General Requirements The Fannie Mae investor reporting system is an integrated investor reporting system used to capture loan-level detail for all regularly amortizing mortgage loans serviced for Fannie Mae. Although all of these mortgage loans are accounted for under a single reporting system, Fannie Mae's investor reporting system separates mortgage loans by remittance type to ensure the servicer can easily recognize and account for procedural or policy differences. 1-01, Using Machine-Processable Input (11/12/2014) The servicer must use an automated format to report all loan-level transactions. This includes reporting corrections to erroneous transactions previously reported to the Fannie Mae investor reporting system. The electronic transmission of Fannie Mae's investor reporting system reports can be accomplished by: CPU-to-CPU electronic file transfer, or Fannie Mae's SURF, a web application that is available for reporting the different types of transactions. Access to SURF is available on Fannie Mae s website. Fannie Mae also accepts a common format for the electronic data interchange (EDI) of investor reporting information. The action that a servicer must take to ensure it satisfies Fannie Mae's requirements for using the EDI format will vary depending on how it submits its Fannie Mae investor reporting system reports to Fannie Mae, as shown in the following table. If the servicer submits its monthly loan-level Fannie Mae investor reporting system reports through SURF or through electronic file transfer uses a service bureau to transmit its monthly Fannie Mae investor reporting system reports Then the servicer must have its own EDI translation software or translation services to convert its flat files to the ANSI X12 format. confirm that its service bureau will have the appropriate translation software in place before the servicer begins reporting under the ANSI X12 format. Fannie Mae addresses its investor reporting system requirements in terms of the transaction types and data element identification that is part of the Fannie Mae investor reporting system record. To assist in converting this information into EDI references, 2-07, Reporting Transaction Type 32 (Servicing Transfer Record), includes an example that maps the Fannie Mae investor reporting system record to the EDI Investor Reporting Transaction Set 203. Fannie Mae s Investor Reporting Manual 1

9 Processing All Other Transactions Actual/Actual and Scheduled/Actual Remittance Portfolio Mortgage Loans The following example illustrates the relationship between cut-off dates, reporting periods, and deadlines for transmitting the bulk of a servicer's transactions for actual/actual and scheduled/actual remittance type portfolio mortgage loans which have an end-of-month cut-off date. Example: For the June 2011 reporting period, the servicer must report all activity that occurred between June 1 and June 30 and transmit the transaction types that reflect this activity in time to reach Fannie Mae by July 6 (since July 3 is a Sunday and the Fourth of July is a holiday). Scheduled/Scheduled Type Portfolio and MBS Mortgage Loans For scheduled/scheduled remittance type portfolio and MBS mortgage loans, the servicer may select from two different options for transmitting the bulk of its monthly accounting transactions. The two options are further described in the following table. Option Under this option the servicer must 1 Transmit transactions in time to reach Fannie Mae by the third business day of the month following its cutoff date. Example: A servicer that uses the 25th of the month as its cut-off must transmit these transactions for June 2011 activity in time to reach Fannie Mae by July 6 (since July 3 is a Sunday and the Fourth of July is a holiday) if it selects Option 1. 2 Transmit transactions representing a snapshot of the activity that has occurred up to the 25th of the month, and Submit a supplemental report for activity that occurred between the 25th and the servicer's actual cut-off date (if the actual cut-off date is later than the 25th). The snapshot report must be transmitted by the third business day following the 25th of the month; the supplemental report, by the third business day of the month following the servicer's cut-off date. Example: A servicer that uses a month-end cut-off for its MBS pools must transmit the snapshot report for June 2011 activity in time to reach Fannie Mae by June 29 and the supplemental report for June 2011 activity in time to reach Fannie Mae by July 6 (since July 3 is a Sunday and the Fourth of July is a holiday). Fannie Mae s Investor Reporting Manual 2

10 1-02, Performing Monthly Reconciliations (11/12/2014) October 14, 2015 Each month, the servicer must reconcile the Fannie Mae investor reporting system reports it receives from Fannie Mae to its internal records. Further instructions for the monthly reconciliation process are provided in the following table. Loan Type Portfolio mortgage loans (regardless of remittance type) MBS mortgage loans that are scheduled/scheduled remittance type The servicer must Compare portfolio totals, interest rates, and pass-through rates carried in the servicer's records to those that Fannie Mae has in its investor reporting system database; and Reconcile the components of any shortage or surplus Fannie Mae is carrying for the servicer's reports. Compare portfolio totals, interest rates, and pass-through rates in the servicer's records to those in Fannie Mae's records only. Submitting Formal Reconciliations Reconciliations must be prepared using the following forms (or an acceptable equivalent format): Reconciliation of Mortgage Portfolio (Form 473), Reconciliation of Mortgage Portfolio S/S MBS and MRS (Form 512), Reconciliation of Interest Rate/Pass-Through Rate (Form 473A), and Reconciliation of Shortage/Surplus (Form 472). Handling Unreconciled Shortages and Surpluses A shortage or surplus in the Fannie Mae investor reporting system represents the cumulative difference between: the cash the servicer remitted to Fannie Mae, and the interest and principal the servicer reflected in its monthly loan-level reports as being applied to the portfolio mortgage loans serviced for Fannie Mae. Unreconciled shortages are payable to Fannie Mae. The following table provides the servicer with instructions for the reconciliation a shortage. The servicer must Remit the amount of the unreconciled shortage to Fannie Mae immediately. Transfer the funds from its corporate account(s) into its designated Fannie Mae custodial drafting account before reporting the remittance as part of its regular P&I remittances. Contact its Fannie Mae Investor Reporting Representative (see Servicing Guide F-4-03, List of Contacts) for instructions on handling subsequent adjustments and corrections, before transmitting its Fannie Mae investor reporting system transactions for the next reporting period. Fannie Mae s Investor Reporting Manual 3

11 Unreconciled surpluses are income items for Fannie Mae. The following table provides additional information to the servicer regarding surpluses. If the servicer And the servicer Then Fannie Mae is unable to reconcile the surplus within 90 days after it first appears on its Fannie Mae investor reporting system report cannot explain any extenuating circumstances related to the unreconciled surplus may adjust the servicer's shortage/surplus account to zero out the surplus. Note: Fannie Mae will give the servicer advance notification and advise it on how subsequent adjustments and corrections must be handled. 1-03, Requesting Audit Confirmations (11/12/2014) A servicer may instruct its external auditors to contact Fannie Mae directly about providing confirmation of the servicer's portfolio composition and outstanding balances as they are carried in Fannie Mae's records. Fannie Mae will respond to such requests as promptly as possible although there can be a delay of up to one month. The request for audit confirmation must be sent to: Investor_Reporting_Group_Mailbox@FannieMae.com. All requests for audit confirmations must include the information shown in the following table. Requirements for Audit Confirmation Requests The servicer's name and address. An authorized signature of an officer of the financial institution. The servicer's 9-digit Fannie Mae lender identification number. The name and telephone number of the auditor's contact person (either with the servicer's institution or auditor). The effective date for the confirmation. Fannie Mae s Investor Reporting Manual 4

12 Chapter 2, Reporting Specific Transactions All reportable Fannie Mae investor reporting system transactions will fall into one or more of the following categories. Some transactions update the status of a mortgage loan or summarize collection activity, while others update the information in Fannie Mae's records (such as property addresses, lender Loan I.D. identification numbers, mortgage loan terms, subservicing status, etc.). The seven reportable transaction types include: Transaction Type 96 (Loan Activity Record), Transaction Type 97 (Extended Loan Activity Record), Transaction Type 83 (Payment/Rate Change Record), Transaction Type 82 (Loan Address Change Record), Transaction Type 81 (Lender Loan I.D. Record), Transaction Type 80 (Sub servicer Arrangement Record), and Transaction Type 32 (Transfer of Servicing Record). These codes can be mapped to the EDI segment positions, names, and data element references that a servicer must use when reporting Fannie Mae investor reporting system transactions in the ANSI X12 format. See also, 2-07, Reporting a Transaction Type 32 (Transfer of Servicing Record) and 1-01, Using Machine- Processable Input. 2-01, Reporting a Transaction Type 96 (Loan Activity Record) (11/12/2014) The servicer must use Transaction Type 96 (Loan Activity Record) or (LAR) to provide loan-level detail for each mortgage loan on the servicer's trial balance. The loan-level information can be broken down into three categories described in the following table. Transaction Type 96 (LAR) Category Payment collection Mortgage loan status Description Relates to the receipt and application of the mortgage loan payment Relates to special actions that have occurred such as a payoff; a repurchase; the liquidation of the debt by foreclosure, short sale, Mortgage Release, or assignment to the mortgage insurer or guarantor; or the automatic termination or a borrower-initiated cancellation of the mortgage insurance coverage. Information that must be reported The LPI date, UPB, and the remittance amount (distributed between interest and principal). An action code there are several codes available and an action date to specify when the reported action occurred (or will occur). The servicer also must notify Fannie Mae of any termination or cancellation of mortgage insurance. Fannie Mae s Investor Reporting Manual 5

13 Transaction Type 96 (LAR) Category Fee collection Description Relates to any special fees such as late charges, assumption fees, or prepayment premiums that were collected from the borrower during the reporting period Information that must be reported The combined total of the special fees. Record specifications and additional descriptions for Transaction Type 96 are shown in the following table. Data Element Position Format Description Lender Number 1-9 (9) Numeric only Investor 10 (1) Alphanumeric; F = Fannie Mae Record Identifier (2) Always 96 Source Code 13 (1) Always zero (0) Fannie Mae Loan Number (10) Numeric only LPI Date (4) MMYY format UPB S9(9)V99 Numeric; zone signed; code $50, as A Interest S9(9)V99 Numeric; zone signed; code $ as B Principal S9(9)V99 Numeric; zone signed; code -$9.91 as J Action Code (2) Numeric or blank Action Date (6) MMDDYY format Other Fees S9(6)V99 Numeric; zone signed; may be zero-filled Filler (4) Blanks or zeroes Fannie Mae s Investor Reporting Manual 6

14 2-02, Reporting a Transaction Type 97 (Extended Loan Activity Record) (11/12/2014) Transaction Type 97 (Extended Loan Activity Record) is an extended LAR that includes the date of payment. This date must be included in reporting for all daily simple interest mortgage loans and actual/actual biweekly loans. The interest accrual is driven by the date of payment. Record specifications and descriptions for Transaction Type 97 are shown in the following table. Data Element Position Format Description Lender Number 1 (9) Numeric only (must be the special Servicer Number assigned for DSI loans) Investor 10 (1) Alphanumeric; F = Fannie Mae Record Identifier 11 (2) Always 97 Reversal Flag 13 (1) Zero (0) - normal One (1) - reversal Fannie Mae Loan Number 14 (10) Numeric only (The unique 10-digit Fannie Mae assigned loan number) Gross Actual Payment 24 (11) 9(9)v99 Full payment amount sent by borrower (P&I). If reporting curtailment, this is the curtailment amount. Payment Effective Date 35 (8) MMDDYYYY (Effective date the payment is being applied). Must equal action date (LAR 96 position 63), if action is reported. Filler 43 (30) Blank Full LPI Date 73 (8) MMDDYYYY Month and year must agree with the month and year reported in LAR 96 position 24 (LPI date). Fannie Mae s Investor Reporting Manual 7

15 2-03, Reporting a Transaction Type 81 (Lender Loan I.D. Change Record) (11/12/2014) Transaction Type 81 (Lender Loan I.D. Change Record) must be used to add, delete, or change the information Fannie Mae is carrying in its records for the servicer's unique identifier for the mortgage loan. The servicer can determine the I.D. that Fannie Mae is carrying in its records by reviewing the trial balance report that Fannie Mae provides. (See Exhibit: Trial Balance Report, which is available in SURF or on Fannie Mae s website.) Record specifications and descriptions for Transaction Type 81 are shown in the following table. Data Element Position Format Description Lender Number 1-9 (9) Numeric only Investor 10 (1) Alphanumeric; F = Fannie Mae Record Identifier (2) Always 81 Source Code 13 (1) Always zero (0) Fannie Mae Loan Number (10) Numeric only New Lender Loan I.D (15) Alphanumeric Filler (42) Blanks 2-04, Reporting a Transaction Type 82 (Loan Address Change Record) (11/12/2014) Transaction Type 82 (Loan Address Change Record) must be used to update Fannie Mae's records to reflect changes or corrections to a property address. Changes that must be reported include: the renumbering or renaming of streets, changing an address from a lot and block description to a house number and street, and changing ZIP codes because of postal realignments. Record specifications and descriptions for Transaction Type 82 are shown in the following table. Data Element Position Format Description Lender Number 1-9 (9) Numeric only Investor 10 (1) Alphanumeric; F = Fannie Mae Record Identifier (2) Always 82 Fannie Mae s Investor Reporting Manual 8

16 Data Element Position Format Description Source Code 13 (1) Always zero (0) Fannie Mae Loan Number (10) Numeric only New Street (32) Alphanumeric; combination of house or building number, street type (La = Lane, Ave = Avenue, etc.), street direction (NE, NW, SE, SW), and unit number, if applicable. City (15) Alphabetic; truncate if necessary Zip Code (5) Numeric Blank (5) Blanks 2-05, Reporting a Transaction Type 83 (Payment/Rate Change Record) (11/12/2014) Two months before a scheduled interest rate or monthly payment change for an ARM, a GEM, or a graduatedpayment mortgage (GPM), Fannie Mae provides the servicer with a listing of mortgage loans Fannie Mae expects to change on that date. Transaction Type 83 (Payment/Rate Change Record) must be used to report the actual change to Fannie Mae. The following table provides a list of servicer requirements for reporting Transaction Type 83. The servicer must Report a Transaction Type 83 no later than the reporting period that includes the scheduled change date because Fannie Mae cannot process any transaction against a mortgage loan that has a scheduled (or past due) change date; but may report the Transaction Type 83 to Fannie Mae as soon as it knows the effective date and exact amount of the new interest rate or monthly payment.. Use Transaction Type 83 to report the conversion of an ARM to a fixed-rate mortgage loan. Report a Transaction Type 83 for the conversion by no later than the due date of the Fannie Mae investor reporting system reports for the reporting period that includes the effective date for the new monthly payment, but may report the Transaction Type 83 to Fannie Mae when it transmits its first Fannie Mae investor reporting system reports after it knows the effective date of the conversion and the new converted interest rate and monthly payment. Report any unscheduled change event for a loan, including: a change to the loan s P&I due to a curtailment made by the borrower, or a change to the loan s interest rate and P&I due to the borrower s qualifying for an interest rate reduction (such as a Timely Payment Reward loan). Fannie Mae s Investor Reporting Manual 9

17 Record specifications and descriptions for Transaction Type 83 are included in the following table. Data Element Position Format Description Lender Number 1-9 (9) Numeric only Investor 10 (1) Alphanumeric; F = Fannie Mae Record Identifier (2) Always 83 Source Code 13 (1) Always zero (0) Fannie Mae Loan Number (10) Numeric only Effective with Payment Due on (4) MMYY format Index Value (2) (4) Numeric or blank; code 6.5% as New Interest Rate (2) (4) Numeric or blank; code 8.25% as Pass-Through Rate (2) (4) Numeric or blank; code 7.25% as October 14, 2015 New Payment (9) Numeric or blank; code $ as Extended Term (3) Numeric or blank Converted to Fixed Rate 58 (1) Alphanumeric; uppercase Y if converted; otherwise blank Filler (22) Blanks Fannie Mae s Investor Reporting Manual 10

18 2-06, Reporting a Transaction Type 80 (Subservicer Arrangement Record) (06/10/2015) Each mortgage loan that is subject to a subservicing arrangement must be identified in Fannie Mae's records using Transaction Type 80, in accordance with the requirements in the following table. The master servicer (or its designated subservicer) must Report the subservicing arrangement and the subservicer's identification to Fannie Mae in the month after it purchases or securitizes a mortgage loan (or pool of mortgage loans), with subsequent changes in the arrangement being reported as they occur. Use Transaction Type 80 (Subservicer Arrangement Record) to report the creation of a subservicing arrangement for a mortgage loan, as well as any change to an existing arrangement (including a deletion). For mortgage loans that are subject to a subservicing arrangement included in a transfer of servicing, the following table provides additional servicer reporting requirements for these mortgage loans. If deleting any prior applicable subservicer arrangement adding any new applicable subservicer arrangement Then the master servicer (or its designated subservicer) must report any deletion of prior applicable subservicer arrangement for the transferred mortgage loans in the month preceding the effective date of the servicing transfer, and report a D (for Delete an Existing Subservicer) as the Modification Code. report any new applicable subservicer arrangement for the transferred mortgage loans by submitting a Transaction Type 80 in the Fannie Mae investor reporting system period in the month following the effective date for the servicing transfer, and report an A (for Add a New Subservicer) as the Modification Code, since the subservicing relationship will appear to be a new one for the transferee servicer (at least with respect to the transferred mortgage loans). Fannie Mae s Investor Reporting Manual 11

19 Record specifications and descriptions for Transaction Type 80 are included in the following table. Data Element Position Format Description Lender Number 1-9 (9) Numeric; identification number Fannie Mae assigned to the servicer (or the master servicer) Investor 10 (1) Alphanumeric; F = Fannie Mae Record Identifier (2) Always 80 Source Code 13 (1) Always zero (0) Modification Code 14 (1) Alphanumeric; A = Add a new subservicer; C = Change an existing subservicer; D = Delete an existing subservicer; always use A to update records for mortgage loans included in a servicing transfer. Subservicer Lender Number (9) Numeric; for Add a New Subservicer or Change an Existing Subservicer, use the identification number Fannie Mae assigned to the subservicer; if deleting a subservicer leave blank. Subservicer Type Code (2) Numeric; code indicating whether the request relates to a single mortgage loan or a group of mortgage loans; 00 = one mortgage loan; 01 = all mortgage loans; 04 = one MBS pool; 09 = one remittance type. Key Field (10) Alphanumeric; further defines subservicer type code; if type code was 00, insert the applicable 10-digit Fannie Mae loan number; if type code was 01; leave blank; if type code was 04, insert the MBS pool number (with 4 trailing blanks); if the type code was 09, insert the 1-digit code that identifies the specific remittance type (with 9 trailing blanks). The remittance type codes are 1 (actual/actual), 2 (scheduled/actual), and 3 (scheduled/scheduled). Filler (45) Always blank Related Announcements The table below provides references to the Announcements that have been issued that are related to this topic. Announcements Issue Date Announcement SVC June 10, 2015 Fannie Mae s Investor Reporting Manual 12

20 2-07, Reporting a Transaction Type 32 (Servicing Transfer Record) (11/12/2014) October 14, 2015 A servicer that has received approval for transfer of servicing (including an MBS loan-level transfer) must transmit loan-level information for the mortgage loans that will be included in the partial transfer to the Fannie Mae investor reporting system. The following table provides additional instructions regarding these transactions. The servicer must Use Transaction Type 32 (Servicing Transfer Record) to provide this information. Submit this loan-level information in time for Fannie Mae to receive it no later than 15 days before the effective date of the transfer; it may be submitted it as early as six months before the proposed effective date. Record specifications and descriptions for Transaction Type 32 are shown in the following table. Data Element Position Format Description Transferor Lender Number 1-9 (9) Numeric Blank 10 (1) Blank Record Identifier (2) Always 32 Source Code 13 (1) Always zero (0) Key Field (10) Fannie Mae loan number (for portfolio transfers and MBS loan-level transfers); MBS pool number, with four trailing blanks (for MBS pool-level transfers); or blank Request Effective Date (6) Numeric; CCYYMM format; for a transfer that is effective January 31, 2003, use Transferee Lender Number (9) Numeric Lender Loan I.D (15) Alphanumeric Transfer Request Type Code (2) Numeric; as detailed below: 00 Non-MBS Loan 10 MBS Loan 04 MBS Pool 03 MBS Portfolio 05 Actual/Actual Portfolio 06 Scheduled/Actual Portfolio 07 Scheduled/Scheduled Cash Portfolio Fannie Mae also accepts a common EDI format of investor reporting information. The action the servicer must take to ensure it satisfies Fannie Mae's requirements for using the EDI format will vary depending on how it submits its Fannie Mae investor reporting system reports to Fannie Mae, as shown in the following table. Fannie Mae s Investor Reporting Manual 13

21 2-08, Mapping Fannie Mae Investor Reporting System Records to EDI Investor Reporting Transaction Set 203 (11/12/2014) Current Investor Reporting Record Identifier & Data Element Field Name Location of Data Element Within Investor Reporting Record Identifier EDI Segment Position & Segment Name EDI Data Element Reference EDI Requirement Designation 010/ST ST01 Mandatory Field Mandatory Segment 010/ST ST02 Mandatory Field Mandatory Segment 020/BGN BGN01 Mandatory Field Mandatory Segment 020/BGN BGN02 Mandatory Field Mandatory Segment 020/BGN BGN03 Mandatory Field Mandatory Segment 020/BGN BGN04 Optional Field Mandatory Segment 020/BGN BGN05 Optional Field Mandatory Segment 030/DTP DTP01 Mandatory Field Mandatory Segment 030/DTP DTP02 Mandatory Field Mandatory Segment 030/DTP DTP03 Mandatory Field Mandatory Segment 040/REF REF01 Mandatory Field Mandatory Segment (96) Fannie Mae Lender Number /REF REF02 Mandatory Field Mandatory Segment 010/LX LX01 Mandatory Field Mandatory Segment 020/REF REF01 Mandatory Field Optional Segment (80) Subservicer Number /REF REF02 Mandatory Field Optional Segment Fannie Mae s Investor Reporting Manual 14

22 Current Investor Reporting Record Identifier & Data Element Field Name Location of Data Element Within Investor Reporting Record Identifier EDI Segment Position & Segment Name EDI Data Element Reference EDI Requirement Designation (80) Subservicer Number /REF REF02 Mandatory Field Optional Segment (80) Subservicer Number /REF REF02 Mandatory Field Optional Segment (80) Subservicer Modification Code (80) Subservicer Type Code /REF REF02 Mandatory Field Optional Segment /REF REF02 Mandatory Field Optional Segment 050/RLT RLT01 Mandatory Field Optional Segment (96) Fannie Mae Loan Number /RLT RLT02 Mandatory Field Optional Segment 050/RLT RLT03 Conditional Field Optional Segment (81) New Lender Loan I.D /RLT RLT04 Conditional Field Optional Segment 060/DTP DTP01 Mandatory Field Mandatory Segment 060/DTP DTP02 Mandatory Field Mandatory Segment (96) LPI Date /DTP DTP03 Mandatory Field Mandatory Segment (NEW) Date of Last Full Payment 060/DTP DTP03 Mandatory Field Mandatory Segment (NEW) Curtailment Date 060/DTP DTP03 Mandatory Field Mandatory Segment 070/AMT AMT01 Mandatory Field Mandatory Segment (96) UPB (96) Principal (96) Interest (96) Other Fees (NEW) Prepay Penalty (NEW) Curtailment /AMT AMT02 Mandatory Field Mandatory Segment Fannie Mae s Investor Reporting Manual 15

23 Current Investor Reporting Record Identifier & Data Element Field Name Location of Data Element Within Investor Reporting Record Identifier EDI Segment Position & Segment Name EDI Data Element Reference EDI Requirement Designation (96) Action Code /IRA IRA01 Mandatory Field Optional Segment 080/IRA IRA02 Conditional Field Optional Segment (96) Action Code /IRA IRA03 Conditional Field Optional Segment 100/PRC PRC01 Mandatory Field Optional Segment 100/PRC PRC02 Mandatory Field Optional Segment (83) Effective Date of Rate or Payment Change /PRC PRC03 Mandatory Field Optional Segment (83) Index Value /PRC PRC04 Optional Field* Optional Segment (83) Pass-Thru Rate /PRC PRC05 Optional Field* Optional Segment (83) New Interest Rate /PRC PRC06 Optional Field* Optional Segment 100/PRC PRC07 Conditional Field Optional Segment (83) New P&I Payment /PRC PRC08 Conditional Field Optional Segment (83) Converted to Fixed Rate /PRC PRC09 Optional Field Optional Segment 100/PRC PRC10 Conditional Field Optional Segment (83) Extended Term /PRC PRC11 Conditional Field Optional Segment 100/PRC PRC12 Conditional Field Optional Segment 110/NX2 NX201 Mandatory Field Optional Segment Fannie Mae s Investor Reporting Manual 16

24 Current Investor Reporting Record Identifier & Data Element Field Name Location of Data Element Within Investor Reporting Record Identifier EDI Segment Position & Segment Name EDI Data Element Reference EDI Requirement Designation (82) Street Address (82) City (82) Zip Code /NX2 NX202 Mandatory Field Optional Segment Fannie Mae s Investor Reporting Manual 17

25 Chapter 3, Special Reporting Requirements Under the investor reporting system, delinquent mortgage loans remain on the servicer's trial balance until one of the following occurs: the servicer repurchases them, or the foreclosure sale is held and the servicer reports the appropriate action code Code 70, 71, or 72 with a Transaction Type 96 (Summary Loans) or Transaction Type 96 and 97 (Detailed Reporting Loans) LAR. In addition to special reporting requirements mentioned in the Servicing Guide and its related procedures, special reporting requirements also are necessary for all transactions described in the following table. Transactions Requiring Special Reporting Requirements Bringing seriously delinquent scheduled/actual remittance type mortgage loans current. Reporting reversals of curtailments or removal transactions for MBS mortgage loans. Preparing the initial monthly accounting report for MBS mortgage loans that provide for the payment of interest in advance. Reporting payment applications for MBS mortgage loans that have odd due dates (payments due other than the first of the month). Preparing the initial monthly accounting reports for same month MBS pools (those that include mortgage loans closed in the month in which the pool is issued). Reporting a borrower-initiated cancellation or the automatic termination of mortgage insurance coverage. Reporting security balances for MBS pools each month. The following table provides additional instructions related to special reporting requirements for loan modifications that include a principal forbearance. If a mortgage loan modification includes Then the servicer must a principal forbearance report the net UPB (full UPB minus the forbearance amount) in the Actual UPB field in the LAR for the reporting month that the mortgage loan modification becomes effective. report interest on the LAR based on the net UPB. Note: The initial reduction in UPB caused by the principal forbearance must not be reported to Fannie Mae as a principal curtailment. Fannie Mae s Investor Reporting Manual 18

26 If a mortgage loan modification includes a principal forbearance resulting in a balloon payment due upon the borrower's sale of the property or payoff, or maturity of the mortgage loan a principal forbearance for which a principal curtailment is received Then the servicer must include the principal forbearance amount when reporting principal on the LAR, when reporting a payoff or repurchase of the mortgage loan. never compute interest on the principal forbearance amount, including at the time of liquidation. Note: Attempting to report a payoff or repurchase without including the principal forbearance amount will generate an exception upon submission of the LAR. apply the principal curtailment to the interest-bearing UPB. If the principal curtailment is greater than or equal to the interest-bearing UPB, then the curtailment must be applied to the principal forbearance portion. If the curtailment satisfies the principal forbearance portion, any remaining funds must be applied to the interest-bearing UPB. The following table provides additional detail on the requirements related to reporting a liquidation of a modified mortgage loan with principal forbearance. Reporting LAR Liquidations Reporting for Remittance Type Actual/Actual Reporting for Remittance Type Scheduled/Actual Reporting for Remittance Type Scheduled/Scheduled (Portfolio / also called MRS or MBS-Acquired) Payoff Actual UPB = $0.00 Actual UPB = $0.00 Actual UPB = $0.00 (Action Code 60) Principal Amount = Prior Month Ending Actual UPB + Principal Forbearance Amount Principal Amount = Prior Month Ending Actual UPB Actual UPB + Principal Forbearance Amount Principal Amount = Prior Month Scheduled UPB + Forbearance Amount Repurchase Actual UPB = $0.00 Actual UPB = $0.00 Actual UPB = $0.00 (Action Code 65) Principal Amount = (Prior Month Ending Actual UPB + Principal Forbearance Amount) x Purchase Price Principal Amount = (Prior Month Ending Actual UPB + Principal Forbearance Amount) x Purchase Price Principal Amount = (Prior Month Scheduled UPB + Principal Forbearance Amount) x Purchase Price Foreclosure (Action Codes 70, 71, 72) Actual UPB¹ = Actual UPB reported as of the end of the prior reporting month. Actual UPB¹ = Actual UPB reported as of the end of the prior reporting month. Actual UPB¹ = Actual UPB reported as of the end of the prior reporting month. Principal Amount = $0.00 Principal Amount = $0.00 Principal Amount = Prior Month Scheduled UPB + Principal Forbearance Amount ¹ Actual UPB = UPB reported to Fannie Mae as of the end of the prior reporting month, not including principal forbearance. Fannie Mae s Investor Reporting Manual 19

27 3-01, Reporting a Mortgage Loan Modification (11/12/2014) October 14, 2015 The servicer must report the modification of any mortgage loan in the first delinquency status information it transmits to Fannie Mae after Fannie Mae approves the mortgage loan modification. Existing monthly LAR reporting requirements for Fannie Mae servicers will not change for a mortgage loan that has been modified. The following table provides additional information on these requirements. The servicer must Continue to report the standard LAR format for a mortgage loan payment by the third business day of each month for the prior month's activity. Continue to report the standard LAR form for payoff activity by the second business day of each month for the prior month s activity (for example, payoff reporting to the received by April 2 will contain March activity). Report post-modification UPB once the mortgage loan modification is closed in HSSN (for example, if a mortgage loan modification is closed on March 25, the post-modification UPB must be reported on the April 3 LAR). Note: If the servicer submits a LAR to report the post-modification UPB before the case is closed in HSSN, an exception will occur. If the pre-modification UPB or the pre-modification LPI reported in HSSN for the closed mortgage loan modification does not agree with the pre-modification UPB or the pre-modification LPI in Fannie Mae's investor reporting system, the mortgage loan modification will not be processed until the discrepancy is resolved. If, in the final month of the trial period, the sum of unapplied trial period payments is equal to or greater than a full contractual payment on the underlying mortgage loan, and the mortgage loan modification is closed in the same month, the servicer must report the contractual payment before the post-modification balances can be reported. This will require two LARs and two reporting cycles to complete. 3-02, Reporting ARM Interest Rate and Monthly Payment Changes (11/12/2014) Scheduled/actual and scheduled/scheduled remittance types require the payment of interest (or, in the case of scheduled/scheduled remittance types, P&I) to Fannie Mae whether or not the servicer actually collects the payment from the borrower. Therefore, the servicer must handle ARM interest rate and payment changes for these remittance types differently than they would for mortgage loans that have the actual/actual remittance type. Reporting for Scheduled/Actual Remittance Types The servicer must change the interest rate of a whole mortgage loan account or participation certificate related to a scheduled/actual remittance type mortgage loan when the interest rate adjustment is scheduled to occur, regardless of the LPI date for the mortgage loan. Fannie Mae s Investor Reporting Manual 20

28 This means sometimes the servicer will change the interest rate for Fannie Mae's accounting records: October 14, 2015 at the same time that it changes the rate for the borrower's payment (for current mortgage loans), before it changes the rate for the borrower's payment (for delinquent mortgage loans), or after it changes the rate for the borrower's payment (for prepaid mortgage loans). When a servicer reports a scheduled interest rate change for a scheduled/actual remittance type ARM that provides for the payment of interest in arrears, the servicer must report the change with a Transaction Type 83 (Payment/Rate Change Record), as of the payment date on which the interest rate will become effective, rather than the actual effective date of the interest rate change. Note: If the mortgage loan provides for payment of interest in advance, the scheduled change dates for the interest rate and the monthly payment are always the same. Example: If a mortgage loan that provides for payment of interest in arrears has an interest rate change date of October 1, The new interest rate becomes effective with the payment due November 1, The servicer must use the new interest rate to calculate the interest reported with its Transaction Type 96 (Summary Loans) or Transaction Type 96 and 97 (Detailed Reporting Loans) LAR for November 2011, but the remittance will not actually be due until December 20, Reporting for Scheduled/Scheduled Remittance Types Remittance for scheduled/scheduled remittance type mortgage loans will differ based on the mortgage loan type. Scheduled/scheduled MBS mortgage loans. The servicer must change the interest rate of a portfolio mortgage loan or the accrual rate for an MBS mortgage loan accounted for as a scheduled/scheduled remittance type in Fannie Mae's records before the interest rate adjustment is scheduled to occur, regardless of the actual LPI date for the individual mortgage loan. Scheduled/scheduled ARM loans. The following table provides further instructions for reporting scheduled/scheduled ARM loans. The servicer must Report interest rate and monthly payment changes for scheduled/scheduled remittance type ARMs to Fannie Mae as soon as the new interest rate or monthly payment is known, by transmitting a Transaction Type 83 (Payment/Rate Change Record). Report the ARM interest rate and monthly payment change to Fannie Mae at least two months in advance of the date on which the application of the monthly payment will be based on the new interest accrual rate, (when the mortgage loan interest rate and the monthly payment for an ARM change at the same interval). Fannie Mae s Investor Reporting Manual 21

29 The servicer must Report the ARM interest rate change two months before the date on which the application of the monthly payment will be based on the new interest accrual rate, and the monthly payment two months before the date on which the new payment becomes effective; (when the mortgage loan interest rate and monthly payment change at different intervals). Note: If the index is not available by the time that the interest rate change must be reported to Fannie Mae, the servicer must report the change to Fannie Mae as soon as the appropriate index becomes available and the new interest rate and the monthly payment (if it is changing) have been calculated. To illustrate the correct timing for reporting ARM interest rate and payment changes for scheduled/scheduled remittance types, refer to the following example. Example: The servicer's January report must include any ARM that will have either: a new interest accrual rate effective with the application of the March 1 payment, or a monthly payment change effective March 1 (when the payment change is not tied to a change in the interest accrual rate). Fannie Mae prefers that a servicer that has a cut-off date after the 25th of the month report its ARM changes when it reports the snapshot of its activity, within three business days after the 25th, although it may report the changes with its supplemental reports. 3-03, Recovering Delinquency Advances (11/12/2014) The method and timing of the servicer's reimbursement for interest it advanced for a delinquent mortgage loan depends on whether the mortgage is: a portfolio mortgage loan, or an MBS mortgage loan. Fannie Mae does not reimburse the servicer of regular servicing option MBS mortgage loans for its delinquency advances, but will reimburse delinquency advances related to special servicing option MBS mortgage loans. Reimbursements for delinquency advances related to portfolio mortgage loans vary depending on: the remittance type, and Fannie Mae's ownership interest in the mortgage loan. Fannie Mae s Investor Reporting Manual 22