Loan Activity Reporting
Loan Activity Report (LAR) processing is the function whereby Fannie Mae receives a LAR from the Servicer of record based upon borrower loan payment activity in a given month. Fannie Mae uses this report to update its loan records accordingly.
For securitized loans, LAR activity is needed to create aggregation of collateral balances, which will make up security balances, calculate investor payouts/guaranty fees, and provide disclosure information to investors on underlying collateral. For loans held in portfolio, LAR activity is needed to determine the balance of accounts receivable related to cash remittances due from Servicers.
Servicers are currently required to remit P&I payments for scheduled/scheduled and scheduled/actual portfolio mortgage loans to Fannie Mae via the Cash Remittance System (CRS).
With Cash Simplification, Fannie Mae will now initiate drafting on scheduled/scheduled and scheduled/actual portfolio mortgage loans for monthly P&I due based on Loan Activity Records (LARs) received and any adjustments processed. Servicers will be required to make all funds for scheduled/scheduled and scheduled/actual portfolio mortgage loans available for us to initiate drafting in accordance with the following table. To learn more: