Servicing

Master Servicing

Bringing simplicity to servicing

Within our Single-Family performing loan portfolio, Master servicing (formally known as Investor Reporting) oversees critical Single-Family loan services, including known as the 3 R’s:

  • Loan activity Reporting
  • Principal and interest Remittance
  • Data and cash Reconciliation

We work closely with servicers to:

  • Decrease reporting and remitting exceptions
  • Research and resolve complex issues
  • Identify requirements and best practices

We use data reported by servicers to:

  • Update financial statements
  • Produce disclosures
  • Pay MBS investors
Contact Us

Call 1-800 -2FANNIE (option 1, option 6) or email: [email protected]

Cash Simplification is Here

Check out the latest changes to Investor Reporting. 

Learn More

Loan Activity Reporting

Loan Activity Reports (LAR) are required from servicers based upon borrower loan payment activity in a given month. We use these reports to keep loan records current.

Additional Resources

Applications

Principal & Interest Remittance

Principal and interest are due and collected from servicers based upon remittance requirements. We pass securitized loan funds to investors.

More information

Applications

Post-Purchase Data Changes

Master servicing processes loan data changes to maintain the loan data integrity and prevent payment processing exceptions/rejections.

Loan data changes could include scheduled payment/note rate changes, unscheduled payment recasts, and/or corrections of delivery errors. To learn more, go to Seller/Servicer-initiated post-purchase adjustments.

Applications

Additional Resources

Loan Reclassification & Modification

Loan reclassifications occur when loans need to be removed from Pooled from Portfolio (PFP) pools, Mortgage Backed Security MBS SWAP pools, or Whole Loan Real Estate Mortgage Investment Conduits (REMICs), and transferred to our Cash Portfolio. Master Servicing ensures closed Delinquency Modifications received from Fannie Mae’s Servicing Solutions System (which includes SMDU and HSSN) on a daily basis are updated accurately and timely in the system of record. Reclassification may be required if the loan:

  • Enters delinquency
  • Potentially violates an MBS Trust Agreement
  • Undergoes changes that disqualify it from the pool
  • Is fraudulent  

Additional Resources

Applications

 

Mortgage Insurance Discontinuance

Mortgage Insurance is an insurance policy that compensates lenders or investors for losses due to the default of a mortgage loan. Servicers use Transaction Type 89, or Tran 89, to report mortgage insurance discontinuation. Servicers can report a Tran 89 (MI Discontinuance) if:

  • A servicer auto-terminates the mortgage insurance for any reason
  • A servicer terminates the loan due to high risk
  • The homeowner terminates the mortgage based on its original/current value

MI Termination using SMDU

Applications

Post-Delivery Servicing Transfers

When a Fannie Mae-owned/securitized mortgage loan, or its servicing rights are transferred, master servicing ensures that Fannie Mae has accurate information about the entity responsible for servicing the loan in line with our reporting requirements.  

Servicing can be transferred from one servicer to another (inter-servicer), or from one portfolio to another within the same servicing entity (intra-servicer).

Additional Resources

Applications

Military Indulgency (SCRA)

The Servicemembers Civil Relief Act provides various protections to United States military personnel while on active duty. If servicers request SCRA military indulgence for loans, master servicing updates the record to reflect these indulgences.

Additional Resources

Applications