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 and identify requirements and best practices.
We use data reported by servicers to update financial statement, produce disclosures and pay MBS investors.
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.
Principal & Interest Remittance
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.
- Servicer's Reconciliation Facility (SURF)
- Fannie Mae Connect
- Loan Quality Connect
- Loan Servicing Data Utility (LSDU)
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
- Loan Reclassification
- Resolving Failed Business Rules and Hard Rejects for Modified Loans
- How Modifications Affect Investor Reporting
- HSSN Delinquent Loan Reporting and Reclassification Timeline
- Changes to Investor Reporting: Delinquency Modifications and Cancellations
- Servicer's Reconciliation Facility™(SURF)
- Loan Servicing Data Utility (LSDU)
- Asset Management Network & HSSN
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
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).
- Request for Approval of Servicing or Subservicing Transfer
- eTransfers User Guide
- eTransfers Upload File Conversion Tool
- eTransfers Upload File Conversion Tool Job Aid
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.