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C3-2-03, MBS Remittance Type and Selecting a Remittance Cycle (10/25/2011)
Introduction
In this topic, the lender’s options with respect to remitting principal and interest on MBS pool loans are addressed, including:
MBS Pool Remittance Type
All MBS mortgages are accounted for as the scheduled/scheduled remittance type. This means that a servicer may have to advance its own funds to cover the amount Fannie Mae is due on a mortgage for which the monthly payment of principal and interest is late.
Standard Remittance Cycle
Under the standard remittance cycle, lenders remit scheduled P&I payments on the 18th of the month in which they are due from the borrowers (or, if the 18th is not a business day, on the business day preceding the 18th). Unscheduled principal payments must be remitted by the 18th of the month following collection.
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