FNMA Servicing Guide C-1 — Processing Mortgage Loan Payments

fnma-svc-c-1

Servicing Guide Chapter C-1 governs payment application order, custodial deposit timing, and related processing rules.

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source:
  type: regulation
  id: fnma-svc-c-1
  authority: FNMA Servicing Guide C-1 — Processing Mortgage Loan Payments
  description: |
    Servicing Guide Chapter C-1 governs payment application order, custodial deposit timing, and related processing rules.
obligations:
  - id: fnma-svc-c-1-payment-application-order
    canonical_id: fnma-svc-c-1-payment-application-order
    section: FNMA Servicing Guide C-1.1-01 — Servicer Responsibilities for Processing Mortgage Loan Payments
    description: |
      [LENDER] must apply scheduled payments, including late charges (if
      applicable), in the order specified in the security instrument. When
      multiple payments are received, each payment must be applied separately.
    type: do
    audit_question: Can [LENDER] evidence that scheduled payments (including late charges, where applicable) are applied in the order specified in the security instrument, and that each of multiple received payments is applied separately?
    program_review: Does the program ensure scheduled payments (including late charges where applicable) are applied in the security-instrument order, and each of multiple received payments is applied separately?
    file_review: Sample payment-application records; confirm security-instrument order and separate application of multiple payments.
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: default_servicing_analyst
    secondary_owner_role: compliance_officer
    cadence: continuous
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - fnma
      - servicing-guide
      - payment-processing
      - application-order
      - promoted
    primary_source:
      tier: 1
      authority: FNMA Servicing Guide C-1.1-01
      source_class: fnma-guide
      source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
      snapshot_id: cf63a82bbb4adfba
      fetched_at: '2026-05-22T23:53:19Z'
      content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
      paragraph_quote: Apply scheduled payments, including late charges (if applicable), in the order speciﬁed in the
      drafter_attestation: |
        Copied verbatim from FNMA Servicing Guide snapshot cf63a82bbb4adfba (chapter C-1) at 2026-05-22.
    promoted_at: '2026-05-23T00:25:10+00:00'
    promoted_from: fnma-svc-c-1-roundb-v1.yaml
  - id: fnma-svc-c-1-custodial-24-hour-deposit
    canonical_id: fnma-svc-c-1-custodial-24-hour-deposit
    section: FNMA Servicing Guide C-1.1-01 — Servicer Responsibilities for Processing Mortgage Loan Payments
    description: |
      [LENDER] must deposit all funds into a custodial account in a financial
      institution that meets Fannie Mae's rating requirements for custodial
      depositories (or within its own institution if it qualifies) within 24
      hours of receipt. When [LENDER] uses a lockbox agent, payments must be
      deposited into the collection clearing account no later than the 1st
      business day after lockbox-agent receipt, and into the applicable
      custodial account no later than the 2nd business day after lockbox-agent
      receipt.
    type: do
    audit_question: For every payment processed on a Fannie Mae mortgage loan, can [LENDER] evidence custodial-account deposit within 24 hours of receipt (and, where a lockbox agent is used, deposit into the collection clearing account by the 1st business day and into the custodial account by the 2nd business day after lockbox-agent receipt)?
    program_review: Does the program ensure custodial-account deposit within 24 hours of receipt, and for lockbox-agent payments, into the collection clearing account by the 1st and the custodial account by the 2nd business day after lockbox receipt?
    file_review: Sample payments; confirm 24-hour custodial deposit (and the 1st/2nd-business-day lockbox-agent deposit timing where applicable).
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: default_servicing_analyst
    secondary_owner_role: compliance_officer
    cadence: continuous
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - fnma
      - servicing-guide
      - custodial-account
      - lockbox
      - 24-hour
      - promoted
    primary_source:
      tier: 1
      authority: FNMA Servicing Guide C-1.1-01
      source_class: fnma-guide
      source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
      snapshot_id: cf63a82bbb4adfba
      fetched_at: '2026-05-22T23:53:19Z'
      content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
      paragraph_quote: Deposit all funds into a custodial account in a ﬁnancial institution that meets Fannie Mae’s rating
      drafter_attestation: |
        Copied verbatim from FNMA Servicing Guide snapshot cf63a82bbb4adfba (chapter C-1) at 2026-05-22.
    promoted_at: '2026-05-23T00:25:10+00:00'
    promoted_from: fnma-svc-c-1-roundb-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-23T00:25:10+00:00'
    candidate_path: C:\Users\earlc\broker-tools\obligations\_remediation\_round_b_drafts\fnma-svc-c-1-roundb-v1.yaml
    candidates_promoted: 2
    candidates_skipped_existing: 0

Verbatim regulatory text (2)

Verbatim provisions from FNMA Servicing Guide C-1 — Processing Mortgage Loan Payments — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

FNMA Servicing Guide C-1.1-01 — Servicer Responsibilities for Processing Mortgage Loan Payments

Apply scheduled payments, including late charges (if applicable), in the order speciﬁed in the

Source: FNMA Servicing Guide C-1.1-01 · source URL · snapshot cf63a82bbb4adfba

FNMA Servicing Guide C-1.1-01 — Servicer Responsibilities for Processing Mortgage Loan Payments

Deposit all funds into a custodial account in a ﬁnancial institution that meets Fannie Mae’s rating

Source: FNMA Servicing Guide C-1.1-01 · source URL · snapshot cf63a82bbb4adfba