Fannie Mae Servicing Guide C-3-01 — Responsibilities Related to Remitting P&I Funds to Fannie Mae

Fannie Mae Servicing Guide C-3-01 — Responsibilities Related to Remitting P&I Funds to Fannie Mae

C-3-01, Responsibilities Related to Remitting P&I Funds to Fannie Mae (03/11/2026) Introduction This topic contains the following: Overview Remitting to Fannie Mae for Delinquent MBS Mortgage Loans Remitting to Fannie Mae for Delinquent Portfolio Mortgage Loans Remitting to Fannie Mae for Biweekly Payments Remitting to Fannie Mae for Mortgage Loans Subject to a Temporary Interest Rate Buydown Plan Processing Over-Remittances Overview The servicer must remit all funds that are due to Fannie Mae for that month under the schedule established for each remittance type and, if applicable, remittance cycle. Depending on the mortgage loan type and individual circumstances, required remittances may include, but are not limited to: Scheduled P&I or actual P&I payments collected; Guaranty fees and charges; Claim, sale or payoff proceeds; Special remittances; or Other fees and charges. If the servicer does not remit funds due to Fannie Mae on or before the remittance due date, Fannie Mae may impose a compensatory fee. The servicer must follow the procedures in F-1-20, Remitting and Accounting to Fannie Mae and Fannie Published May 13, 2026 227 Mae’s Investor Reporting Manual for detailed instructions. See also A2-1-01, General Servicer Duties and Responsibilities for additional information on the servicer’s remittance responsibilities, including for delinquent mortgage loans. Remitting to Fannie Mae for Delinquent MBS Mortgage Loans The servicer must remit P&I to Fannie Mae on scheduled/scheduled remittance type MBS mortgage loans regardless of whether it actually receives payments from the borrower. The following table further describes the servicer’s remittance responsibilities, depending on the mortgage loan servicing option. Servicing Option The servicer must remit P&I until the mortgage loan… Special servicing option mortgage loans becomes four consecutive months delinquent. When the mortgage loan reaches that point, Fannie Mae will suspend drafting scheduled P&I amounts from the servicer’s custodial account until the mortgage loan becomes current or a full contractual payment is made (see F-1-20, Remitting and Accounting to Fannie Mae for details on the Stop Delinquency Advance process). Regular servicing option mortgage loans is removed from Fannie Mae’s active accounting records or the MBS pool. Remitting to Fannie Mae for Delinquent Portfolio Mortgage Loans The servicer must remit scheduled principal and/or interest to Fannie Mae for a delinquent portfolio mortgage loan in accordance with the table below, regardless of whether it actually receives payments from the borrower. Mortgage Loan Type The servicer must remit… Special servicing option mortgage loans with a scheduled/scheduled remittance type P&I until the mortgage loan becomes four consecutive months delinquent. When the mortgage loan reaches that point, Fannie Mae will suspend drafting scheduled P&I amounts from the servicer’s custodial account until the mortgage loan becomes current or a full contractual payment is made (see F-1-20, Remitting and Accounting to Fannie Mae for details on the Stop Delinquency Advance process). Regular servicing option mortgage loans with a scheduled/scheduled remittance type P&I until it is removed from Fannie Mae’s active accounting records. Published May 13, 2026 228 Mortgage Loan Type The servicer must remit… Scheduled/actual remittance type mortgage loans (including participation pool mortgage loans) scheduled interest only through the third month of delinquency, except for concurrent sales participation pool mortgage loans, which require that interest be advanced through the foreclosure sale date. For remitting amounts collected for actual/actual mortgage loans, refer to F-1-20, Remitting and Accounting to Fannie Mae. Remitting to Fannie Mae for Biweekly Payments Actual/actual biweekly mortgage loan activity must be reported to Fannie Mae daily as received. For mortgage loans with a biweekly payment, the servicer must deposit the difference between the interest collected from the borrowers and the interest due on the loan into its designated draft account. The servicer must remit funds to Fannie Mae for a mortgage loan with biweekly payments when a full installment of P&I has accumulated for a mortgage loan that has an actual/actual remittance type, or the biweekly payment is scheduled to be remitted (whether or not it was collected from the borrower) for a mortgage loan that has a scheduled/actual or scheduled/scheduled remittance type. Remitting to Fannie Mae for Mortgage Loans Subject to a Temporary Interest Rate Buydown Plan If the servicer holds the buydown funds, it must remit them to Fannie Mae along with the payment received from the borrower as specified in the buydown agreement as a full contractual payment each month. During the period in which the mortgage loan is subject to a temporary interest buydown plan, the servicer must treat the portion of the P&I payment received from the borrower in accordance with the plan as a full monthly installment. Subject to the terms of the buydown agreement, the servicer must return any money it is holding in association with a temporary interest rate buydown plan to Fannie Mae, when either the buydown term ends; or the mortgage loan is liquidated, whichever occurs first. Also see the following topics for additional requirements for remitting to Fannie Mae any funds the servicer is holding in association with a temporary interest rate buydown plan: Applying Funds Remaining in an Interest Rate Buydown Plan Account in C-1.2-03, Processing Payments in Full; Processing a Fannie Mae Flex Modification for Mortgage Loans Subject to a temporary Interest Rate Published May 13, 2026 229 Buydown Plan in D2-3.2-06, Fannie Mae Flex Modification; General Requirements When Processing a Fannie Mae Short Sale in D2-3.3-01, Fannie Mae Short Sale; and General Requirements When Processing a Fannie Mae in Release in D2-3.3-02, Fannie Mae Mortgage Release (Deed-in-Lieu of Foreclosure). Processing Over-Remittances The servicer must exercise due diligence to ensure that it discovers over-remittances as soon as possible. Once the servicer discovers an over-remittance, it should promptly notify Fannie Mae by submitting a documented claim for a refund. Recent Related Announcements The table below provides references to recently issued Announcements that are related to this topic. Announcements Issue Date Announcement SVC-2026-02 March 11, 2026 Announcement SVC-2025-05 August 13, 2025 Announcement SVC-2022-05 July 13, 2022 Announcement SVC-2020-03 July 15, 2020

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