As a reminder, February 1, 2017 was the effective date of the Fannie Mae Call-In Elimination effort (Future Changes for Investor Reporting). In reality, February was a transition month. Nevertheless, we wanted to keep you informed of progress made during this transition month, as well as prepare you for some of what to expect in this new Fannie Mae Reporting environment.
From the standpoint of our servicing systems, and finalizing reporting for the January 2017 reporting period under Fannie Mae’s “Old” monthly reporting method:
Everything that was expected to take place on 2/01/17 did take place. Conversion of all Fannie Mae Recon 540 Investors to Recon 817 was successful. All of Cenlar’s Remittance Switch and Reconciliation method coding changes happened correctly.
Daily, we are verifying that the FRCD code is present on all new loans transferred into Fannie Mae investors.
Daily in February we have been participating in our servicing system vendor’s CIE working group calls to discuss and resolve any issues or questions about functionality changes. Minor issues or questions have arisen concerning some new reports. Our servicing system vendor has provided the necessary direction to ensure issues are resolved.
Final cutoff reporting for January under the “old” method went as expected and was finalized by mid-February.
· Fannie Mae began ingesting daily reporting for February effective 2/13/17
Immediately below this advisory, we are providing Fannie Mae’s Investor Reporting Schedule for the remainder of 2017. Please pay special attention to the days shaded RED for the INTERIM REPORTING END DATE, on each monthly calendar going forward. This is the new date by which all loans must be reported for the month, including those sold from the first through the 21st of the month. This single change may have the greatest impact on how sellers and servicers need to adjust their delivery, boarding, and servicing transfer processes going forward to accommodate Fannie Mae’s new reporting model.
Please be advised of one key ramification of Fannie Mae’s revised reporting schedule: Fannie Mae expects every loan sold from the 1st business day of the month through the 21st calendar day to be reported on the 22nd. In order to minimize edits, all loans and pools you have sold or intend to sell to Fannie Mae by the 21st of the month must be boarded to Cenlar’s servicing system and purchase advices provided to the Investor Reporting Department at least 3 business days prior to the 22nd calendar day. This means that in February, the deadline for boarding these loans was February 16th due to the President’s Day holiday on February 21st. In March, all loans sold month to date should be boarded, and purchase advices provided by March 17th. Similarly, additional sales executed over the remainder of the month should be boarded at least 3 business days prior to month end.In February, this date was February 24th. In March, the month end deadline will be March 28th. Whereas under the old reporting model, servicers typically had until about the 7th of the month to resolve loan level edits for MBS and about the 14th for Actual/Actual, in the new environment effective March 1st, servicers are required to resolve all edits by the first business day of the month, except first-of-month liquidations, which report on the 2nd. In view of this tighter reporting timeline, Clients will need to ensure their selling and boarding procedures are closely aligned to this new reporting schedule. Cenlar recommends to clients that they do no selling to Fannie Mae from the 19TH to 21st, and the last 2 business days of the month, creating two “black-out” periods as it were, to help ensure minimal edits are generated.We are also recommending that clients review their process for providing purchase advices on Actual/Actual loans, and ensure they have strong controls over the daily boarding and delivery process. The Fannie Mae purchase advice should be sent to the Investor Reporting contact as the loans are sold to Fannie Mae. If the purchase advice is sent in PDF format, the raw data text file which is available from Fannie Mae should also be included. This enables us to transfer loans programmatically and thus much more efficiently, and will prevent manual keying errors which are otherwise inevitable.
If you have questions about these impacts, please contact your Relationship Manager, or one of the following: