Fannie Mae to Make Changes To Investor Reporting Requirements
There are changes coming next year, and they may affect you. Effective February 1, 2017, Fannie Mae is changing its investor reporting requirements, which “affect all [Fannie Mae] loans and servicers, in addition to eliminating the Single-Family MBS ‘call-in’ requirements.”
Eliminating the MBS call-in requirement, according to Fannie Mae, is a step toward industry-best practices that will save time and effort. Here are a few of the benefits:
· The elimination will simplify policies and procedures because Fannie Mae can rely on existing loan level data from servicers to drive security balance processing. Servicers will no longer have to calculate, send and reconcile pool balance data.
· The existing process will be replaced with one that is timelier and consistent with the rest of the industry.
One of the other goals of this change is to catch any discrepancies in the monthly close much sooner in the reporting process because the reporting monthly close information will be due on the 22nd of each month.
Currently, servicers have been reporting detailed loan activity for all remittance types and reconciling beginning and ending pool security balance information on a monthly basis.
Once the new regulations take place, servicers will begin reporting activity more frequently, using daily or periodic reporting processes, which will be a major change in reporting requirements. However, Fannie Mae, not the servicer, will have the burden of reconciling the security balances.
If you feel ill-prepared for the February 1, 2017, deadline, or if you’re simply needing more information, there are steps you can take to get ready for the changes:
· Attend hosted webinars
· Review documents provided by Fannie Mae by visiting: https://www.fanniemae.com/singlefamily/mbs-call-in-elimination
February 1, 2017, will be here before you know it. Don’t let this change sneak up on you. Make sure you’re using all means necessary to be prepared.
*Source Mortgage Orb