Completing the Reconciliation of Mortgage Portfolio Schedule 1 (Form 473)

Transcription

1 Completing the Reconciliation of Mortgage Portfolio Schedule 1 (Form 473) Every month, a servicer must use Reconciliation of Mortgage Portfolio Schedule 1 (Form 473) to reconcile the servicer s trial balance to Fannie Mae s trial balance. Schedule 1 describes any discrepancies in Fixed Installments (Principal & Interest), Loan Counts, and Unpaid Principal Balances (UPB) and determines their cumulative effect on the servicer s shortage/surplus for either Actual/Actual or Scheduled/Actual remittance types. In other words, Schedule 1 lists the loans that are causing discrepancies and identifies the entity (either the servicer or Fannie Mae) that is responsible for the resolution. You, as the servicer, must prepare a separate Schedule 1 for each remittance type and unique 9-digit branch number. Servicers with Scheduled/Scheduled MRS Acquired (S/S Cash) or Scheduled/Scheduled MBS (S/S MBS) should use Form 512. To complete Schedule 1, you will need the following documents: Schedule 1 (Form 473) Use either the interactive PDF, the Microsoft Excel version, or print and complete by hand. Fannie Mae s Trial Balance Servicer s Trial Balance Lender Recap Report (LRR01201) Remittance Update Report (LRR01401) Various Enhanced Reports (SURF download) and/or the Accepted Transaction Reports Original SURF LAR Rejects List (after LAR uploads, prior to any corrections), and/or Loan Activity Rejects Report All Fannie Mae reports in bold above can be found on Fannie Mae Connect. Step 1. Complete the following sections of Schedule 1. Where applicable, use parentheses for negative numbers. However, if you are using the interactive PDF, enter a minus sign in front of the number. Once you click out of the field, the number appears in parentheses. Month Reconciled Servicer Number Enter the month and year for which you are reconciling. Enter your 9-digit Seller/Servicer number Fannie Mae. Trademarks of Fannie Mae of 6

2 Schedule 1 Header Information Remittance Type Page Portfolio Totals per Servicer s Records Check the applicable remittance type A/A or S/A. Specify the page number and total number of pages. Using the Servicer s Trial Balance, insert the totals for Fixed Installment (P&I), Loan Count, and Unpaid Principal Balance. Schedule 1 Example of Portfolio Totals per Servicer s Records Portfolio Balances per Fannie Mae s Records At the bottom of Schedule 1, using Fannie Mae s Trial Balance, insert the totals for Fixed Installment (P&I), Loan Count, and Unpaid Principal Balance. These items are located on Line 7 of the Remittance Update Report. Schedule 1 Example of Portfolio Balances per Fannie Mae s Records Step 2. Step 3. Compare the two portfolio totals/balances (that of the servicer s and of Fannie Mae s). If there are no differences (the portfolio totals/balances are the same for Fixed Installment (P&I), Loan Count and UPB), skip step 3 and proceed to Step 4. If there are differences (the portfolio totals/balances are not equal for Fixed Installment (P&I), Loan Count and/or UPB), proceed to Step 3. If the portfolio totals/balances are not equal, you must complete the following sections of Schedule 1 for each identified reconciling item: Fannie Mae Loan Number F/S Explanation of Differences Enter the Fannie Mae loan number for each identified item. Enter the name of the entity that is responsible for the resolution of the reconciling item. Enter "F" for Fannie Mae or "S" for servicer. To explain the difference, enter the following information: Item status (new, resolved, or pending) 2016 Fannie Mae. Trademarks of Fannie Mae of 6

3 Explanation of root cause and/or reason for the difference Corrective action required / taken Projected clearance date Attach any relevant documentation specific to the corrective action needed. Age Enter age of item (number of days the item has been on Schedule 1 0, 30, 60, 90). Fixed Installment Loan Count Unpaid Principal Balance Effect on Shortage/Surplus Balances Totaled (should equal Portfolio Balances per Fannie Mae s Records) Insert any difference between the servicer s P&I and Fannie Mae s P&I, if applicable. If Fannie Mae s P&I is higher than the servicer s P&I, then you must insert the difference as a positive number. If Fannie Mae s P&I is lower then you must insert the difference as a negative number. Insert the difference between the servicer s loan count and Fannie Mae s loan count, if applicable. If Fannie Mae s loan count is higher than the servicer s loan count, then you must insert the difference as a positive number. If Fannie Mae s loan count is lower then you must insert the difference as a negative number. Insert the difference between the servicer s UPB and Fannie Mae s UPB, if applicable. If Fannie Mae s UPB is higher than the servicer s UPB, insert the difference as a positive number. If Fannie Mae s UPB is lower, insert the difference as a negative number. If the reconciling item has an effect on the shortage/surplus, enter the cumulative amount of the shortage/surplus. You can find this information on the Original SURF LAR Rejects List under $ Difference. You may have to use prior reports if the reconciling item is aged and caused shortage/surplus differences in past months. Enter the total of all values that you entered Fannie Mae. Trademarks of Fannie Mae of 6

4 Balance Carried Forward to Line 1 Shortage/Surplus Reconciliation (or subtotal if more than one page is used) Enter the total of all values in the Effect on Shortage/Surplus column. You must then carry this total forward to Schedule 3 (Form 472), Line 1. Step 4. Complete the following fields of Schedule 1: Schedule 1 Example of Loans That Do Not Match Servicer Name Prepared By Phone Number Enter the name of your company. Enter your printed name and your signature. If using the Interactive PDF, sign the form once you print it (see Step 6). Enter your phone number. Date Enter the date that you signed Schedule 1. Approved By Phone Number Schedule 1 must have a second signature from a designated approver from your company. The approver must enter his or her printed name and signature. If using the Interactive PDF, ask the approver to sign the form once you print it (see Step 6). Enter the approver s phone number. Date Enter the date that the approver signed Schedule Fannie Mae. Trademarks of Fannie Mae of 6

5 Schedule 1 Footer Information Step 5. Prior to finalization, review your completed Schedule 1 thoroughly to ensure that you eliminate common errors that are frequently found by Fannie Mae auditors, as described below: Portfolio Totals per Servicer s Records Portfolio Balances per Fannie Mae s Records Ensure that you enter the totals in this section. The information is located on the Servicer s Trial Balance. Ensure that you enter the totals in this section. The information is located on the Lender Recap Report and/or Fannie Mae s Trial Balance. F/S Ensure that you enter F or S. Remember that it indicates the name of the entity that is responsible for the resolution of the reconciling item. Explanation of Differences Include all required items in your explanation: Item status (new, resolved, or pending) Explanation of root cause and/or reason for the difference Corrective action required / taken Projected clearance date Ensure that you take prompt action to resolve reconciling items which includes communicating and submitting documentation to Fannie Mae when data is inaccurate on the Fannie Mae system. Every effort must be made to prevent reconciling items from aging more than 90 days. Age Ensure that you age the reconciling items (0, 30, 60, 90) Fixed Installment Unpaid Principal Balance Ensure that you enter shortages as negative amounts in parentheses. However, if you are using the interactive PDF, enter a minus sign in front of the number. Once you click out of the field, the number appears in parentheses. Ensure that you enter shortages as negative amounts in parentheses. However, if you are using the interactive PDF, enter a minus sign in front of the number. Once you click out of the field, the number appears in parentheses Fannie Mae. Trademarks of Fannie Mae of 6

6 Effect on Shortage/Surplus Prepared By Approved By General Ensure that you enter cumulative amounts in this column, if applicable. Ensure that you enter shortages as negative amounts in parentheses. However, if you are using the interactive PDF, enter a minus sign in front of the number. Once you click out of the field, the number appears in parentheses. Ensure that Schedule 1 is signed and dated by the preparer. The preparer and approver must be separate individuals. Ensure that Schedule 1 is signed and dated by the approver. The preparer and approver must be separate individuals. Ensure that there are no mathematical errors (in particular, if there are both positive and negative numbers). Step 6. If using the interactive PDF or Excel version, print the completed Schedule 1 for your records. Don t forget to sign (preparer and approver) in the space provided Fannie Mae. Trademarks of Fannie Mae of 6