Servicing Director Fannie Mae MI Discontinuance Export - Reporting Mortgage Insurance Discontinuance

Servicing Director Fannie Mae MI Discontinuance Export - Reporting Mortgage Insurance Discontinuance

Effective February 1, 2017 Fannie Mae will introduce the new transaction type 89 (Mortgage Insurance Discontinuance Record), reporting the termination or cancellation of mortgage insurance coverage for summary/detail reporting loans. Servicers must notify Fannie Mae about the termination or cancellation of mortgage insurance coverage by reporting Transaction Type 89. Servicers are still required to report discontinuance in the reporting period after the discontinuance effective date.

Transaction type 89 replaces transaction LAR 96 (summary reporting) or LAR 97 (detail reporting) previously required by Fannie Mae. The servicer must notify Fannie Mae about an automatic termination or a borrower-initiated cancellation of mortgage insurance coverage in the next investor reporting cycle after the effective date of the termination or cancellation.

Please review the new guidelines on the Fannie Mae website for more specific information about this requirement.

For this new process, Servicing Director has provided a new field called MI Cancel Reason, in the Tracking Detail window. Also, in Release 16.2, there is a a new export called the Fannie Mae MI Discontinuance Export, and an associated report called the Fannie Mae MI Discontinuance Report.

Once you have cancelled the PMI, go to the Tracking Detail window, and select a reason from the MI Cancel Reason field.

Then, run the Fannie Mae MI Discontinuance Export event in Event Manager, found in Investor Accounting > Imports/Exports.

This should be followed by the Fannie Mae MI Discontinuance Report from Investor Accounting > Reports.

MI Cancel Reasons can be added daily as they occur and then the export and reports can also be run daily. If the volume is low, you may consider running the export and report on the first day of each month only


 

Environment:

Reporting Mortgage Insurance Discontinuance

ArticleNumber:

000054028

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