Fannie Mae Provides an Update on Mortgage Insurance Fees Related to Certain Non-Performing Loan Sales
Loans in Fannie Mae's Single-Family credit risk transfer (CRT) reference pools may be included in non-performing loan (NPL) sales. In some instances, mortgage insurance may be released prior to loan sales in exchange for a fee that Fannie Mae negotiates with the mortgage insurer. We recently determined that the fees associated with these activities and paid to Fannie Mae were inadvertently not passed through to applicable Connecticut Avenue Securities® (CAS) and Credit Insurance Risk Transfer™ (CIRT™) deals. This impacted roughly 250 loans in approximately 20 CAS and CIRT transactions where loans were included in NPL sales. These fees are expected to be passed through to the impacted deals in the Net Sales Proceeds field with the July 2023 remittances.
For questions, please contact the Fannie Mae Investor Help line at 1-800-232-6643, Option 3, or by email.