Clarification of Partial Payment Policy
Effective Date: Immediately
MPF Traditional and MPF Government MBS
The Servicer is required to hold partial payments as “unapplied funds” in the T&I Custodial Account, if permitted by Applicable Law and if holding such funds would not jeopardize any Foreclosure proceeds. When sufficient “unapplied funds” have been received to equal a full principal, interest, taxes, and insurance (“PITI”) payment, the Servicer must apply the funds as a payment against the Mortgage Loan. The Servicer must only deposit full PITI payments to the Servicer’s Demand Deposit Account (“DDA”) or A/A Account. See MPF Traditional Servicing Guide section 2.8 and MPF Government MBS Servicing Guide section 2.8
The Servicer must follow Fannie Mae’s requirements for partial payments. The Servicer must hold partial payments in the T&I Custodial Account. The Servicer must only deposit full PITI payments to the A/A Account. See MPF Xtra Servicing Guide section 2.8.
- MPF Announcement 2018-4