source:
  type: guide
  id: fnma-svc-c-1.2-03
  authority: Fannie Mae Servicing Guide C-1.2-03 — Processing Payments in Full
  description: Fannie Mae Servicing Guide C-1.2-03 — Processing Payments in Full.
  coverage_tier: operative
obligations:
- id: fnma-svc-c-1.2-03-full
  canonical_id: fnma-svc-c-1.2-03-full
  section: Fannie Mae Servicing Guide C-1.2-03 — Processing Payments in Full
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide C-1.2-03 — Processing Payments in Full
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
    snapshot_id: cf63a82bbb4adfba
    fetched_at: '2026-05-22T23:53:19Z'
    content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
    paragraph_quote: 'C-1.2-03, Processing Payments in Full (11/12/2014) Introduction
      This topic contains the following: Overview Applying Funds Remaining in an Interest
      Rate Buydown Plan Account Collecting and Accounting for HomeSaver Advance Notes
      Overview Published May 13, 2026 214 The servicer must provide payoﬀ statements
      to the borrower or their agent, when requested. The servicer must also collect
      and remit suﬃcient funds to Fannie Mae to satisfy the debt and ensure the proper
      accounting and reporting of the mortgage loan payoﬀ, once received. The servicer
      must follow the procedures in Satisfying the Mortgage Loan and Releasing the
      Lien in F-1-09, Processing Mortgage Loan Payments and Payoﬀs for additional
      instructions related to payoﬀ processing. Applying Funds Remaining in an Interest
      Rate Buydown Plan Account The servicer must apply any funds remaining in an
      interest rate buydown plan account after payoﬀ in accordance with the applicable
      mortgage loan agreement. If the servicer is holding the remaining buydown funds,
      it must include them with its remittance of the payoﬀ proceeds. The servicer
      must follow the procedures in Applying Funds Remaining After Payoﬀ in an Interest
      Rate Buydown Plan Account in F-1-09, Processing Mortgage Loan Payments and Payoﬀs
      for speciﬁc instructions for applying buydown funds after payoﬀ of the mortgage
      loan. Collecting and Accounting for HomeSaver Advance Notes The servicer must
      be able to identify whether the borrower on a ﬁrst lien mortgage loan currently
      has an HSA note, and reference it in any payoﬀ statement it issues for the ﬁrst
      lien mortgage loan. In the event of a sale or transfer of the property, this
      reference must remind the borrower that the HSA note is due and payable in full.
      In the event of a reﬁnance, this reference must clearly remind the borrower
      that the HSA note must continue to be paid, and state that payoﬀ of the HSA
      note is not required to release the ﬁrst lien mortgage loan. If the borrower
      or servicer of the ﬁrst lien mortgage loan needs information related to an HSA
      note (such as where to send a payment), the servicer may send a request for
      information to Fannie Mae’s SF CPM division (see F-4-02, List of Contacts).
      The servicer must be able to promptly redirect any HSA note payments received
      to the party designated by Fannie Mae. Recent Related Announcements There are
      no recently issued Announcements related to this topic.'
  judgment: false
