source:
  type: guide
  id: fnma-svc-c-2.2-03
  authority: Fannie Mae Servicing Guide C-2.2-03 — Determining Whether to Provide
    a Refund or Credit for Overcharges
  description: Fannie Mae Servicing Guide C-2.2-03 — Determining Whether to Provide
    a Refund or Credit for Overcharges.
  coverage_tier: operative
obligations:
- id: fnma-svc-c-2.2-03-full
  canonical_id: fnma-svc-c-2.2-03-full
  section: Fannie Mae Servicing Guide C-2.2-03 — Determining Whether to Provide a
    Refund or Credit for Overcharges
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide C-2.2-03 — Determining Whether to Provide
      a Refund or Credit for Overcharges
    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-2.2-03, Determining Whether to Provide a Refund or Credit for
      Overcharges (11/12/2014) The servicer must credit the borrower’s account for
      any net overcharge by reallocating the borrower’s actual Published May 13, 2026
      223 monthly payments between P&I, or by reducing the UPB of the mortgage loan
      when the overcharge is related to an incorrect interest rate only. When the
      overcharge is related to an incorrect monthly payment, credits may be used instead
      of cash refunds when the servicer has advanced funds to cure an escrow overdraft,
      the mortgage loan is delinquent, the adjustment error is an interest rate change
      error only, or the adjustment error is a payment change error only. The servicer
      must establish its own procedures to ensure compliance with all of Fannie Mae’s
      policies regarding the correction of adjustment errors for all mortgage loans
      it services for Fannie Mae, regardless of whether they were originated under
      standard or negotiated ARM plans. The servicer must follow the applicable procedures
      in either Refunding or Crediting Overcharges Resulting from an Incorrect Monthly
      Payment and an Incorrect Interest Rate, or Refunding or Crediting Overcharges
      Resulting from an Incorrect Monthly Payment in F-1-01, Servicing ARM Loans.
      Recent Related Announcements There are no recently issued Announcements related
      to this topic. Section C-2.3, Processing ARM Loan Conversions
  judgment: false
