703.04

Pay Off

Requirements

You must confirm, report, and remit funds to pay off the MBSMBSMortgage-Backed Security ARM LoanARM LoanMortgage Loan with an interest rate that periodically adjusts based on an Index per the Note or Loan Documents. or SARM Loan.

Operating Procedures

  1. Request MBSMBSMortgage-Backed Security payoff amount verification by submitting your calculation in the Fannie Mae Payoff Calculator per Part V, Chapter 2: Reporting and Remitting, Section 210: Full Prepayments.
  2. Send the payoff amount to Fannie Mae per the standard monthly remittance process in Part V, Chapter 2: Reporting and Remitting.
  3. For an MBSMBSMortgage-Backed Security ARM LoanARM LoanMortgage Loan with an interest rate that periodically adjusts based on an Index per the Note or Loan Documents. or SARM Loan,
    • report a $0 balance for the MBSMBSMortgage-Backed Security on the 1st or 2nd day of the month in which the Conversion Effective Date occurs, and
    • Fannie Mae will draft the funds due to the MBS InvestorMBS InvestorFor MBS Mortgage Loans, either a Third Party MBS Investor for Lender-Arranged Sales, or the Multifamily Trading Desk. .