Week 1: Taking a Look at Your Fannie Mae Recons for Cash Variances
If you are an active Fannie Mae Seller/Servicer, reconciling your custodial account is crucial for maintaining financial health. Be aware that Fannie Mae reserves the right to capture any overages you fail to clear out of the account and retain it as their own income! This can lead to significant financial losses that often go unnoticed, silently impacting your bottom line.
It’s important that your reconciliation forms:
Tie out to both the Fannie Mae reports and your core system reports
Identify all variance sources on the loan-level
Provide evidence that surplus and shortage amounts are cleared regularly (at least within 90 days)
Are prepared and reviewed by staff with a thorough understanding of Fannie Mae accounting and reconciliation procedures
If you have questions about your Reconciliation Forms or the overall investor accounting process currently in place at your organization, contact our Senior Consultant and expert in FNMA cash balancing: Heather Papows - hpapows@scapartnering.com.
Heather will help you evaluate your investor reconciliation processes and set you on a path to success in the New Year!
If you are interested in learning more about what Spillane Consulting Associates can do for you, please contact our Director, Bill Dolan - wdolan@scapartnering.com or by phone at (617) 694-2617.
