Completing the Shortage/Surplus Reconciliation for
Reporting Period — Schedule 3 (Form 472)
Every month, a servicer must use Shortage/Surplus Reconciliation for Reporting Period – Schedule 3
(Form 472), to summarize reconciling items identified on Schedules 1 and 2 and provide information on
other reconciling items that have an effect on the shortage/surplus balance.
You must prepare a separate Schedule 3 for each of the following three remittance types – Actual/Actual
(A/A), Scheduled/Actual (S/A), Scheduled/Scheduled MRS Acquired (S/S Cash) – and for each unique 9digit branch number. Schedule 3 is not applicable for Scheduled/Scheduled MBS (S/S MBS).
To complete Schedule 3, you will need the following documents:

Schedule 3 (Form 472)
Use either the interactive PDF, the Microsoft® Excel® version, or print and complete by hand.

Schedule 3 Supplement (if applicable)

The corresponding month’s completed Schedule 1 (Form 473) or Schedule 1A (Form 512)

The corresponding month’s completed Schedule 2 (Form 473A)

Remittance Update Report (LRR01401) / Part 1, Section B.1 Rejected Transactions (Soft)

Servicer’s Remittance Reports

Fannie Mae’s Remittance Detail Report (on SURF)

Various Enhanced Reports (SURF™ download) and/or Accepted Transaction Reports.

Lender Recap Report (LRR01201)
All Fannie Mae reports in bold above can be found on Fannie Mae Connect™.
Step 1.
Complete the following sections of Schedule 3.
Remittance Type
Check the applicable remittance type – A/A, S/A, or S/S Cash.
Note: S/S Cash = Scheduled/Scheduled Acquired
Servicer Number
Enter your 9-digit Seller/Servicer number.
Prepared By
Enter your printed name.
Phone Number
Enter your phone number.
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Schedule 3, Header Section
Step 2.
Complete Section I of Schedule 3 as described below.
Where applicable, use parentheses for negative numbers. However, if you are using the
interactive PDF, enter a minus sign in front of the number. Once you click out of the field,
the number appears in parentheses.
1. Total
(shortage) /
surplus from
Schedule 1 /
Schedule 1A (S/S
Acquired)
For remittance types A/A and S/A, enter the total that you entered in
the “Effect on Shortage/Surplus” column from Schedule 1 (Form
473).
For remittance type S/S Cash, enter the total that you entered in the
“Effect on Shortage/Surplus” column from Schedule 1A (Form 512).
Note: S/S Cash = Scheduled/Scheduled Acquired
2. Total
(shortage) /
surplus from
Schedule 2
For all three remittance types, enter the total that you entered in the
“Effect on Shortage/Surplus” column from Schedule 2 (Form 473A).
3. Cash UnderRemittance
Enter any amount(s) not remitted by the cash remittance deadline
(the first business day of the month at 4:00 pm ET).
(Late Last Call /
Remittance
Errors)
Date Remitted
Enter the date the funds were remitted.
Schedule 3, Section I, Lines 1 thru 3
3a. Cash OverRemittance
Enter any amount(s) of over-remittances that were made in error.
Date Recovered
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Enter the date the funds were recovered/held back.
Explanation
Enter an explanation that includes:
•
Item status (new, resolved, or pending)
•
Explanation of root cause and/or reason
•
Age of item (0, 30, 60, 90 days)
•
Corrective action required / taken
•
Effect on shortage/surplus
•
Projected clearance date
Schedule 3, Section I, Line 3a
4. Other
Reconciling
Items (Schedule
3 Supplement)
List all other loans with differences that affect the shortage/surplus
that do not already appear on Schedule 1 or 2.
Explanation needs to include:
•
Item status (new, resolved, or pending)
•
Explanation of root cause and/or reason
•
Age of item (0, 30, 60 or 90 days)
•
Corrective action required/taken
•
Effect on shortage/surplus
•
Projected clearance date
You may use the Schedule 3 Supplement to complete this section I,
Line 4.
Attach any relevant documentation specific to the corrective action.
5. TOTAL
(Shortage)/
Surplus
Identified per
Reconciling
Items (Line 1
through 4)
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Enter the total of Lines 1 through 4.
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6. (Shortage) /
Surplus per the
Lender Recap
Report, Section
III, Line E
If reconciling A/A, enter the shortage or surplus that is on Line E of
Section III of the Lender Recap Report.
If reconciling S/A or S/S Cash, complete Section II of Schedule 3
and enter the result (for instructions, see Step 3 below).
Note: S/S Cash = Scheduled/Scheduled Acquired
Be sure to subtract negative numbers correctly.
7. Unreconciled /
Unidentified
(Shortage) /
Surplus (Line 6
minus Line 5)
Subtract Line 6 from Line 5 and enter the result.
If all differences have been correctly identified and documented on
Schedules 1, 2 and 3, this amount will equal zero.
Schedule 3, Section I, Lines 4 thru 7
Step 3.
Complete Section II for remittance types S/A and S/S Cash only. Note: S/S Cash =
Scheduled/Scheduled Acquired
For remittance type A/A, skip this step and proceed to Step 4.
1. (Shortage)/
Surplus per
Lender Recap
Report, Section
III, Line E
Enter the shortage or surplus that is on Line E of Section III of the
Lender Recap Report.
2. PLUS Cash
remitted during
the month
following update
For remittance type S/A, enter the funds due on the 20th of the
month.
For remittance type S/S Cash, enter the funds due on the 18th of the
month.
For example, if you are reconciling June activity, this would be the
remittance amount for July 20 for S/A or July 18 for S/S Cash.
Note: S/S Cash = Scheduled/Scheduled Acquired
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3. LESS Principal
& Interest
applied by
Fannie Mae from
Lender Recap
Report, Section II
Enter the amount of principal and interest applied by Fannie Mae as
shown in Section II of the Lender Recap Report.
4. TOTAL (Enter
here and on Line
6 in Section I)
Total Lines 1 and 2, subtract Line 3, and enter the result.
Carry this total to Section I, Line 6.
Schedule 3, Section II, Lines 1 thru 4
Step 4.
Complete the footer section of Schedule 3 as follows:
Prepared By
Enter your printed name and your signature.
If using the Interactive PDF, sign the form once you print it (see
Step 6).
Date
Enter the date that you signed Schedule 3.
Approved By
Schedule 3 must have a second signature from a designated
approver from your company. The approver must enter his or her
printed name and signature.
If using the Interactive PDF, ask the approver to sign the form once
you print it (see Step 6).
Date
Step 5.
Enter the date that the approver signed Schedule 3.
Prior to finalization, review your completed Schedule 3 thoroughly to ensure that you
eliminate common errors that are frequently found by Fannie Mae auditors, as described
below:
3. Cash UnderRemittance / Date
Remitted
Remember to enter the Date Remitted.
3a. Cash OverRemittance / Date
Ensure that you enter any cash over-remittances.
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Recovered /
Explanation
Remember to enter the Date Recovered.
Other Reconciling
Items
Ensure that loans with multiple issues appear on only one
Schedule and that the explanation addresses all issues related to
the loan.
Include all required items in your explanation.
Ensure that you provide an itemized listing of other reconciling
items and provide resolution dates.
Include all required items in your explanation.
Ensure that you report the age the reconciling items. In addition
you should prevent reconciling items from aging 90 days or more.
Prepared By
Ensure that Schedule 3 is signed and dated by the preparer. The
preparer and approver must be separate individuals.
Approved By
Ensure that Schedule 3 is signed and dated by the approver. The
preparer and approver must be separate individuals.
General
Ensure that you enter shortages as negative amounts in
parentheses.
Ensure that there are no mathematical errors (in particular, if
there are both positive and negative numbers).
Step 6.
If using the interactive PDF or Excel version, print the completed form for your records.
What happens
next?
Fannie Mae will settle the disposition of any unreconciled differences with each servicer
on an individual case-by-case basis.
A servicer can resolve minor residual cash differences (such as those resulting from
rounding) by performing a monthly cash adjustment after reviewing all of the rejected
transactions. The servicer's IR representative must approve any other cash adjustments,
except for those related to correction of actual over- or under-remittances.
Refer to the next page for an example of a completed Schedule 3.
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Example of a completed Schedule 3 (Form 472)
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