Fannie Mae Selling Guide E-3-18 — Acronyms and Glossary of Defined Terms: R

Fannie Mae Selling Guide E-3-18 — Acronyms and Glossary of Defined Terms: R

Effective 2026-05-06 · publisher's stamp for this provision

E-3-18, Acronyms and Glossary of Defined Terms: R (05/06/2026) rapid payment method (RPM) A payment cycle used for scheduled/scheduled remittance types for MBS pools that has an early remittance date (usually the tenth of the month, although earlier or later dates can be negotiated) for both scheduled and unscheduled payments. RD Rural Development Real Estate Mortgage Investment Conduit (REMIC) A type of multi-class mortgage-related security in which interest and principal payments from mortgages or mortgage-related securities are structured into separately traded securities. real estate owned (REO) Other real estate owned by the borrower (such as an investment property). reciprocal easement The right of unit owners in different phases of an overall condo development to use the roads, parking areas, etc., in other phases of the development, through the creation of cross-easements. recognition agreement An agreement on the part of a co-op corporation to recognize specific rights of lenders who finance share loans in the project (or those of the lenders’ successors and assigns). recourse The obligation of the lender to cover losses the buyer incurs as a result of a default on the note. Under a whole loan transaction, a lender that sells a mortgage to Fannie Mae under the “with recourse” servicing option assumes the entire risk of borrower default, while a lender that sells a mortgage under the “without recourse” servicing option transfers the risk of borrower default to Fannie Mae. (See regular servicing option and special servicing option for equivalent terms for MBS transactions.) refinance transaction The repayment of a debt from the proceeds of a new loan using the same property as security. Fannie Mae also considers the current owner’s placement of financing on a property that is not financed as a refinance transaction. regular servicing option A guaranty fee option for an MBS pool under which the lender assumes the entire risk of loss from a borrower default; a servicing option for RD-guaranteed mortgages under which the servicer is fully responsible for any losses not recovered from RD. (See recourse for the equivalent term for a whole loan delivery.) regularly amortizing mortgage A collective term that Fannie Mae uses to differentiate “forward” mortgages from reverse mortgages. Mortgages that fall into this category include fully amortizing mortgages. rehabilitation mortgage A mortgage created to cover the costs of repairing, improving, and sometimes acquiring an existing property. relative The borrower’s spouse, child, or other dependent or any other individual who is related to the borrower by blood, marriage, adoption, or legal guardianship. relocation loan An owner-occupied purchase money loan, originated pursuant to an established employee relocation program, administered by the employer (or its agent), where the employer relocates employees as part of its normal course of business. remaining term Original term less the number of payments that have been applied. REMIC Real Estate Mortgage Investment Conduit remittance cycle A schedule for determining when funds must be remitted to Fannie Mae each month. Portfolio mortgages generally have only a single remittance cycle (regardless of the remittance type), but MBS mortgages have three different remittance cycles (standard, RPM, or MBS Express). remittance type A way of determining the composition of the servicer’s required remittance to Fannie Mae. For portfolio mortgages, there are three types—Actual/Actual, Scheduled/Actual, and Scheduled/Scheduled. REO real estate owned replacement reserve fund A dedicated fund set aside for the repair and replacement of common property in a condo, co-op, or PUD project. repurchase date The date through which interest must be calculated when a lender is required to repurchase a mortgage or an acquired property from Fannie Mae; the date on which the lender redelivers mortgages funded in certain early funding transactions to Fannie Mae for whole loan purchase or for securitization under an As Soon As Pooled Sale transaction. required yield Fannie Mae’s posted commitment yield plus all applicable adjustments. This yield does not include a servicing fee. residential mortgage credit report A detailed account of the credit, employment, and residence history (as well as public records information) of an individual. responsible party A seller, servicer, or other entity that is responsible for the selling representations and warranties and/or for the servicing responsibilities or liabilities on a mortgage loan. retail origination A loan for which the mortgage loan seller (or, as described in "Retail Origination" below, its parent company, controlled affiliate, or subsidiary) takes the loan application and then processes, underwrites, funds, and sells the loan to Fannie Mae. "Retail Origination" includes a loan that is originated and funded by a parent company, controlled affiliate, or subsidiary of the mortgage loan seller, or is closed either in the name of the applicable parent company, controlled affiliate, or subsidiary and sold to the mortgage loan seller or is closed in the name of the mortgage loan seller. In any case, the loan is then sold by the mortgage loan seller to Fannie Mae. revocable trust (or living trust) A trust that an individual creates during their lifetime that becomes effective during their lifetime, but which can be changed or canceled at any time for any reason during its creator’s lifetime. revolving debt An arrangement for credit in which the customer receives purchases or services on an ongoing basis prior to payment. Repayment is usually at regular intervals but not for a specified amount or term. Example: charge cards. RHS Rural Housing Service right of first refusal A provision in an agreement that requires the owner of a property to give another party the first opportunity to purchase or lease the property before they offer it for sale or lease to others. right of ingress or egress The right to enter upon or leave from designated premises. RIN remote ink-signed notarization RON remote online notarization RON System the system used to perform RON RPM rapid payment method Rural Development (RD) A government agency within the U.S. Department of Agriculture (USDA) that makes direct loans and guarantees mortgages secured by residential properties located in rural areas, concentrating on borrowers who meet income eligibility requirements. Formerly the Rural Housing Service (RHS).

Source: Fannie Mae Selling Guide E-3-18 — Acronyms and Glossary of Defined Terms: R · source URL · snapshot 4acfb668aabfd8ba