Account Analysis and Reconciliation

Requirements

You must analyze and reconcile each Custodial Account Custodial AccountAccount established by the Servicer for depositing P&I payments, T&I payments, and escrow, reserve, or other funds received from the Borrower per any Loan Document, including the: Collateral Agreement; Multifamily Loan Agreement; or Security Instrument. and associated Clearing Accounts Clearing AccountsLender account at an Eligible Depository used either for receiving funds for various loans and for the benefit of multiple investors, and from which segregated funds are transferred to specific Custodial Accounts held solely for the benefit of Fannie Mae, or disbursing funds after transfer… monthly.

Operating Procedures

At a minimum, your reconciliation must include:

a depository reconciliation;
the cashbook balance composition; and
an explanation of line items.

Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! may review your reconciliation including:

an explanation of any adjustments you made;
the specific cashbook balances; and
any individual components.

While Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! does not prescribe a recordkeeping method to generate a cashbook balance, you must:

maintain the integrity of the Custodial Account Custodial AccountAccount established by the Servicer for depositing P&I payments, T&I payments, and escrow, reserve, or other funds received from the Borrower per any Loan Document, including the: Collateral Agreement; Multifamily Loan Agreement; or Security Instrument. balances reported on your reconciliations;
be able to substantiate each cashbook component; and
retain sufficient detail to perform the following cashbook computation:

Function	Beginning Cashbook Balance
+	Receipts
-	Disbursements
+/-	Cashbook Adjustments
=	Ending Cashbook Balance