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X12 transaction guide · Finance

EDI 203 Secondary Mortgage Market Investor Report

The X12 document used to transfer and report mortgage servicing information between servicers, service bureaus and secondary market organizations.

Sent by
Mortgage servicer or service bureau
Received by
Secondary mortgage market organization or investor
Standard
ANSI ASC X12

What is an EDI 203?

The EDI 203 Secondary Mortgage Market Investor Report is the ANSI X12 transaction set used for the transfer and reporting of mortgage servicing information between mortgage servicers, mortgage service bureaus and secondary mortgage market organizations.

Servicers collect borrowers' payments and pass principal and interest to investors. Investor reporting tells the investor what was collected on each loan, the remaining balances and any delinquencies, so it can reconcile the remittances it receives. Remittance schedules and reporting cut-off dates are set by each investor, and differences between reported and remitted amounts must be explained.

How the EDI 203 worksDiagram of the EDI 203 Secondary Mortgage Market Investor Report. Mortgage servicer or service bureau sends it to secondary mortgage market organization or investor. It usually follows 202. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment), DTP (Date or Time or Period) and REF (Reference Information) and detail: the required LX loop with LX (Transaction Set Line Number). 2 optional loops are listed by their first segment.How the EDI 203 worksSecondary Mortgage Market Investor Report: who sends it, where it fits and what the standard marks required1 WHERE IT FITSUSUALLY FOLLOWS202Secondary MortgageMarket Loan DeliveryEDI 203SENDERMortgage servicer orservice bureauRECEIVERSecondary mortgagemarket organization orinvestor997 or 999 acknowledgment back, if the partners agreeUSUALLY FOLLOWED BY997FunctionalAcknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDsISA … IEAFunctional group, ID code MGGS … GETransaction set 203ST … SEHEADINGBGNBeginning SegmentDTPDate or Time or PeriodREFReference Information+ 1 optional loop, starting with:N1DETAILRequired loop LX · repeats many timesLXTransaction Set Line Number+ 1 optional loop, starting with:RLTBlue box: required loop. Optional loops are listed by the segment that starts them; when a loop is used, that first segment is required. Optional segmentsoutside loops are not drawn.Structure: required segments and loops in the X12 008010 listing for the 203. Your trading partner's implementation guide adds its own requirements.
How the EDI 203 worksDiagram of the EDI 203 Secondary Mortgage Market Investor Report. Mortgage servicer or service bureau sends it to secondary mortgage market organization or investor. It usually follows 202. It is usually followed by 997. Inside the ISA, GS and ST envelopes, X12 release 008010 requires, in the heading: BGN (Beginning Segment), DTP (Date or Time or Period) and REF (Reference Information) and detail: the required LX loop with LX (Transaction Set Line Number). 2 optional loops are listed by their first segment.How the EDI 203 worksSecondary Mortgage Market Investor Report:who sends it, where it fits and what thestandard marks required1 WHERE IT FITSUSUALLY FOLLOWS202Secondary Mortgage Market LoanDeliveryEDI 203SENDERMortgageservicer orservice bureauRECEIVERSecondarymortgagemarketorganization orinvestor997 or 999 acknowledgment back, if the partnersagreeUSUALLY FOLLOWED BY997Functional Acknowledgment2 WHAT X12 RELEASE 008010 REQUIRESInterchange: sender and receiver IDs (ISA… IEA)Functional group, ID code MG (GS … GE)Transaction set 203 (ST … SE)HEADINGBGNBeginning SegmentDTPDate or Time or PeriodREFReference Information+ 1 optional loop, starting with:N1DETAILRequired loop LX · repeats manytimesLXTransaction Set LineNumber+ 1 optional loop, starting with:RLTBlue box: required loop. Optional loops are listedby the segment that starts them; when a loop isused, that first segment is required. Optionalsegments outside loops are not drawn.Structure: required segments and loops in the X12008010 listing for the 203. Your trading partner'simplementation guide adds its own requirements.

How to read this diagram: the top row shows who sends the 203, to whom, and which documents usually come before and after it. The lower part shows what X12 release 008010 itself requires: the envelopes around the 203 and the segments and loops the standard marks as required, area by area. Optional loops are listed by the segment that starts them rather than drawn in full. This is the standard's minimum, not a trading partner's requirement: each partner's implementation guide usually makes some optional loops mandatory, restricts the codes and may use a different release.

Expand diagram Download SVG

When it is used

  • Reporting monthly loan payment activity to investors
  • Reporting balances and delinquencies
  • Reconciling remittances to investors

Where it fits in the document flow

Usually follows 202 Secondary Mortgage Market Loan Delivery
This document 203 Secondary Mortgage Market Investor Report
Usually followed by 997 Functional Acknowledgment

Structure

Mandatory segments in the 203 (X12 release 008010)

The segments X12 release 008010 marks as mandatory at their level, in order. Segments inside optional loops are needed only when the loop is used. This is the standard's requirement, not your trading partner's: each partner's implementation guide names the release it uses, adds the optional segments it requires and restricts the values. The requirement status comes from one published X12 reference listing and has not been checked against a second source.

  • ST
  • BGN
  • DTP
  • REF
  • N1
  • LX
  • RLT
  • AMT
  • SE

Practical example

The 203 in practice

A servicer manages loans owned by several investors. Each month it sends each investor a 203 with, for every loan, the payment received, principal and interest, the new balance and the delinquency status. The investor reconciles the report with the servicer's remittance.

Implementation

Implementation considerations for the 203

  • Follow each investor's reporting requirements.
  • Reconcile reported amounts with remittances.
  • Report delinquencies accurately and promptly.
  • Check whether investors require newer formats.

How ECOM helps

Automate the 203 with ECOM

Industry

Financial Services

Secure file transfer and B2B integration for banks and financial institutions.

Solution

Financial Document Automation

Automate invoices, remittances, payment files and bank statements from capture to posting.

Solution

EDI Integration

Exchange X12 and EDIFACT documents with partners and integrate them directly with your ERP.

More general questions about EDI are answered in the EDI FAQ.

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