Fannie Mae Announces Servicemember Policy Changes, Other Servicing Policy Updates

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On May 21, Fannie Mae issued Servicing Guide Announcement SVC-2014-08, which announced that the extended stay of foreclosure and other legal proceedings that is set to expire at the end of this year will continue indefinitely for eligible servicemembers, and that servicers can no longer obtain written servicemember consent or petition the court to continue or commence foreclosure proceedings. Fannie Mae also announced that, effective September 1, 2014, for loans originally purchased at a premium or discounted price that experienced negative amortization, Fannie Mae will limit both the purchase discount and the purchase premium to the amount of the original purchase discount or premium, and the price used to calculate the repurchase amount will be expressed as a percentage of par. Finally, Fannie Mae also (i) announced updated documents used to evaluate and apply for a full or partial release of a property securing a loan; and (ii) clarified that servicers must oversee all outsourcing and third-party vendors, and that both servicers and vendors must implement and maintain business continuity plans.

 

Topics:  Fannie Mae, Foreclosure, Military Service Members, Mortgages, Stays

Published In: Finance & Banking Updates, Military Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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