Fannie Mae Updates Custodial Bank Accounts Guidance


On August 15, Fannie Mae issued Servicing Guide Announcement SVC-2012-06, which amends requirements regarding custodial accounts. Under the amended guidance, servicers may maintain multiple tax and insurance custodial accounts for hazard insurance loss drafts, partial payments, or unapplied funds, but must execute a Form 1014 for each such account. Servicers also are no longer required to (i) notify Fannie Mae of a depository’s ineligible status, (ii) request approval to hold custodial funds in a formerly ineligible, but now compliant, depository, or (iii) request the implementation of a different remedy for an ineligible depository. Servicers still must monitor depositories to ensure they maintain eligibility.


Written by:

Published In:

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.

© BuckleySandler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.