Fannie Mae Updates Custodial Bank Accounts Guidance

more+
less-

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.

 


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

Written by:

more+
less-

BuckleySandler LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest 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. Or, sign up using your email address.
Ă—
Loading...
×
×