Fannie Mae Updates Servicing Policies

Explore:  Fannie Mae Mortgages

On February 26, Fannie Mae issued Servicing Guide Announcement SVC-2014-04, which states that a servicer must retain in the mortgage loan servicing file all supporting documentation for all expense reimbursement claims, in addition to other servicing and liquidation information. A servicer must document its compliance with all Fannie Mae policies and procedures, including but not limited to, timelines that are required in the Servicing Guide, and must maintain in the individual mortgage loan file all documents and system records that preserve Fannie Mae’s ownership interest in the individual mortgage loan. The Announcement also (i) clarifies that when Fannie Mae requests a mortgage loan servicing file for a quality control review, the servicer must include supporting documents for all expense reimbursement claims it has submitted or intends to submit to Fannie Mae; (ii) states that a servicer must submit the final Cash Disbursement Request (Form 571) within 30 days after completion of a loss mitigation alternative, filing a mortgage insurance claim for a property that will be conveyed to the insurer or guarantor, acquisition of a property by a third party at a foreclosure sale, or disposition of an acquired property; (iii) provides examples of information sufficient to support a servicer’s attorney expense reimbursement request; and (iv) clarifies that when a servicer transfers its contractual right to service some or all of its Fannie Mae single-family servicing to another Fannie Mae-approved servicer, any variance or waiver granted to a transferor servicer does not automatically transfer to the transferee servicer, and the transferor and transferee servicers must ensure that all existing special servicing obligations associated with the transferred mortgage loan are disclosed. Finally, in a separate notice, Fannie Mae announced that it may adjust the Fannie Mae Standard Modification Interest rate for Fannie Mae Standard or Streamlined Modifications on a monthly basis, beginning July 1, 2014.

Topics:  Fannie Mae, Mortgages

Published In: Consumer Protection Updates, Finance & Banking 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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