Fannie Mae Updates Standard Deed-In-Lieu Of Foreclosure Requirements

more+
less-

On October 17, Fannie Mae issued Servicing Guide Announcement SVC-2013-21, which revises servicers’ responsibilities in finalizing standard deed-in-lieu of foreclosures (DILs). Servicers now must (i) complete a final interior property inspection no more than two business days following the receipt of the executed deed and all related documents, (ii) not complete final acceptance of the executed DIL until after they have received the results of the final property inspection, (iii) submit the case into HomeSaver Solutions Network (HSSN), regardless of the transition option chosen, to complete final acceptance of the DIL, and (iv) submit the REOgram within 24 hours of the date the servicer completes final acceptance of the executed DIL. The announcement also excludes from the three-month transition option program eligibility criteria the following requirements: (i) that at least three payments have been made since origination or since the last modification, (ii) that the loan is not 12 or more months delinquent when referred to Fannie Mae for transition option consideration, and (iii) that the borrower is not involved in an active bankruptcy proceeding. Finally, the announcement informs servicers that they are no longer required to ensure that a borrower will assign and transfer any rents to Fannie Mae and will collect rental income.

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.
×
Loading...
×
×