Fannie Mae Updates Servicing Guide
February 15, 2017, Fannie Mae issued Announcement SVC-2017-02: Servicing Guide Updates. The Guide has been updated with the following changes, several of which will simplify servicing:
- Relieves servicers of responsibility for paying most post-foreclosure taxes and homeowners’ association, condo, or co-op fees and assessments for acquired properties. This change will reduce costs and operational risk for servicers.
- Removes the requirement to report Transaction Type 80 for subservicing arrangements to reduce servicer responsibilities, increase data integrity, and improve the accuracy of subservicing data.
- Provides for flexible use of IRS Form 4506-T or 4506T-EZ in workout options, reducing documentation requirements in many situations and avoiding unnecessary delays.
- Updates the definition of a breach of Lender Contract related to servicer eligibility with Fannie Mae.
- Updates guidelines for confidentiality of information and data breach to protect nonpublic personal information and reduce the need for stand-alone non-disclosure agreements.
Fannie Mae Connect enhancements and new reports
Fannie Mae Connect™ has been enhanced to make it easier to use and to incorporate new and updated reports. Reports that have been added to Fannie Mae Connect are:
- Outstanding and Completed Title Issues for Servicers
- Remittance Detail Guaranty Fee
- Remittance Detail Principal and Interest
- LAR 83 Projection and Tracking
- Loan Activity Summary
- Two reports have been renamed:
- Loan Readd renamed Loan Reinstatement
- Loan Readd Detail Report-Monthly renamed Loan Reinstatement Detail Report-Monthly
Several servicing reports have been replaced by reports in an updated format. Refer to the Release Tracker and Report Directory (both available to Fannie Mae Connect users) for report descriptions and details. For more information on Fannie Mae Connect, including demos, quick tips and training, please visit the Fannie Mae Connect web page.
Changes to Investor Reporting
Several technology changes supporting the Fannie Mae Changes to Investor Reporting were implemented on February 14. February Loan Activity Reporting is now available. This release also eliminated the requirement for servicers to report MBS security balances to Fannie Mae and aligned investor reporting dates. Please review the Release Notes for details. For more information, visit the Fannie Mae Changes to Investor Reporting.
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
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