Fannie Mae Updates Servicing Rules and Foreclosure Timelines
By Anna DeSimone
October 14, 2015, Fannie Mae Issued Ann. SVC-2015-13: Servicing Guide Updates (Revised). Key topics of the announcement are highlighted below.
The Servicing Guide has been updated to include the following:
- Updates to Short Sale Access Requirements
- Updates to Property Inspection Frequency
- Updates to Lender-Placed Insurance Requirements
- Revisions to Breach/Acceleration Letter Content Requirements
- Clarifications to Liquidation Action Code Descriptions
- Changes to Texas Section 50(a)(6) Modifications
- Changes to Requirements for Processing Modification Agreements
- Updates to Requirements for Unapplied Funds and Custodial Accounts
- Adjustments to Foreclosure Time Frames and Compensatory Fee Allowable Delays Exhibit
- Updates to Compensatory Fee Calculation Examples
- Changes to the Borrower Notification Sample Letter Exhibit
Updated Servicing Guide Topics
Servicing Guide A2-3-02, Servicing Fees for Portfolio and MBS Mortgage Loans
Servicing Guide F-1-17, Processing a Fannie Mae Cap and Extend Modification for Disaster
Servicing Guide F-1-18, Processing a Fannie Mae HAMP Modification
Servicing Guide F-1-20, Processing a Fannie Mae MyCity Modification
Servicing Guide F-1-22, Processing a Fannie Mae Standard Modification
Servicing Guide F-1-23, Processing a Fannie Mae Streamlined Modification Post Disaster Forbearance
Servicing Guide F-1-24, Processing a Fannie Mae Streamlined Modification
Servicing Guide D2-3.2-07, Fannie Mae HAMP Modification
Effective Date: The servicer is encouraged to implement these policy changes immediately; but must implement the changes by November 1, 2015.
Adjustments to Foreclosure Time Frames and Compensatory Fee Allowable Delays Exhibit
The Foreclosure Time Frames and Compensatory Fee Allowable Delays Exhibit has been updated to reflect the maximum number of allowable days within which routine foreclosure proceedings are to be completed.
The maximum number of allowable days has been increased for the following jurisdictions: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Nevada, New Mexico, New Hampshire, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Dakota, Tennessee, Texas, Vermont, Washington, West Virginia, Wisconsin, and Wyoming.
*Corrected 10/16/15* Effective Date
The servicer must use the updated foreclosure time frames for all mortgage loans liquidated through a foreclosure or otherwise, on or after August 1, 2015.
Updates to Compensatory Fee Calculation Examples
Servicing Guide F-2-04, Compensatory Fee Calculation Examples, has been updated so that the compensatory fee calculation examples are based on the most recent foreclosure time frames and allowable delays.
Effective Date
The servicer must refer to this example for future use.
Changes to the Borrower Notification Sample Letter Exhibit
The Fannie Mae Borrower Notification Sample Letter Exhibit has been updated to revise the language regarding the acceptance and application of partial payment guidance. This is consistent with Servicing Guide C-1.1-02, Processing Payment Shortages or Funds Received When a Mortgage Loan Modification Is Pending.
About the Author
Anna DeSimone is President and Founder of Bankers Advisory and Principal of CliftonLarsonAllen LLP. She can be reached at
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.
Comments are closed.