FNMA SVC-2013-20 Delinquency Management and Default Prevention Updates

On October 11, Fannie Mae released Servicing Guide Announcement SVC-2013-20, subtitled Delinquency Management and Default Prevention Updates Related to the Consumer Financial Protection Bureau Mortgage Servicing Rules and Other Servicing Responsibilities.

Servicing Guide Announcement SVC-2013-20
Delinquency Management and Default Prevention Updates Related to the Consumer Financial Protection Bureau Mortgage Servicing Rules and Other Servicing Responsibilities

Fannie Mae is updating delinquency management and default prevention servicing policies impacted by certain Consumer Financial Protection Bureau (CFPB) rules and regulations that implement the mortgage servicing provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). This Announcement is not, however, intended to address all CFPB servicing requirements adopted in response to the Dodd-Frank Act. Servicers are expected to comply with all applicable laws including any CFPB-related mortgage servicing requirements not covered below. Unless stated otherwise, the requirements detailed below apply to all mortgage loans secured by all property types (i.e., principal residences, second homes, and investment properties) that are

  • held in Fannie Mae’s portfolio,
  • sold to Fannie Mae for cash and subsequently securitized into Mortgage-Backed Security (MBS) pools (known as Pooled from Portfolio or PFP mortgage loans), or
  • sold to Fannie Mae in exchange for MBS that are part of an MBS pool serviced under the special servicing option or a shared-risk MBS pool for which Fannie Mae markets the acquired property.

This Announcement describes policy changes related to the following:

  • Borrower Inquiries and Error Resolutions Process
  • Borrower Delinquency Management Model
  • Payment Change Notification
  • Borrower Solicitation Letter – 31 Days Delinquent (Form 731)
  • Acknowledgement of Borrower Response Package (BRP) and Incomplete Information Notice
  • Evaluation Notice
  • Appeals Process for the Denials of Mortgage Loan Modifications
  • Documentation Required for Forbearance
  • Requesting Approval for a Forbearance Extension
  • Prereferral to Foreclosure Review
  • Referral to Foreclosure
  • Delay in Legal Action

Effective Date
The effective date for this Announcement is January 10, 2014, unless stated otherwise.

Please click here to view the announcement in its entirety.

About Safeguard 
Safeguard Properties is the largest mortgage field services company in the U.S. Founded in 1990 by Robert Klein and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage servicers, lenders,  and other financial institutions. Safeguard employs approximately 1,700 people, in addition to a network of thousands of contractors nationally. Website: www.safeguardproperties.com.

 

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