Fannie Mae Lender Letter LL-2011-07
On October 19, Fannie Mae released Servicing News: October 19 Edition.
Lender Letter LL-2011-07: Extension of HOPE Hotline Borrower Counseling Reimbursement
Effective with this Lender Letter, servicers may request reimbursement for counseled cases that were initiated through the Homeowner's HOPE Hotline on and after Oct. 1, 2011, through Dec. 31, 2011. The cases must be invoiced no later than March 31, 2012, and the reimbursement request must be submitted to Fannie Mae on or before April 30, 2012.
Addressing Forms Confusion
Q: Why can't I use the Treasury's Home Affordable Modification Program (HAMP) Request for Modification and Affidavit (RMA), Treasury Form 1021, for collecting information from borrowers? We've been using the RMA for years and really like it.
A: Announcement SVC-2011-08: Delinquency Management and Default Prevention (subsequently reissued Sept. 2, 2011, as SVC-2011-08R), introduces the Uniform Borrower Assistance Form (UBAF), Fannie Mae/Freddie Mac Form 710. The UBAF provides the servicer with the borrower's financial and hardship information needed to evaluate the borrower for a foreclosure prevention alternative. This new form is used by both Fannie Mae and Freddie Mac and is now an industry standard. Servicers are required to begin sending the UBAF in the Borrower Solicitation Packages for all loans that are delinquent on or after Oct. 1, 2011.
If the Treasury's HAMP RMA was sent to borrowers with delinquent loans that became delinquent before Oct. 1, 2011, the Treasury's HAMP RMA will still be accepted by Fannie Mae as part of the Borrower Response Package. Although not required, servicers are encouraged to replace the RMA with the UBAF, Form 710, on loans that became delinquent prior to Oct. 1, 2011, if an RMA has not been sent to the borrower. For loans that become delinquent on or after Oct. 1, 2011, the Treasury's HAMP RMA will no longer be accepted by Fannie Mae.
Post-Referral to Foreclosure Solicitation Letter
The Post Referral to Foreclosure Solicitation Letter mandated by Announcement SVC-2011-08R, Delinquency Management and Default Prevention (Reissued), is required for loans that become delinquent on or after Oct. 1, 2011. For loans that became delinquent prior to Oct. 1, 2011, the Post Referral to Foreclosure Solicitation letter would not be required