Fannie Mae Deficiency Waiver Agreement and Property (Hazard) and Flood Insurance Losses
On January 29, Fannie Mae issued Servicing Notice: Fannie Mae Deficiency Waiver Agreement and Property (Hazard) and Flood Insurance Losses.
Servicing Notice
Fannie Mae Deficiency Waiver Agreement and Property (Hazard) and Flood Insurance Losses
This Servicing Notice notifies the servicer of revisions to the Fannie Mae Deficiency Waiver Agreement (Form 189) and provides notification that Fannie Mae is delaying the mandatory effective date of a policy change communicated in SVC-2014-19.
Fannie Mae Deficiency Waiver Agreement
The Deficiency Waiver Agreement (Form 189) on Fannie Mae’s website has been revised to clarify the following:
- the Form or a document including the information set forth in the Form must be used in connection with a completed short sale or Mortgage Release™ (deed-in-lieu of foreclosure),
- the waiver applies to any remaining indebtedness excluding any required borrower contribution, and
- the short sale or Mortgage Release (whichever transaction is applicable) associated with the waiver of deficiency must be completed in accordance with the approved terms and conditions.
The servicer is encouraged to use the updated Form or a document including the updated language immediately, but must do so for any short sale or Mortgage Release completed on or after May 1, 2015.
Delay to Mandatory Effective Date for SVC-2014-19 Requirements Relating to Property Inspections for Current Mortgage Loans with Insurance Loss Events
Fannie Mae Servicing Guide B-5-01, Insured Loss Events indicates a final property inspection is not required if the mortgage loan was current at the time of the insurance loss event and the insurance proceeds are less than or equal to $5,000. Fannie Mae is reviewing this guidance and will provide servicers with updated requirements in the near future. Until such time, servicers are not responsible for compliance with this requirement.
Please click here to view the notice online.
About Safeguard
Safeguard Properties is the mortgage field services industry leader, preserving vacant and foreclosed properties across the U.S., Puerto Rico, Virgin Islands and Guam. Founded in 1990 by Robert Klein and headquartered in Cleveland, Ohio, Safeguard provides the highest quality service to our clients by leveraging innovative technologies and proactively developing industry best practices and quality control procedures. Consistent with Safeguard’s values and mission, we are an active supporter of hundreds of charitable efforts across the country. Annually, Safeguard gives back to communities in partnership with our employees, vendors and clients. We also are dedicated to working with community leaders and officials to eliminate blight and stabilize neighborhoods. Safeguard is dedicated to preserving today and protecting tomorrow. Website: www.safeguardproperties.com.
