Fannie Mae Lender Letter LL-2014-09: Updates to Foreclosure Bidding Instructions and Third Party Sales
On December 23, Fannie Mae released Lender Letter LL-2014-09, subtitled Updates to Foreclosure Bidding Instructions and Third Party Sales.
Fannie Mae Lender Letter LL-2014-09 Updates to Foreclosure Bidding Instructions and Third Party Sales
To: All Fannie Mae Single-Family Servicers
Updates to Foreclosure Bidding Instructions and Third Party Sales
This Lender Letter provides advanced notification of upcoming changes to the following Fannie Mae policies and requirements:
- Issuing bidding instructions
- Issuing bidding instructions for all properties eligible for Fannie Mae’s MyCity Modification
- Remitting third-party sales proceeds to Fannie Mae
Policy Change Effective Date
The servicer is encouraged to implement these requirements as early as February 1, 2015, but must implement these policy changes no later than March 1, 2015, for all mortgage loans with a foreclosure sale to occur on or after April 15, 2015.
Date of Servicing Guide Update
The policy changes in this Lender Letter will be reflected in the February 2015 update of the Servicing Guide.
Issuing Bidding Instructions
Servicing Guide E-3.3-04, Issuing Bidding Instructions
The servicer must issue bidding instructions to the law firm for all mortgage loans referred for foreclosure that result in scheduled foreclosure sales.
The servicer must obtain a reserve price from Fannie Mae in any of the following circumstances:
- when preparing bids for uninsured conventional first lien mortgage loans,
- when applicable laws do not require the use of an appraisal report to set the bid, or
- if the mortgage insurer of a first lien mortgage loan elects not to issue bidding instructions and defers to Fannie Mae.
Please click here to view the letter in its entirety.
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.