Fannie Mae: Servicer’s Obligation to Select and Retain Mortgage Default Counsel
Investor Update
January 6, 2016
Fannie Mae reminds the servicer that all referrals after June 1, 2013 of Fannie Mae mortgage loans for default related legal services (foreclosure, workout options, bankruptcy, and related litigation) must be to law firms selected and retained pursuant to the requirements set forth in Servicing Guide A4-2.2-01, Selecting and Retaining Law Firms. In order for a law firm to be eligible to receive Fannie Mae default related legal services referrals:
- the servicer must have submitted a Servicer Selection Form (Form 200) to Fannie Mae,
- the servicer must have received a “No Objection” determination from Fannie Mae,
- the firm must have executed a limited retention agreement with Fannie Mae, and
- the firm must have completed Fannie Mae new firm training.
The law firm selection and retention requirements set forth in the Servicing Guide are mandatory for all Fannie Mae mortgage loans.
Source: Fannie Mae