Fannie Mae: Servicing Notice
Investor Update
October 9, 2019
Source: Fannie Mae
At varying times in 2017 and 2018, for both forward mortgage loans and reverse mortgage loans, we accepted responsibility for the payment of property taxes, HOA or condo association fees and assessments, co-op fees and assessments, and ground rents for acquired properties. In some cases, the responsible party was determined by the date of foreclosure sale or final acceptance of an executed Mortgage Release™.
With this Notice, we assume responsibility – without regard to the foreclosure sale or Mortgage Release date – as follows:
• for the payment of HOA and condo association fees and assessments for all acquired properties, effective July 1, 2019; and
• for the payment of co-op corporation fees and assessments for all acquired properties, effective November 1, 2019.
As a result, we now assume the responsibility for the payment of all property taxes, ground rents, as well as fees and assessments invoiced by an HOA, condo association, or co-op corporation once the foreclosure sale or Mortgage Release occurs. As outlined in E-4.3-01, Managing the Property Post-Foreclosure Sale, the servicer is not responsible for these expenses after we acquire the property, unless we direct otherwise. This includes reverse mortgage loans.
