Fannie Mae Single Family Servicing News: Announcements SVC-2016-08 and RVS-2016-01
September 14, 2016
Announcement SVC-2016-08: Servicing Guide Updates
The Servicing Guide has been updated to include changes related to the following:
- Foreclosure Time Frames and Compensatory Fee Allowable Delays Exhibit
- Mortgage Insurer Delegations for Workout Options
- Form 3179 and Form 181 Loan Modification Agreement Instructions
Read the Announcement for full details.
For a summary of key updates in this Servicing Guide Announcement, view the video presented by Bill Cleary, Vice President of Single-Family Servicing Policy & Solutions, or check out the Guide Update Presentation here.
Announcement RVS-2016-01: Reverse Mortgage Loan Servicing Manual Updates
The Reverse Mortgage Loan Servicing Manual has been updated to align with HUD instructions related to HECM hazard insurance policy coverage requirements. Read the Announcement for more details.
Future Changes to Investor Reporting – All Servicer Forum
Please plan to attend the Future Changes to Investor Reporting – All Servicer Forum. Our September Forums will be focusing on an overview of the Customer Transition requirements and activities occurring in Feb. 2017. Register via the links below for a session that works best for your schedule:
- Future Changes to Investor Reporting: Review of Customer Transition Guide | Sept. 22 at 2:30 p.m. ET
- Future Changes to Investor Reporting: Review of Customer Transition Guide | Sept. 23 at 2:30 p.m. ET
Every servicer who does business with us should attend this forum. To accommodate your busy schedule, we will host two sessions each month covering the same topic and materials at each session. Simply pick the date that works best for your schedule. Register today, as space is limited. Be sure to forward this invitation to others in your organization who would also benefit from these forums.
Visit the Future Changes to Investor Reporting web page for the latest information and resources. If you have questions, please contact your Servicer Integration Lead or email email@example.com.
Allowable Title Cost Guidance
Fannie Mae recently notified law firms in the jurisdictions of Alaska, Arizona, Idaho, Nevada, New Mexico, Oregon and Washington, that Fannie Mae has extended the effective date from September 1 to December 1 for compliance with Servicing Guide Announcement SVC-2016-05, which requires law firms to seek excess title cost approval for title costs over the allowable amount set forth in the Fannie Mae AAA Matrix and the Fannie Mae Allowable Title Cost for Fannie Mae Foreclosures document. Servicers may access these documents on the Fannie Mae business website by logging in with their valid user ID and password (or contact their Technology Manager Administrator for access assistance).
There is no effective date change for other jurisdictions. Also, despite the extension for these affected states, Fannie Mae expects law firms to be in compliance with the Fannie Mae title requirements as soon as possible. If the law firm obtains a full Trustee Sale Guaranty through December 1, the firm must specify on its invoice that the title product is a TSG. When applicable, servicers should request reimbursement from Fannie Mae for these TSG expenses by using the following line item: Title Costs (Category ID 9) — Trustee Sale Guarantee (Subcategory ID 1).
Simplification of Documentation Requirements and Introduction of Expense Reviews
As outlined in the updated Servicer Expense Reimbursement Job Aid that was posted on August 24, Fannie Mae will no longer require supporting documentation at the time of submission for certain expenses. However, these expenses may be subject to a review of supporting documentation prior to or after disbursement of payment. The impacted expenses include Homeowners Association/Condo Association (HOA/COA) Dues, Mortgage Insurance, Recurring (Ongoing) Property Inspections, Technology Usage Fees, and Utility Bills
When a claim is selected for pre-payment review, servicers will receive a request from Fannie Mae to submit additional supporting documentation within LoanSphere Invoicing™ using the Pending Servicer Review status. The servicer will need to return the claim with the supporting documentation within 30 days of when the claim was put into the PSR status. If the claim is returned without the supporting documentation, the expense will be denied or curtailed. If the claim is never returned, the claim may be denied after 30 days.
If a claim is selected for a post-payment review, servicers may be asked to provide supporting documentation for an expense after an expense has already been paid. If the supporting documentation cannot be provided, the expense may be referred to Fannie Mae’s collection department.
Additional information is available in the Servicer Expense Reimbursement Job Aid on the Fannie Mae Portal. For step-by-step instructions for reviewing claims in PSR status, refer to Viewing Claims in Pending Servicer Review Status on the Fannie Mae business website.
Summer is Still Here! Sharpen your Investor Accounting Skills with HFI InDepth for Half the Price
Are you involved in investor accounting for your company? HFI® InDepth virtual classes provide training in custodial accounting, reconciling actual/actual loans, and MBS accounting. You’ll learn tips for reporting on your loans and have access to an expert instructor who can answer your questions during a two-hour session from the comfort of your desk.
Regular price: $250
Summer price: $125 (June 20 through September 22)
Register today and automatically get the summer discount for one or more of these HFI InDepth classes:
- The ABCs of Managing MBS Cash Flow for Fannie Mae | September 21, 10 a.m. to noon ET
- Bank vs. Book! Reconciling Actual/Actual Custodial Accounts | October 18, 1:30 p.m. to 3:30 p.m.
- Investor Reporting with Confidence: Best Practices for Reconciling Actual/Actual Loans | October 19, 1:30 p.m. to 3:30 p.m.
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