Fannie Mae SVC-2014-04 Miscellaneous Servicing Policy Updates
On February 26, Fannie Mae issued Servicing Guide Announcement SVC-2014-04 subtitled Miscellaneous Servicing Policy Updates.
Servicing Guide Announcement SVC-2014-04
Miscellaneous Servicing Policy Updates
This Announcement clarifies and updates policies regarding
- individual mortgage loan files,
- servicing quality control reviews,
- final requests for reimbursement,
- attorney expenses, and
- transfer of variances and waivers.
Individual Mortgage Loan Files
Servicing Guide, Part I, Section 405.01: Individual Mortgage Loan Files
Fannie Mae is clarifying its requirements for retaining mortgage loan servicing records. The servicer must retain in the mortgage loan servicing file all supporting documentation for all expense reimbursement claims (for example, vendor invoices and third-party invoices from the vendor rendering services), in addition to other servicing and liquidation information such as property inspection reports, copies of delinquency repayment plans, copies of disclosures of ARM interest rate and payment changes, documents related to insurance loss settlements, and foreclosure records, as stated in the Servicing Guide.
Servicers are reminded that after a mortgage loan is liquidated, the servicer must keep the mortgage loan servicing file for at least four years (measured from the date of payoff or the date that any applicable claim proceeds are received), unless the local jurisdiction requires longer retention or Fannie Mae specifies that the records must be retained for a longer period.
In all instances, the servicer must document its compliance with all Fannie Mae policies and procedures, including but not limited to, timelines that are required in the Servicing Guide. The servicer must maintain in the individual mortgage loan file all documents and system records that preserve Fannie Mae’s ownership interest in the individual mortgage loan.
Servicing Quality Control Reviews
Announcement SVC-2012-21: Servicing Guide Updates to Conform to the FHFA Directive on Harmonized Contracts
Fannie Mae is clarifying its requirements regarding mortgage loan servicing files requested by Fannie Mae for the purpose of confirming that the mortgage loan has been serviced in accordance with the Lender Contract. When Fannie Mae requests a mortgage loan servicing file for a quality control review, the servicer must include supporting documents for all expense reimbursement claims it has submitted or intends to submit to Fannie Mae (for example, vendor invoices).
Final Requests for Reimbursement
Servicing Guide, Part I, Section 201.11.13: Late Filing of Final Request for Reimbursement
As a reminder, servicers are authorized to submit outstanding expense reimbursement claims upon completion of a foreclosure sale. However, servicers must submit the final Cash Disbursement Request (Form 571) within 30 days after
- completion of a loss mitigation alternative,
- filing a mortgage insurance claim for a property that will be conveyed to the insurer or guarantor,
- acquisition of a property by a third party at a foreclosure sale, or
- disposition of an acquired property.
Fannie Mae may deny the request or assess a late submission compensatory fee for reimbursement requests received after these deadlines.
Please click here to view the announcement in its entirety.
Safeguard Properties is the largest mortgage field services company in the U.S. Founded in 1990 by Robert Klein and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage servicers, lenders, and other financial institutions. Safeguard employs approximately 1,700 people, in addition to a network of thousands of contractors nationally. Website: www.safeguardproperties.com.