Fannie Mae SVC-2014-09 Updates to Short Sale and Mortgage Release Requirements
On May 30, Fannie Mae issued Servicing Guide Announcement SVC-2014-09, subtitled Updates to Short Sale and Mortgage ReleaseTM (Standard Deed-in-Lieu of Foreclosure) Requirements.
Servicing Guide Announcement SVC-2014-09
Updates to Short Sale and Mortgage ReleaseTM (Standard Deed-in-Lieu of Foreclosure) Requirements
This Announcement describes the following Fannie Mae short sale and Mortgage Release policy updates and clarifications:
- streamlined documentation for short sale and Mortgage Release eligibility;
- expanded eligibility requirements for servicemembers with permanent change of station (PCS) orders;
- documenting borrower’s intent to pursue a short sale or Mortgage Release;
- non-retirement liquid assets and borrower contribution requirements;
- review of credit report for new mortgage loans;
- counteroffer response timeframe;
- addition to Short Sale Affidavit (Form 191);
- submission of short sales involving relocation programs;
- subordinate lien payment limitations;
- additional limitation for short sales;
- remittance of short sale proceeds;
- property inspection prior to Mortgage Releases; and
- relocation incentives.
In addition, Fannie Mae is updating its distant employment transfer/relocation hardship requirements, which apply to all foreclosure prevention alternatives.
Servicers are encouraged to implement the requirements in this Announcement immediately; however, servicers are required to implement these changes by August 1, 2014, unless otherwise noted in this Announcement.
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.