Fannie Mae SVC-2014-21 Servicing Guide Upates
On December 10, Fannie Mae released Servicing Guide Announcement SVC-2014-21, subtitled Servicing Guide Updates.
Servicing Guide Announcement SVC-2014-21
Servicing Guide Updates
The Servicing Guide has been updated to include the following:
- Updates to Insured Loss Events
- Updates to Mortgage Release Incentive Payments
- Miscellaneous Revision
Each of these updates is described below. The servicer must review each topic in the Servicing Guide in its entirety to gain a full understanding of the policy change(s).
Insured Loss Events
Servicing Guide B-5-01, Insured Loss Events has been updated as follows:
- Removed the requirement that the servicer must submit the Report of Property (Hazard) Insurance Loss (Form 176) when the servicer has been unable to establish contact with the borrower. Instead, the servicer must follow the requirements in Servicing Guide E-3.2-12, Performing Property Preservation During Foreclosure Proceedings and the Property Maintenance and Management: Property Preservation Matrix and Reference Guide, and
- Removed the requirement that the servicer credit the interest earned to the account holding insurance loss proceeds not disbursed at least quarterly.
The servicer is encouraged to implement the new policies immediately, but must implement no later than February 1, 2015.
Mortgage Release Incentive Payments
Servicing Guide D2-3.3-02, Fannie Mae Mortgage Release (Deed-in-Lieu of Foreclosure) has been updated as follows:
- Increased the borrower incentive payment for a completed Mortgage Release by up to $7,000 for a mortgage loan secured by any property type in eight jurisdictions. See D2-3.3-02, Fannie Mae Mortgage Release (Deed-in-Lieu of Foreclosure) for a complete list of eligible jurisdictions.
The servicer is encouraged to implement the additional borrower incentive payment for any Evaluation Notice issued for a Mortgage Release on or after December 10, 2014; however, the servicer is required to implement the additional borrower incentive payment when the servicer issues the Evaluation Notice for a Mortgage Release on or after February 1, 2015. The additional borrower incentive payment will expire on December 1, 2015; therefore, the servicer must have issued the Evaluation Notice for a Mortgage Release on or before December 1, 2015 for the borrower to receive the additional incentive payment.
NOTE: The Evaluation Notices Exhibit has been revised to indicate the incentive amount as a fill-able field to
comply with these changes.
- Clarified that the borrower incentive must be paid for a completed Mortgage Release with a 3-month or 12-month transition option within 30 days after the property becomes vacant.
Defined Expense Reimbursement Limits in F-1-6, Expense Reimbursement has been revised to correct a typo to the maximum reimbursable amount for an interior property inspection to $20/inspection.
The servicer should contact their Servicing Consultant, Portfolio Manager, or Fannie Mae’s National Servicing Organization’s Servicer Support Center at 1-888-FANNIE5 (1-888-326-6435) with any questions regarding this Announcement.
National Servicing Organization
Please click here to view the announcement online.
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.