FNMA SVC-2013-22 Miscellaneous Servicing Policy Changes
On October 30, Fannie Mae released Servicing Guide Announcement SVC-2013-22, subtitled Miscellaneous Servicing Policy Changes.
Servicing Guide Announcement SVC-2013-22
Miscellaneous Servicing Policy Changes
This Announcement describes servicing policy changes and updates for the following:
- Blanket or master insurance policy coverage of multiple unaffiliated projects
- Payment of principal forbearance for mortgage loan modifications
- Updates to property inspection reimbursements and requirements
- Acknowledgment of escalated cases
- Maintaining lender eligibility
Unless otherwise stated, all policy changes are effective immediately.
Blanket or Master Insurance Policy Coverage of Multiple Unaffiliated Projects
Servicing Guide Announcement SVC-2011-23: Condominium Insurance Requirements; Servicing Guide, Part II, Section 205: Coverage Required for Units in Condo Projects
On December 28, 2011, Fannie Mae published Announcement SVC-2011-23: Condominium Insurance Requirements, which established requirements for blanket or master insurance policies that cover multiple unaffiliated condo associations or projects. Fannie Mae is updating its Servicing Guide to prohibit the use of master or blanket insurance policies that cover multiple unaffiliated projects.
Servicers are required to work with the impacted borrowers to attempt to implement these new requirements for insurance policy renewals on or after February 1, 2014 for existing properties. If a homeowners’ association does not comply with these updated insurance coverage requirements, the units in the project will not be eligible to secure new loans to Fannie Mae.
Payment of Principal Forbearance for Mortgage Loan Modifications
Servicing Guide, Part VII, Section 602.02.05: Conventional Mortgage Loan Modification Terms; Announcement SVC-2013-16, Updates to Assistance in Disasters; Announcement SVC-2013-05, Streamlined Modifications, Conventional Mortgage Loan Modifications, and Outbound Communications
Currently the policy for Fannie Mae standard modifications, Streamlined Modifications, and mortgage loan modifications for mortgage loans affected by a disaster (for example, Streamlined Modifications Post Disaster Forbearance and Cap and Extend Modifications for Disaster Relief) requires that principal forbearance (also known as deferred principal) is payable upon maturity of the mortgage loan modification, sale or transfer of the property, or refinance.
Fannie Mae is updating this policy to require that principal forbearance is payable upon the earliest of the maturity of the mortgage loan modification, sale or transfer of the property, refinance of the mortgage loan, or payoff of the interest-bearing unpaid principal balance.
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.