On July 30, Fannie Mae released a Servicing Notice subtitled Adverse Action Notices, Allowable Foreclosure Attorney Fees, Evaluation Model Clauses, and the Master Custodial Agreement.

Servicing Notice

Adverse Action Notices, Allowable Foreclosure Attorney Fees, Evaluation Model Clauses, and the Master Custodial Agreement

This Servicing Notice reminds servicers of the requirements pertaining to Adverse Action Notices and notifies servicers of updates to the Allowable Foreclosure Attorney Fees Exhibit, Evaluation Model Clauses, and the Master Custodial Agreement (Form 2003).

Adverse Action Notice

As a reminder, in accordance with the Servicing Guide, Part VII, Section 602.02.01: Mortgage Loans in Imminent Default, Fannie Mae requires the servicer to send an Adverse Action Notice to a borrower within 30 days after Fannie Mae advises the servicer through HomeSaver Solutions^® Network (HSSN) of the declination of the modification request if:

• the servicer submitted the request to Fannie Mae through HSSN for a mortgage loan modification decision, and
• the borrower was current on the date that Fannie Mae advised the servicer that Fannie Mae declined the mortgage loan modification request.

The servicer must:

• maintain a copy of the Adverse Action Notice in the mortgage loan servicing file, and
• provide Fannie Mae a copy of the Adverse Action Notice the servicer sends to the borrower by uploading it to HSSN.

Fannie Mae provides a model Adverse Action Notice (Form 182) on Fannie Mae’s website. If a servicer elects to use its own equivalent form of Adverse Action Notice, the content must be in compliance with Regulation B (12 C.F.R. § 1002.9) and in the same form and substance as the model language in, and consistent with the instructions for, Form 182. At a minimum, if the servicer elects to use its own Adverse Action Notice, it must inform the borrower of all of the following:

• Fannie Mae as the owner of the mortgage loan reviewed the mortgage loan modification request.
• Fannie Mae’s contact address is: 3900 Wisconsin Ave, NW, Washington, DC, 20016-2892.
• The reason Fannie Mae did not approve the request, in addition to the reason the servicer did not approve the request.
• The credit reporting agency and contact information, if applicable.

An Adverse Action Notice is not required if the servicer offers the borrower a counteroffer, such as a forbearance or other payment plan, and the borrower accepts the counteroffer within the 30-day period.

Allowable Foreclosure Attorney Fees

Fannie Mae is updating the maximum allowable foreclosure attorney fees for all Fannie Mae mortgage loans secured by properties located in the state of Pennsylvania and the District of Columbia. For purposes of this Notice, the term “active” is defined as a foreclosure matter that has not yet gone to foreclosure sale, and has not been concluded by some other event, for example: a Mortgage Release™, short sale, mortgage loan modification, payoff, or reinstatement. The updated Allowable Foreclosure Attorney Fees Exhibit is available on Fannie Mae’s website.

Pennsylvania

The new maximum allowable attorney fee for judicial foreclosures in the State of Pennsylvania is $2,350.

This fee applies to all matters referred to counsel for initiation of foreclosure on or after
June 1, 2012, by the present or prior servicer, provided the matter is still active as of the date of this Servicing Notice.

District of Columbia

The new established maximum allowable attorney fee for judicial foreclosures in the
District of Columbia is $2,250.

• All new Fannie Mae foreclosures in the District of Columbia must be commenced
  as judicial foreclosures.
• All pending Fannie Mae non-judicial foreclosures in the District of Columbia that
  have not proceeded to sale must be dismissed and converted to judicial foreclosures.

This fee applies to all matters referred to counsel for initiation of foreclosure on or after
April 1, 2014, by the present or prior servicer, provided the matter is still active as of the date of this Servicing Notice.

NOTE: Hawaii’s non-judicial fee has been updated to “N/A” to reflect the Servicing
Notice, dated June 10, 2011, requiring all new Fannie Mae foreclosures in Hawaii
to be commenced as judicial foreclosures.

Evaluation Model Clauses

Fannie Mae has updated the Evaluation Model Clauses document on
Fannie Mae’s website, containing Evaluation Notices for all appropriate outcomes
when evaluating a borrower for a workout option.

The Evaluation Model Clauses were revised to prohibit a foreclosure referral during the
period of time designated for the borrower to accept an offer of a workout solution
based on the evaluation of a complete Borrower Response Package in accordance
with the Servicing Guide. In addition, Fannie Mae developed two new Evaluation
Model Clauses to document Fannie Mae’s Standard Modification and Streamlined
Modification for borrowers whose mortgage loans have pre-modified mark-to-market
loan-to-value ratios less than 80%.

Master Custodial Agreement

Fannie Mae has updated the Master Custodial Agreement (Form 2003) to include new
contact information as well as updated Guide and Fannie Mae website references.
Servicers must begin using the updated Form 2003 immediately.

Please click here to view the online notice.

About Safeguard 
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.