Fannie Mae issued Servicing Guide Announcement SVC-2017-05 (Announcement), setting forth updates to the Servicing Guide. As outlined in the Announcement, servicers no longer have the authority to approve a Fannie Mae short sale. Fannie Mae will now communicate directly with the borrower’s real estate agent through Fannie Mae’s HomePath for Short Sales to negotiate the terms of the short sale. The Servicing Guide updates also eliminate the requirement for servicers to pay homeowner’s or condominium association fees and assessments, or property taxes for properties acquired through foreclosure (unless otherwise directed to do so by Fannie Mae). In addition, the updated Servicing Guide: allows servicers to use recording requirements set forth under the Fannie Mae Flex Modification program for all Fannie Mae mortgage loans permanently modified after December 14, 2016; removes the Fannie Mae Streamlined Modification Post Disaster Forbearance program from the Servicing Guide (the program will now be incorporated within the Flex Modification program); clarifies policy and procedures for recording mortgage loan satisfactions and requesting reimbursement; removes the 30-, 60-, 90+- day delinquency and REO metric as a measure of servicer performance; and deletes duplicative content from Chapter A2-6 (regarding maintenance of custodial documents) and replaces it with references to the applicable content in the Selling Guide. The Servicing Guide updates generally went into effect June 21, 2017. However, the revocation of a servicer’s authority to approve a Fannie Mae short sale is effective August 1, 2017. The elimination of the requirement to pay homeowner’s or condominium association fees and assessments, and property taxes for properties acquired through foreclosure is effective for all mortgage loans with a foreclosure sale date or mortgage release date occurring on or after August 1, 2017. In addition, the updated policy and procedure for recording mortgage loan satisfactions and requesting reimbursement is effective September 1, 2017 (although servicers are encouraged to implement the policy immediately).
Click here to view the Fannie Mae Servicing Guide Announcement
