Fannie Mae issued Servicing Guide Announcement SVC-2018-08 (Announcement), setting forth updates to the Servicing Guide. Per the Announcement, Fannie Mae: simplified short sale and Mortgage Release (deed-in-lieu of foreclosure) requirements by aligning eligibility criteria and streamlining documentation requirements; eliminated Mortgage Release case delegation and now requires servicers to submit all cases to Fannie Mae; extended the amount of time servicers have to make outbound call attempts and send breach letters to delinquent borrowers; and now allows servicers to order initial property inspections on the 60th day of delinquency (rather than the 45th day of delinquency), when certain requirements are met. The updated timing requirement for ordering the initial property inspection following a borrower’s delinquency is effective January 1, 2019 (servicers are, however, encouraged to implement the update immediately). The eliminated Mortgage Release case delegation is effective for all cases evaluated on or after March 1, 2019 (servicers are, however, encouraged to implement the update immediately). The extended timeframe for making outbound call attempts and sending breach letters is effective March 1, 2019 (servicers are, however, encouraged to implement the extended timeframes immediately). The simplified short sale and Mortgage Release requirements are effective September 1, 2019 (servicers are, however, encouraged to implement the simplified requirements immediately).
Click Here to View the Fannie Mae Servicing Guide Announcement SVC-2018-08
