Fannie Mae issued Servicing Guide Announcement SVC-2019-06, updating maximum allowable foreclosure and bankruptcy attorney fees. Per the Announcement, Fannie Mae updated the maximum allowable foreclosure attorney fees in all jurisdictions except ME, NH, WA (foreclosure for e-Notes only), HI, IA (nonjudicial foreclosures), and SD.
Fannie Mae also updated the maximum allowable bankruptcy attorney fees for the following legal services:
- Motion for relief for Chapter 7, 11, 12 and 13 bankruptcy cases;
- Proof of claim preparation and plan review for Chapter 11, 12 and 13 bankruptcy cases;
- Objection to plan for Chapter 12 and 13 bankruptcy cases; and
- Response to final cure payment notice for Chapter 13 bankruptcy cases.
In addition, Fannie Mae:
- Created the Bankruptcy Notification Template to clarify information that servicers are required to provide to Fannie Mae in connection with bankruptcy filings identified after the foreclosure sale date;
- Updated document custodian timing requirements for post-delivery servicing transfers; and
- Incorporated previously announced maximum servicing fees for fixed-rate mortgage loans into the Servicing Guide.
The updated maximum allowable foreclosure attorney fees apply to all matters referred to counsel for initiation of foreclosure proceedings (regardless of referral date) if the matter is still active as of September 11, 2019. The updated maximum allowable foreclosure attorney fees must be implemented no later than December 1, 2019 (servicers are, however, encouraged to implement the updated fees immediately). The updated maximum allowable bankruptcy attorney fees apply to all legal services performed on or after December 1, 2019. The updated document custodian timing requirements for post-delivery servicing transfers apply to transfers that occur on or after January 1, 2020 (servicers are, however, encouraged to implement the change immediately). All other changes are effective immediately.
Click Here to View the Fannie Mae Servicing Guide Announcement SVC-2019-06
