Fannie Mae issued Servicing Guide Announcement SVC-2019-07 (Announcement), updating requirements relating to the cancellation of property and flood insurance following a foreclosure sale. Per the Announcement, servicers are now required to cancel any property or flood insurance policy (if applicable) within 14 days after a foreclosure sale or the acceptance of an executed Mortgage Release (regardless of whether there is an applicable waiting period such as a redemption or court confirmation period). Fannie Mae also eliminated the requirement to complete a property inspection within 15 days after the foreclosure sale and to file a flood insurance claim (when applicable). The updated requirements are effective February 1, 2020 (servicers are, however, encouraged to implement the updated requirements immediately).
Click Here to View the Fannie Mae Servicing Guide Update SVC-2019-07
