Fannie Mae issued Servicing Guide Announcement SVC-2018-01 (Announcement), setting forth updates to the Servicing Guide. As outlined in the Announcement, Fannie Mae: outlined the conditions under which Fannie Mae will approve a charge-off and lien release for delinquent first lien mortgage loans; eliminated the requirement to submit a borrower’s social security number with respect to REOgram notifications and non-delegated workout case submissions; streamlined the Selling and Servicing Guide by removing certain topics from Servicing Guide Part A pertaining to compliance with laws and responsible, questionable, and prohibited lender practices; removed the requirement to initiate or continue a property inspection when a borrower is performing under a Trial Period Plan; revised language to clarify that servicers must disburse the initial and any subsequent insurance loss proceeds checks based on the requirements in the Seller/Servicer Guide, without regard to whether supplemental loss proceeds will be received; and clarified that escrow accounts must be established at the beginning of a Trial Period Plan if the servicer is required to establish an escrow account in connection with a loan modification. The updated charge-off conditions are effective August 1, 2018 (however, servicers are encouraged to implement the changes immediately). The eliminated REOgram notification and non-delegated workout case submission requirements are effective March 24, 2018. All other updates are effective immediately.
Click here to view the Fannie Mae Servicing Guide Announcement SVC-2018-01
