Fannie Mae issued Servicing Guide Announcement SVC-2018-05 (Announcement), setting forth updates to the Servicing Guide. Per the Announcement, Fannie Mae has partnered with certain mortgage insurers to streamline mortgage insurance claims processing. Participating mortgage insurers will now process all submitted claims using an algorithm, known as the MI Factor, to estimate expenses. If the claim is settled using the MI Factor, the servicer will no longer be required to submit supplemental claims submissions or claim appeals to the mortgage insurer. Fannie Mae also discontinued the curtailment billing process for claims settled using the MI Factor. Claims settled with mortgage insurers not participating in the MI Factor process will continue to require supplemental claims. Additionally, claim appeals will continue to be required as needed, and Fannie Mae’s curtailment billing process will continue. In addition, Fannie Mae: clarified servicer responsibilities in the event the value of a property may be in jeopardy because of its condition and the borrower refuses to make emergency repairs to the property (or refuses to allow the servicer to have such repairs made); updated the Property Preservation Matrix and Reference Guide to provide more specific and detailed procedures for inspecting and preserving properties that have been impacted by a disaster event; updated Form 629 (Request for Approval of Servicing or Subservicing Transfer) to require the name of the document custodian for each mortgage loan included in the transfer; and revised the time period within which a servicer must notify Fannie Mae in the event the servicer transfers an aggregate of 30 or more default-related matters (within the past 6 months) from one law firm to a different law firm in the same state. The streamlined mortgage insurance claims process is effective for claims filed on or after October 1, 2018. The revised notice requirement for law firm transfers is effective October 1, 2018 (servicer are, however, encouraged to implement the change immediately). All other changes are effective immediately.
Click Here to View the Fannie Mae Servicing Announcement SVC-2018-05
