The servicer is not authorized to charge the borrower fees relating to the following activities:
handling borrower disputes;
facilitating routine borrower collections;
arranging repayment or forbearance plans;
sending borrowers notices (sometimes called “demand” or “breach” letters) relating to nonpayment of principal, interest, taxes, or insurance in advance of a formal acceleration notice that matures the mortgage loan principal balance and begins the foreclosure process; and
updating the servicer’s records to “reinstate” a mortgage loan that has been brought current.
Also, the servicing fee generally is not intended to encompass certain additional work that the servicer performs at Fannie Mae’s request, e.g.
performing certain property inspections on mortgage loans in default,
handling certain workout options for which Fannie Mae has agreed to compensate the servicer, or
engaging in property preservation activities.
The servicing fee generally is not intended to encompass certain additional work (special services) that the servicer performs at the borrower’s request or on the borrower’s behalf. Special services include work related to:
a change in ownership of the security property,
replacement of insurance policies,
a release of the security,
providing expedited service via fax,
providing more than one payoff statement in a short period of time (or even a single payoff statement if applicable law expressly permits a borrower fee),
providing duplicate copies of mortgage loan documents,
accepting a “phone pay” payment, and
consummating the assumption or modification of a mortgage loan.
The following table describes additional fee assessment guidelines based on activities for ARM loan adjustments, assumptions, or modifications.
ARM loan adjustments
may not charge fees for the interest rate or payment changes that are required periodically for ARM loans, although it may charge a processing fee to cover the administrative costs of converting an ARM loan to a fixed-rate mortgage loan, limited to $100 for most ARM plans or $250 for ARM plans that include a monthly conversion option.
transfers of ownership, assumptions, and releases of liability of conventional mortgage loans
must limit the assumption fee, although out-of-pocket expenses for processing the transaction —such as the cost of the credit report —may be charged at actual cost. Fannie Mae considers the following fee schedule to be reasonable; however, if the servicer’s costs do not warrant these fees, it should charge lower fees:
The servicer must advise Fannie Mae of any fees it collects for a transfer of ownership as part of the monthly activity information it provides through the Fannie Mae investor reporting system.
assumptions of FHA or VA mortgage loans
must follow FHA or VA requirements regarding the maximum allowable assumption fees for these government mortgage loans.
must refer to the Home Retention Workout Options section of D, Providing Solutions to a Borrower for allowable servicing fees, costs, or charges.
The following table provides references to Announcements that are related to this topic.
|Announcement SVC-2017-10||November 8, 2017|