Servicing Guide

Published September 18, 2018

E-4.3-04: Handling Eviction Proceedings (11/12/2014)

Fannie Mae will initiate eviction proceedings, and select and monitor the eviction attorney in connection with any property for which Fannie Mae has the property disposition responsibility.

Properties for which Fannie Mae has this responsibility include:

  • conventional mortgage loans that Fannie Mae held in its portfolio;

  • government mortgage loans that Fannie Mae held in its portfolio and that cannot be conveyed to the insurer or guarantor; and

  • government or conventional mortgage loans that were part of an MBS pool, including any that had a shared-risk special servicing option under which Fannie Mae would be responsible for property disposition efforts.

The foreclosure law firm must include certain language in the foreclosure complaint, judgment, pleadings, or other documentation in any state or jurisdiction in which the inclusion of such language will facilitate or execute the eviction process without causing an appreciable delay in the foreclosure. Fannie Mae requires the law firm to do this work as an integral part of the foreclosure process without charging an additional fee.

Fannie Mae's designated eviction attorney will contact the servicer or the law firm that handled the foreclosure to request any documents needed to initiate the eviction proceedings.

The following table lists servicer requirements for communicating with Fannie Mae's eviction attorney.

The servicer must...

Provide the necessary documentation to ensure that the initial “notice to vacate” can be served as soon as possible after the date of the property acquisition.

Return any documentation the eviction attorney subsequently requests as soon as possible, or request that the law firm that handled the foreclosure provide the documents directly to the eviction attorney within three business days.

Work with the eviction attorney to schedule the actual eviction.

For any case in which the servicer has the responsibility for disposing of an acquired property, the servicer or its eviction attorney must handle the eviction proceedings. Fannie Mae may impose sanctions, including daily compensatory fees, if there are unwarranted delays in processing these cases.

These cases include the following:

  • government mortgage loans that will be conveyed to the insurer or guarantor, and

  • conventional mortgage loans that were part of an MBS pool that had a shared-risk special servicing option under which the servicer would be responsible for property disposition efforts.

The following table describes servicer requirements when the servicer must retain an attorney to handle eviction proceedings.

The servicer must...

Contact Fannie Mae's SF CPM division (see F-4-03, List of Contacts) to obtain Fannie Mae's maximum allowable eviction fees and costs for the particular state.

Pay the eviction attorney promptly on receipt of a billing for attorney fees and eviction costs.

File the applicable Statement for Recipients of Miscellaneous Income (IRS Form 1099-MISC) with the IRS, at the appropriate time. See C-4.2-01, Filing IRS Forms 1099-A, 1099-C and 1099–MISC for additional information.

File a supplemental claim for any eviction fees and costs that are claimable under the MI claim, if applicable.

Aggressively monitor the eviction attorney to ensure that Fannie Mae promptly obtains possession of the property.

The servicer may request reimbursement for its payment of eviction attorney fees and related costs from Fannie Mae by submitting a request for expense reimbursement. The servicer must follow the procedures in F-1-05, Expense Reimbursement to do this.