After the foreclosure sale, or in applicable foreclosure actions where there is no foreclosure sale, after title is transferred by court order, the servicer must remit the insurance loss proceeds through the CRS. A list of special remittance codes and their uses can be found in the CRS User Guide. When the servicer receives an unearned premium refund, it may either remit the refund to Fannie Mae as a special remittance or, if the servicer has outstanding foreclosure expenses that Fannie Mae has not reimbursed, the servicer may “net” the unearned premium refund out of the next request for expense reimbursement it submits for that mortgage loan.
If, for any reason, a property insurance carrier refuses to return the unearned premium refund to the servicer, the servicer must include a comment to that when it submits its final request for expense reimbursement.
When the servicer requests reimbursement for a property insurance premium that it has advanced for an acquired property, Fannie Mae will calculate the amount of unearned premium refund that should be due. Fannie Mae will consider its calculated unearned premium refund amount as an unremitted refund that is still due if
the servicer's final request for expense reimbursement does not reflect the unearned premium refund as a credit, or
the servicer does not explain why the insurance carrier has not sent the servicer the unearned premium refund.
The following table provides references to Announcements that are related to this topic.