Servicing Guide

Published September 18, 2018

F-5-01: Servicing Guide Change Control Log (09/18/2018)

This topic summarizes the updates made to the Servicing Guide during the current calendar year.

Change Control Log

The following table provides a description of the updates.

Announcement Topic Description
SVC-2018-06, Servicing Guide Updates (09/18/2018) Relieving Servicers of Additional Responsibilities for Paying Escrow-Related Expenses on Acquired Properties Relieves servicers of the requirement to pay ground rents, co-op fees and assessments, and property taxes for certain properties in Fannie Mae’s REO inventory.

Impacted topics:

Impacted Manual:

Delegating Texas Constitution Section 50(a)(6) for Fannie Mae Cap and Extend Modification for Disaster Relief Updates the Fannie Mae Cap and Extend Modification for Disaster Relief to remove the requirement that the servicer must obtain Fannie Mae’s prior approval for a mortgage loan modification of a Texas Constitution Section 50(a)(6) loan.

Impacted topic:

Updates to Post-Delivery Servicing Transfer Requirements Clarifies the requirements for post-delivery servicing transfers, including preparing mortgage loan assignments and transfers involving eMortgage loans.

Impacted topics:

Updates to Evaluation Notices and Solicitation Letters Updates the Evaluation Notices and Solicitation Letters used to solicit and communicate decisions to borrowers in connection with a workout option.

Impacted topics:

Various Forms and Exhibits impacted as well.

New Mexico and Hawaii Allowable Foreclosure Attorney Fees Updates the foreclosure allowable attorney fees for New Mexico and Hawaii.

Impacted Exhibit:

Liability and Fidelity Insurance Updates and Guide Alignment Streamlining, aligning, and consolidating the project liability and fidelity insurance requirements into the Selling Guide.

Impacted topics:

Miscellaneous Revision Incorporates changes to Fannie Mae Flex Modification as announced in LL-2017-09.

Impacted topic:

Miscellaneous Revision The Servicing Guide was reorganized to more accurately reflect our automatic reclassification process for MBS mortgage loans.

Impacted topics:

Announcement Topic Description
SVC-2018-05, Servicing Guide Updates (08/15/2018) Mortgage Insurance Claim Process Updates These changes streamline the mortgage insurer’s calculation of the expense portion of a mortgage insurance (MI) claim, reducing the level of effort required by servicers to settle MI claims by retiring the requirements to file supplemental claims and submit claim appeals related to claims filed to participating insurers. Additionally, Fannie Mae is discontinuing the MI curtailment billing process for claims settled using the MI Factor.
Updates to Servicer Responsibilities for Urgent Property Conditions Clarify the servicer’s responsibilities for addressing urgent property conditions when the borrower refuses to make urgent repairs.

Impacted topics:

Impacted Matrix:

Insured Loss Repair Inspections Reimbursement Update Increases the maximum reimbursement limit for insured loss repair inspections from $30 to $60 per inspection.

Impacted topic:

Notification of Law Firm Matter Transfers Change in the timing of notifying Fannie Mae of default-related legal matter transfers.

Impacted topics:

Miscellaneous Revision Update policy to allow reimbursement for disaster inspections on current mortgage loans, when needed, to confirm property damage in the event of a disaster (making permanent the temporary changes in LL-2017-07).
SVC-2018-04, Servicing Guide Updates (06/13/2018) Updates to Forbearance Workout Options Simplify our forbearance policies by introducing a new consolidated forbearance plan to assist borrowers who are experiencing a short-term hardship and by simplifying our policy on disaster assistance.

Various topics impacted.

Reimbursement of Escrow Advances Update time frames and guidelines for reimbursing escrow advances.

Impacted topics:

Updates to SCRA Reporting Updating when the SCRA Reporting and Disbursement Request Form (Form 1022) must be submitted to Fannie Mae.

Impacted topics:

Updates to the Establishment of Drafting Arrangements for Custodial Funds Revise the cash management process for establishing drafting arrangements for custodial funds.

Impacted topics:

Impacted Manual:

Vacancy Notice Posting Reimbursement Establish a new $10 reimbursement limit for vacancy notice postings.

Impacted topics:

Incorporation of Imminent Default Evaluation for a Conventional Mortgage Loan Modification Incorporates the imminent default evaluation for a conventional mortgage loan modification into the Servicing Guide.

Impacted topics:

Impacted Form:

Miscellaneous Revision Incorporates the Software Subscription Agreement into the Selling Guide and updates reference to the document within the Servicing Guide.

Impacted topic:

SVC-2018-03, Servicing Guide Updates (04/11/2018) Updates to Welcome Call Requirements for Concurrent and Post-Delivery Servicing Transfers Removes the requirements that the transferee servicer initiate welcome calls to borrowers within five days after transfer and make at least three welcome call attempts by end of month following the file transfer unless contact is made with the borrower or a payment is received.

Impacted topics:

Changes to Servicer Requirements Regarding Escrow Shortages Allows more flexibility for spreading escrow shortages including subsequent shortages associated with loan modifications.

Impacted topic:

SVC-2018-02, Servicing Guide Updates (03/14/2018) Updates to the Servicing Requirements for HomeStyle® Renovation Mortgage Loans These servicing policy changes correspond with the Selling Guide update published on February 27, 2018 related to HomeStyle® Renovation mortgage loans.

Impacted topics:

Impacted Form:

Non-Judicial Foreclosure Fees Updates the maximum allowable foreclosure attorney fee for select non-judicial states.

Impacted Exhibit:

SVC-2018-01, Servicing Guide Updates (02/14/2018) First Lien Mortgage Loan Charge-Offs Align policy with Freddie Mac at the direction of FHFA to describe the limited circumstances in which first lien mortgage loan charge-offs will be approved.

Impacted topics:

Impacted Manual:

REOgram and Non-delegated Workout Submission Changes Relieves servicers of the requirement to provide social security data when submitting REOgrams.

Impacted topic:

Consolidation of Compliance with Laws and Responsible Lending Consolidates policies related to compliance with laws and responsible lending practices.

Various topics have been impacted.

Fannie Mae Cap and Extend Modification Update Incorporating changes to Fannie Mae Cap and Extend Modification for Disaster Relief announced in LL-2017-07.

Impacted topics:

Property Inspection Clarification Clarify when property inspections must be initiated or continued.

Impacted topic:

Seller/Servicer Internal Audit and Management Controls Update Updates to seller/servicer internal audit and management controls.

Impacted topic:

Insured Loss Proceeds Disbursement Clarification Clarified the requirements related to disbursing loss drafts proceeds when multiple loss draft checks are received.

Impacted topic: