The mortgage servicng guidelines for Fannie Mae loans were recently updated in the latest Servicing Guide Announcement SCV for 2016-2017. The changes reflect Fannie Mae Streamlined Modifications, Government Mortgage Loan Modifications, Processing a Workout Incentive Fees, and Allowable Foreclosure Attorney Fees.
For Fannie Mae Streamlined Modifications, mortgage servicers who extend an offer to a borrower – the borrower must reach out to the servicer verbally or in writing within 14 days of the date of the offer to let them know the borrower’s intent to accept the offer in order for the servicer to postpone the next foreclosure legal proceeding until the last day of the month in which the first payment is due.
Fannie Mae encourages servicers to implement these changes for streamlined modification ASAP, but the deadline is by November 1, 2016.
The Servicing Guide D2-3.2-06, which covers Government Mortgage Loan Modification Compliance with Requirements and Laws was updated stating that the mortgageg servicer must provide to HUD all mortgage loan modification and partial claim documents in a timely manner. It also state that if HUD issues a request for repayment of the incentive payment or partial claim, the servicer must repay the funds.
The Processing a Workout Incentive Fee for FHA mortgage loan modifications found in Servicing Guide F-1-29 was also changed. It states that a servicer must enter a closed case into HSSN for an incentive fee to be paid to the servicer. These changed are expected to by implemented immediately and no later than October 1, 2016.
Changes were also made on allowable foreclosure attorney fees for New York, suspending foreclosure proceedings for a streamlined modification offer, and servicing government mortgage loans.