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Fannie Mae Updates Maximum Allowable Foreclosure-Related Fees
On January 11, Fannie Mae published Service Guide Announcement SVC-2012-2, which updates limits for certain foreclosure-related fees. Effective January 1, 2012, Fannie Mae increased the maximum allowable fees for certain pre-foreclosure mediation services performed on loans secured by properties in Florida. Fannie Mae also announced an increase in the maximum allowable foreclosure attorney fees for mortgage loans, participation pool mortgage loans, and MBS mortgage loans serviced under the special servicing option secured by properties located in Hawaii, Iowa, Kentucky, Louisiana, New Mexico, North Dakota, Oklahoma, South Dakota, and Wisconsin. While most of these increased allowable attorney fees are effective for loans referred to an attorney on or after January 1, 2012, the Hawaii fee changes apply to loans referred on or after May 1, 2011.
Fannie Mae Issues Lender Letter Regarding HOPE Hotline Counseling
On January 11, Fannie Mae issued Lender Letter LL-2012-1, reminding servicers to continue to refer borrowers to the Homeowner’s HOPE Hotline, and noting that Fannie Mae now will pay counseling fees directly. For cases initiated prior to January 1, 2012, servicers must invoice counseling fees no later than March 31, 2012 and must submit requests for reimbursement of invoiced fees no later than April 30, 2012.
Fannie Mae CEO Announces Resignation
Fannie Mae CEO Michael Williams today announced his plans to resign. Mr. Williams will continue to serve in his current role until the Fannie Mae board of directors appoints a successor.
Freddie Mac, Fannie Mae Announce Unemployment Forbearance Programs
On January 6, Freddie Mac published Bulletin 2012-2, which allows servicers to offer eligible borrowers a short-term unemployment forbearance period, and the possibility of an extended unemployment forbearance period, if needed. On January 11, Fannie Mae followed with Servicer Guide Announcement SVC-2012-01, implementing a substantially similar program. Under the new programs, servicers may suspend or reduce an eligible borrower’s mortgage payments for a period of six months. With approval from Freddie Mac or Fannie Mae, respectively, servicers also may extend the six-month forbearance period for up to an additional six months, provided that the period does not extend beyond a date that would cause the delinquency to exceed twelve months. Further, following an unemployment forbearance period, a borrower may be re-evaluated for a new Home Affordable Modification Program (HAMP) or non-HAMP trial-period plan if the borrower was complying with the terms of the existing trial plan before obtaining unemployment forbearance. Under the Freddie Mac program, servicers must incorporate unemployment forbearance into their operations by February 1, 2012, but servicers have until March 1, 2012 to comply under the Fannie Mae program.
Fannie Mae and Freddie Mac Announce Guaranty Fee Increase
On December 30, Fannie Mae and Freddie Mac announced a 10 basis point increase of the guaranty fee charged for all mortgages delivered for securitization on or after April 1, 2012. The credit fee on whole loans will also increase by the same amount. The increases are required by the Temporary Payroll Tax Cut Continuation Act enacted on December 23, 2011, and a subsequent directive from the Federal Housing Finance Agency. The Act uses the increase in fees to cover fiscal costs associated with a two-month extension of a payroll tax reduction.
Click here for a copy of the Freddie Mac announcement; click here for the Fannie Mae announcement.