Fannie Mae Issues New Servicing Standards for Delinquent Mortgages

During the first 120 days of delinquency, homeowners will be contacted both verbally and in writing to complete a mortgage modification or other solution to remain in the home, or enter into an arrangement to exit the home without a foreclosure. Fannie Mae says contacting homeowners early in the default process is one of the most important factors in reaching a resolution that avoids foreclosure.


http://www.dsnews.com/articles/fannie-mae-issues-new-servicing-standards-for-delinquent-mortgages-2011-06-06

For loans that do not qualify for a loss mitigation option, Fannie Mae has updated the maximum number of allowable days for completing foreclosure in each jurisdiction. The new timelines are effective for all loans referred to a foreclosure attorney as of January 1, 2011.
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2011/svc1107.pdf


Compensatory fees will be assessed for failing to meet the specified timeframe, and will be based on the unpaid principal balance of the mortgage loan, the applicable pass-through rate, the length of the delay, and any additional costs that are directly attributable to the delay.

The jurisdiction-specific foreclosure timelines have not yet been published but will be made available on the GSE’s business site on June 10th.