Five Brothers

Fannie Mae Servicing Guide Announcement SVC-2013-25: Bankruptcy and Foreclosure Attorney Fees and Other Reimbursable Expenses


Servicing Guide Announcement SVC-2013-25

December 11, 2013

 

Bankruptcy and Foreclosure Attorney Fees and Other Reimbursable Expenses

This Announcement describes policy updates regarding

  • allowable bankruptcy attorney fees,
  • allowable foreclosure attorney fees, and
  • other reimbursable expenses related to foreclosure and bankruptcy matters.

 

Allowable Bankruptcy Attorney Fees

Servicing Guide, Part VII, Section 501.03: Allowable Attorney Fees

Fannie Mae is updating the allowable bankruptcy attorney fees it will reimburse servicers. Fannie Mae is also adding or clarifying

  • the legal services that are encompassed within each allowable fee,
  • the services that will require excess fee approval from Fannie Mae in order to reimburse the servicer, and
  • the services that are not reimbursed by Fannie Mae.

 

The Allowable Bankruptcy Attorney Fees exhibit on Fannie Mae’s website has been updated to reflect the new allowable bankruptcy attorney fees and services. The fees highlighted in bold in the updated exhibit have been added or updated with this Announcement.

 

Effective Date

The bankruptcy attorney fee updates and legal services described in this Announcement and available in the Allowable Bankruptcy Attorney Fees exhibit are applicable to all bankruptcy legal services rendered on or after November 1, 2013.

 

Allowable Foreclosure Attorney Fees

Servicing Guide, Part VIII, Section 106.04: Attorney (or Trustee) Fees

This Announcement updates Fannie Mae’s maximum allowable foreclosure attorney fees for all Fannie Mae mortgage loans secured by properties located in the States of New York and Washington. These fees for New York and Washington include all steps required to complete a judicial or non-judicial foreclosure, as the case may be, other than fees for mediations and settlement conferences.

 

The updated Allowable Foreclosure Attorney Fees exhibit is available on Fannie Mae’s website. The fees highlighted in bold in the updated exhibit have been added or updated with this Announcement.

 

For purposes of this Announcement, the term “active” means that a foreclosure matter has not yet gone to foreclosure sale, and has not been concluded by some other event, such as a Mortgage Release™ (deed-in-lieu of foreclosure), short sale, mortgage loan modification, payoff, or reinstatement.

 

Effective Date

State of New York: This fee applies to all matters referred to counsel for initiation of foreclosure on or after June 1, 2011, by the present or prior servicer, provided the matter is still active as of the date of this Announcement.

State of Washington: This fee applies to all matters referred to counsel for initiation of foreclosure on or after September 1, 2012, by the present or prior servicer, provided the matter is still active as of the date of this Announcement.

 

Please click here to view the online Announcement in its entirety