Fannie Mae Announcement SVC 2010 08
June 30th, 2010
Fannie Mae issued Announcement SVC-2010-08 titled, Updates to the Requirements for Evaluating Borrowers for Fannie Mae Standard Mortgage Modification.
Announcement SVC-2010-08
Updates to the Requirements for Evaluating Borrowers for Fannie Mae’s Standard Mortgage Modification
Introduction
A general practice of servicers today is to consider borrowers for standard Fannie Mae mortgage loan modifications based on verbal financial information obtained from the borrower. Effective for all standard Fannie Mae mortgage loan modification solicitation offers on or after July 15, 2010, servicers must verify income, liabilities, and monthly expenses for all borrowers prior to granting a permanent standard Fannie Mae mortgage modification. Servicers may continue to process modifications that were previously evaluated based on stated income prior to July 15, 2010.
The policies contained in this Announcement update Part VII, Section 602.02: Modifying Conventional Mortgage Loans, of the Fannie Mae Servicing Guide. Except as indicated herein, all other requirements as outlined in Part VII, Section 602.02 pertaining to standard Fannie Mae mortgage loan modifications remain unchanged.
Except for servicers with a delegation of authority to approve modifications, Fannie Mae’s prior approval—and that of the mortgage insurer, if applicable—is required for all proposals to change the terms of a conventional first or second lien mortgage loan.
This Announcement covers the following topics:
- Borrower’s Financial Information
- Executing the Modification Agreement
- Reclassification or Removal of MBS Mortgage Loans Prior to Effective Date of Modification
- Redefault
- Escrow Accounts
- Reporting to Fannie Mae
To view the Announcement in its entirety, please click here
About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 700 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.