With this Lender Letter Fannie Mae provides clarification of delivery requirements for subsequent purchasers of properties for which the original property owner received grant proceeds under The Road Home program. Specifically, Fannie Mae is providing clarification of our delivery requirements for situations where The Road Home program grant funds remain as an exception to the title policy. This Lender Letter also serves to remind lenders of the final expiration date of Fannie Mae's foreclosure notification requirements.

Clarification of the Transfer of Properties Involving The Road Home Program
Fannie Mae has received questions from lenders regarding the transfer of a property from the original property owner who received The Road Home grant funds, to a subsequent purchaser, where the title policy retains title exceptions due to The Road Home program Covenants. To clarify Fannie Mae's delivery requirements, lenders may deliver mortgage loans that include The Road Home Covenant, without a release of the Covenant or without affirmative title insurance coverage over the Covenant. Also, the title insurance policy for the mortgage loan delivered to Fannie Mae must not show a judgment lien in favor of the State of Louisiana or affiliated entities related to The Road Home grant program as a result of the program Covenants.

Expiration of Foreclosure Notification Requirements
As a reminder, Fannie Mae will not be extending the requirement beyond December 31, 2007, for servicers to obtain written approval before beginning or continuing a foreclosure action with respect to a mortgage loan secured by a property in Orleans, St. Bernard, and St. Tammany parishes in Louisiana, and Hancock, Harrison, and Jackson counties in Mississippi. After December 31, 2007, servicers should follow the foreclosure policy guidance contained in Part VIII of the Servicing Guide. If a property has sustained damage and repairs are not completed, servicers are reminded to submit Report of Hazard Insurance Loss (Form 176) to Fannie Mae before foreclosure with their recommendation regarding repair or disposition of the asset. As an exception to our standard foreclosure policy, servicers should not pursue foreclosure action if a homeowner is awaiting receipt of grant funds from The Road Home program.

Any general questions or comments regarding this Lender Letter should be directed to the respective Customer Account Manager. Any servicing related questions should be directed to the Customer Account Manager, Portfolio Manager, or the National Servicing Organization's Customer Care Center at 1-888-326-6438 (enter special code 7222 — Hurricane-related inquiries). 

 To view the Lender Letter in its entirety, please click here.

About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, OH  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 450 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.