Currently, the Fannie Mae Servicing Guide grants servicers, acting in their own names, the authority to represent Fannie Mae’s interests in foreclosure proceedings as holder of the mortgage note. With this Announcement, Fannie Mae is clarifying that the ability of the servicer to represent Fannie Mae’s interests as holder of the mortgage note also applies to bankruptcy, probate, and other legal proceedings.

 In order to more fully describe Fannie Mae’s policies with regard to the servicer’s note holder status, a new section of the Servicing Guide has been created.

The new section provides further details on;

• The transfer of temporary possession to the Servicer
• Procedures to acquire physical possession of the note by the Servicer
• The reversion of possession to Fannie Mae at the conclusion of the servicer’s representation of Fannie Mae’s interests in the foreclosure, bankruptcy, probate, or other legal proceeding, or upon the servicer ceasing to service the loan.

Additionally Fannie Mae is amending the existing Servicing Guide section that currently references the note holder provision for foreclosures.

Amendments pertain to the following areas;

• Foreclosure Proceedings for First Mortgage Loans
• Foreclosure Proceedings for Second Mortgages
• Physical Possession of the Note by the Servicer

Any questions regarding this Announcement should be directed to the respective Servicing Consultant, Portfolio Manager, or Fannie Mae’s National Servicing Organization's Servicing Solutions Center at 1-888-326-6438.

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 500 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.