Fannie Mae has released Announcement 09-03 titled, "Miscellaneous Servicing Policy Changes".

Introduction

This Announcement contains several new and updated servicing policies, as itemized below:

• Delinquency Status Reporting to Begin at 30 Days Delinquent
• Establishment of a Standard Reimbursement Date
• New Requirements for a Business Continuity Plan
• No Negotiation of Preforeclosure Sales Commission
• Updated Property Preservation Matrix and Reference Guide

Delinquency Status Reporting to Begin at 30 Days Delinquent

Servicing Guide, Part VII, Section 602: Reporting Monthly Mortgage Status
Effective with the May 2009 reporting month, servicers will be required to report the
delinquency status code, delinquency status code effective date, and reason for delinquency code
for any mortgage loan that is one or more months (30 days or more) past due as of the last day of
the preceding month.
Servicers are reminded that beginning with the July 2009 reporting month, the scheduled
completion date for forbearances and repayment plans must be reported. Servicers are
encouraged to comply with the new delinquency status reporting requirements immediately, if
possible.

Establishment of a Standard Reimbursement Date

Servicing Guide, Part X, Section 302: 02: “Scheduled/Scheduled” Remittance Types
Fannie Mae will automatically reimburse the servicer for:

• delinquency advances of principal and interest, and
• reimbursement of unpaid principal balance of special servicing mortgage loans that were
  acquired by foreclosure. 

Reimbursement shall occur on the first business date following the 24th day of the same month
that the servicer

• remits the funds required to remove the mortgage loan from Fannie Mae’s active accounting
  records or a special servicing option MBS pool, and
• reports the applicable removal action code to Fannie Mae’s investor accounting system, provided that the removal action does not generate an exception.

This change is effective with the date of this Announcement.

New Requirements for a Business Continuity Plan

Servicing Guide, Part I, Chapter 3: Maintaining Eligibility
Lenders and servicers must implement and maintain a viable business continuity plan that
ensures the lenders’ or servicers’ ability to regain critical business operations in the event of a
disaster, or an unforeseen disturbance that would otherwise hinder the company’s ability to do
business.
The business continuity plan should ensure that the lender or servicer has adequate facilities and
staff to continue operations in the event of a business disruption or disaster; has a data recovery
plan in place that maintains and will restore critical electronic data and systems in the event of a
business disruption or disaster; and ensures that the lenders’ or servicers’ affiliates and thirdparty
vendors have business continuity plans as well. The plan should be comprehensive, written,
and accessible to critical staff in addition to periodically being tested and updated.

No Negotiation of Preforeclosure Sales Commission

Servicing Guide, Part VII, Section 504.02: Contacting Selected Borrowers
Effective March 1, 2009, closing of preforeclosure sales may not be conditioned upon a
reduction of the total commission to be paid to real estate agents to a level below what was
negotiated by the listing agent with the borrower, unless the fee exceeds 6 percent of the sales
price of the property in aggregate. Servicers are reminded that they must continue to obtain
any approvals that may be required by interested third parties in connection with preforeclosure
sales.

Updated Property Preservation Matrix and Reference Guide

Servicing Guide, Part VIII, Section 106: Property Maintenance and Management
The Property Preservation Matrix has been updated and expanded upon. It is included in the
Property Preservation Matrix and Reference Guide, which is available on eFannieMae.com
The cost limits outlined in the Matrix are effective March 1, 2009. Servicers should refer to the
Matrix for pre-approved allowable reimbursement amounts for property preservation work (e.g.,

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.