Fannie Mae has updated its Servicing Guide to clarify Fannie’s policy and requirements around foreclosure related title costs. (Servicing Guide Announcement SVC-2016-05)
Effective September 1, 2016, Fannie Mae will not reimburse the servicer for title costs that exceed the maximum title allowable cost, for the life of default, unless the law firm retained by the servicer obtains the appropriate excess title cost approval from Fannie Mae. Fannie Mae now has a process in place for law firms retained by the servicer to request approval for excess title costs.
Updated Servicing Guide Topics: Servicing Guide E-5-04, Allowable Foreclosure Fees; Servicing Guide E-5-07, Other Reimbursable Default-Related Legal Expenses; Servicing Guide F-1-06, Expense Reimbursement; Servicing Guide F-4-03, List of Contacts Effective Date This policy is effective for all title costs incurred on or after September 1, 2016. The servicer will be required to provide the date the title cost was incurred when submitting claims for reimbursement.