Fannie Mae issued Servicing Guide Announcement SVC-2018-10 (Announcement), setting forth amendments to foreclosure time frames and Fannie Mae’s compensatory fee process. Per the Announcement, Fannie Mae increased the maximum number of allowable days within which routine foreclosure proceedings are to be completed for the following jurisdictions: Alabama, Arizona, Idaho, Maine, Maryland, Michigan, Missouri, Nebraska, New Jersey, New York, New York City, Nevada, Tennessee, Utah, Virginia, Vermont, and West Virginia. Fannie Mae also decreased the maximum number of allowable days within which routine foreclosure proceedings are to be completed for the following states: Connecticut; Delaware; and Oregon. In addition, Fannie Mae replaced the current monthly compensatory fee process with a process that utilizes Fannie Mae’s Servicer Total Achievement & Rewards (STAR) Program performance management framework. Through the STAR Program, compensatory fees will be assessed if Fannie Mae identifies a chronic issue with a servicer’s compliance with foreclosure time frames and the servicer does not meet the terms of a performance improvement plan designed to remediate the issue. The amended foreclosure time frames and compensatory fee process are effective January 1, 2019.
Click Here to View the Fannie Mae Servicing Guide Announcement SVC-2018-10
