Fannie Mae Servicing Guide E-4.1-01 — Notifying Fannie Mae of an Acquired Property

Fannie Mae Servicing Guide E-4.1-01 — Notifying Fannie Mae of an Acquired Property

Effective 2023-05-10 · publisher's stamp for this provision

E-4.1-01, Notifying Fannie Mae of an Acquired Property (05/10/2023) Introduction This topic contains the following: Overview Timing and Confirmation of the REOgram Review and Confirmation of the REOgram Monitoring the Status of Acquired Properties Overview Once the foreclosure sale is held and the property acquired, or a Mortgage Release has been executed, the servicer must notify Fannie Mae about the property acquisition. Two different notifications are required: the notice via confirmation (REOgram) that Fannie Mae has an acquired property to dispose of, and the notice of the removal status code that is part of the regular investor reporting process. See Reporting a Mortgage Release to Fannie Mae in F-1-22, Reporting a Workout Option via Fannie Mae’s Servicing Solutions System, as well as Reporting a Mortgage Loan Liquidation to Fannie Mae in Fannie Mae’s Investor Reporting Manual for additional information. Unless otherwise directed by Fannie Mae, a special servicing option MBS mortgage loan that has been referred to foreclosure or a reported Mortgage Release will be removed from the MBS pool (see A1-3-06, Automatic Reclassification of MBS Mortgage Loans). Timing and Confirmation of the REOgram Within one business day upon receipt of the daily REOgram notification from Property 360 for any REO property acquired through foreclosure sale or the servicer accepts the executed Mortgage Release, the servicer must review and confirm the REOgram notification in Property 360 for the following mortgage loans: all conventional mortgage loans; and any special servicing option RD mortgage loans, even though Fannie Mae may not gain clear title to the property until after expiration of any redemption period. The servicer must review and resolve any exceptions from the daily notification in Property 360 no later than three business days, if applicable. Note: In applicable jurisdictions, when the foreclosure is completed through a process under which title vests in Fannie Mae (or the servicer in appropriate cases) by operation of court order and there is no foreclosure sale, the servicer must review and confirm the REOgram within one business day of when the court’s order is entered on the docket. Fannie Mae may charge the servicer a compensatory fee for each day it is late in confirmation of the REOgram unless it determines there is a reasonable explanation for the delay as described in A1-4.2-02, Compensatory Fees for Delays in the Liquidation Process. Fannie Mae also may exercise any other available and appropriate remedies for late notifications. Review and Confirmation of the REOgram The servicer must review and confirm the REOgram utilizing Property 360 (see F-4-01, References to Fannie Mae's Website in accordance with Timing of the REOgram in E-4.1-01, Notifying Fannie Mae of an Acquired Property. With respect to all resale restrictions, the servicer represents and warrants that upon REOgram confirmation and transfer of the property to Fannie Mae, all required notices have been given in an appropriate manner, and that the foreclosure or Mortgage Release complies with the requirements of the applicable resale restriction agreement or shared equity transaction agreement. With respect to resale restrictions that do not survive foreclosure or acceptance of a Mortgage Release, or the expiration of any applicable redemption period, the servicer represents and warrants that all actions necessary to terminate the resale restrictions have been taken. Monitoring the Status of Acquired Properties After the servicer reviews and confirms an REOgram to Fannie Mae, it must monitor the property's status and ensure that it files its request for expense reimbursement in a timely manner, in accordance with the requirements and timeframes set forth in E-5-01, Requesting Reimbursement for Expenses.

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