Highlights from Announcement SVC-2010-13
Based upon the latest review and the passage of the Florida Supreme Court Administrative Order of December 2009 requiring mediation before a summary judgment or foreclosure sale can be held, Fannie Mae will now require that servicers assign delinquent mortgage loans secured by properties in Florida to an attorney from Fannie Mae’s Retained Attorney Network for mediation prior to the initiation of foreclosure proceedings.
The policies set forth in this Announcement and the pre-file mediation process posted on eFannieMae.com (Process Requirements), including the accelerated timeline for breach letter and HAMP compliance, will be implemented no later than January 1, 2011. However, for mortgage loans that are newly referred on or after September 15, 2010 by the servicer to the Retained Attorney Network to commence foreclosure proceedings, the attorney must screen the mortgage loan for eligibility for pre-file mediation and, if it is eligible, proceed in accordance with this Announcement and the Process Requirements.
The Borrower’s Request for Lender Documentation is provided to the borrower by the Mediation PM. Pursuant to the various circuit court orders, the borrower can request the following documentation:
− Documentary evidence that the lender is the owner and holder in due course of the note and mortgage sued upon.
− A history showing the application of all payments by the borrower during the life of the mortgage loan (i.e., a loan payment history for the borrower).
− A statement of the servicer’s position on the current net present value of the mortgage loan. If the servicer can calculate net present value in accordance with HAMP methodology for calculating net present value (regardless of whether a borrower is eligible for HAMP), then the servicer shall provide the net present value from this calculation to the borrower. If the servicer cannot calculate net present value in accordance with HAMP methodology (regardless of whether a borrower is eligible for HAMP), the servicer must explain in writing that the net present value calculation requires the borrower’s financial documents and cannot be calculated until the financials have been received. Upon receipt of the borrower’s financial documents, the servicer shall calculate the net present value and send the calculation to the borrower and attorney.
− The most current appraisal of the property available to the servicer. (Note: If an appraisal was required pursuant to the underwriting performed at origination and no other appraisal was subsequently obtained, the servicer shall provide the origination appraisal. The servicer does not need to obtain a new appraisal. If no appraisal was ever obtained, the servicer must explain in writing to the borrower that an appraisal was never obtained.)
The servicer must provide all documents requested by the borrower pursuant to the Borrower’s Request for Lender Documentation to both the borrower and the Fannie Mae-retained attorney within 15 calendar days of receipt of the request from the Mediation PM.
Be sure to read the entire announcement below…